Document and Entity Information Document - shares	3 Months Ended
Document and Entity Information Document - shares	Mar. 31, 2018	May 03, 2018
Document and Entity Information
Entity Registrant Name	LEVEL 3 PARENT, LLC
Entity Central Index Key	0000794323
Document Type	10-Q
Document Period End Date	Mar. 31, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		0
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q1

Consolidated Statements of Operations - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
OPERATING REVENUES
Operating revenues	$ 2,062
Operating revenues - affiliate	25
Total operating revenues	2,087
OPERATING EXPENSES
Cost of services and products (exclusive of depreciation and amortization)	998
Selling, general and administrative expenses	344
Operating expenses - affiliate	53
Depreciation and amortization	431
Total costs and expenses	1,826
OPERATING INCOME	261
OTHER INCOME (EXPENSE)
Interest income	1
Interest income - affiliate	16
Interest expense	(120)
Loss on modification and extinguishment of debt	0
Other income, net	6
Total other income (expense), net	(97)
INCOME BEFORE INCOME TAX EXPENSE	164
Income tax expense	(102)
NET INCOME	$ 62
Predecessor
OPERATING REVENUES
Operating revenues		$ 2,048
Operating revenues - affiliate		0
Total operating revenues		2,048
OPERATING EXPENSES
Cost of services and products (exclusive of depreciation and amortization)		1,051
Selling, general and administrative expenses		364
Operating expenses - affiliate		0
Depreciation and amortization		296
Total costs and expenses		1,711
OPERATING INCOME		337
OTHER INCOME (EXPENSE)
Interest income		2
Interest income - affiliate		0
Interest expense		(134)
Loss on modification and extinguishment of debt		(44)
Other income, net		4
Total other income (expense), net		(172)
INCOME BEFORE INCOME TAX EXPENSE		165
Income tax expense		(70)
NET INCOME		$ 95

Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
NET INCOME	$ 62
OTHER COMPREHENSIVE INCOME:
Foreign currency translation adjustments, net of tax effect of ($14) and ($8)	72
Defined benefit pension plan adjustments, net of tax effect of $0 and $0	0
Other Comprehensive Income, net of tax	72
COMPREHENSIVE INCOME	$ 134
Predecessor
NET INCOME		$ 95
OTHER COMPREHENSIVE INCOME:
Foreign currency translation adjustments, net of tax effect of ($14) and ($8)		20
Defined benefit pension plan adjustments, net of tax effect of $0 and $0		1
Other Comprehensive Income, net of tax		21
COMPREHENSIVE INCOME		$ 116

Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Comprehensive Income Parenthetical [Abstract]
Foreign currency translation adjustments, tax effect	$ (14)	$ (8)
Defined benefit pension plan adjustments, tax effect	$ 0	$ 0

Consolidated Balance Sheets - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
CURRENT ASSETS
Cash and cash equivalents	$ 259	$ 297
Restricted cash and securities	5	5
Assets held for sale	140	140
Accounts receivable, less allowance of $4 and $3, respectively	726	748
Accounts receivable - affiliate	3	13
Note receivable - affiliate	1,825	1,825
Other	183	117
Total current assets	3,141	3,145
Property, plant and equipment, net of accumulated depreciation of $380 and $143, respectively	9,542	9,412
Restricted cash and securities	29	29
GOODWILL AND OTHER ASSETS
Goodwill	11,141	10,837
Deferred tax assets	458	426
Other, net	96	63
Total goodwill and other assets	20,291	20,549
TOTAL ASSETS	33,003	33,135
CURRENT LIABILITIES
Current maturities of long-term debt	9	8
Accounts payable	678	695
Accounts payable - affiliate	95	41
Accrued expenses and other liabilities
Income and other taxes	87	100
Salary and benefits	163	136
Interest	95	109
Current portion of deferred revenue	273	258
Current portion of deferred revenue - affiliate	2	2
Other	67	57
Total current liabilities	1,469	1,406
LONG-TERM DEBT	10,872	10,882
DEFERRED CREDITS AND OTHER LIABILITIES
Deferred revenue	1,106	1,093
Deferred revenue - affiliate	6	6
Deferred tax liability	209	212
Other	321	264
Total deferred credits and other liabilities	1,642	1,575
COMMITMENTS AND CONTINGENCIES
MEMBER'S EQUITY
Member's equity	18,924	19,254
Accumulated other comprehensive income	96	18
Total member's equity	19,020	19,272
Total liabilities and member's equity	33,003	33,135
Customer Contracts And Relationships
GOODWILL AND OTHER ASSETS
Intangible assets, net	8,206	8,845
Other Intangible Assets
GOODWILL AND OTHER ASSETS
Intangible assets, net	$ 390	$ 378

Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 4	$ 3
Accumulated depreciation	$ 380	$ 143

Consolidated Statements of Cash Flows - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Cash Flows from Operating Activities:
NET INCOME	$ 62
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	431
Share-based compensation	27
Loss on modification and extinguishment of debt	0
Net long-term debt issuance costs and premium amortization	(9)
Accrued interest on long-term debt, net	(14)
Deferred income taxes	104
Other, net	5
Changes in current assets and liabilities
Accounts receivable	21
Accounts payable	(18)
Deferred revenue	15
Other current assets and liabilities	(90)
Other current assets and liabilities, affiliate	37
Net cash provided by operating activities	571
INVESTING ACTIVITIES
Capital expenditures	(252)
Deposits received on assets held for sale	34
Proceeds from sale of property, plant and equipment and other assets	1
Net cash used in investing activities	(217)
FINANCING ACTIVITIES
Net proceeds from issuance of long-term debt	0
Payments of long-term debt	(1)
Distributions	(390)
Net cash used in financing activities	(391)
Effect of exchange rates on cash, cash equivalents and restricted cash and securities	(1)
Net (decrease) increase in cash, cash equivalents and restricted cash and securities	(38)
Cash, cash equivalents and restricted cash and securities and beginning of period	331
Cash, cash equivalents and restricted cash and securities and end of period	293
Supplemental cash flow information:
Interest paid	129
Income taxes paid, net	$ 8
Predecessor
Cash Flows from Operating Activities:
NET INCOME		$ 95
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		296
Share-based compensation		48
Loss on modification and extinguishment of debt		44
Net long-term debt issuance costs and premium amortization		5
Accrued interest on long-term debt, net		(28)
Deferred income taxes		62
Other, net		(5)
Changes in current assets and liabilities
Accounts receivable		6
Accounts payable		42
Deferred revenue		50
Other current assets and liabilities		(76)
Other current assets and liabilities, affiliate		0
Net cash provided by operating activities		539
INVESTING ACTIVITIES
Capital expenditures		(368)
Deposits received on assets held for sale		0
Proceeds from sale of property, plant and equipment and other assets		0
Net cash used in investing activities		(368)
FINANCING ACTIVITIES
Net proceeds from issuance of long-term debt		4,569
Payments of long-term debt		(4,613)
Distributions		0
Net cash used in financing activities		(44)
Effect of exchange rates on cash, cash equivalents and restricted cash and securities		1
Net (decrease) increase in cash, cash equivalents and restricted cash and securities		128
Cash, cash equivalents and restricted cash and securities and beginning of period		1,857
Cash, cash equivalents and restricted cash and securities and end of period		1,985
Supplemental cash flow information:
Interest paid		153
Income taxes paid, net		$ 10

Consolidated Statements of Member's/Stockholders' Equity - USD ($) $ in Millions	Total	Member Units	AOCI Attributable to Parent	Common Stock	Additional Paid-in Capital	AOCI Attributable to Parent	Accumulated Deficit
MEMBER'S EQUITY
Net income \| Predecessor	$ 95						$ 95
Other comprehensive income \| Predecessor	21					$ 21
Balance at beginning of period (Predecessor) at Dec. 31, 2016				$ 4	$ 19,800	(387)	(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					10
Share-based compensation \| Predecessor					38
Balance at end of period (Predecessor) at Mar. 31, 2017	11,081			$ 4	$ 19,848	(366)	$ (8,405)
Balance at end of period at Mar. 31, 2017						(366)
MEMBER'S EQUITY
Cumulative Effect of New Accounting Principle in Period of Adoption \| Accounting Standards Update 2014-09		$ 9
Cumulative Effect of New Accounting Principle in Period of Adoption \| Accounting Standards Update 2018-02		(6)	$ 6
Balance at beginning of period at Dec. 31, 2017		19,254	18
MEMBER'S EQUITY
Distributions		(390)
Purchase price accounting adjustments		(5)
Net income	62	62
Other comprehensive income	72		72
Balance at end of period at Mar. 31, 2018	19,020	$ 18,924	$ 96
Balance at beginning of period at Dec. 31, 2017	19,272					18
Balance at end of period at Mar. 31, 2018	$ 19,020					$ 96

Background

3 Months Ended

Mar. 31, 2018

Accounting Policies [Abstract]

Background

(1) Background

General

We are a facilities-based provider (that is, a provider that owns or leases a substantial portion of the property, plant and equipment necessary to provide our services) of a broad range of integrated communications services. 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. Our network is an international, facilities-based communications network. We designed our network to provide communications services that employ and take advantage of rapidly improving underlying optical, Internet Protocol, computing and storage technologies.

On October 31, 2016, we entered into an agreement and plan of merger (the "Merger Agreement") with CenturyLink, Inc., a Louisiana corporation ("CenturyLink"), Wildcat Merger Sub 1 LLC, a Delaware limited liability company and an indirect wholly owned subsidiary of CenturyLink ("Merger Sub 1"), and WWG Merger Sub LLC, a Delaware limited liability company and an indirect wholly owned subsidiary of CenturyLink ("Merger Sub 2"), pursuant to which, effective November 1, 2017, we were acquired by CenturyLink in a cash and stock transaction, including the assumption of our debt (the "CenturyLink Merger"). See Note 2 - CenturyLink Merger.

Basis of Presentation

On November 1, 2017, we became a wholly owned subsidiary of CenturyLink. On the date of the acquisition, our assets and liabilities were recognized at CenturyLink's preliminary estimates of fair value. This revaluation has been reflected in our financial statements and, therefore, has resulted in a new basis of accounting for the successor period beginning on November 1, 2017. This new basis of accounting means that our financial statements for the successor periods are not comparable to our previously reported financial statements, including the predecessor period financial statements in this report.

The consolidated financial statements include our accounts and the accounts of our subsidiaries in which we have a controlling interest. All significant intercompany accounts and transactions have been eliminated. Transactions with our non-consolidated affiliates (CenturyLink and its other subsidiaries, referred to herein as affiliates) have not been eliminated. As part of our consolidation policy, we consider our controlled subsidiaries, investments in businesses in which we are not the primary beneficiary or do not have effective control but have the ability to significantly influence operating and financial policies, and variable interests resulting from economic arrangements that give us rights to economic risks or rewards of a legal entity. We do not have variable interests in a variable interest entity where we are required to consolidate the entity as the primary beneficiary. Due to exchange restrictions and other conditions, effective at the end of the third quarter of 2015 we deconsolidated our Venezuelan subsidiary and began accounting for our investment in our Venezuelan subsidiary using the cost method of accounting. The factors that led to our conclusions at the end of the third quarter of 2015 continued to exist through the first 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 $24 million from depreciation and amortization to cost of services and products for the predecessor three months ended March 31, 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.

Income Taxes

On December 22, 2017, the Tax Cuts and Jobs Act (the "Act") was signed into law and in December 2017, the SEC staff issued Staff Accounting Bulletin (SAB) 118 to provide guidance for companies that have not completed their accounting for the income tax effects of the Act. As of March 31, 2018, we have not completed our accounting for the tax effects of the Act. 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 FASB, and other standard-setting and regulatory bodies. New guidance or interpretations may materially impact our provision for income taxes in future periods.

Additional information that is needed to complete the analysis but is currently unavailable includes, but is not limited to, the amount of earnings of foreign subsidiaries, the final determination of certain net deferred tax assets subject to remeasurement due to purchase accounting adjustments and other matters and the tax treatment of such provisions of the Act by various state tax authorities. We have provisionally recognized the tax impacts related to the re-measurement of deferred tax assets and liabilities. The ultimate impact may differ from our provisional amount due to additional analysis, changes in interpretations and assumptions we have made, additional regulatory guidance that may be issued, and actions we may take as a result of the Act. The change from our current provisional estimates will be reflected in our future statements of operations and could be material. We expect to complete the accounting in the fourth quarter of 2018, although we cannot assure you of this.

As a result of the reduction in the U.S. corporate income tax rate from 35% to 21%, we provisionally re-measured our net deferred tax assets at December 31, 2017 and recognized a tax expense of approximately $195 million in our consolidated statement of operations for the year ended December 31, 2017. During the first three months of 2018, we increased the tax expense from tax reform by $64 million due to changes in certain purchase accounting adjustments related to CenturyLink’s acquisition of us.

The Act imposed a one-time repatriation tax on certain earnings of foreign subsidiaries. Although we have not determined a reasonable estimate of the impact of the one-time repatriation tax, we do not expect this one-time tax to materially impact us, but we cannot provide any assurance that upon completion of the analysis the amount will not be material.

Because of our net operating loss carryforwards, we do not expect to experience a material immediate reduction in the amount of cash taxes paid by us to CenturyLink as part of our tax allocation policy. However, we anticipate that this provision may reduce our cash income taxes in future years.

Recently Adopted Accounting Pronouncements

In the first quarter or 2018, we adopted Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers”, ASU 2016-16, “Intra-Entity Transfers of Assets Other Than Inventory”, and ASU 2018 - 02, “Income Statement-Reporting Comprehensive Income: Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income”.

Each of these is described further below.

Revenue Recognition

On May 28, 2014, the FASB issued ASU 2014-09 which replaces virtually all existing generally accepted accounting principles on revenue recognition and replaces them with a principles-based approach for determining revenue recognition using a new five step model. The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 also includes new accounting principles related to the deferral and amortization of contract acquisition and fulfillment costs.

ASU 2014-09 may be adopted by applying the provisions of this standard on a retrospective basis to the periods included in the financial statements or on a modified retrospective basis which would result in the recognition of a cumulative effect of adopting ASU 2014-09 in the first quarter of 2018. We adopted the new revenue recognition standard under the modified retrospective transition method.

Upon adoption, we are deferring (i.e. capitalizing) incremental contract acquisition costs and are recognizing (i.e. amortizing) them over the term of the initial contract and anticipated renewal contracts to which the costs relate. Our deferred contract costs for our customers have average amortization periods of approximately 12 months to 60 months and are subject to being monitored every period to reflect any significant change in assumptions. In addition, we assess our deferred contract cost asset for impairment on a periodic basis.

We have material obligations to our customers in our indefeasible right of use arrangements, including certain long-term prepaid customer capacity arrangements, which are accounted for as operating leases and service contracts. As our service contracts contain a significant financing component that are not separately accounted for, we are required to estimate and record incremental revenue and interest cost associated with these contractual terms. Most of our indefeasible right of use arrangements are accounted for as operating leases.

We recognized a cumulative adjustment of $9 million to beginning retained earnings, net of tax effect, on January 1, 2018, as a result of deferring commissions as contract acquisition costs that were not previously deferred. Adoption of this standard increased our disclosures regarding revenue recognition, see Note 5 - Revenue Recognition for additional information.

Income Taxes

On October 24, 2016, FASB issued ASU 2016-16, “Intra-Entity Transfers of Assets Other Than Inventory” ("ASU 2016-16"). ASU 2016-16 eliminates the current prohibition on the recognition of the income tax effects on the transfer of assets among our subsidiaries. After adoption of this ASU, the income tax effects associated with these asset transfers, except for the transfer of inventory, will be recognized in the period the asset is transferred versus the current deferral and recognition upon either the sale of the asset to a third party or over the remaining useful life of the asset. We adopted ASU 2016-16 on January 1, 2018. The adoption of ASU 2016-16 did not have a material impact to our consolidated financial statements.

Comprehensive Income

ASU 2018-02 provides an option to reclassify stranded tax effects within accumulated other comprehensive income to retained earnings in each period in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act (or portion thereof) is recorded. If an entity elects to reclassify the income tax effects of the Tax Cuts and Jobs Act, the amount of that reclassification shall include the effect of the change in the U.S. federal corporate income tax rate on the gross deferred tax amounts and related valuation allowances, if any, at the date of enactment of the Tax Cuts and Jobs Act related to items remaining in accumulated other comprehensive income. The effect of the change in the U.S. federal corporate income tax rate on gross valuation allowances that were originally charged to income from continuing operations shall not be included. ASU 2018-02 is effective January 1, 2019, but early adoption is permitted and should be applied either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act is recognized. We early adopted ASU 2018-02 in the first quarter of 2018 and applied it in the period of adoption. The adoption of ASU 2018-02 resulted in a $6 million decrease to member's equity and increase to accumulated other comprehensive income. See Note 9 - Accumulated Other Comprehensive Income (Loss) for additional information.

Recent Accounting Pronouncements

Leases

On February 25, 2016, the FASB issued ASU 2016-02, “Leases” (“ASU 2016-02”). The core principle of ASU 2016-02 will require lessees to present right-of-use assets and lease liabilities on their balance sheets for operating leases, which are currently not reflected on their balance sheets.

ASU 2016-02 is effective for annual and interim periods beginning January 1, 2019. Early adoption of ASU 2016-02 is permitted. Upon adoption of ASU 2016-02, we are required to recognize and measure leases at the beginning of the earliest period presented in our consolidated financial statements using a modified retrospective approach. The modified retrospective approach includes a number of optional practical expedients that we may elect to apply.

On January 25, 2018, the FASB issued ASU 2018-01, “Leases: Land Easement Practical Expedient for Transition to ASU 2016-02. ASU 2018-01permits the election of an optional transition practical expedient to not evaluate land easements that exist or expired before the entity’s adoption of ASC 2016-02 and that were not previously accounted for as leases. We plan to adopt ASU 2018-01 at the same time we adopt ASU 2016-02.

We are in the process of implementing a new lease administrative and accounting system. We plan to adopt the standard when it becomes effective for us beginning January 1, 2019 and the adoption of the standard will result in the recognition of right of use assets and lease liabilities that have not previously been recorded. Although we believe it is premature as of the date of this report to provide any estimate of the impact of adopting ASU 2016-02, we do expect that it will have a material impact on our consolidated financial statements.

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.

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 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.

CenturyLink Merger

3 Months Ended

Mar. 31, 2018

Business Combinations [Abstract]

CenturyLink Merger

(2) CenturyLink Merger

On November 1, 2017, CenturyLink acquired us through successive merger transactions, including a merger of Level 3 with and into a merger subsidiary, which survived such merger as CenturyLink's indirect wholly-owned subsidiary under the name of Level 3 Parent, LLC.

As a result of the acquisition, Level 3 Communications, Inc. shareholders received $26.50 per share in cash and 1.4286 shares of CenturyLink common stock, with cash paid in lieu of fractional shares, for each outstanding share of Level 3 Communications, Inc. common stock they owned at closing, subject to certain limited exceptions. CenturyLink issued this consideration with respect to all of the outstanding common stock of Level 3, with the exception of shares held by the dissenting common shareholders. Upon closing, CenturyLink shareholders owned approximately 51% and former Level 3 shareholders owned approximately 49% of the combined company.

In addition, each outstanding Level 3 restricted stock unit award granted prior to April 1, 2014 or granted to an outside director of Level 3 was converted into $26.50 in cash and 1.4286 shares of CenturyLink common stock (and cash in lieu of fractional shares) with respect to each Level 3 share covered by such award (the "Converted RSU Awards"). Each outstanding Level 3 restricted stock unit award granted on or after April 1, 2014 (other than those granted to outside directors of Level 3) was converted into a CenturyLink restricted stock unit award using a conversion ratio of 2.8386 to 1 as determined in accordance with a formula set forth in the merger agreement (“the Continuing RSU Awards”).

The preliminary estimated amount of aggregate consideration of $19.628 billion is based on:


•	the 517.3 million shares of CenturyLink’s common stock (including those issued in connection with the Converted RSU Awards) issued to consummate the acquisition and the closing stock price of CenturyLink common stock at October 31, 2017 of $18.99;


•	the cash consideration of $26.50 per share on the 362.2 million common shares of Level 3 issued and outstanding as of October 31, 2017, and the cash consideration of $1 million paid on the Converted RSUs awards;


•	the estimated value of $131 million of Continuing RSU Awards, which represents the pre-combination portion of Level 3’s share-based compensation awards replaced by CenturyLink; and


•	the approximately $58.0 million of cash paid to settle claims of former holders of dissenting shares.

At closing, CenturyLink assumed Level 3's long-term debt of approximately $10.6 billion.

In connection with the closing of the Merger Agreement, we loaned $1.825 billion to CenturyLink in exchange for an unsecured demand note that bears interest at 3.5% per annum. The principal amount of such note is payable upon demand by Level 3 Parent but no later than November 1, 2020, and may be prepaid by CenturyLink at any time.

The U.S. Department of Justice approved the acquisition subject to conditions of a consent decree on October 2, 2017, which requires the combined company to divest certain Level 3 metro network assets in the markets located in Albuquerque, New Mexico; Boise, Idaho; and Tucson, Arizona and the combined company will divest 24 strands of dark fiber connecting 30 specified city-pairs across the United States in the form of an Indefeasible Right of Use agreement. The metro network assets are classified as assets held for sale on the consolidated balance sheets as of March 31, 2018 and December 31, 2017.

Our results of operations have been included in the consolidated results of operations of CenturyLink beginning November 1, 2017. CenturyLink recognized our assets and liabilities based on CenturyLink’s preliminary estimates of the fair value of the acquired tangible and intangible assets and assumed liabilities of us as of November 1, 2017, the consummation date of the acquisition, with the excess aggregate consideration recorded as goodwill. The final determination of the allocation of the aggregate consideration paid by CenturyLink in the combination will be based on the fair value of such assets and liabilities as of the acquisition date with any excess aggregate consideration to be recorded as goodwill. The estimation of such fair values and the estimation of lives of depreciable tangible assets and amortizable intangible assets will require significant judgment. As such, CenturyLink has not completed its valuation analysis and calculations in sufficient detail necessary to arrive at the final estimates of the fair value of our assets acquired and liabilities assumed, along with the related allocation to goodwill. The fair values of certain tangible assets, intangible assets, certain liabilities and residual goodwill are the most significant areas not yet finalized and therefore are subject to change. CenturyLink expects to complete the final fair value determinations prior to the anniversary date of the acquisition. CenturyLink’s final fair value determinations may be significantly different than those reflected in our consolidated financial statements at March 31, 2018. The recognition of assets and liabilities at fair value are reflected in our financial statements and therefore 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, the aggregate consideration exceeds the aggregate estimated fair value of the acquired assets and assumed liabilities by $11.141 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.

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 March 31, 2018
	(Dollars in millions)
Cash, accounts receivable and other current assets ⁽¹⁾	$	3,317		(3	)	3,314
Property, plant and equipment	9,311			92		9,403
Identifiable intangible assets ⁽²⁾						—
Customer relationships	8,964			(476	)	8,488
Other	391			(13	)	378
Other noncurrent assets	782			156		938
Current liabilities, excluding current maturities of long-term debt	(1,461		)	—		(1,461	)
Current maturities of long-term debt	(7		)	—		(7	)
Long-term debt	(10,888		)	—		(10,888	)
Deferred revenue and other liabilities	(1,613		)	(65	)	(1,678	)
Goodwill	10,837			304		11,141
Total estimated aggregate consideration	$	19,633		(5	)	19,628

(1) Includes a preliminary estimated fair value of $863 million for accounts receivable, which had a gross contractual value of $884 million on November 1, 2017. The $21 million difference between the gross contractual value and the preliminary estimated fair value assigned represents our best estimate as of November 1, 2017 of contractual cash flows that will not be collected.

(2) The preliminary estimate of the weighted-average amortization period for the acquired intangible assets is approximately 12.0 years.

(3) All purchase price adjustments occurred during the three months ended March 31, 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 March 31, 2018		Three Months Ended March 31, 2017
	(Dollars in millions)
Transaction-related expenses	$	—	3
Integration-related expenses	18		18
Total acquisition-related expenses	$	18	21

Subsequent Events

In April 2018 we distributed $15 million to CenturyLink.

On May 4, 2018, we sold network assets in Boise that we were required to divest as a condition to the merger. These assets were classified as assets held for sale on our March 31, 2018 and December 31, 2017 consolidated balance sheets and no gain or loss was recognized on this transaction.

On January 22, 2018, we entered an agreement to sell certain intangible assets for $68 million. We received a deposit of $34 million in the first quarter of 2018 and it is recorded in other current liabilities on our March 31, 2018 consolidated balance sheet. The receipt of this $34 million is reflected in our cash flows from investing activities on our March 31, 2018 statement of cash flows. The remaining $34 million was collected in the second quarter of 2018.

Goodwill, Customer Relationships and Other Intangible Assets

3 Months Ended

Mar. 31, 2018

Acquired Intangible Assets Disclosure [Abstract]

Goodwill, Customer Relationships and Other Intangible Assets

(3) Goodwill, Customer Relationships and Other Intangible Assets

Goodwill, customer relationships and other intangible assets consisted of the following:



	March 31, 2018		December 31, 2017
	(Dollars in millions)
Goodwill	$	11,141	10,837
Customer relationships, less accumulated amortization of $300 and $126	8,206		8,845
Other intangible assets subject to amortization:
Trade names, less accumulated amortization of $11 and $4	119		126
Developed technology, less accumulated amortization of $22 and $9	271		252
Total other intangible assets, net	$	390	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 months ended March 31, 2018 and the predecessor three months ended March 31, 2017 was $194 million and $52 million, respectively. As of the successor date of March 31, 2018, the gross carrying amount of goodwill, customer relationships, indefinite-life and other intangible assets was $20 billion. As of March 31, 2018, the weighted average remaining useful lives of our finite-lived intangible assets was 11.6 years in total; 11.9 years for customer contracts and relationships, 4.6 years for trade names, and 4.6 years for developed technology.

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 nine months)	$	599
2019	799
2020	799
2021	799
2022	787

Long-Term Debt

3 Months Ended

Mar. 31, 2018

Debt Disclosure [Abstract]

Long-term Debt

(4) Long-Term Debt

The following table summarizes our long-term debt:



	Interest Rates	Maturities	March 31, 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	177			179
Total long-term debt, excluding unamortized premiums			10,703			10,705
Unamortized premiums, net			178			185
Total long-term debt			10,881			10,890
Less current maturities			(9		)	(8		)
Long-term debt, excluding current maturities			$	10,872		$	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 4.111% as of March 31, 2018 and 3.557% as of December 31, 2017. The interest rate on the Tranche B 2024 Term Loan is set with a minimum LIBOR of zero percent.

Capital Leases

As of March 31, 2018, we had $177 million of capital leases. We lease property, equipment, certain dark fiber facilities and metro fiber under non-cancelable IRU agreements that are accounted for as capital leases. The weighted average interest rate on these capital leases approximated 5.8% as of March 31, 2018.

Issuances

On February 22, 2017, we completed the refinancing of all of our then outstanding $4.611 billion senior secured term loans through the issuance of a new Tranche B 2024 Term Loan in the principal amount of $4.611 billion. The term loans refinanced were our Tranche B-III 2019 Term Loan, Tranche B 2020 Term Loan, and the Tranche B-II 2022 Term Loan. The new Tranche B 2024 Term Loan bears interest at LIBOR plus 2.25 percent, with a zero percent minimum LIBOR, and will mature on February 22, 2024. The Tranche B 2024 Term Loan was priced to lenders at par, with the payment to the lenders at closing of an upfront 25 basis point fee. We recognized a charge of approximately $44 million for modification and extinguishment in the first quarter of 2017 related to this refinancing.

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 nine months)	$	9
2019	8
2020	10
2021	651
2022	1,726
2023 and thereafter	8,299
Total long-term debt	$	10,703

Covenants

The senior notes of Level 3 Parent, LLC and term loan and senior notes of Level 3 Financing, Inc. contain extensive affirmative and negative covenants. Such covenants include, among other things and subject to certain significant exceptions, restrictions on their ability to declare or pay dividends, repay certain other indebtedness, create liens, incur additional indebtedness, make investments, engage in transactions with their affiliates including CenturyLink and its other subsidiaries, dispose of assets and merge or consolidate with any other person. Also, Level 3 Parent, LLC, as well as Level 3 Financing, Inc., will be required to offer to purchase certain of its long-term debt securities under certain circumstances in connection with a "change of control" of Level 3 Parent, LLC.

Certain of CenturyLink's and our debt instruments contain cross acceleration provisions. When present, these provisions could have a wider impact on liquidity than might otherwise arise from a default or acceleration of a single debt instrument.

Compliance

At March 31, 2018, we believe we were in compliance with the financial covenants contained in their respective material debt agreements.

For additional information on our long-term debt, see Note 4—Long-Term Debt to our consolidated financial statements in Item 8 of Part II of our annual report on Form 10-K for the year ended December 31, 2017.

Revenue Recognition

3 Months Ended

Mar. 31, 2018

Revenue from Contract with Customer [Abstract]

Revenue Recognition

(5) Revenue Recognition

Level 3 earns revenue from contracts with customers, primarily through the provision of telecommunications and other services. Revenue from contracts with customers is accounted for under ASC 606, which we adopted on January 1, 2018 using the modified retrospective approach. We also earn revenues that are not accounted for under Accounting Standards Codification ("ASC") 606 from leasing arrangements (primarily fiber capacity agreements).

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 in exchange for those goods or services. Revenue recognition is recognized based on the following five-step model:


•	Identification of the contract(s) with a customer;


•	Identification of the performance obligations in the contract;


•	Determination of the transaction price;


•	Allocation of the transaction price to the performance obligations in the contract; and,


•	Recognition of revenue when, or as, we satisfy a performance obligation.

We provide an array of communications services, including local voice, broadband, private line (including special access), network access, Ethernet, information technology, video and other ancillary services. Our customers include global/international, enterprise, wholesale, government and 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 enforceable contract term in alignment with the period of customer benefit. 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. To the extent certain products or services are discounted as part of a bundle arrangement, the bundle discounts are included in our calculation of the total transaction price with the customer which is allocated to the various services in the bundled offering based on the estimated selling price of services included in each bundled combination.

Promotional or performance-based incentives are estimated at contract inception (and updated on a periodic basis as needed) and accounted for as variable consideration. In certain cases, customers may be permitted to modify their contracts without incurring a penalty. We evaluate the change in scope or price to identify whether the modification should be treated as a separate contract, whether the modification is a termination of the existing contract and creation of a new contract, or if it is a change to the existing contract. The impact of contract modifications is not typically significant to our results.

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.

Disaggregated Revenue by Service Offering

The following table provides disaggregation of revenue from contracts with customers based on service offering for the three months ended March 31, 2018 as well as a reconciliation of adjustments to revenue from the adoption of ASC 606 to ASC 605:



	Successor
	Three Months Ended March 31, 2018
	(Dollars in millions)
	Total Revenues		Adjustments⁽⁷⁾		Total Revenue from Contracts with Customers
Voice & Collaboration⁽¹⁾	$	381	—		381
IT and Managed Services⁽²⁾	1		—		1
Transport & Infrastructure⁽³⁾	675		(42	)	633
IP & Data Services⁽⁴⁾	1,003		—		1,003
Regulatory revenues⁽⁵⁾	2		(2	)	—
Affiliate revenues⁽⁶⁾	25		—		25
Total revenues	$	2,087	(44	)	2,043

Timing of revenue
Goods transferred at a point in time					$	—
Services performed over time					2,043
Total revenue from contracts with customers					$	2,043

(1) Includes local, long-distance and other ancillary revenues.

(2) Includes IT services and managed services revenues.

(3) Includes primarily broadband, private line (including business data services), colocation and data centers, wavelength and ancillary revenues.

(4) Includes primarily VPN data network, Ethernet, IP, video and ancillary revenues.

(5) Includes sublease rental income.

(6) Includes telecommunications and data services we bill to our affiliates.

(7) Includes sublease rental income and revenue from fiber capacity lease arrangements.

Customer Receivables and Contract Balances

The following table provides balances of customer receivables and contract liabilities as of March 31, 2018 and December 31, 2017:



	Successor
	March 31, 2018		January 1, 2018
	(Dollars in millions)
Customer receivables⁽¹⁾	$	726	748
Contract liabilities	373		353

(1) Gross customer receivables of $730 and $751, net of allowance for doubtful accounts of $4 and $3, respectively.

Contract liabilities are consideration we have received from our customers in advance of providing the goods or services promised in the contract. We defer this consideration until we have satisfied the related performance obligation to the customer. Contract liabilities include recurring services billed one month in advance and installation and maintenance charges that are deferred and recognized over the actual or expected contract term, which ranges from one to five 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 months ended March 31, 2018:



	Successor
	March 31, 2018
	(Dollars in millions)
Revenue recognized in the period from:
Amounts included in contract liability at the beginning of the period	$	97
Performance obligations satisfied in previous periods	—

Performance Obligations

A performance obligation is a promise in a contract with a customer to transfer a good or service to the customer. We recognize revenue for services when we satisfy our performance obligation as services are provided. 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, which we recognize as revenue over the actual or expected contract term, which ranges from one to five years depending on the service. Expected contract term periods are estimated using historical experience. 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.

We periodically transfer optical capacity assets on our network to other telecommunications service carriers. 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 to 20 years. In most cases, we account for the cash consideration received on transfers of optical capacity assets and on all of the other elements deliverable under the capacity IRU as lease revenue ratably over the term of the agreement. IRUs that are not classified as leases are accounted for as service contracts under ASC 605. We do not recognize revenue on any contemporaneous exchanges of our optical capacity assets for other optical capacity assets.

In connection with offering products and services provided by third-party vendors, we review the relationship between us, the vendor and the end customer 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 or services used to fulfill the performance obligation(s) associated with the transaction.

We have service level commitments pursuant to contracts with certain of our customers. To the extent that such service levels are not achieved or are otherwise disputed due to performance or service issues or other service interruptions or conditions, we will estimate the amount of credits to be issued and record a reduction to revenues in the period that the service level commitment was not met.

As of March 31, 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 $7.5 billion. We expect to recognize approximately 56% of this revenue through 2019, with the balance recognized thereafter.

We do not disclose the value of unsatisfied performance obligations for contracts for which we recognize revenue at the amount to which we have the right to invoice for services performed (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 months ended March 31, 2018:



	Successor
	Three Months Ended March 31, 2018
	(Dollars in millions)
	Acquisition Costs			Fulfillment Costs
Beginning of period balance	$	13		14
Costs incurred	15			23
Amortization	(2		)	(2	)
Impairments	—			—
End of period balance	$	26		35

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. The amount of these capitalized costs that are anticipated to be amortized in the next twelve months are included in other current assets on the consolidated balance sheet. The amount of capitalized costs expected to be amortized beyond the next twelve months is included on other assets on our consolidated balance. Deferred acquisition and fulfillment costs are assessed for impairment on a quarterly basis.

Acquisition and fulfillment costs are amortized based on the transfer of services to which the assets relate to which typically range from 12 months to 60 months, and are included in cost of services and products and selling, general and administrative expenses in our consolidated statement of operations. A portion of these costs are amortized on a portfolio basis using an average expected contract term of 30 months.

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 March 31, 2018
	(Dollars in millions)
	Reported Balances as of March 31, 2018		Impact of 606		ASC 605 Historical Adjusted Balances
Operating revenues	$	2,087	—		$	2,087
Cost of services and products (exclusive of depreciation and amortization)	998		—		998
Selling, general and administrative	344		13		357
Income tax expense	102		(3	)	99
Net income	62		(10	)	52



	As of March 31, 2018
	(Dollars in millions)
	Reported Balances as of March 31, 2018		Impact of 606		ASC 605 Historical Adjusted Balances
Other current assets	$	183	(11	)	$	172
Other long-term assets, net	96		(15	)	81
Deferred income taxes, net	249		3		252
Member's Equity	18,924		(19	)	18,905

Fair Value of Financial Instruments

3 Months Ended

Mar. 31, 2018

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

(6) 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:

As of

March 31, 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

$

10,704

10,435

10,711

10,528

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Commitments, Contingencies and Other Items	3 Months Ended
Commitments, Contingencies and Other Items	Mar. 31, 2018
Commitments and Contingencies Disclosure [Abstract]
Commitments, Contingencies and Other Items	(7) Commitments, Contingencies and Other Items We are subject to various legal proceedings and other contingent liabilities that individually or in the aggregate could materially affect our financial condition, future results of operations or cash flows. Amounts accrued for such contingencies aggregate to $92 million and are included in “Other” current liabilities and “Other Liabilities” in our consolidated balance sheet at March 31, 2018. 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 would have no effect on our results of operations but could materially adversely affect our cash flows for the affected period. We review our accruals at least quarterly and adjust them to reflect the impact of negotiations, settlements, rulings, advice of legal counsel and other information and events pertaining to a particular matter. Below is a description of material legal proceedings and other contingencies pending at March 31, 2018. Although we believe we have accrued for these matters in accordance with the accounting guidance for contingencies, contingencies are inherently unpredictable and it is possible that results of operations or cash flows could be materially and adversely affected in any particular period by unfavorable developments in, or resolution or disposition of, one or more of these matters. For those contingencies in respect of which we believe it is reasonably possible that a loss may result that is materially in excess of the accrual (if any) established for the matter, we have either provided an estimate of such possible loss or range of loss or included a statement that such an estimate cannot be made. In addition to the contingencies described below, we are party to many other legal proceedings and contingencies, the resolution of which are not expected to materially affect our financial condition or future results of operations beyond the amounts accrued. Rights-of-Way Litigation We have been party to a number of purported class action lawsuits involving our right to install fiber optic cable network in railroad right-of-ways adjacent to plaintiffs' land. In general, we obtained the rights to construct our networks from railroads, utilities, and others, and have installed our networks along the rights-of-way so granted. Plaintiffs in the purported class actions asserted that they are the owners of lands over which the fiber optic cable networks pass, and that the railroads, utilities and others who granted us the right to construct and maintain our network did not have the legal authority to do so. The complaints sought damages on theories of trespass, unjust enrichment and slander of title and property, as well as punitive damages. We also received, and may in the future receive, claims and demands related to rights-of-way issues similar to the issues in these cases that may be based on similar or different legal theories. We have defeated motions for class certification in a number of these actions but expected that, absent settlement of these actions, plaintiffs in the pending lawsuits would continue to seek certification of statewide or multi-state classes. The only lawsuit in which a class was certified against us, absent an agreed upon settlement, occurred in Koyle, et. al. v. Level 3 Communications, Inc., et. al., a purported two state class action filed in the United States District Court for the District of Idaho. The Koyle lawsuit has been dismissed pursuant to a settlement reached in November 2010 as described further below. We negotiated a series of class settlements affecting all persons who own or owned land next to or near railroad rights of way in which we have installed our fiber optic cable networks. The United States District Court for the District of Massachusetts in Kingsborough v. Sprint Communications Co. L.P. granted preliminary approval of the proposed settlement; however, on September 10, 2009, the court denied a motion for final approval of the settlement on the basis that the court lacked subject matter jurisdiction and dismissed the case. In November 2010, we negotiated revised settlement terms for a series of state class settlements affecting all persons who own or owned land next to or near railroad rights of way in which we have installed our fiber optic cable networks and thereafter presented these proposed settlements to the applicable courts. The settlements, affecting current and former landowners, have received final federal court approval in all but one of the applicable states and the parties are actively engaged in, or have completed, the claims process for the vast majority of the applicable states, including payment of claims. We continue to seek approval in the remaining state. Management believes that we have substantial defenses to the claims asserted in the remaining action and intends to defend it vigorously if a satisfactory settlement is not ultimately approved for all affected landowners. Additionally, given the now-final resolution of all but the last of these matters, management anticipates excluding specific discussion of them in our future reports. Peruvian Tax Litigation In 2005, the Peruvian tax authorities ("SUNAT") issued tax assessments against one of our Peruvian subsidiaries asserting $26 million of additional income tax withholding and value-added taxes ("VAT"), penalties and interest for calendar years 2001 and 2002 on the basis that the Peruvian subsidiary incorrectly documented its importations. After taking into account the developments described below, as well as the accrued interest and foreign exchange effects, the total amount of exposure is $14 million at March 31, 2018, and is accrued for on the consolidated balance sheet. We challenged the assessments via administrative and then judicial review processes. In October 2011, the highest administrative review tribunal (the "Tribunal") decided the central issue underlying the 2002 assessments in SUNAT's favor. We appealed the Tribunal's decision to the first judicial level, which decided the central issue in favor of Level 3. SUNAT and we filed cross-appeals with the court of appeal. In May 2017, the court of appeal issued a decision reversing the first judicial level. In June 2017, we filed an appeal of the decision to the Supreme Court of Justice, the final judicial level. That appeal is pending. In October 2013, the Tribunal decided the central issue underlying the 2001 assessments in SUNAT’s favor. We appealed that decision to the first judicial level in Peru, which decided the central issue in favor of SUNAT. In June 2017, we filed an appeal with the court of appeal. In November 2017, the court of appeals issued a decision affirming the first judicial level and we filed an appeal of the decision to the Supreme Court of Justice. That appeal is pending. Employee Severance and Contractor Termination Disputes A number of former employees and third-party contractors have asserted a variety of claims in litigation against certain of our Latin American subsidiaries for separation pay, severance, commissions, pension benefits, unpaid vacation pay, breach of employment contracts, unpaid performance bonuses, property damages, moral damages and related statutory penalties, fines, costs and expenses (including accrued interest, attorneys' fees and statutorily mandated inflation adjustments) as a result of their separation from us or termination of service relationships. We are vigorously defending against the asserted claims, which aggregate to approximately $32 million at March 31, 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 $54 million at March 31, 2018 in excess of the accruals established for these matters. We are vigorously contesting all such assessments in both states and, in particular, view the assessment of ICMS on revenue from leasing movable properties to be without merit. Other Matters We have recently been notified of a qui tam action pending against Level 3 Communications, Inc., certain former employees and others in the United States District Court for the Eastern District of Virginia, captioned United States of America ex rel., Stephen Bishop v. Level 3 Communications, Inc. et al. The original qui tam complaint was filed under seal on November 26, 2013, and an amended complaint was filed under seal on June 16, 2014. The court unsealed the complaints on October 26, 2017. The amended complaint alleges that we, principally through two former employees, submitted false claims and made false statements to the government in connection with two government contracts. The relator seeks damages in this lawsuit of approximately $50 million, subject to trebling, plus statutory penalties, pre-and-post judgment interest, and attorney’s fees. The case is currently stayed. We are evaluating our defenses to the claims. At this time, we do not believe it is probable we will incur a material loss. If, contrary to our expectations, the relator prevails in this matter and proves damages at or near $50 million, and is successful in having those damages trebled, the outcome could have a material adverse effect on our results of operations in the period in which a liability is recognized and on our cash flows for the period in which any damages are paid. The two former Level 3 employees named in the qui tam amended complaint and others were also indicted in the United States District Court for the Eastern District of Virginia on October 3, 2017, and charged with, among other things, accepting kickbacks from a subcontractor, who was also indicted, for work to be performed under a prime government contract. We are fully cooperating in the government’s investigations in this matter. Letters of Credit It is customary for us to use various financial instruments in the normal course of business. These instruments include letters of credit. Letters of credit are conditional commitments issued on our behalf in accordance with specified terms and conditions. As of both March 31, 2018 and December 31, 2017, we had outstanding letters of credit or other similar obligations of approximately $36 million, of which $30 million are collateralized by cash that is reflected on the consolidated balance sheets as restricted cash and securities. We do not believe exposure to loss related to our letters of credit is material.

Other Financial Information

3 Months Ended

Mar. 31, 2018

Statement of Financial Position [Abstract]

Other Financial Information

(8) Other Financial Information

Other Current Assets

The following table presents details of other current assets in our consolidated balance sheets:



	March 31, 2018		December 31, 2017
	(Dollars in millions)
Prepaid expenses	$	90	68
Material, supplies and inventory	4		3
Deferred activation and installation charges	18		17
Deferred commissions	12		—
Other	59		29
Total other current assets	$	183	117

Other Current Liabilities

The following table presents details of other current liabilities in our consolidated balance sheets:



	March 31, 2018		December 31, 2017
	(Dollars in millions)
Self insurance	$	6	11
Legal and tax reserves	15		31
Other	46		15
Total other current liabilities	$	67	57

Included in accounts payable at March 31, 2018 and December 31, 2017 were $73 million and $74 million, respectively, associated with capital expenditures.

Accumulated Other Comprehensive Income (Loss)

3 Months Ended

Mar. 31, 2018

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Accumulated Other Comprehensive Income (Loss)

(9) Accumulated Other Comprehensive Income (Loss)

The tables below summarize changes in accumulated other comprehensive income recorded on our consolidated balance sheets by component for the successor three months ended March 31, 2018:



	Foreign Currency Translation Adjustments and Other		Total

Balance at December 31, 2017	$	18	18
Other comprehensive income (loss) before reclassifications, net of tax	72		72
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) income	78		78
Balance at March 31, 2018	$	96	96

The tables below summarize changes in accumulated other comprehensive loss recorded on our consolidated balance sheets by component for the predecessor three months ended March 31, 2017:



	Pension Plans			Foreign Currency Translation Adjustments and Other		Total
	(Dollars in millions)
Balance at December 31, 2016	$	(34	)	(353	)	(387	)
Other comprehensive income before reclassifications, net of tax	—			20		20
Amounts reclassified from accumulated other comprehensive loss	1			—		1
Net other comprehensive (loss) income	1			20		21
Balance at March 31, 2017	$	(33	)	(333	)	(366	)

Condensed Consolidating Financial Information

3 Months Ended

Mar. 31, 2018

Condensed Consolidating Financial Information [Abstract]

Condensed Consolidating Financial Information

(10) 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 March 31, 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	$	—		$	—		$	956		$	1,146		$	(40	)	2,062
Operating revenues - affiliate	—			—			25			—			—			25
Total operating revenues	—			—			981			1,146			(40		)	2,087
OPERATING EXPENSES
Cost of services and products (exclusive of depreciation and amortization)	—			—			589			449			(40		)	998
Selling, general and administrative	—			1			259			84			—			344
Operating expenses - affiliate	—			—			53			—			—			53
Depreciation and amortization	—			—			170			261			—			431
Total cost and expenses	—			1			1,071			794			(40		)	1,826
OPERATING INCOME (LOSS)	—			(1		)	(90		)	352			—			261
OTHER INCOME (EXPENSE)
Interest income	—			—			—			1			—			1
Interest income - affiliate	16			—			—			—			—			16
Interest expense	(8		)	(108		)	(1		)	(3		)	—			(120	)
Interest income (expense) - intercompany, net	355			608			(881		)	(82		)	—			—
Equity in net earnings (losses) of subsidiaries	(315		)	(839		)	(1		)	—			1,155			—
Other income, net	—			—			1			5			—			6
Total other income (expense)	48			(339		)	(882		)	(79		)	1,155			(97	)
INCOME (LOSS) BEFORE INCOME TAXES	48			(340		)	(972		)	273			1,155			164
Income tax benefit (expense)	14			25			(47		)	(94		)	—			(102	)
NET INCOME (LOSS)	62			(315		)	(1,019		)	179			1,155			62
Other comprehensive income (loss), net of income taxes	72			—			—			72			(72		)	72
COMPREHENSIVE INCOME (LOSS)	$	134		(315		)	(1,019		)	251			1,083			134

Condensed Consolidating Statements of Comprehensive Income (Loss)

Three Months Ended March 31, 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	$	—		$	—		$	920		$	1,157		$	(29	)	$	2,048
Operating revenues - affiliate	—			—			—			—			—			—
Total operating revenues	—			—			920			1,157			(29		)	2,048
OPERATING EXPENSES
Cost of services and products (exclusive of depreciation and amortization)	—			—			583			497			(29		)	1,051
Selling, general and administrative expenses	1			1			277			85			—			364
Operating expenses - affiliate	—			—			—			—			—			—
Depreciation and amortization	—			—			87			209			—			296
Total cost and expenses	1			1			947			791			(29		)	1,711
OPERATING INCOME (LOSS)	(1		)	(1		)	(27		)	366			—			337
OTHER INCOME (EXPENSE)
Interest income	—			—			2			—			—			2
Interest income - affiliate	—			—			—			—			—			—
Interest expense	(9		)	(120		)	(1		)	(4		)	—			(134		)
Interest income (expense) - intercompany, net	377			574			(869		)	(82		)	—			—
Equity in net earnings (losses) of subsidiaries	(275		)	(646		)	203			—			718			—
Loss on modification and extinguishment of debt	—			(44		)	—			—			—			(44		)
Other income, net	—			—			5			(1		)	—			4
Total other income (expense)	93			(236		)	(660		)	(87		)	718			(172		)
INCOME (LOSS) BEFORE INCOME TAXES	92			(237		)	(687		)	279			718			165
Income tax expense	3			(38		)	(1		)	(34		)	—			(70		)
NET INCOME (LOSS)	95			(275		)	(688		)	245			718			95
Other comprehensive income (loss), net of income taxes	21			—			—			21			(21		)	21
COMPREHENSIVE INCOME (LOSS)	$	116		$	(275	)	$	(688	)	$	266		$	697		$	116

Condensed Consolidating Balance Sheets

March 31, 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	$	39	—	133	87	—		259
Restricted cash and securities	—		—	1	4	—		5
Assets held for sale	68		—	5	67	—		140
Accounts receivable	—		—	10	716	—		726
Accounts receivable - affiliate	—		—	—	3	—		3
Intercompany advances	16,493		21,422	—	5,368	(43,283	)	—
Note receivable - affiliate	1,825		—	—	—	—		1,825
Other	—		—	95	88	—		183
Total current assets	18,425		21,422	244	6,333	(43,283	)	3,141
Property, plant, and equipment, net	—		—	3,103	6,439	—		9,542
Restricted cash and securities	19		—	10	—	—		29
GOODWILL AND OTHER ASSETS
Goodwill	—		—	1,658	9,483	—		11,141
Customer relationships, net	—		—	3,979	4,227	—		8,206
Other intangible assets, net	—		—	390	—	—		390
Investment in subsidiaries	16,955		18,788	3,609	—	(39,352	)	—
Deferred tax assets	279		1,826	114	10	(1,771	)	458
Other, net	—		—	54	42	—		96
Total goodwill and other assets	17,234		20,614	9,804	13,762	(41,123	)	20,291
TOTAL ASSETS	$	35,678	42,036	13,161	26,534	(84,406	)	33,003

LIABILITIES AND MEMBER'S EQUITY
CURRENT LIABILITIES
Current portion of long-term debt	$	—	—	2	7	—		9
Accounts payable	—		1	318	359	—		678
Accounts payable - affiliate	27		—	66	2	—		95
Accrued expenses and other liabilities
Income and other taxes	—		1	45	41	—		87
Salaries and benefits	—		—	129	34	—		163
Interest	3		85	—	7	—		95



Current portion of deferred revenue	—		—	135		138	—		273
Current portion of deferred revenue - affiliate	—		—	2		—	—		2
Intercompany payables	—		—	43,283		—	(43,283	)	—
Other	—		—	16		51	—		67
Total Current Liabilities	30		87	43,996		639	(43,283	)	1,469
LONG-TERM DEBT	615		10,088	13		156	—		10,872
DEFERRED REVENUES AND OTHER LIABILITIES
Deferred revenues	—		—	843		263	—		1,106
Deferred revenues - affiliate	—		—	5		1	—		6
Deferred tax liability	648		—	849		483	(1,771	)	209
Other	1		—	174		146	—		321
Total deferred credits and other	649		—	1,871		893	(1,771	)	1,642
COMMITMENTS AND CONTINGENCIES
MEMBER'S EQUITY (DEFICIT)	34,384		31,861	(32,719	)	24,846	(39,352	)	19,020
TOTAL LIABILITIES AND MEMBER'S EQUITY	$	35,678	42,036	13,161		26,534	(84,406	)	33,003

Condensed Consolidating Balance Sheets

December 31, 2017 (Successor)



	Level 3 Parent, LLC		Level 3 Financing, Inc.	Level 3 Communications, LLC	Other Non-Guarantor Subsidiaries	Eliminations		Total
	(Dollars in millions)
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	13	—	175	109	—		297
Restricted cash and securities	—		—	1	4	—		5
Assets held for sale	68		—	5	67	—		140
Accounts receivable	—		—	26	722	—		748
Accounts receivable - affiliate	—		—	60	4	(51	)	13
Intercompany advances	16,251		21,032	—	5,200	(42,483	)	—
Note receivable - affiliate	1,825		—	—	—	—		1,825
Other	—		—	54	63	—		117
Total current assets	18,157		21,032	321	6,169	(42,534	)	3,145
Property, plant, and equipment, net	—		—	3,237	6,175	—		9,412
Restricted cash and securities	19		—	10	—	—		29
GOODWILL AND OTHER ASSETS
Goodwill	—		—	1,200	9,637	—		10,837
Customer relationships, net	—		—	4,324	4,521	—		8,845
Other intangible assets, net	—		—	378	—	—		378
Investment in subsidiaries	16,954		18,403	3,616	—	(38,973	)	—
Deferred tax assets	280		1,795	—	122	(1,771	)	426
Other, net	—		—	32	31	—		63
Total goodwill and other assets	17,234		20,198	9,550	14,311	(40,744	)	20,549
TOTAL ASSETS	$	35,410	41,230	13,118	26,655	(83,278	)	33,135

LIABILITIES AND MEMBER'S EQUITY
CURRENT LIABILITIES
Current maturities of long-term debt	$	—	—	2	6	—		8
Accounts payable	—		1	323	371	—		695
Accounts payable - affiliate	11		—	—	81	(51	)	41
Accrued expenses and other liabilities
Income and other taxes	—		—	55	45	—		100
Salaries and benefits	—		—	109	27	—		136
Interest	11		91	—	7	—		109



Current portion of deferred revenue	—		—	127		131	—		258
Current portion of deferred revenue - affiliate	—		—	2		—	—		2
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 REVENUES AND OTHER LIABILITIES
Deferred revenues	—		—	841		252	—		1,093
Deferred revenues - affiliate	—		—	5		1	—		6
Deferred tax liability	648		—	870		465	(1,771	)	212
Other	1		1	98		164	—		264
Total deferred credits and other liabilities	649		1	1,814		882	(1,771	)	1,575
COMMITMENTS AND CONTINGENCIES
MEMBER'S EQUITY (DEFICIT)	34,107		31,041	(31,833	)	24,930	(38,973	)	19,272
TOTAL LIABILITIES AND MEMBER'S EQUITY	$	35,410	41,230	13,118		26,655	(83,278	)	33,135

Condensed Consolidating Statements of Cash Flows

Three Months Ended March 31, 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	$	(8	)	—	490		89		—	571
INVESTING ACTIVITIES
Capital expenditures	—			—	(142	)	(110	)	—	(252	)
Proceeds from the sale of property, plant and equipment and other assets	—			—	—		1		—	1
Deposits received on assets held for sale	34			—	—		—		—	34
Net cash provided by (used in) investing activities	34			—	(142	)	(109	)	—	(217	)
FINANCING ACTIVITIES
Payments of long-term debt	—			—	—		(1	)	—	(1	)
Distributions	(390		)	—	—		—		—	(390	)
Increase (decrease) due from/to affiliates, net	390			—	(390	)	—		—	—
Net cash provided by (used in) financing activities	—			—	(390	)	(1	)	—	(391	)
Effect of exchange rates on cash, cash equivalents and restricted cash and securities	—			—	—		(1	)	—	(1	)
Net increase (decrease) in cash, cash equivalents and restricted cash and securities	26			—	(42	)	(22	)	—	(38	)
Cash, cash equivalents and restricted cash and securities and beginning of period	32			—	186		113		—	331
Cash, cash equivalents and restricted cash and securities and end of period	$	58		—	144		91		—	293

Condensed Consolidating Statements of Cash Flows

Three Months Ended March 31, 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	$	(16	)	(135	)	109		581		—	539
INVESTING ACTIVITIES
Capital expenditures	—			—		(233	)	(135	)	—	(368	)
Net cash provided by (used in) investing activities	—			—		(233	)	(135	)	—	(368	)
FINANCING ACTIVITIES
Net proceeds from issuance of long-term debt	—			4,569		—		—		—	4,569
Payments of long-term debt	—			(4,611	)	—		(2	)	—	(4,613	)
Increase (decrease) due from/to affiliates, net	16			177		262		(455	)	—	—
Net cash provided by (used in) financing activities	16			135		262		(457	)	—	(44	)
Effect of exchange rates on cash, cash equivalents and restricted cash and securities	—			—		—		1		—	1
Net increase (decrease) in cash, cash equivalents and restricted cash and securities	—			—		138		(10	)	—	128
Cash, cash equivalents and restricted cash and securities and beginning of period	37			—		1,710		110		—	1,857
Cash, cash equivalents and restricted cash and securities and end of period	$	37		—		1,848		100		—	1,985

Background (Policies)

3 Months Ended

Mar. 31, 2018

Accounting Policies [Abstract]

Basis of Presentation

On November 1, 2017, we became a wholly owned subsidiary of CenturyLink. On the date of the acquisition, our assets and liabilities were recognized at CenturyLink's preliminary estimates of fair value. This revaluation has been reflected in our financial statements and, therefore, has resulted in a new basis of accounting for the successor period beginning on November 1, 2017. This new basis of accounting means that our financial statements for the successor periods are not comparable to our previously reported financial statements, including the predecessor period financial statements in this report.

The consolidated financial statements include our accounts and the accounts of our subsidiaries in which we have a controlling interest. All significant intercompany accounts and transactions have been eliminated. Transactions with our non-consolidated affiliates (CenturyLink and its other subsidiaries, referred to herein as affiliates) have not been eliminated. As part of our consolidation policy, we consider our controlled subsidiaries, investments in businesses in which we are not the primary beneficiary or do not have effective control but have the ability to significantly influence operating and financial policies, and variable interests resulting from economic arrangements that give us rights to economic risks or rewards of a legal entity. We do not have variable interests in a variable interest entity where we are required to consolidate the entity as the primary beneficiary. Due to exchange restrictions and other conditions, effective at the end of the third quarter of 2015 we deconsolidated our Venezuelan subsidiary and began accounting for our investment in our Venezuelan subsidiary using the cost method of accounting. The factors that led to our conclusions at the end of the third quarter of 2015 continued to exist through the first 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 $24 million from depreciation and amortization to cost of services and products for the predecessor three months ended March 31, 2017. Although we continued as a surviving corporation and legal entity after the acquisition, the accompanying consolidated statements of operations, comprehensive income, member's/stockholders' equity and cash flows are presented for two periods: predecessor and successor, which relates to the period preceding the acquisition and the period succeeding the acquisition. Our current definitions are as follows:

•

Cost of services and products (exclusive of depreciation and amortization) are expenses incurred in providing products and services to our customers. These expenses include: employee-related expenses directly attributable to operating and maintaining our network (such as salaries, wages, benefits and professional fees); facilities expenses (which are third-party telecommunications expenses we incur for using other carriers' networks to provide services to our customers); rents and utilities expenses; costs for universal service funds ("USF") (which are federal and state funds that are established to promote the availability of telecommunications services to all consumers at reasonable and affordable rates, among other things, and to which we are often required to contribute); taxes (such as property and other taxes); and other expenses directly related to our network.

•

Selling, general and administrative expenses are expenses incurred in selling products and services to our customers, corporate overhead and other operating expenses. These expenses include: employee-related expenses (such as salaries, wages, internal commissions, benefits and professional fees) directly attributable to selling products or services and employee-related expenses for administrative functions; marketing and advertising; taxes (such as state and local franchise taxes and sales and use taxes) and fees; external commissions; bad debt expense; and other selling, general and administrative expenses.

New Accounting Pronouncements

Recently Adopted Accounting Pronouncements

In the first quarter or 2018, we adopted Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers”, ASU 2016-16, “Intra-Entity Transfers of Assets Other Than Inventory”, and ASU 2018 - 02, “Income Statement-Reporting Comprehensive Income: Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income”.

Each of these is described further below.

Revenue Recognition

On May 28, 2014, the FASB issued ASU 2014-09 which replaces virtually all existing generally accepted accounting principles on revenue recognition and replaces them with a principles-based approach for determining revenue recognition using a new five step model. The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 also includes new accounting principles related to the deferral and amortization of contract acquisition and fulfillment costs.

ASU 2014-09 may be adopted by applying the provisions of this standard on a retrospective basis to the periods included in the financial statements or on a modified retrospective basis which would result in the recognition of a cumulative effect of adopting ASU 2014-09 in the first quarter of 2018. We adopted the new revenue recognition standard under the modified retrospective transition method.

Upon adoption, we are deferring (i.e. capitalizing) incremental contract acquisition costs and are recognizing (i.e. amortizing) them over the term of the initial contract and anticipated renewal contracts to which the costs relate. Our deferred contract costs for our customers have average amortization periods of approximately 12 months to 60 months and are subject to being monitored every period to reflect any significant change in assumptions. In addition, we assess our deferred contract cost asset for impairment on a periodic basis.

We have material obligations to our customers in our indefeasible right of use arrangements, including certain long-term prepaid customer capacity arrangements, which are accounted for as operating leases and service contracts. As our service contracts contain a significant financing component that are not separately accounted for, we are required to estimate and record incremental revenue and interest cost associated with these contractual terms. Most of our indefeasible right of use arrangements are accounted for as operating leases.

We recognized a cumulative adjustment of $9 million to beginning retained earnings, net of tax effect, on January 1, 2018, as a result of deferring commissions as contract acquisition costs that were not previously deferred. Adoption of this standard increased our disclosures regarding revenue recognition, see Note 5 - Revenue Recognition for additional information.

Income Taxes

On October 24, 2016, FASB issued ASU 2016-16, “Intra-Entity Transfers of Assets Other Than Inventory” ("ASU 2016-16"). ASU 2016-16 eliminates the current prohibition on the recognition of the income tax effects on the transfer of assets among our subsidiaries. After adoption of this ASU, the income tax effects associated with these asset transfers, except for the transfer of inventory, will be recognized in the period the asset is transferred versus the current deferral and recognition upon either the sale of the asset to a third party or over the remaining useful life of the asset. We adopted ASU 2016-16 on January 1, 2018. The adoption of ASU 2016-16 did not have a material impact to our consolidated financial statements.

Comprehensive Income

ASU 2018-02 provides an option to reclassify stranded tax effects within accumulated other comprehensive income to retained earnings in each period in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act (or portion thereof) is recorded. If an entity elects to reclassify the income tax effects of the Tax Cuts and Jobs Act, the amount of that reclassification shall include the effect of the change in the U.S. federal corporate income tax rate on the gross deferred tax amounts and related valuation allowances, if any, at the date of enactment of the Tax Cuts and Jobs Act related to items remaining in accumulated other comprehensive income. The effect of the change in the U.S. federal corporate income tax rate on gross valuation allowances that were originally charged to income from continuing operations shall not be included. ASU 2018-02 is effective January 1, 2019, but early adoption is permitted and should be applied either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act is recognized. We early adopted ASU 2018-02 in the first quarter of 2018 and applied it in the period of adoption. The adoption of ASU 2018-02 resulted in a $6 million decrease to member's equity and increase to accumulated other comprehensive income. See Note 9 - Accumulated Other Comprehensive Income (Loss) for additional information.

Recent Accounting Pronouncements

Leases

On February 25, 2016, the FASB issued ASU 2016-02, “Leases” (“ASU 2016-02”). The core principle of ASU 2016-02 will require lessees to present right-of-use assets and lease liabilities on their balance sheets for operating leases, which are currently not reflected on their balance sheets.

ASU 2016-02 is effective for annual and interim periods beginning January 1, 2019. Early adoption of ASU 2016-02 is permitted. Upon adoption of ASU 2016-02, we are required to recognize and measure leases at the beginning of the earliest period presented in our consolidated financial statements using a modified retrospective approach. The modified retrospective approach includes a number of optional practical expedients that we may elect to apply.

On January 25, 2018, the FASB issued ASU 2018-01, “Leases: Land Easement Practical Expedient for Transition to ASU 2016-02. ASU 2018-01permits the election of an optional transition practical expedient to not evaluate land easements that exist or expired before the entity’s adoption of ASC 2016-02 and that were not previously accounted for as leases. We plan to adopt ASU 2018-01 at the same time we adopt ASU 2016-02.

We are in the process of implementing a new lease administrative and accounting system. We plan to adopt the standard when it becomes effective for us beginning January 1, 2019 and the adoption of the standard will result in the recognition of right of use assets and lease liabilities that have not previously been recorded. Although we believe it is premature as of the date of this report to provide any estimate of the impact of adopting ASU 2016-02, we do expect that it will have a material impact on our consolidated financial statements.

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.

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 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.

CenturyLink Meger (Tables)

3 Months Ended

Mar. 31, 2018

Business Combinations [Abstract]

Schedule of Business Acquisitions, by Acquisition

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 March 31, 2018
	(Dollars in millions)
Cash, accounts receivable and other current assets ⁽¹⁾	$	3,317		(3	)	3,314
Property, plant and equipment	9,311			92		9,403
Identifiable intangible assets ⁽²⁾						—
Customer relationships	8,964			(476	)	8,488
Other	391			(13	)	378
Other noncurrent assets	782			156		938
Current liabilities, excluding current maturities of long-term debt	(1,461		)	—		(1,461	)
Current maturities of long-term debt	(7		)	—		(7	)
Long-term debt	(10,888		)	—		(10,888	)
Deferred revenue and other liabilities	(1,613		)	(65	)	(1,678	)
Goodwill	10,837			304		11,141
Total estimated aggregate consideration	$	19,633		(5	)	19,628

(1) Includes a preliminary estimated fair value of $863 million for accounts receivable, which had a gross contractual value of $884 million on November 1, 2017. The $21 million difference between the gross contractual value and the preliminary estimated fair value assigned represents our best estimate as of November 1, 2017 of contractual cash flows that will not be collected.

(2) The preliminary estimate of the weighted-average amortization period for the acquired intangible assets is approximately 12.0 years.

(3) All purchase price adjustments occurred during the three months ended March 31, 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 March 31, 2018		Three Months Ended March 31, 2017
	(Dollars in millions)
Transaction-related expenses	$	—	3
Integration-related expenses	18		18
Total acquisition-related expenses	$	18	21

Goodwill, Customer Relationships and Other Intangible Assets (Tables)

3 Months Ended

Mar. 31, 2018

Acquired Intangible Assets Disclosure [Abstract]

Schedule of acquisition-related intangible assets

Goodwill, customer relationships and other intangible assets consisted of the following:



	March 31, 2018		December 31, 2017
	(Dollars in millions)
Goodwill	$	11,141	10,837
Customer relationships, less accumulated amortization of $300 and $126	8,206		8,845
Other intangible assets subject to amortization:
Trade names, less accumulated amortization of $11 and $4	119		126
Developed technology, less accumulated amortization of $22 and $9	271		252
Total other intangible assets, net	$	390	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 nine months)	$	599
2019	799
2020	799
2021	799
2022	787

Long-Term Debt (Tables)

3 Months Ended

Mar. 31, 2018

Debt Disclosure [Abstract]

Schedule of long-term debt

The following table summarizes our long-term debt:



	Interest Rates	Maturities	March 31, 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	177			179
Total long-term debt, excluding unamortized premiums			10,703			10,705
Unamortized premiums, net			178			185
Total long-term debt			10,881			10,890
Less current maturities			(9		)	(8		)
Long-term debt, excluding current maturities			$	10,872		$	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 4.111% as of March 31, 2018 and 3.557% as of December 31, 2017. The interest rate on the Tranche B 2024 Term Loan is set with a minimum 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 nine months)	$	9
2019	8
2020	10
2021	651
2022	1,726
2023 and thereafter	8,299
Total long-term debt	$	10,703

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.22)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=84159872&loc=d3e21475-112644

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 470
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=75038535&loc=d3e64711-112823

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(e),(f))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=64930739&loc=d3e28878-108400

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=84159872&loc=d3e21538-112644

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=84159872&loc=d3e21506-112644

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=64930785&loc=d3e28541-108399

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=64930785&loc=d3e28551-108399

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=84159872&loc=d3e21521-112644

+ Details

Revenue Recognition (Tables)

3 Months Ended

Mar. 31, 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 months ended March 31, 2018 as well as a reconciliation of adjustments to revenue from the adoption of ASC 606 to ASC 605:



	Successor
	Three Months Ended March 31, 2018
	(Dollars in millions)
	Total Revenues		Adjustments⁽⁷⁾		Total Revenue from Contracts with Customers
Voice & Collaboration⁽¹⁾	$	381	—		381
IT and Managed Services⁽²⁾	1		—		1
Transport & Infrastructure⁽³⁾	675		(42	)	633
IP & Data Services⁽⁴⁾	1,003		—		1,003
Regulatory revenues⁽⁵⁾	2		(2	)	—
Affiliate revenues⁽⁶⁾	25		—		25
Total revenues	$	2,087	(44	)	2,043

Timing of revenue
Goods transferred at a point in time					$	—
Services performed over time					2,043
Total revenue from contracts with customers					$	2,043

(1) Includes local, long-distance and other ancillary revenues.

(2) Includes IT services and managed services revenues.

(3) Includes primarily broadband, private line (including business data services), colocation and data centers, wavelength and ancillary revenues.

(4) Includes primarily VPN data network, Ethernet, IP, video and ancillary revenues.

(5) Includes sublease rental income.

(6) Includes telecommunications and data services we bill to our affiliates.

(7) Includes sublease rental income and revenue from fiber capacity lease arrangements.

Contract with Customer, Asset and Liability

The following table provides balances of customer receivables and contract liabilities as of March 31, 2018 and December 31, 2017:



	Successor
	March 31, 2018		January 1, 2018
	(Dollars in millions)
Customer receivables⁽¹⁾	$	726	748
Contract liabilities	373		353

(1) Gross customer receivables of $730 and $751, net of allowance for doubtful accounts of $4 and $3, respectively.

The following table provides information about revenues recognized for the three months ended March 31, 2018:



	Successor
	March 31, 2018
	(Dollars in millions)
Revenue recognized in the period from:
Amounts included in contract liability at the beginning of the period	$	97
Performance obligations satisfied in previous periods	—

Capitalized Contract Cost

The following table provides changes in our contract acquisition costs and fulfillment costs for the three months ended March 31, 2018:



	Successor
	Three Months Ended March 31, 2018
	(Dollars in millions)
	Acquisition Costs			Fulfillment Costs
Beginning of period balance	$	13		14
Costs incurred	15			23
Amortization	(2		)	(2	)
Impairments	—			—
End of period balance	$	26		35

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 March 31, 2018
	(Dollars in millions)
	Reported Balances as of March 31, 2018		Impact of 606		ASC 605 Historical Adjusted Balances
Operating revenues	$	2,087	—		$	2,087
Cost of services and products (exclusive of depreciation and amortization)	998		—		998
Selling, general and administrative	344		13		357
Income tax expense	102		(3	)	99
Net income	62		(10	)	52



	As of March 31, 2018
	(Dollars in millions)
	Reported Balances as of March 31, 2018		Impact of 606		ASC 605 Historical Adjusted Balances
Other current assets	$	183	(11	)	$	172
Other long-term assets, net	96		(15	)	81
Deferred income taxes, net	249		3		252
Member's Equity	18,924		(19	)	18,905

Fair Value of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 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:

As of

March 31, 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

$

10,704

10,435

10,711

10,528

Other Financial Information (Tables)

3 Months Ended

Mar. 31, 2018

Statement of Financial Position [Abstract]

Schedule of Other Assets and Other Liabilities

The following table presents details of other current liabilities in our consolidated balance sheets:



	March 31, 2018		December 31, 2017
	(Dollars in millions)
Self insurance	$	6	11
Legal and tax reserves	15		31
Other	46		15
Total other current liabilities	$	67	57

The following table presents details of other current assets in our consolidated balance sheets:



	March 31, 2018		December 31, 2017
	(Dollars in millions)
Prepaid expenses	$	90	68
Material, supplies and inventory	4		3
Deferred activation and installation charges	18		17
Deferred commissions	12		—
Other	59		29
Total other current assets	$	183	117

Accumulated Other Comprehensive Income (Loss) (Tables)

3 Months Ended

Mar. 31, 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 income recorded on our consolidated balance sheets by component for the successor three months ended March 31, 2018:



	Foreign Currency Translation Adjustments and Other		Total

Balance at December 31, 2017	$	18	18
Other comprehensive income (loss) before reclassifications, net of tax	72		72
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) income	78		78
Balance at March 31, 2018	$	96	96

The tables below summarize changes in accumulated other comprehensive loss recorded on our consolidated balance sheets by component for the predecessor three months ended March 31, 2017:



	Pension Plans			Foreign Currency Translation Adjustments and Other		Total
	(Dollars in millions)
Balance at December 31, 2016	$	(34	)	(353	)	(387	)
Other comprehensive income before reclassifications, net of tax	—			20		20
Amounts reclassified from accumulated other comprehensive loss	1			—		1
Net other comprehensive (loss) income	1			20		21
Balance at March 31, 2017	$	(33	)	(333	)	(366	)

Condensed Consolidating Financial Information (Tables)

3 Months Ended

Mar. 31, 2018

Condensed Consolidating Financial Information [Abstract]

Condensed Consolidating Statements of Comprehensive Income (Loss)

Three Months Ended March 31, 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	$	—		$	—		$	956		$	1,146		$	(40	)	2,062
Operating revenues - affiliate	—			—			25			—			—			25
Total operating revenues	—			—			981			1,146			(40		)	2,087
OPERATING EXPENSES
Cost of services and products (exclusive of depreciation and amortization)	—			—			589			449			(40		)	998
Selling, general and administrative	—			1			259			84			—			344
Operating expenses - affiliate	—			—			53			—			—			53
Depreciation and amortization	—			—			170			261			—			431
Total cost and expenses	—			1			1,071			794			(40		)	1,826
OPERATING INCOME (LOSS)	—			(1		)	(90		)	352			—			261
OTHER INCOME (EXPENSE)
Interest income	—			—			—			1			—			1
Interest income - affiliate	16			—			—			—			—			16
Interest expense	(8		)	(108		)	(1		)	(3		)	—			(120	)
Interest income (expense) - intercompany, net	355			608			(881		)	(82		)	—			—
Equity in net earnings (losses) of subsidiaries	(315		)	(839		)	(1		)	—			1,155			—
Other income, net	—			—			1			5			—			6
Total other income (expense)	48			(339		)	(882		)	(79		)	1,155			(97	)
INCOME (LOSS) BEFORE INCOME TAXES	48			(340		)	(972		)	273			1,155			164
Income tax benefit (expense)	14			25			(47		)	(94		)	—			(102	)
NET INCOME (LOSS)	62			(315		)	(1,019		)	179			1,155			62
Other comprehensive income (loss), net of income taxes	72			—			—			72			(72		)	72
COMPREHENSIVE INCOME (LOSS)	$	134		(315		)	(1,019		)	251			1,083			134

Condensed Consolidating Statements of Comprehensive Income (Loss)

Three Months Ended March 31, 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	$	—		$	—		$	920		$	1,157		$	(29	)	$	2,048
Operating revenues - affiliate	—			—			—			—			—			—
Total operating revenues	—			—			920			1,157			(29		)	2,048
OPERATING EXPENSES
Cost of services and products (exclusive of depreciation and amortization)	—			—			583			497			(29		)	1,051
Selling, general and administrative expenses	1			1			277			85			—			364
Operating expenses - affiliate	—			—			—			—			—			—
Depreciation and amortization	—			—			87			209			—			296
Total cost and expenses	1			1			947			791			(29		)	1,711
OPERATING INCOME (LOSS)	(1		)	(1		)	(27		)	366			—			337
OTHER INCOME (EXPENSE)
Interest income	—			—			2			—			—			2
Interest income - affiliate	—			—			—			—			—			—
Interest expense	(9		)	(120		)	(1		)	(4		)	—			(134		)
Interest income (expense) - intercompany, net	377			574			(869		)	(82		)	—			—
Equity in net earnings (losses) of subsidiaries	(275		)	(646		)	203			—			718			—
Loss on modification and extinguishment of debt	—			(44		)	—			—			—			(44		)
Other income, net	—			—			5			(1		)	—			4
Total other income (expense)	93			(236		)	(660		)	(87		)	718			(172		)
INCOME (LOSS) BEFORE INCOME TAXES	92			(237		)	(687		)	279			718			165
Income tax expense	3			(38		)	(1		)	(34		)	—			(70		)
NET INCOME (LOSS)	95			(275		)	(688		)	245			718			95
Other comprehensive income (loss), net of income taxes	21			—			—			21			(21		)	21
COMPREHENSIVE INCOME (LOSS)	$	116		$	(275	)	$	(688	)	$	266		$	697		$	116

Condensed Consolidating Balance Sheets

March 31, 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	$	39	—	133	87	—		259
Restricted cash and securities	—		—	1	4	—		5
Assets held for sale	68		—	5	67	—		140
Accounts receivable	—		—	10	716	—		726
Accounts receivable - affiliate	—		—	—	3	—		3
Intercompany advances	16,493		21,422	—	5,368	(43,283	)	—
Note receivable - affiliate	1,825		—	—	—	—		1,825
Other	—		—	95	88	—		183
Total current assets	18,425		21,422	244	6,333	(43,283	)	3,141
Property, plant, and equipment, net	—		—	3,103	6,439	—		9,542
Restricted cash and securities	19		—	10	—	—		29
GOODWILL AND OTHER ASSETS
Goodwill	—		—	1,658	9,483	—		11,141
Customer relationships, net	—		—	3,979	4,227	—		8,206
Other intangible assets, net	—		—	390	—	—		390
Investment in subsidiaries	16,955		18,788	3,609	—	(39,352	)	—
Deferred tax assets	279		1,826	114	10	(1,771	)	458
Other, net	—		—	54	42	—		96
Total goodwill and other assets	17,234		20,614	9,804	13,762	(41,123	)	20,291
TOTAL ASSETS	$	35,678	42,036	13,161	26,534	(84,406	)	33,003

LIABILITIES AND MEMBER'S EQUITY
CURRENT LIABILITIES
Current portion of long-term debt	$	—	—	2	7	—		9
Accounts payable	—		1	318	359	—		678
Accounts payable - affiliate	27		—	66	2	—		95
Accrued expenses and other liabilities
Income and other taxes	—		1	45	41	—		87
Salaries and benefits	—		—	129	34	—		163
Interest	3		85	—	7	—		95



Current portion of deferred revenue	—		—	135		138	—		273
Current portion of deferred revenue - affiliate	—		—	2		—	—		2
Intercompany payables	—		—	43,283		—	(43,283	)	—
Other	—		—	16		51	—		67
Total Current Liabilities	30		87	43,996		639	(43,283	)	1,469
LONG-TERM DEBT	615		10,088	13		156	—		10,872
DEFERRED REVENUES AND OTHER LIABILITIES
Deferred revenues	—		—	843		263	—		1,106
Deferred revenues - affiliate	—		—	5		1	—		6
Deferred tax liability	648		—	849		483	(1,771	)	209
Other	1		—	174		146	—		321
Total deferred credits and other	649		—	1,871		893	(1,771	)	1,642
COMMITMENTS AND CONTINGENCIES
MEMBER'S EQUITY (DEFICIT)	34,384		31,861	(32,719	)	24,846	(39,352	)	19,020
TOTAL LIABILITIES AND MEMBER'S EQUITY	$	35,678	42,036	13,161		26,534	(84,406	)	33,003

Condensed Consolidating Balance Sheets

December 31, 2017 (Successor)



	Level 3 Parent, LLC		Level 3 Financing, Inc.	Level 3 Communications, LLC	Other Non-Guarantor Subsidiaries	Eliminations		Total
	(Dollars in millions)
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	13	—	175	109	—		297
Restricted cash and securities	—		—	1	4	—		5
Assets held for sale	68		—	5	67	—		140
Accounts receivable	—		—	26	722	—		748
Accounts receivable - affiliate	—		—	60	4	(51	)	13
Intercompany advances	16,251		21,032	—	5,200	(42,483	)	—
Note receivable - affiliate	1,825		—	—	—	—		1,825
Other	—		—	54	63	—		117
Total current assets	18,157		21,032	321	6,169	(42,534	)	3,145
Property, plant, and equipment, net	—		—	3,237	6,175	—		9,412
Restricted cash and securities	19		—	10	—	—		29
GOODWILL AND OTHER ASSETS
Goodwill	—		—	1,200	9,637	—		10,837
Customer relationships, net	—		—	4,324	4,521	—		8,845
Other intangible assets, net	—		—	378	—	—		378
Investment in subsidiaries	16,954		18,403	3,616	—	(38,973	)	—
Deferred tax assets	280		1,795	—	122	(1,771	)	426
Other, net	—		—	32	31	—		63
Total goodwill and other assets	17,234		20,198	9,550	14,311	(40,744	)	20,549
TOTAL ASSETS	$	35,410	41,230	13,118	26,655	(83,278	)	33,135

LIABILITIES AND MEMBER'S EQUITY
CURRENT LIABILITIES
Current maturities of long-term debt	$	—	—	2	6	—		8
Accounts payable	—		1	323	371	—		695
Accounts payable - affiliate	11		—	—	81	(51	)	41
Accrued expenses and other liabilities
Income and other taxes	—		—	55	45	—		100
Salaries and benefits	—		—	109	27	—		136
Interest	11		91	—	7	—		109



Current portion of deferred revenue	—		—	127		131	—		258
Current portion of deferred revenue - affiliate	—		—	2		—	—		2
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 REVENUES AND OTHER LIABILITIES
Deferred revenues	—		—	841		252	—		1,093
Deferred revenues - affiliate	—		—	5		1	—		6
Deferred tax liability	648		—	870		465	(1,771	)	212
Other	1		1	98		164	—		264
Total deferred credits and other liabilities	649		1	1,814		882	(1,771	)	1,575
COMMITMENTS AND CONTINGENCIES
MEMBER'S EQUITY (DEFICIT)	34,107		31,041	(31,833	)	24,930	(38,973	)	19,272
TOTAL LIABILITIES AND MEMBER'S EQUITY	$	35,410	41,230	13,118		26,655	(83,278	)	33,135

Condensed Consolidating Statements of Cash Flows

Three Months Ended March 31, 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	$	(8	)	—	490		89		—	571
INVESTING ACTIVITIES
Capital expenditures	—			—	(142	)	(110	)	—	(252	)
Proceeds from the sale of property, plant and equipment and other assets	—			—	—		1		—	1
Deposits received on assets held for sale	34			—	—		—		—	34
Net cash provided by (used in) investing activities	34			—	(142	)	(109	)	—	(217	)
FINANCING ACTIVITIES
Payments of long-term debt	—			—	—		(1	)	—	(1	)
Distributions	(390		)	—	—		—		—	(390	)
Increase (decrease) due from/to affiliates, net	390			—	(390	)	—		—	—
Net cash provided by (used in) financing activities	—			—	(390	)	(1	)	—	(391	)
Effect of exchange rates on cash, cash equivalents and restricted cash and securities	—			—	—		(1	)	—	(1	)
Net increase (decrease) in cash, cash equivalents and restricted cash and securities	26			—	(42	)	(22	)	—	(38	)
Cash, cash equivalents and restricted cash and securities and beginning of period	32			—	186		113		—	331
Cash, cash equivalents and restricted cash and securities and end of period	$	58		—	144		91		—	293

Condensed Consolidating Statements of Cash Flows

Three Months Ended March 31, 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	$	(16	)	(135	)	109		581		—	539
INVESTING ACTIVITIES
Capital expenditures	—			—		(233	)	(135	)	—	(368	)
Net cash provided by (used in) investing activities	—			—		(233	)	(135	)	—	(368	)
FINANCING ACTIVITIES
Net proceeds from issuance of long-term debt	—			4,569		—		—		—	4,569
Payments of long-term debt	—			(4,611	)	—		(2	)	—	(4,613	)
Increase (decrease) due from/to affiliates, net	16			177		262		(455	)	—	—
Net cash provided by (used in) financing activities	16			135		262		(457	)	—	(44	)
Effect of exchange rates on cash, cash equivalents and restricted cash and securities	—			—		—		1		—	1
Net increase (decrease) in cash, cash equivalents and restricted cash and securities	—			—		138		(10	)	—	128
Cash, cash equivalents and restricted cash and securities and beginning of period	37			—		1,710		110		—	1,857
Cash, cash equivalents and restricted cash and securities and end of period	$	37		—		1,848		100		—	1,985

Background (Details) - USD ($) $ in Millions	3 Months Ended		12 Months Ended
Background (Details) - USD ($) $ in Millions	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
New Accounting Pronouncement, Early Adoption [Line Items]
Provisional income tax expense (benefit)			$ 195
Provisional income tax expense (benefit), purchase accounting adjustment	$ 64
Reclassification from AOCI to retained earnings, tax effect	$ 6
Adjustments for New Accounting Pronouncement
New Accounting Pronouncement, Early Adoption [Line Items]
Production and distribution costs		$ 24
Difference between Revenue Guidance in Effect before and after Topic 606 \| Accounting Standards Update 2014-09
New Accounting Pronouncement, Early Adoption [Line Items]
Retained earnings (accumulated deficit)			$ 9
Minimum \| Contract Acquisition and Fulfillment Costs
New Accounting Pronouncement, Early Adoption [Line Items]
Amortization period	12 months
Maximum \| Contract Acquisition and Fulfillment Costs
New Accounting Pronouncement, Early Adoption [Line Items]
Amortization period	60 months

CenturyLink Merger - Additional Information (Details) $ / shares in Units, shares in Millions, $ in Millions			1 Months Ended	3 Months Ended
	Jan. 22, 2018 USD ($)	Nov. 01, 2017 USD ($) city dark_fiber $ / shares shares	Apr. 30, 2018 USD ($)	Jun. 30, 2018 USD ($)	Mar. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)	Oct. 31, 2017 $ / shares shares
Business Acquisition [Line Items]
Long-term debt					$ 10,881.0	$ 10,890.0
Goodwill					11,141.0	10,837.0
Assets held for sale, selling price	$ 68.0
Proceeds from deposits from assets held for sale					34.0
Scenario, Forecast
Business Acquisition [Line Items]
Proceeds from sale of intangible assets				$ 34.0
Subsequent Event
Business Acquisition [Line Items]
Payments of capital distribution			$ 15.0
Level 3 Parent, LLC
Business Acquisition [Line Items]
Cash consideration per share (in dollars per share) \| $ / shares		$ 26.50
Stock conversion ratio		1.4286
Common stock outstanding (in shares) \| shares							362.2
Level 3 Parent, LLC \| Level 3 Parent, LLC
Business Acquisition [Line Items]
Ownership percentage by noncontrolling owners		49.00%
Level 3 Parent, LLC \| CenturyLink
Business Acquisition [Line Items]
Cash consideration per share (in dollars per share) \| $ / shares		$ 26.50
Stock conversion ratio		1.4286
Restricted stock unit conversion ratio		2.8386
Consideration transferred		$ 19,628.0
Equity interest issued or issuable (in shares) \| shares		517.3
Share price (in dollars per share) \| $ / shares							$ 18.99
Payment for restricted stock unit conversion		$ 1.0
Equity interests issued and issuable (in shares)		131.0
Payment to settle claims		58.0
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Long-term Debt		$ 10,600.0			10,888.0	10,888.0
Number of strands of dark fiber divested \| dark_fiber		24
Number of cities connected by dark fiber \| city		30
Goodwill		$ 11,141.0			$ 11,141.0	$ 10,837.0
Level 3 Parent, LLC \| CenturyLink \| Unsecured Debt
Business Acquisition [Line Items]
Long-term debt		$ 1,825.0
Stated interest rate		3.50%
Level 3 Parent, LLC \| CenturyLink \| Level 3 Parent, LLC
Business Acquisition [Line Items]
Ownership percentage by parent		51.00%

CenturyLink Merger - Preliminary Estimated Aggregate Consideration (Details) - USD ($) $ in Millions		3 Months Ended
	Nov. 01, 2017	Mar. 31, 2018	Dec. 31, 2017
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract]
Goodwill		$ 11,141	$ 10,837
Purchase Price Adjustments
Acquired finite-lived intangible assets weighted average remaining useful lives		11 years 7 months 6 days
CenturyLink \| Level 3 Parent, LLC
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract]
Cash, accounts receivable and other current assets		$ 3,314	3,317
Property, plant and equipment		9,403	9,311
Other noncurrent assets		938	782
Current liabilities, excluding current maturities of long-term debt		(1,461)	(1,461)
Current maturities of long-term debt		(7)	(7)
Long-term debt	$ (10,600)	(10,888)	(10,888)
Deferred revenue and other liabilities		(1,678)	(1,613)
Goodwill	11,141	11,141	10,837
Total estimated aggregate consideration		19,628	19,633
Purchase Price Adjustments
Cash, accounts receivable and other current assets		(3)
Property, plant and equipment		92
Other noncurrent assets		156
Current liabilities, excluding current maturities of long-term debt		0
Current maturities of long-term debt		0
Long-term debt		0
Deferred revenue and other liabilities		(65)
Goodwill		304
Total estimated aggregate consideration		(5)
Accounts receivable	863
Accounts receivable contractual value	884
Accounts receivable, uncollectible	$ 21
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 - Acquisition Related Expenses (Details) - CenturyLink - Level 3 Parent, LLC - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Business Acquisition [Line Items]
Transaction-related expenses	$ 0
Integration-related expenses	18
Total acquisition-related expenses	$ 18
Predecessor
Business Acquisition [Line Items]
Transaction-related expenses		$ 3
Integration-related expenses		18
Total acquisition-related expenses		$ 21

Goodwill, Customer Relationships and Other Intangible Assets - Schedule of Goodwill and Other Intangible Assets (Details) - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Finite-Lived Intangible Assets [Line Items]
Goodwill	$ 11,141	$ 10,837
Customer Contracts And Relationships
Finite-Lived Intangible Assets [Line Items]
Intangible assets, net	8,206	8,845
Accumulated amortization	300	126
Trade Names
Finite-Lived Intangible Assets [Line Items]
Intangible assets, net	119	126
Accumulated amortization	11	4
Patents and Developed Technology
Finite-Lived Intangible Assets [Line Items]
Intangible assets, net	271	252
Accumulated amortization	22	9
Other Intangible Assets
Finite-Lived Intangible Assets [Line Items]
Intangible assets, net	$ 390	$ 378

Goodwill, Customer Relationships and Other Intangible Assets - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Finite-Lived Intangible Assets [Line Items]
Valuation allowance, available to reduce goodwill			$ 16
Acquired finite-lived intangible asset amortization expense	$ 194	$ 52
Intangible assets including goodwill, noncurrent	$ 20,291		$ 20,549
Acquired finite-lived intangible assets weighted average remaining useful lives	11 years 7 months 6 days
Customer Contracts And Relationships
Finite-Lived Intangible Assets [Line Items]
Acquired finite-lived intangible assets weighted average remaining useful lives	11 years 10 months 24 days
Trade Names
Finite-Lived Intangible Assets [Line Items]
Acquired finite-lived intangible assets weighted average remaining useful lives	4 years 7 months 6 days
Patents and Developed Technology
Finite-Lived Intangible Assets [Line Items]
Acquired finite-lived intangible assets weighted average remaining useful lives	4 years 7 months 6 days

Goodwill, Customer Relationships and Other Intangible Assets - Amortization Expense (Details) $ in Millions	Mar. 31, 2018 USD ($)
Estimated amortization expense of finite-lived acquisition-related intangible assets
2018 (remaining nine months)	$ 599
2019	799
2020	799
2021	799
2022	$ 787

Long-Term Debt - Schedule of Long Term Debt (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Long-term debt
Total long-term debt, excluding unamortized premiums	$ 10,703	$ 10,705
Unamortized premiums, net	178	185
Total long-term debt	10,881	10,890
Less current maturities	(9)	(8)
Long-term debt, excluding current maturities	$ 10,872	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
Tranche B 2024
Long-term debt
Total long-term debt, excluding unamortized premiums	$ 4,611	$ 4,611
Effective percentage	4.111%	3.557%
Capital Leases
Long-term debt
Total long-term debt, excluding unamortized premiums	$ 177	$ 179
Minimum \| Senior Notes with Varied Maturity Date
Long-term debt
Stated interest rate	5.125%
Maximum \| Senior Notes with Varied Maturity Date
Long-term debt
Stated interest rate	6.125%
London Interbank Offered Rate (LIBOR) \| Tranche B 2024
Long-term debt
Basis spread on variable rate	2.25%
London Interbank Offered Rate (LIBOR) \| Minimum \| Tranche B 2024
Long-term debt
Basis spread on variable rate	0.00%
London Interbank Offered Rate (LIBOR) \| Level 3 Financing \| Tranche B 2024
Long-term debt
Basis spread on variable rate	2.25%
London Interbank Offered Rate (LIBOR) \| Level 3 Financing \| Minimum \| Tranche B 2024
Long-term debt
Basis spread on variable rate	0.00%

Long-Term Debt - Textuals (Details) - USD ($) $ in Millions	3 Months Ended
Long-Term Debt - Textuals (Details) - USD ($) $ in Millions	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Long-term debt
Total debt obligations	$ 10,703		$ 10,705
Capital Leases
Long-term debt
Total debt obligations	$ 177		179
Weighted average interest rate	5.80%
Tranche B 2024
Long-term debt
Total debt obligations	$ 4,611		$ 4,611
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%
Tranche B 2024 \| Level 3 Financing \| London Interbank Offered Rate (LIBOR)
Long-term debt
Basis spread on variable rate	2.25%
Upfront basis point	0.25%
Tranche B 2024 \| Level 3 Financing \| London Interbank Offered Rate (LIBOR) \| Minimum
Long-term debt
Basis spread on variable rate	0.00%
2.0 Billion Tranche B-II 2022 Term Loan
Long-term debt
Payment for debt extinguishment or debt prepayment cost		$ 44

Long-Term Debt - Debt Maturities (Details) - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Debt Disclosure [Abstract]
2018 (remaining nine months)	$ 9
2019	8
2020	10
2021	651
2022	1,726
2023 and thereafter	8,299
Total long-term debt, excluding unamortized premiums	$ 10,703	$ 10,705

Revenue Recognition - Disaggregation of Revenue (Details) $ in Millions	3 Months Ended
	Mar. 31, 2018 USD ($)
Disaggregation of Revenue [Line Items]
Total Revenues	$ 2,087
Adjustments	(44)
Total revenue from contracts with customers	2,043
Transferred at Point in Time
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	0
Transferred over Time
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	2,043
Voice & Collaboration
Disaggregation of Revenue [Line Items]
Total Revenues	381
Adjustments	0
Total revenue from contracts with customers	381
IT & Managed Services
Disaggregation of Revenue [Line Items]
Total Revenues	1
Adjustments	0
Total revenue from contracts with customers	1
Transport & Infrastructure
Disaggregation of Revenue [Line Items]
Total Revenues	675
Adjustments	(42)
Total revenue from contracts with customers	633
IP & Data Services
Disaggregation of Revenue [Line Items]
Total Revenues	1,003
Adjustments	0
Total revenue from contracts with customers	1,003
Regulatory Revenue
Disaggregation of Revenue [Line Items]
Total Revenues	2
Adjustments	(2)
Total revenue from contracts with customers	0
Affiliate Revenues
Disaggregation of Revenue [Line Items]
Total Revenues	25
Adjustments	0
Total revenue from contracts with customers	$ 25

Revenue Recognition - Contract Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Jan. 01, 2018
Revenue from Contract with Customer [Abstract]
Customer receivables	$ 726,000	$ 748,000
Contract liabilities	373,000	353,000
Accounts receivable, gross	730	751
Allowance for doubtful accounts receivable	$ 4	$ 3

Revenue Recognition - Deferred Revenue (Details) $ in Millions	3 Months Ended
	Mar. 31, 2018 USD ($)
Revenue from Contract with Customer [Abstract]
Amounts included in contract liability at the beginning of the period	$ 97
Performance obligations satisfied in previous periods	$ 0

Revenue Recognition - Additional Information (Details) $ in Billions	3 Months Ended
	Mar. 31, 2018 USD ($)
Revenue from Contract with Customer [Abstract]
Remaining performance obligation	$ 7.5
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	5 years
Average expected contract term	20 years
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-04-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation, percentage	56.00%
Remaining performance obligation, timing of satisfaction	1 year 9 months
Contract Acquisition and Fulfillment Costs
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Average expected contract term	30 months
Contract Acquisition and Fulfillment Costs \| Minimum
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Amortization period	12 months
Contract Acquisition and Fulfillment Costs \| Maximum
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Amortization period	60 months

Revenue Recognition - Capitalized Contract Cost (Details) $ in Millions	3 Months Ended
	Mar. 31, 2018 USD ($)
Contract Acquisition Costs
Capitalized Contract Cost [Roll Forward]
Beginning of period balance	$ 13
Costs incurred	15
Amortization	(2)
Impairments	0
End of period balance	26
Contract Fulfillment Costs
Capitalized Contract Cost [Roll Forward]
Beginning of period balance	14
Costs incurred	23
Amortization	(2)
Impairments	0
End of period balance	$ 35

Revenue Recognition - Effects of ASC 606 (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Operating revenues	$ 2,087
Cost of services and products (exclusive of depreciation and amortization)	998
Selling, general and administrative expenses	344
Income tax expense	102
Net income	62
Other current assets	183	$ 117
Other long-term assets, net	96	63
Deferred income taxes, net	249
Members' Equity	18,924	$ 19,254
Impact of 606 \| Accounting Standards Update 2014-09
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Operating revenues	0
Cost of services and products (exclusive of depreciation and amortization)	0
Selling, general and administrative expenses	13
Income tax expense	(3)
Net income	(10)
Other current assets	(11)
Other long-term assets, net	(15)
Deferred income taxes, net	3
Members' Equity	(19)
ASC 605 Historical Adjusted Balances
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Operating revenues	2,087
Cost of services and products (exclusive of depreciation and amortization)	998
Selling, general and administrative expenses	357
Income tax expense	99
Net income	52
Other current assets	172
Other long-term assets, net	81
Deferred income taxes, net	252
Members' Equity	$ 18,905

Fair Value of Financial Instruments - Liabilities, Recurring (Details) - Fair Value, Measurements, Recurring - Significant Other Observable Inputs (Level 2) - USD ($) $ in Millions	Mar. 31, 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	$ 10,704	$ 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	$ 10,435	$ 10,528

Commitments, Contingencies and Other Items - Lawsuits (Details) $ in Millions	3 Months Ended
	Mar. 31, 2018 USD ($) Employee contract
Loss Contingencies
Estimated litigation liability	$ 92
Peruvian Tax Litigation, Before Interest \| Pending Litigation
Loss Contingencies
Asserted claim	26
Peruvian Tax Litigation \| Pending Litigation
Loss Contingencies
Asserted claim	14
Employee Severance and Contractor Termination Disputes \| Pending Litigation
Loss Contingencies
Asserted claim	32
Brazilian Tax Claims
Loss Contingencies
Loss Contingency, Estimate of Possible Loss	$ 54
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 and Other Items - Other Commitments (Details) - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
Amount outstanding under letters of credit or other similar obligations	$ 36	$ 36
Collateralized by cash, that is reflected on the consolidated balance sheets as restricted cash	$ 30	$ 30

Other Financial Information - Other Current Assets (Details) - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Prepaid expenses	$ 90	$ 68
Material, supplies and inventory	4	3
Deferred activation and installation charges	18	17
Deferred commissions	12	0
Other	59	29
Total other current assets	$ 183	$ 117

Other Financial Information - Other Current Liabilities (Details) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Statement of Financial Position [Abstract]
Self insurance	$ 6	$ 11
Legal and tax reserves	15	31
Other	46	15
Total other current liabilities	67	57
Accounts payable, capital expenditures	$ 73	$ 74

Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Accumulated Other Comprehensive Loss [Line Items]
Balance at beginning of period	$ 19,272
Other comprehensive income (loss) before reclassifications, net of tax	72	$ 20
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) income	78	21
Balance at end of period	19,020
Pension Plans
Accumulated Other Comprehensive Loss [Line Items]
Balance at beginning of period		(34)
Other comprehensive income (loss) before reclassifications, net of tax		0
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) income		1
Balance at end of period		(33)
Foreign Currency Translation Adjustments and Other
Accumulated Other Comprehensive Loss [Line Items]
Balance at beginning of period	18	(353)
Other comprehensive income (loss) before reclassifications, net of tax	72	20
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) income	78	20
Balance at end of period	96	(333)
AOCI Attributable to Parent
Accumulated Other Comprehensive Loss [Line Items]
Balance at beginning of period	18	(387)
Balance at end of period	$ 96	$ (366)

Condensed Consolidating Financial Information - Statements of Comprehensive Income (Loss) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Condensed Consolidating Financial Information
Operating revenues	$ 2,087
Operating revenues - affiliate	25
Total operating revenues	2,062
OPERATING EXPENSES
Cost of services and products (exclusive of depreciation and amortization)	998
Selling, general and administrative expenses	344
Operating expenses - affiliate	53
Depreciation and amortization	431
Total costs and expenses	1,826
OPERATING INCOME	261
OTHER INCOME (EXPENSE)
Interest income	1
Interest income - affiliate	16
Interest expense	(120)
Interest income (expense) - intercompany, net	0
Equity in net earnings (losses) of subsidiaries	0
Loss on modification and extinguishment of debt	0
Other income, net	6
Total other income (expense), net	(97)
INCOME (LOSS) BEFORE INCOME TAXES	164
Income tax expense	(102)
NET INCOME	62
Other comprehensive income	72
COMPREHENSIVE INCOME (LOSS)	134
Eliminations
Condensed Consolidating Financial Information
Operating revenues	(40)
Operating revenues - affiliate	0
Total operating revenues	(40)
OPERATING EXPENSES
Cost of services and products (exclusive of depreciation and amortization)	(40)
Selling, general and administrative expenses	0
Operating expenses - affiliate	0
Depreciation and amortization	0
Total costs and expenses	(40)
OPERATING INCOME	0
OTHER INCOME (EXPENSE)
Interest income	0
Interest income - affiliate	0
Interest expense	0
Interest income (expense) - intercompany, net	0
Equity in net earnings (losses) of subsidiaries	1,155
Other income, net	0
Total other income (expense), net	1,155
INCOME (LOSS) BEFORE INCOME TAXES	1,155
Income tax expense	0
NET INCOME	1,155
Other comprehensive income	(72)
COMPREHENSIVE INCOME (LOSS)	1,083
Level 3 Communications, Inc. \| Reportable Legal Entities
Condensed Consolidating Financial Information
Operating revenues	0
Operating revenues - affiliate	0
Total operating revenues	0
OPERATING EXPENSES
Cost of services and products (exclusive of depreciation and amortization)	0
Selling, general and administrative expenses	0
Operating expenses - affiliate	0
Depreciation and amortization	0
Total costs and expenses	0
OPERATING INCOME	0
OTHER INCOME (EXPENSE)
Interest income	0
Interest income - affiliate	16
Interest expense	(8)
Interest income (expense) - intercompany, net	355
Equity in net earnings (losses) of subsidiaries	(315)
Other income, net	0
Total other income (expense), net	48
INCOME (LOSS) BEFORE INCOME TAXES	48
Income tax expense	14
NET INCOME	62
Other comprehensive income	72
COMPREHENSIVE INCOME (LOSS)	134
Level 3 Financing, Inc. \| Reportable Legal Entities
Condensed Consolidating Financial Information
Operating revenues	0
Operating revenues - affiliate	0
Total operating revenues	0
OPERATING EXPENSES
Cost of services and products (exclusive of depreciation and amortization)	0
Selling, general and administrative expenses	1
Operating expenses - affiliate	0
Depreciation and amortization	0
Total costs and expenses	1
OPERATING INCOME	(1)
OTHER INCOME (EXPENSE)
Interest income	0
Interest income - affiliate	0
Interest expense	(108)
Interest income (expense) - intercompany, net	608
Equity in net earnings (losses) of subsidiaries	(839)
Other income, net	0
Total other income (expense), net	(339)
INCOME (LOSS) BEFORE INCOME TAXES	(340)
Income tax expense	25
NET INCOME	(315)
Other comprehensive income	0
COMPREHENSIVE INCOME (LOSS)	(315)
Level 3 Communications, LLC \| Reportable Legal Entities
Condensed Consolidating Financial Information
Operating revenues	981
Operating revenues - affiliate	25
Total operating revenues	956
OPERATING EXPENSES
Cost of services and products (exclusive of depreciation and amortization)	589
Selling, general and administrative expenses	259
Operating expenses - affiliate	53
Depreciation and amortization	170
Total costs and expenses	1,071
OPERATING INCOME	(90)
OTHER INCOME (EXPENSE)
Interest income	0
Interest income - affiliate	0
Interest expense	(1)
Interest income (expense) - intercompany, net	(881)
Equity in net earnings (losses) of subsidiaries	(1)
Other income, net	1
Total other income (expense), net	(882)
INCOME (LOSS) BEFORE INCOME TAXES	(972)
Income tax expense	(47)
NET INCOME	(1,019)
Other comprehensive income	0
COMPREHENSIVE INCOME (LOSS)	(1,019)
Other Non-Guarantor Subsidiaries \| Reportable Legal Entities
Condensed Consolidating Financial Information
Operating revenues	1,146
Operating revenues - affiliate	0
Total operating revenues	1,146
OPERATING EXPENSES
Cost of services and products (exclusive of depreciation and amortization)	449
Selling, general and administrative expenses	84
Operating expenses - affiliate	0
Depreciation and amortization	261
Total costs and expenses	794
OPERATING INCOME	352
OTHER INCOME (EXPENSE)
Interest income	1
Interest income - affiliate	0
Interest expense	(3)
Interest income (expense) - intercompany, net	(82)
Equity in net earnings (losses) of subsidiaries	0
Other income, net	5
Total other income (expense), net	(79)
INCOME (LOSS) BEFORE INCOME TAXES	273
Income tax expense	(94)
NET INCOME	179
Other comprehensive income	72
COMPREHENSIVE INCOME (LOSS)	$ 251
Predecessor
Condensed Consolidating Financial Information
Operating revenues		$ 2,048
Operating revenues - affiliate		0
Total operating revenues		2,048
OPERATING EXPENSES
Cost of services and products (exclusive of depreciation and amortization)		1,051
Selling, general and administrative expenses		364
Operating expenses - affiliate		0
Depreciation and amortization		296
Total costs and expenses		1,711
OPERATING INCOME		337
OTHER INCOME (EXPENSE)
Interest income		2
Interest income - affiliate		0
Interest expense		(134)
Interest income (expense) - intercompany, net		0
Equity in net earnings (losses) of subsidiaries		0
Loss on modification and extinguishment of debt		(44)
Other income, net		4
Total other income (expense), net		(172)
INCOME (LOSS) BEFORE INCOME TAXES		165
Income tax expense		(70)
NET INCOME		95
Other comprehensive income		21
COMPREHENSIVE INCOME (LOSS)		116
Predecessor \| Eliminations
Condensed Consolidating Financial Information
Operating revenues		(29)
Operating revenues - affiliate		0
Total operating revenues		(29)
OPERATING EXPENSES
Cost of services and products (exclusive of depreciation and amortization)		(29)
Selling, general and administrative expenses		0
Operating expenses - affiliate		0
Depreciation and amortization		0
Total costs and expenses		(29)
OPERATING INCOME		0
OTHER INCOME (EXPENSE)
Interest income		0
Interest income - affiliate		0
Interest expense		0
Interest income (expense) - intercompany, net		0
Equity in net earnings (losses) of subsidiaries		718
Loss on modification and extinguishment of debt		0
Other income, net		0
Total other income (expense), net		718
INCOME (LOSS) BEFORE INCOME TAXES		718
Income tax expense		0
NET INCOME		718
Other comprehensive income		(21)
COMPREHENSIVE INCOME (LOSS)		697
Predecessor \| Level 3 Communications, Inc. \| Reportable Legal Entities
Condensed Consolidating Financial Information
Operating revenues		0
Operating revenues - affiliate		0
Total operating revenues		0
OPERATING EXPENSES
Cost of services and products (exclusive of depreciation and amortization)		0
Selling, general and administrative expenses		1
Operating expenses - affiliate		0
Depreciation and amortization		0
Total costs and expenses		1
OPERATING INCOME		(1)
OTHER INCOME (EXPENSE)
Interest income		0
Interest income - affiliate		0
Interest expense		(9)
Interest income (expense) - intercompany, net		377
Equity in net earnings (losses) of subsidiaries		(275)
Loss on modification and extinguishment of debt		0
Other income, net		0
Total other income (expense), net		93
INCOME (LOSS) BEFORE INCOME TAXES		92
Income tax expense		3
NET INCOME		95
Other comprehensive income		21
COMPREHENSIVE INCOME (LOSS)		116
Predecessor \| Level 3 Financing, Inc. \| Reportable Legal Entities
Condensed Consolidating Financial Information
Operating revenues		0
Operating revenues - affiliate		0
Total operating revenues		0
OPERATING EXPENSES
Cost of services and products (exclusive of depreciation and amortization)		0
Selling, general and administrative expenses		1
Operating expenses - affiliate		0
Depreciation and amortization		0
Total costs and expenses		1
OPERATING INCOME		(1)
OTHER INCOME (EXPENSE)
Interest income		0
Interest income - affiliate		0
Interest expense		(120)
Interest income (expense) - intercompany, net		574
Equity in net earnings (losses) of subsidiaries		(646)
Loss on modification and extinguishment of debt		(44)
Other income, net		0
Total other income (expense), net		(236)
INCOME (LOSS) BEFORE INCOME TAXES		(237)
Income tax expense		(38)
NET INCOME		(275)
Other comprehensive income		0
COMPREHENSIVE INCOME (LOSS)		(275)
Predecessor \| Level 3 Communications, LLC \| Reportable Legal Entities
Condensed Consolidating Financial Information
Operating revenues		920
Operating revenues - affiliate		0
Total operating revenues		920
OPERATING EXPENSES
Cost of services and products (exclusive of depreciation and amortization)		583
Selling, general and administrative expenses		277
Operating expenses - affiliate		0
Depreciation and amortization		87
Total costs and expenses		947
OPERATING INCOME		(27)
OTHER INCOME (EXPENSE)
Interest income		2
Interest income - affiliate		0
Interest expense		(1)
Interest income (expense) - intercompany, net		(869)
Equity in net earnings (losses) of subsidiaries		203
Loss on modification and extinguishment of debt		0
Other income, net		5
Total other income (expense), net		(660)
INCOME (LOSS) BEFORE INCOME TAXES		(687)
Income tax expense		(1)
NET INCOME		(688)
Other comprehensive income		0
COMPREHENSIVE INCOME (LOSS)		(688)
Predecessor \| Other Non-Guarantor Subsidiaries \| Reportable Legal Entities
Condensed Consolidating Financial Information
Operating revenues		1,157
Operating revenues - affiliate		0
Total operating revenues		1,157
OPERATING EXPENSES
Cost of services and products (exclusive of depreciation and amortization)		497
Selling, general and administrative expenses		85
Operating expenses - affiliate		0
Depreciation and amortization		209
Total costs and expenses		791
OPERATING INCOME		366
OTHER INCOME (EXPENSE)
Interest income		0
Interest income - affiliate		0
Interest expense		(4)
Interest income (expense) - intercompany, net		(82)
Equity in net earnings (losses) of subsidiaries		0
Loss on modification and extinguishment of debt		0
Other income, net		(1)
Total other income (expense), net		(87)
INCOME (LOSS) BEFORE INCOME TAXES		279
Income tax expense		(34)
NET INCOME		245
Other comprehensive income		21
COMPREHENSIVE INCOME (LOSS)		$ 266

Condensed Consolidating Financial Information - Balance Sheets (Details) - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
CURRENT ASSETS
Cash and cash equivalents	$ 259	$ 297
Restricted cash and securities	5	5
Assets held for sale	140	140
Accounts receivable	726	748
Accounts receivable - affiliate	3	13
Intercompany advances	0	0
Note receivable - affiliate	1,825	1,825
Other	183	117
Total current assets	3,141	3,145
Property, plant, and equipment, net	9,542	9,412
Restricted cash and securities	29	29
Goodwill	11,141	10,837
Investment in subsidiaries	0	0
Deferred tax assets	458	426
Other, net	96	63
Total goodwill and other assets	20,291	20,549
TOTAL ASSETS	33,003	33,135
CURRENT LIABILITIES
Current maturities of long-term debt	9	8
Accounts payable	678	695
Accounts payable - affiliate	95	41
Income and other taxes	87	100
Salary and benefits	163	136
Interest	95	109
Current portion of deferred revenue	273	258
Current portion of deferred revenue - affiliate	2	2
Intercompany payables	0	0
Other	67	57
Total current liabilities	1,469	1,406
LONG-TERM DEBT	10,872	10,882
Deferred revenue	1,106	1,093
Deferred revenue - affiliate	6	6
Deferred tax liability	209	212
Other	321	264
Total deferred credits and other liabilities	1,642	1,575
COMMITMENTS AND CONTINGENCIES
Total member's equity	19,020	19,272
Total liabilities and member's equity	33,003	33,135
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	(43,283)	(42,483)
Note receivable - affiliate	0	0
Other	0	0
Total current assets	(43,283)	(42,534)
Property, plant, and equipment, net	0	0
Restricted cash and securities	0	0
Goodwill	0	0
Investment in subsidiaries	(39,352)	(38,973)
Deferred tax assets	(1,771)	(1,771)
Other, net	0	0
Total goodwill and other assets	(41,123)	(40,744)
TOTAL ASSETS	(84,406)	(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
Salary and benefits	0	0
Interest	0	0
Current portion of deferred revenue	0	0
Current portion of deferred revenue - affiliate	0	0
Intercompany payables	(43,283)	(42,483)
Other	0	0
Total current liabilities	(43,283)	(42,534)
LONG-TERM DEBT	0	0
Deferred revenue	0	0
Deferred revenue - affiliate	0	0
Deferred tax liability	(1,771)	(1,771)
Other	0	0
Total deferred credits and other liabilities	(1,771)	(1,771)
COMMITMENTS AND CONTINGENCIES
Total member's equity	(39,352)	(38,973)
Total liabilities and member's equity	(84,406)	(83,278)
Level 3 Communications, Inc. \| Reportable Legal Entities
CURRENT ASSETS
Cash and cash equivalents	39	13
Restricted cash and securities	0	0
Assets held for sale	68	68
Accounts receivable	0	0
Accounts receivable - affiliate	0	0
Intercompany advances	16,493	16,251
Note receivable - affiliate	1,825	1,825
Other	0	0
Total current assets	18,425	18,157
Property, plant, and equipment, net	0	0
Restricted cash and securities	19	19
Goodwill	0	0
Investment in subsidiaries	16,955	16,954
Deferred tax assets	279	280
Other, net	0	0
Total goodwill and other assets	17,234	17,234
TOTAL ASSETS	35,678	35,410
CURRENT LIABILITIES
Current maturities of long-term debt	0	0
Accounts payable	0	0
Accounts payable - affiliate	27	11
Income and other taxes	0	0
Salary and benefits	0	0
Interest	3	11
Current portion of deferred revenue	0	0
Current portion of deferred revenue - affiliate	0	0
Intercompany payables	0	0
Other	0	16
Total current liabilities	30	38
LONG-TERM DEBT	615	616
Deferred revenue	0	0
Deferred revenue - affiliate	0	0
Deferred tax liability	648	648
Other	1	1
Total deferred credits and other liabilities	649	649
COMMITMENTS AND CONTINGENCIES
Total member's equity	34,384	34,107
Total liabilities and member's equity	35,678	35,410
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	21,422	21,032
Note receivable - affiliate	0	0
Other	0	0
Total current assets	21,422	21,032
Property, plant, and equipment, net	0	0
Restricted cash and securities	0	0
Goodwill	0	0
Investment in subsidiaries	18,788	18,403
Deferred tax assets	1,826	1,795
Other, net	0	0
Total goodwill and other assets	20,614	20,198
TOTAL ASSETS	42,036	41,230
CURRENT LIABILITIES
Current maturities of long-term debt	0	0
Accounts payable	1	1
Accounts payable - affiliate	0	0
Income and other taxes	1	0
Salary and benefits	0	0
Interest	85	91
Current portion of deferred revenue	0	0
Current portion of deferred revenue - affiliate	0	0
Intercompany payables	0	0
Other	0	0
Total current liabilities	87	92
LONG-TERM DEBT	10,088	10,096
Deferred revenue	0	0
Deferred revenue - affiliate	0	0
Deferred tax liability	0	0
Other	0	1
Total deferred credits and other liabilities	0	1
COMMITMENTS AND CONTINGENCIES
Total member's equity	31,861	31,041
Total liabilities and member's equity	42,036	41,230
Level 3 Communications, LLC \| Reportable Legal Entities
CURRENT ASSETS
Cash and cash equivalents	133	175
Restricted cash and securities	1	1
Assets held for sale	5	5
Accounts receivable	10	26
Accounts receivable - affiliate	0	60
Intercompany advances	0	0
Note receivable - affiliate	0	0
Other	95	54
Total current assets	244	321
Property, plant, and equipment, net	3,103	3,237
Restricted cash and securities	10	10
Goodwill	1,658	1,200
Investment in subsidiaries	3,609	3,616
Deferred tax assets	114	0
Other, net	54	32
Total goodwill and other assets	9,804	9,550
TOTAL ASSETS	13,161	13,118
CURRENT LIABILITIES
Current maturities of long-term debt	2	2
Accounts payable	318	323
Accounts payable - affiliate	66	0
Income and other taxes	45	55
Salary and benefits	129	109
Interest	0	0
Current portion of deferred revenue	135	127
Current portion of deferred revenue - affiliate	2	2
Intercompany payables	43,283	42,483
Other	16	23
Total current liabilities	43,996	43,124
LONG-TERM DEBT	13	13
Deferred revenue	843	841
Deferred revenue - affiliate	5	5
Deferred tax liability	849	870
Other	174	98
Total deferred credits and other liabilities	1,871	1,814
COMMITMENTS AND CONTINGENCIES
Total member's equity	(32,719)	(31,833)
Total liabilities and member's equity	13,161	13,118
Other Non-Guarantor Subsidiaries \| Reportable Legal Entities
CURRENT ASSETS
Cash and cash equivalents	87	109
Restricted cash and securities	4	4
Assets held for sale	67	67
Accounts receivable	716	722
Accounts receivable - affiliate	3	4
Intercompany advances	5,368	5,200
Note receivable - affiliate	0	0
Other	88	63
Total current assets	6,333	6,169
Property, plant, and equipment, net	6,439	6,175
Restricted cash and securities	0	0
Goodwill	9,483	9,637
Investment in subsidiaries	0	0
Deferred tax assets	10	122
Other, net	42	31
Total goodwill and other assets	13,762	14,311
TOTAL ASSETS	26,534	26,655
CURRENT LIABILITIES
Current maturities of long-term debt	7	6
Accounts payable	359	371
Accounts payable - affiliate	2	81
Income and other taxes	41	45
Salary and benefits	34	27
Interest	7	7
Current portion of deferred revenue	138	131
Current portion of deferred revenue - affiliate	0	0
Intercompany payables	0	0
Other	51	18
Total current liabilities	639	686
LONG-TERM DEBT	156	157
Deferred revenue	263	252
Deferred revenue - affiliate	1	1
Deferred tax liability	483	465
Other	146	164
Total deferred credits and other liabilities	893	882
COMMITMENTS AND CONTINGENCIES
Total member's equity	24,846	24,930
Total liabilities and member's equity	26,534	26,655
Customer Contracts And Relationships
CURRENT ASSETS
Customer relationships, net	8,206	8,845
Customer Contracts And Relationships \| Eliminations
CURRENT ASSETS
Customer relationships, net	0	0
Customer Contracts And Relationships \| Level 3 Communications, Inc. \| Reportable Legal Entities
CURRENT ASSETS
Customer relationships, net	0	0
Customer Contracts And Relationships \| Level 3 Financing, Inc. \| Reportable Legal Entities
CURRENT ASSETS
Customer relationships, net	0	0
Customer Contracts And Relationships \| Level 3 Communications, LLC \| Reportable Legal Entities
CURRENT ASSETS
Customer relationships, net	3,979	4,324
Customer Contracts And Relationships \| Other Non-Guarantor Subsidiaries \| Reportable Legal Entities
CURRENT ASSETS
Customer relationships, net	4,227	4,521
Other Intangible Assets
CURRENT ASSETS
Customer relationships, net	390	378
Other Intangible Assets \| Eliminations
CURRENT ASSETS
Customer relationships, net	0	0
Other Intangible Assets \| Level 3 Communications, Inc. \| Reportable Legal Entities
CURRENT ASSETS
Customer relationships, net	0	0
Other Intangible Assets \| Level 3 Financing, Inc. \| Reportable Legal Entities
CURRENT ASSETS
Customer relationships, net	0	0
Other Intangible Assets \| Level 3 Communications, LLC \| Reportable Legal Entities
CURRENT ASSETS
Customer relationships, net	390	378
Other Intangible Assets \| Other Non-Guarantor Subsidiaries \| Reportable Legal Entities
CURRENT ASSETS
Customer relationships, net	$ 0	$ 0

Condensed Consolidating Financial Information - Statements of Cash Flows (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Condensed Consolidating Financial Information
Net cash provided by operating activities	$ 571
INVESTING ACTIVITIES
Capital expenditures	(252)
Proceeds from sale of property, plant and equipment and other assets	1
Deposits received on assets held for sale	34
Net cash used in investing activities	(217)
Cash Flows from Financing Activities:
Net proceeds from issuance of long-term debt	0
Payments of long-term debt	(1)
Distributions	(390)
Increase (decrease) due from/to affiliates, net	0
Net cash used in financing activities	(391)
Effect of exchange rates on cash, cash equivalents and restricted cash and securities	(1)
Net (decrease) increase in cash, cash equivalents and restricted cash and securities	(38)
Cash, cash equivalents and restricted cash and securities and beginning of period	331
Cash, cash equivalents and restricted cash and securities and end of period	293
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
Deposits received on assets held for sale	0
Net cash used in investing activities	0
Cash Flows from Financing Activities:
Payments of long-term debt	0
Distributions	0
Increase (decrease) due from/to affiliates, net	0
Net cash used in financing activities	0
Effect of exchange rates on cash, cash equivalents and restricted cash and securities	0
Net (decrease) increase in cash, cash equivalents and restricted cash and securities	0
Cash, cash equivalents and restricted cash and securities and beginning of period	0
Cash, cash equivalents and restricted cash and securities and end of period	0
Level 3 Communications, Inc. \| Reportable Legal Entities
Condensed Consolidating Financial Information
Net cash provided by operating activities	(8)
INVESTING ACTIVITIES
Capital expenditures	0
Proceeds from sale of property, plant and equipment and other assets	0
Deposits received on assets held for sale	34
Net cash used in investing activities	34
Cash Flows from Financing Activities:
Payments of long-term debt	0
Distributions	(390)
Increase (decrease) due from/to affiliates, net	390
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	26
Cash, cash equivalents and restricted cash and securities and beginning of period	32
Cash, cash equivalents and restricted cash and securities and end of period	58
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
Deposits received on assets held for sale	0
Net cash used in investing activities	0
Cash Flows from Financing Activities:
Payments of long-term debt	0
Distributions	0
Increase (decrease) due from/to affiliates, net	0
Net cash used in financing activities	0
Effect of exchange rates on cash, cash equivalents and restricted cash and securities	0
Net (decrease) increase in cash, cash equivalents and restricted cash and securities	0
Cash, cash equivalents and restricted cash and securities and beginning of period	0
Cash, cash equivalents and restricted cash and securities and end of period	0
Level 3 Communications, LLC \| Reportable Legal Entities
Condensed Consolidating Financial Information
Net cash provided by operating activities	490
INVESTING ACTIVITIES
Capital expenditures	(142)
Proceeds from sale of property, plant and equipment and other assets	0
Deposits received on assets held for sale	0
Net cash used in investing activities	(142)
Cash Flows from Financing Activities:
Payments of long-term debt	0
Distributions	0
Increase (decrease) due from/to affiliates, net	(390)
Net cash used in financing activities	(390)
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	(42)
Cash, cash equivalents and restricted cash and securities and beginning of period	186
Cash, cash equivalents and restricted cash and securities and end of period	144
Other Non-Guarantor Subsidiaries \| Reportable Legal Entities
Condensed Consolidating Financial Information
Net cash provided by operating activities	89
INVESTING ACTIVITIES
Capital expenditures	(110)
Proceeds from sale of property, plant and equipment and other assets	1
Deposits received on assets held for sale	0
Net cash used in investing activities	(109)
Cash Flows from Financing Activities:
Payments of long-term debt	(1)
Distributions	0
Increase (decrease) due from/to affiliates, net	0
Net cash used in financing activities	(1)
Effect of exchange rates on cash, cash equivalents and restricted cash and securities	(1)
Net (decrease) increase in cash, cash equivalents and restricted cash and securities	(22)
Cash, cash equivalents and restricted cash and securities and beginning of period	113
Cash, cash equivalents and restricted cash and securities and end of period	$ 91
Predecessor
Condensed Consolidating Financial Information
Net cash provided by operating activities		$ 539
INVESTING ACTIVITIES
Capital expenditures		(368)
Proceeds from sale of property, plant and equipment and other assets		0
Deposits received on assets held for sale		0
Net cash used in investing activities		(368)
Cash Flows from Financing Activities:
Net proceeds from issuance of long-term debt		4,569
Payments of long-term debt		(4,613)
Distributions		0
Increase (decrease) due from/to affiliates, net		0
Net cash used in financing activities		(44)
Effect of exchange rates on cash, cash equivalents and restricted cash and securities		1
Net (decrease) increase in cash, cash equivalents and restricted cash and securities		128
Cash, cash equivalents and restricted cash and securities and beginning of period		1,857
Cash, cash equivalents and restricted cash and securities and end of period		1,985
Predecessor \| Eliminations
Condensed Consolidating Financial Information
Net cash provided by operating activities		0
INVESTING ACTIVITIES
Capital expenditures		0
Net cash used in investing activities		0
Cash Flows from Financing Activities:
Net proceeds from issuance of long-term debt		0
Payments of long-term debt		0
Increase (decrease) due from/to affiliates, net		0
Net cash used in financing activities		0
Effect of exchange rates on cash, cash equivalents and restricted cash and securities		0
Net (decrease) increase in cash, cash equivalents and restricted cash and securities		0
Cash, cash equivalents and restricted cash and securities and beginning of period		0
Cash, cash equivalents and restricted cash and securities and end of period		0
Predecessor \| Level 3 Communications, Inc. \| Reportable Legal Entities
Condensed Consolidating Financial Information
Net cash provided by operating activities		(16)
INVESTING ACTIVITIES
Capital expenditures		0
Net cash used in investing activities		0
Cash Flows from Financing Activities:
Net proceeds from issuance of long-term debt		0
Payments of long-term debt		0
Increase (decrease) due from/to affiliates, net		16
Net cash used in financing activities		16
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 and beginning of period		37
Cash, cash equivalents and restricted cash and securities and end of period		37
Predecessor \| Level 3 Financing, Inc. \| Reportable Legal Entities
Condensed Consolidating Financial Information
Net cash provided by operating activities		(135)
INVESTING ACTIVITIES
Capital expenditures		0
Net cash used in investing activities		0
Cash Flows from Financing Activities:
Net proceeds from issuance of long-term debt		4,569
Payments of long-term debt		(4,611)
Increase (decrease) due from/to affiliates, net		177
Net cash used in financing activities		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		0
Cash, cash equivalents and restricted cash and securities and beginning of period		0
Cash, cash equivalents and restricted cash and securities and end of period		0
Predecessor \| Level 3 Communications, LLC \| Reportable Legal Entities
Condensed Consolidating Financial Information
Net cash provided by operating activities		109
INVESTING ACTIVITIES
Capital expenditures		(233)
Net cash used in investing activities		(233)
Cash Flows from Financing Activities:
Net proceeds from issuance of long-term debt		0
Payments of long-term debt		0
Increase (decrease) due from/to affiliates, net		262
Net cash used in financing activities		262
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		138
Cash, cash equivalents and restricted cash and securities and beginning of period		1,710
Cash, cash equivalents and restricted cash and securities and end of period		1,848
Predecessor \| Other Non-Guarantor Subsidiaries \| Reportable Legal Entities
Condensed Consolidating Financial Information
Net cash provided by operating activities		581
INVESTING ACTIVITIES
Capital expenditures		(135)
Net cash used in investing activities		(135)
Cash Flows from Financing Activities:
Net proceeds from issuance of long-term debt		0
Payments of long-term debt		(2)
Increase (decrease) due from/to affiliates, net		(455)
Net cash used in financing activities		(457)
Effect of exchange rates on cash, cash equivalents and restricted cash and securities		1
Net (decrease) increase in cash, cash equivalents and restricted cash and securities		(10)
Cash, cash equivalents and restricted cash and securities and beginning of period		110
Cash, cash equivalents and restricted cash and securities and end of period		$ 100