LEVEL 3 PARENT, LLC, 10-Q filed on 7/31/2025
Quarterly Report
v3.25.2
Cover Page
 6 Months Ended
Jun. 30, 2025
shares
Cover [Abstract]  
Document Type 10-Q
Document Quarterly Report true
Document Period End Date Jun. 30, 2025
Document Transition Report false
Entity File Number 001-35134
Entity Registrant Name LEVEL 3 PARENT, LLC
Entity Incorporation, State or Country Code DE
Entity Tax Identification Number 47-0210602
Entity Address, Address Line One 931 14th Street
Entity Address, City or Town Denver,
Entity Address, State or Province CO
Entity Address, Postal Zip Code 80202-2994
City Area Code 720
Local Phone Number 888-1000
Entity Current Reporting Status No
Entity Interactive Data Current Yes
Entity Filer Category Non-accelerated Filer
Entity Small Business false
Entity Emerging Growth Company false
Entity Shell Company false
Entity Common Stock, Shares Outstanding 0
Entity Central Index Key 0000794323
Amendment Flag false
Current Fiscal Year End Date --12-31
Document Fiscal Year Focus 2025
Document Fiscal Period Focus Q2
v3.25.2
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
OPERATING REVENUE        
Operating revenues $ 1,626 $ 1,600 $ 3,273 $ 3,190
OPERATING EXPENSES        
Cost of services and products (exclusive of depreciation and amortization) 694 658 1,415 1,330
Selling, general and administrative 297 289 548 626
Gain (Loss) on Disposition of Business 0 (5) 0 17
Operating expenses - affiliates 257 262 513 500
Depreciation and amortization 342 363 680 727
Total operating expenses 1,590 1,567 3,156 3,200
OPERATING INCOME (LOSS) 36 33 117 (10)
OTHER (EXPENSE) INCOME        
Interest expense (203) (240) (418) (369)
Net (loss) gain on early retirement of debt (Note 4) (236) 0 (270) 54
Other income (expense), net 23 (3) 39 11
Total other expense, net (343) (168) (505) (207)
LOSS BEFORE INCOME TAXES (307) (135) (388) (217)
Income tax benefit (81) (34) (102) (52)
NET LOSS (226) (101) (286) (165)
Non-Affiliates        
OPERATING REVENUE        
Operating revenues 1,558 1,539 3,133 3,070
Affiliates        
OPERATING REVENUE        
Operating revenues 68 61 140 120
OTHER (EXPENSE) INCOME        
Interest income - affiliate $ 73 $ 75 $ 144 $ 97
v3.25.2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (UNAUDITED) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
Statement of Comprehensive Income [Abstract]        
NET LOSS $ (226) $ (101) $ (286) $ (165)
Foreign currency translation adjustments, net of $—, $—, $— and $— tax (1) 0 2 (2)
Other comprehensive (loss) income, net of tax (1) 0 2 (2)
COMPREHENSIVE LOSS $ (227) $ (101) $ (284) $ (167)
v3.25.2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (UNAUDITED) (Parenthetical) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
Statement of Comprehensive Income [Abstract]        
Foreign currency translation adjustments, tax $ 0 $ 0 $ 0 $ 0
v3.25.2
CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($)
$ in Millions
Jun. 30, 2025
Dec. 31, 2024
CURRENT ASSETS    
Cash and cash equivalents $ 927 $ 600
Accounts receivable, less allowance of $11 and $12 625 532
Other current assets, net 286 246
Total current assets 4,506 4,046
Property, plant and equipment, net of accumulated depreciation of $4,483 and $4,139 7,924 7,554
OTHER ASSETS    
Intangible assets, net 3,255 3,569
Other assets, net 1,283 1,257
Total other assets 4,538 4,826
TOTAL ASSETS 16,968 16,426
CURRENT LIABILITIES    
Current maturities of long-term debt 40 36
Accrued expenses and other liabilities    
Salaries and benefits 139 179
Income and other taxes 122 116
Current operating lease liabilities 271 266
Interest 82 124
Other current liabilities 59 64
Current portion of deferred revenue 592 529
Total current liabilities 1,895 1,849
LONG-TERM DEBT 9,756 9,629
DEFERRED REVENUE AND OTHER LIABILITIES    
Deferred revenue 4,118 3,392
Operating lease liabilities 748 719
Other liabilities 539 641
Total deferred revenue and other liabilities 5,405 4,752
COMMITMENTS AND CONTINGENCIES (Note 7)
MEMBER'S (DEFICIT) EQUITY    
Member's (deficit) equity (64) 222
Accumulated other comprehensive loss (24) (26)
Total member's (deficit) equity (88) 196
TOTAL LIABILITIES AND MEMBER'S (DEFICIT) EQUITY 16,968 16,426
Affiliates    
CURRENT ASSETS    
Notes receivable - affiliate 2,668 2,668
CURRENT LIABILITIES    
Accounts payable 82 241
Accrued expenses and other liabilities    
Current operating lease liabilities 107 113
DEFERRED REVENUE AND OTHER LIABILITIES    
Operating lease liabilities 94 128
Non-Affiliates    
CURRENT LIABILITIES    
Accounts payable $ 508 $ 294
v3.25.2
CONSOLIDATED BALANCE SHEETS (UNAUDITED) - (Parenthetical) - USD ($)
$ in Millions
Jun. 30, 2025
Dec. 31, 2024
Statement of Financial Position [Abstract]    
Allowance for doubtful accounts $ 11 $ 12
Accumulated depreciation $ 4,483 $ 4,139
v3.25.2
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
OPERATING ACTIVITIES        
Net loss $ (226) $ (101) $ (286) $ (165)
Adjustments to reconcile net loss to net cash provided by operating activities:        
Depreciation and amortization 342 363 680 727
Net loss on sale of business 0 (5) 0 17
Deferred income taxes     (101) (52)
Net loss (gain) on early retirement of debt 236 0 270 (54)
Changes in current assets and liabilities:        
Accounts receivable     (97) (52)
Accounts payable     196 (114)
Change in deferred revenue     726 152
Changes in other assets and liabilities, net     2 165
Other, net     51 5
Net cash provided by operating activities     1,182 559
INVESTING ACTIVITIES        
Capital expenditures     (692) (444)
Proceeds from sale of property, plant and equipment and other assets     7 11
Net cash used in investing activities     (685) (1,635)
FINANCING ACTIVITIES        
Net proceeds from issuance of long-term debt     4,261 1,325
Payments of long-term debt     (4,125) (15)
Distributions     0 (1,756)
Contributions     0 210
Debt issuance and extinguishment costs and related fees     (306) (210)
Net cash used in financing activities     (170) (446)
Net increase (decrease) in cash, cash equivalents and restricted cash     327 (1,522)
Cash, cash equivalents and restricted cash at beginning of period     602 2,020
Cash, cash equivalents and restricted cash at end of period 929 498 929 498
Supplemental cash flow information:        
Income taxes paid, net     (1) (1)
Interest paid (net of capitalized interest of $25 and $13)     (429) (283)
Supplemental non-cash information regarding financing activities:        
Cancellation of term loans as part of refinancing (Note 4)     (121) 0
Issuance of term loan as part of refinancing (Note 4)     121 0
Cash, cash equivalents and restricted cash:        
Cash and cash equivalents 927 496 927 496
Restricted cash included in Other current assets, net 2 0 2 0
Restricted cash included in Other assets, net 0 2 0 2
Total $ 929 $ 498 929 498
Non-Affiliates        
Changes in current assets and liabilities:        
Other current assets and liabilities, net     (92) (8)
Affiliates        
Changes in current assets and liabilities:        
Other current assets and liabilities, net     (167) (62)
INVESTING ACTIVITIES        
Increase in notes receivable - affiliate     $ 0 $ (1,202)
v3.25.2
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (Parenthetical) - USD ($)
$ in Millions
 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Statement of Cash Flows [Abstract]    
Capitalized interest $ 25 $ 13
v3.25.2
CONSOLIDATED STATEMENTS OF MEMBER'S (DEFICIT) EQUITY (UNAUDITED) - USD ($)
$ in Millions
Total
MEMBER'S (DEFICIT) EQUITY
ACCUMULATED OTHER COMPREHENSIVE LOSS
Balance at beginning of period at Dec. 31, 2023   $ 3,644 $ (28)
MEMBER'S (DEFICIT) EQUITY      
Net loss $ (165) (165)  
Distributions   (1,756)  
Contributions   210  
Other comprehensive (loss) income     (2)
Balance at end of period at Jun. 30, 2024 1,903 1,933 (30)
Balance at beginning of period at Mar. 31, 2024   2,034 (30)
MEMBER'S (DEFICIT) EQUITY      
Net loss (101) (101)  
Distributions   0  
Contributions   0  
Other comprehensive (loss) income     0
Balance at end of period at Jun. 30, 2024 1,903 1,933 (30)
Balance at beginning of period at Dec. 31, 2024 196 222 (26)
MEMBER'S (DEFICIT) EQUITY      
Net loss (286) (286)  
Distributions   0  
Contributions   0  
Other comprehensive (loss) income     2
Balance at end of period at Jun. 30, 2025 (88) (64) (24)
Balance at beginning of period at Mar. 31, 2025   162 (23)
MEMBER'S (DEFICIT) EQUITY      
Net loss (226) (226)  
Distributions   0  
Contributions   0  
Other comprehensive (loss) income     (1)
Balance at end of period at Jun. 30, 2025 $ (88) $ (64) $ (24)
v3.25.2
Background
 6 Months Ended
Jun. 30, 2025
Accounting Policies [Abstract]  
Background
Note 1—Background

General

We are a networking company with the goal of connecting people, data and applications quickly, securely, and effortlessly. We are unleashing the world's digital potential by providing a broad array of integrated products and services to our domestic and global business customers. We operate one of the world’s most interconnected networks. Our platform empowers our customers to swiftly adjust digital programs to meet immediate demands, create efficiencies, accelerate market access and reduce costs, which allows our customers to rapidly evolve their IT programs to address dynamic changes. Our specific products and services are detailed in Note 3—Revenue Recognition.

Basis of Presentation

Our consolidated balance sheet as of December 31, 2024, which was derived from our audited consolidated financial statements, and our unaudited interim consolidated financial statements provided herein have been prepared in accordance with the instructions for Form 10-Q. Certain information and note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") have been condensed or omitted pursuant to rules and regulations of the U.S. Securities and Exchange Commission ("SEC"). However, in our opinion, the disclosures made therein are adequate to make the information presented not misleading. We believe these consolidated financial statements include all normal recurring adjustments necessary to fairly state the results for the interim periods. The consolidated results of operations and cash flows for the first six months of the year are not necessarily indicative of the consolidated results of operations and cash flows that might be expected for the entire year. These consolidated financial statements and the accompanying notes should be read in conjunction with the audited consolidated financial statements and the notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2024.

The accompanying consolidated financial statements include our accounts and the accounts of our subsidiaries in which we have a controlling interest. Intercompany amounts and transactions with our consolidated subsidiaries have been eliminated. Transactions with our non-consolidated affiliates (Lumen Technologies and its other subsidiaries, referred to herein as affiliates) have not been eliminated.

We reclassified certain prior period amounts to conform to the current period presentation, including our revenue by product and service categories. See Note 3—Revenue Recognition for additional information. These changes had no impact on total operating revenue, total operating expenses or net loss for any period.

Segments

Our operations are integrated into and reported as part of Lumen Technologies. Lumen's CEO is our chief operating decision maker ("CODM") and reviews our financial information on an aggregate basis only in connection with our quarterly and annual reports that we file with the SEC. Our CODM assesses performance and allocates resources in conjunction with and based on the operations of Lumen Technologies. Consequently, we do not provide our discrete financial information to the CODM on a regular basis. As such, we have one reportable segment.
Summary of Significant Accounting Policies

Refer to the significant accounting policies and accounting pronouncements adopted in 2024 described in Note 1—Background and Summary of Significant Accounting Policies to the consolidated financial statements and accompanying notes in Part II, Item 8 of our Annual Report on Form 10-K for the year ended December 31, 2024.

Recently Issued Accounting Pronouncements

In November 2024, the Financial Accounting Standards Board (the "FASB") issued ASU 2024-04, "Debt—Debt with Conversion and Other Options (Subtopic 470-20): Induced Conversions of Convertible Debt Instruments." This ASU clarifies the requirements for determining whether certain settlements of convertible debt instruments should be accounted for as induced conversions rather than as debt extinguishments. This standard is effective for the annual period of fiscal 2026 and early adoption is permitted. As of June 30, 2025, we did not have any outstanding convertible debt instruments and do not expect this ASU will have any impact on our consolidated financial statements.

In November 2024, the FASB issued ASU 2024-03, "Disaggregation of Income Statement Expenses." This ASU requires additional footnote disclosure of the details of certain income statement expense line items as well as additional disclosure about selling expenses. This standard is effective for the annual period of fiscal 2027 and early adoption is permitted. The guidance will be applied prospectively, with the option for retrospective application. We are currently evaluating the impact the adoption of this standard will have on our disclosures.

In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures.” This ASU requires that public business entities must annually (1) disclose specific categories in their rate reconciliation and (2) provide additional information for reconciling items that meet a quantitative threshold (if the effect of those reconciling items is equal to or greater than five percent of the amount computed by multiplying pretax income or loss by the applicable statutory income tax rate). This ASU will become effective for us for the annual reporting period ending December 31, 2025. The Income Taxes footnote to the consolidated financial statements included in Item 8 of Part II of our Annual Report on Form 10-K for the year ended December 31, 2025 will align with the standard. We do not anticipate this standard will affect our operating results.
v3.25.2
Intangible Assets
 6 Months Ended
Jun. 30, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets
Note 2—Intangible Assets

Intangible assets, net on our consolidated balance sheets consisted of the following:

June 30, 2025
December 31, 2024
(Dollars in millions)
Customer relationships, less accumulated amortization of $4,648 and $4,504
$2,899 3,196 
Capitalized software, less accumulated amortization of $484 and $451
356 373 
Total Intangible assets, net
$3,255 3,569 

As of June 30, 2025 and December 31, 2024, the gross carrying amount of intangible assets was $8.4 billion and $8.5 billion, respectively.

Total amortization expense for finite-lived intangible assets for the three months ended June 30, 2025 and 2024 totaled $172 million and $195 million, respectively, and for the six months ended June 30, 2025 and 2024 totaled $343 million and $381 million, respectively.
v3.25.2
Revenue Recognition
 6 Months Ended
Jun. 30, 2025
Revenue from Contract with Customer [Abstract]  
Revenue Recognition
Note 3—Revenue Recognition

We categorize our products and services revenue among the following categories:
•Grow, which includes existing and emerging products and services in which we are significantly investing, including our colocation, dark fiber and conduit, Edge Cloud, IP, managed security, software-defined wide area networks, Unified Communications and Collaboration, and wavelengths services;
•Nurture, which includes our more mature offerings, including ethernet and VPN data networks services;
•Harvest, which includes our legacy services managed for cash flow, including Time Division Multiplexing voice and private line services;
•Other, which includes primarily managed and professional service solutions; and
•Affiliate Services, which includes communications services provided to our affiliates that we also provide to our external customers.
From time to time, we may change the categorization of our products and services.

Reconciliation of Total Revenue to Revenue from Contracts with Customers

The following tables provide total revenue by product and service category. They also provide the amount of revenue that is not subject to Accounting Standards Codification ("ASC") 606, "Revenue from Contracts with Customers" ("ASC 606"), but is instead governed by other accounting standards.

Three Months Ended June 30, 2025Six Months Ended June 30, 2025
Total Revenue
Adjustments for Non-ASC 606 Revenue(1)
Total Revenue from Contracts with CustomersTotal Revenue
Adjustments for Non-ASC 606 Revenue(1)
Total Revenue from Contracts with Customers
(Dollars in millions)
Grow$1,000 (178)822 2,004 (356)1,648 
Nurture341 (3)338 701 (6)695 
Harvest177 — 177 357 — 357 
Other40 — 40 71 — 71 
Affiliate Services68 (68)— 140 (140)— 
Total revenue$1,626 (249)1,377 3,273 (502)2,771 

Three Months Ended June 30, 2024Six Months Ended June 30, 2024
Total Revenue
Adjustments for Non-ASC 606 Revenue(1)
Total Revenue from Contracts with CustomersTotal Revenue
Adjustments for Non-ASC 606 Revenue(1)
Total Revenue from Contracts with Customers
(Dollars in millions)
Grow$929 (152)777 1,850 (277)1,573 
Nurture383 (4)379 768 (8)760 
Harvest184 — 184 379 — 379 
Other43 — 43 73 — 73 
Affiliate Services61 (61)— 120 (120)— 
Total revenue$1,600 (217)1,383 3,190 (405)2,785 
_____________________________________________________________________
(1)Includes lease revenue which is not within the scope of ASC 606.
Operating Lease Revenue

We lease various dark fiber and conduit, office facilities and colocation facilities to third parties under operating leases. Lease and sublease income are included in operating revenue in the consolidated statements of operations.

For the three months ended June 30, 2025 and 2024, our gross lease revenue was $195 million and $172 million, respectively, which represented approximately 12% and 11%, respectively, of our operating revenue for each respective period. For the six months ended June 30, 2025 and 2024, our gross lease revenue was $413 million and $318 million, respectively, which represented approximately 13% and 10%, respectively, of our operating revenue for each respective period.

Customer Receivables and Contract Balances

The following table provides balances of customer receivables, contract assets and contract liabilities:

June 30, 2025December 31, 2024
(Dollars in millions)
Customer receivables, less allowance of $11 and $12
$623 529 
Contract assets
11 12 
Contract liabilities
234 267 

Contract liabilities are consideration we have received from our customers or billed in advance of providing the goods or services promised in the future. We defer recognizing this consideration as revenue 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 typically ranges from one to five years depending on the service. Contract liabilities are included within Deferred revenue on our consolidated balance sheets. During the three and six months ended June 30, 2025, we recognized $35 million and $106 million, respectively, of revenue that was included in contract liabilities of $267 million as of January 1, 2025. During the three and six months ended June 30, 2024, we recognized $13 million and $82 million, respectively, of revenue that was included in contract liabilities of $222 million as of January 1, 2024.

Performance Obligations

As of June 30, 2025, we expect to recognize approximately $4.1 billion of revenue in the future related to performance obligations associated with existing customer contracts that are partially or wholly unsatisfied. As of June 30, 2025, the transaction price related to unsatisfied performance obligations that are expected to be recognized for the remainder of 2025, 2026 and thereafter was $1.1 billion, $1.6 billion and $1.4 billion, respectively.

These amounts exclude (i) the value of unsatisfied performance obligations for contracts for which we recognize revenue in amounts for 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) and (ii) contracts that are classified as leasing arrangements that are not subject to ASC 606.
Contract Costs

The following tables provide changes in our contract acquisition costs and fulfillment costs:

Three Months Ended June 30, 2025Six Months Ended June 30, 2025
Acquisition CostsFulfillment CostsAcquisition CostsFulfillment Costs
(Dollars in millions)
Balance at beginning of period$82 133 77 127 
Costs incurred9 30 27 57 
Amortization(13)(22)(26)(43)
Balance at end of period$78 141 78 141 

Three Months Ended June 30, 2024Six Months Ended June 30, 2024
Acquisition CostsFulfillment CostsAcquisition CostsFulfillment Costs
(Dollars in millions)
Balance at beginning of period$70 99 70 97 
Costs incurred12 35 24 52 
Amortization(12)(18)(24)(33)
Balance at end of period$70 116 70 116 

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 services to customers, including labor and materials consumed for these activities.

We amortize deferred acquisition and fulfillment costs based on the transfer of services on a straight-line basis over the average expected contract life of approximately 36 months for our business customers. We include amortized fulfillment costs in cost of services and products and amortized acquisition costs in Selling, general and administrative expenses in our consolidated statements of operations. We include the amount of deferred costs that are anticipated to be amortized in the next 12 months in Other current assets, net on our consolidated balance sheets. The amount of deferred costs expected to be amortized beyond 12 months is included in Other assets, net on our consolidated balance sheets. We assess deferred acquisition and fulfillment costs for impairment on a quarterly basis.
v3.25.2
Long-Term Debt and Credit Facilities
 6 Months Ended
Jun. 30, 2025
Debt Disclosure [Abstract]  
Long-Term Debt and Credit Facilities
Note 4—Long-Term Debt and Credit Facilities

At June 30, 2025, all of our outstanding debt (excluding finance leases) had been incurred by Level 3 Financing. The following table reflects our consolidated long-term debt, including finance leases and other obligations, unamortized discounts, net, and unamortized debt issuance costs and excluding intercompany debt:
Interest Rates (1)
Maturities (1)
June 30, 2025December 31, 2024
(Dollars in millions)
Level 3 Financing, Inc.
Secured Senior Debt:(2)
Term Loan B-1(3)
N/A
N/A
$— 1,199 
Term Loan B-2(3)
N/A
N/A
— 1,199 
Term Loan B-3(3)
SOFR + 4.25%
20322,400 — 
Former Facility Tranche B Term Loan(4)
SOFR + 1.75%
202712 12 
First Lien notes(5)
6.875% to 11.000%
2029 - 2033
4,087 3,846 
Second Lien notes
3.875% to 10.000%
2029 - 2032
2,579 2,579 
Unsecured Senior Notes:
Senior Notes
3.625% - 4.250%
2028 - 2029
894 964 
Finance leases and other obligationsVariousVarious216 229 
Unamortized discounts, net(253)(225)
Unamortized debt issuance costs(139)(138)
Total long-term debt9,796 9,665 
Less current maturities(40)(36)
Long-term debt, excluding current maturities$9,756 9,629 
______________________________________________________________________
(1)As of June 30, 2025. All references to "SOFR" refer to the Secured Overnight Financing Rate.
(2)The debt listed under the caption “Secured Senior Debt” is secured by assets of Level 3 Financing and guaranteed on a secured basis by certain of its affiliates.
(3)Term Loan B-3 had an interest rate of 8.577% as of June 30, 2025. Term Loan B-1 and B-2 each had an interest rate composition of SOFR + 6.56% which equaled 11.133% as of December 31, 2024.
(4)Level 3 Financing's Tranche B 2027 Term Loan issued under a predecessor facility had an interest rate of 6.191% and 6.437% as of June 30, 2025 and December 31, 2024, respectively.
(5)Includes Level 3 Financing's (i) senior secured notes issued in early 2023, (ii) first lien notes issued on March 22, 2024, and (iii) first lien notes issued on June 30, 2025.

Long-Term Debt Maturities

Set forth below is the aggregate principal amount of our long-term debt as of June 30, 2025 (excluding unamortized discounts, net, unamortized debt issuance costs, and intercompany debt), maturing during the following years:

(Dollars in millions)
2025 (remaining six months)$20 
202635 
202731 
2028198 
20292,749 
2030 and thereafter7,155 
Total long-term debt$10,188 
2025 Debt Transactions

First Lien Note Refinancing

On June 30, 2025, Level 3 Financing, Inc. issued $2.0 billion of its 6.875% First Lien Notes due 2033. On such date, Level 3 Financing used the net proceeds from the offering, together with cash on hand, to redeem (i) all $925 million aggregate principal amount of Level 3 Financing's then-outstanding first lien 10.500% Senior Secured Notes due 2030, (ii) all $668 million aggregate principal amount of Level 3 Financing’s then-outstanding 10.500% First Lien Notes due 2029, and (iii) $167 million aggregate principal amount of Level 3 Financing’s outstanding 11.000% First Lien Notes due 2029, in each case including the payment of redemption premium and accrued interest, as well as related fees and expenses (collectively, the "First Lien Note Refinancing").

The Company determined that the First Lien Note Refinancing constituted a debt extinguishment and recorded a loss of $236 million, which is included in our aggregate Net (loss) gain on early retirement of debt in Other (expense) income, net in our consolidated statement of operations for the three and six months ended June 30, 2025.

Credit Facilities Refinancing

On March 27, 2025, Level 3 Financing (i) refinanced all of the outstanding secured term loan B-1 facilities and secured term loan B-2 facilities under its existing Credit Agreement, dated March 22, 2024 (the "2024 Level 3 Credit Agreement"), by and among Level 3 Financing, as borrower, Level 3 Parent, as guarantor, Wilmington Trust, National Association, as administrative agent and collateral agent, and the lenders from time to time party thereto and (ii) entered into an amendment to the 2024 Level 3 Credit Agreement (collectively, the "Credit Facilities Transactions"). This amendment revised the 2024 Level 3 Credit Agreement to, among other things, (i) reduce the pricing on Level 3 Financing’s term loan facility and make related changes to effect such repricing and (ii) extend the maturity of Level 3 Financing’s term loan facility to 2032. Immediately following the Credit Facilities Transactions, Level 3 Financing had $2.4 billion of outstanding borrowings under its new secured term loan B-3 facility.

The Company determined that the Credit Facilities Transactions constituted a debt extinguishment, and recorded a loss of $34 million which is included in our aggregate Net (loss) gain on early retirement of debt in Total other expense, net in our consolidated statement of operations for the six months ended June 30, 2025.

First Quarter 2025 Cash Redemptions

The following table sets forth the aggregate principal amount of each series of unsecured senior notes of Level 3 Financing fully redeemed in exchange for cash on February 15, 2025. Transaction fees related to these redemptions were not significant.

Debt Redeemed on February 15, 2025
Aggregate Principal Amount (in millions)
3.400% unsecured Senior Notes due 2027
$5 
4.625% unsecured Senior Notes due 2027
65 
Total
$70 

2024 Debt Transactions

For information on our various issuances, exchanges, or payments of long-term indebtedness during 2024, see Note 7—Long-Term Debt in Item 8 of Part II of our Annual Report on Form 10-K for the year ended December 31, 2024.

Level 3 Financing Credit Agreement

As of June 30, 2025, Level 3 Financing had $2.4 billion of non-amortizing secured term loans B-3 outstanding under the term loan facility established by the 2024 Level 3 Credit Agreement (as amended through March 27, 2025, the "Level 3 Credit Agreement").
Borrowings under the term loan facility will be, at Level 3 Financing’s option, either (i) the base rate (which is the highest of (x) the overnight federal funds rate, plus 0.50%, (y) the prime rate on such day, and (z) the one-month SOFR published on such date, plus 1.00%), plus an applicable margin, or (ii) one-, three- or six-month SOFR, plus an applicable margin. The applicable margin for SOFR loans under the term loan facility will be 4.25%. The term loan facility is subject to a SOFR floor of 0.50%.

Level 3 Financing may voluntarily prepay loans or reduce commitments under the Level 3 Credit Agreement, in whole or in part, subject to minimum amounts, with prior notice, but without premium or penalty (other than a 1.00% premium on any prepayment in connection with a repricing transaction prior to September 27, 2025). Level 3 Financing is required to prepay borrowings under the term loan facility with 100% of the net cash proceeds of certain asset sales and 100% of the net cash proceeds of certain debt issuances, in each case subject to certain exceptions.

Senior Notes

The Company’s consolidated indebtedness at June 30, 2025 included (i) first and second lien secured notes issued by Level 3 Financing and (ii) senior unsecured notes issued by Level 3 Financing. All of these notes carry fixed interest rates and all principal is due on the notes’ respective maturity dates, which rates and maturity dates are summarized in the table above. Level 3 Financing generally can redeem the notes, at its option, in whole or in part, (i) pursuant to a fixed schedule of pre-established redemption prices, (ii) pursuant to a “make whole” redemption price or (iii) under certain other specified limited conditions.

Certain Guarantees and Security Interests

Level 3 Guarantees of Lumen Credit Agreements

Lumen’s obligations under its Superpriority Revolving/Term Loan A Credit Agreement dated as of March 22, 2024 (the “RCF/TLA Credit Agreement”) are unsecured, but Level 3 Parent, Level 3 Financing, and certain of Level 3 Financing's subsidiaries (collectively, the "Level 3 Collateral Guarantors") have provided an unconditional guarantee of payment of up to $150 million of Lumen’s obligations under each of the revolving credit facilities created under the RCF/TLA Credit Agreement. Certain of such guarantees will be secured by a lien on substantially all of the assets of the applicable Level 3 Collateral Guarantors. The guarantee by the Level 3 Collateral Guarantors may be reduced or terminated under certain circumstances.

Secured Senior Debt

Level 3 Financing’s obligations under its Credit Agreement are secured by a first priority lien on substantially all of its assets. In addition, the other Level 3 Collateral Guarantors have provided a guarantee of Level 3 Financing’s obligations under its Credit Agreement secured by a lien on substantially all of their assets.

Level 3 Financing’s obligations under its first lien notes are secured by a first priority lien on substantially all of its assets (subject, in certain cases, to receipt of necessary regulatory approvals), and are guaranteed by the other Level 3 Collateral Guarantors (or, for certain such guarantors, will be guaranteed upon the receipt of required regulatory approvals) on the same basis as the guarantees provided by such entities under the Credit Agreement. Level 3 Financing’s obligations under its second lien notes are secured by a second lien on substantially all of its assets and are guaranteed by the other Level 3 Collateral Guarantors on the same basis as the guarantees provided by such entities under the Level 3 Credit Agreement, except the lien securing such guarantees is a second lien.

Unsecured Senior Notes

Level 3 Financing's obligations under its unsecured notes are guaranteed on an unsecured basis by the same affiliated entities that guarantee the Level 3 Credit Agreement and secured notes.
Supplier Finance Program

Pursuant to our purchase of network equipment under a supplier finance program with one of our key equipment vendors, we are obligated to pay annual interest of 1.25% on unpaid balances and make quarterly installment payments through the end of the term on July 1, 2026. As of June 30, 2025 and December 31, 2024 our outstanding obligations under the plan were $29 million and $39 million, respectively. As of June 30, 2025, $23 million of our outstanding obligation was included in Current maturities of long-term debt and $6 million was included in Long-term debt, and as of December 31, 2024, $21 million of our outstanding obligation was included in Current maturities of long-term debt and $18 million was included in Long-term debt on our consolidated balance sheets.

The supplier also agreed to certain milestone performance and other provisions that could result in us earning credits to be applied by us towards future equipment purchases. As of June 30, 2025 and December 31, 2024, we have earned and received, or have the potential to receive, approximately $25 million and $24 million, respectively, of credits.

Covenants

The Level 3 Credit Agreement and first and second lien secured notes contain various representations and 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, dispose of assets and merge or consolidate with other persons. Also, under certain circumstances in connection with a “change of control” of Level 3 Parent or Level 3 Financing, Level 3 Financing will be required to make an offer to repurchase each series of its outstanding senior notes at a price of 101% of the principal amount redeemed, plus accrued and unpaid interest.

Compliance

As of June 30, 2025, we believe we were in compliance with the provisions and financial covenants contained in our debt agreements in all material respects.
v3.25.2
Fair Value of Financial Instruments
 6 Months Ended
Jun. 30, 2025
Fair Value Disclosures [Abstract]  
Fair Value of Financial Instruments
Note 5—Fair Value of Financial Instruments

Our financial instruments consist of cash, cash equivalents, restricted cash, accounts receivable, accounts payable, note receivable-affiliate and long-term debt (excluding finance leases and other obligations) and certain indemnification obligations. Due to their short-term nature, the carrying amounts of our cash, cash equivalents, restricted cash, accounts receivable, note receivable-affiliate, and accounts payable approximate their fair values.

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between independent and knowledgeable parties who are willing and able to transact for an asset or liability at the measurement date. We use valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs when determining fair value and then we rank the estimated values based on the reliability of the inputs using the below described fair value hierarchy.

We determined the fair values of our long-term debt, including the current portion, based primarily on inputs other than quoted market prices in active markets that are either directly or indirectly observable such as discounted future cash flows using current market interest rates.

The three input levels in the hierarchy of fair value measurements are defined by the FASB generally as follows:
Input LevelDescription of Input
Level 1Observable inputs such as quoted market prices in active markets.
Level 2Inputs other than quoted prices in active markets that are either directly or indirectly observable.
Level 3Unobservable inputs in which little or no market data exists.
The following table presents the carrying amounts and estimated fair values of our financial liabilities as of June 30, 2025 and December 31, 2024, as well as the input level used to determine the fair values indicated below:

June 30, 2025December 31, 2024
Input LevelCarrying AmountFair ValueCarrying AmountFair Value
(Dollars in millions)
Long-term debt, excluding finance leases and other obligations2$9,580 9,965 9,436 9,716 
Indemnifications related to the sale of the Latin American business(1)
387 84 87 84 
_______________________________________________________________________________
(1)Nonrecurring fair value is measured as of August 1, 2022.
v3.25.2
Affiliate Transactions
 6 Months Ended
Jun. 30, 2025
Related Party Transactions [Abstract]  
Affiliate Transactions
Note 6—Affiliate Transactions

We provide competitive local exchange carrier telecommunications services to our affiliates that we also provide to external customers. We periodically review and update our prices for affiliate network services to align with competitive non-regulated market-based rates charged to external customers, taking into consideration the average third-party customer contract term to which those affiliate services pertain. These services are billed directly to our affiliates and recognized as affiliate revenue on our consolidated statements of operations.

Whenever possible, costs are incurred directly by our affiliates for the services they use. When such costs are not directly incurred, they are allocated among all affiliates based upon the most reasonable method, first using cost causative measures, or, if no cost causative measure is available, using a general allocator. Unlike certain other affiliates of Lumen, we do not operate as a shared service company to our affiliates and therefore any allocated affiliate revenue we earn reduces the affiliate charges incurred by us and is presented on a net basis within Operating expenses – affiliates on our consolidated statements of operations. From time to time, we may adjust the basis for allocating the costs of a shared service among affiliates. Any such changes in allocation methodologies are generally applied prospectively.

We also purchase services from our affiliates, including telecommunication services, insurance, flight services and other support services such as legal, regulatory, finance, administration and executive support. Our affiliates charge us for those services using the allocation methodologies described above.

Affiliate Credit Agreements

On March 22, 2024, we entered into a $1.2 billion secured revolving credit facility with Lumen Technologies with an 11% interest rate per annum. The principal amount is payable upon demand by us and prepayable by Lumen Technologies at any time, but no later than May 31, 2030, which maturity date may be extended for two additional one-year periods. The facility has covenants and is subject to other limitations, including a collateral agreement.

On March 22, 2024, we amended and restated our unsecured credit facility with Lumen Technologies pursuant to which Lumen Technologies may borrow up to $1.825 billion from us. As of June 30, 2025, the interest rate was 10.30% and is subject to certain adjustments as set forth in the facility (SOFR + 6%). The principal amount is payable upon demand by us and prepayable by Lumen Technologies at any time prior to maturity. The facility has covenants and is subject to other limitations. On September 24, 2024, we further amended and restated this facility to extend the maturity date to November 30, 2032, which may be extended for two additional one-year periods.

As of June 30, 2025 and December 31, 2024, Lumen Technologies owed us approximately $2.7 billion, of which $1.2 billion was due under the secured revolving credit facility and approximately $1.5 billion was due under the unsecured revolving credit facility on each respective date.
Affiliate Leases

The following table presents details of affiliate leases reflected on our consolidated balance sheets:

Balance Sheet Classification
June 30, 2025
December 31, 2024
(Dollars in millions)
Operating lease assets - affiliate
Other assets, net
$193 234 
Current operating lease liabilities - affiliate
Current operating lease liabilities107 113 
Operating lease liabilities - affiliate
Operating lease liabilities94 128 
v3.25.2
Commitments, Contingencies and Other Items
 6 Months Ended
Jun. 30, 2025
Commitments and Contingencies Disclosure [Abstract]  
Commitments, Contingencies and Other Items
Note 7—Commitments, Contingencies and Other Items

We are subject to various claims, legal proceedings and other contingent liabilities, including the matters described below, which individually or in the aggregate could materially affect our financial condition, future results of operations or cash flows.

We review our litigation accrual liabilities on a quarterly basis, but in accordance with applicable accounting guidelines only establish accrual liabilities when losses are deemed probable and reasonably estimable and only revise previously established accrual liabilities when warranted by changes in circumstances, in each case based on then-available information. As such, as of any given date we could have exposure to losses under proceedings as to which no liability has been accrued or as to which the accrued liability is inadequate. Subject to these limitations, at June 30, 2025 and December 31, 2024, we had accrued $35 million and $36 million, respectively, in the aggregate for our litigation and non-income tax contingencies which is included in Other current liabilities or Other liabilities on our consolidated balance sheets as of such dates. We cannot at this time estimate the reasonably possible loss or range of loss, if any, in excess of our $35 million accrual at June 30, 2025 due to the inherent uncertainties and speculative nature of contested proceedings. The establishment of an accrual does not mean that actual funds have been set aside to satisfy a given contingency. Thus, the resolution of a particular contingency for the amount accrued could have no effect on our results of operations but nonetheless could have an adverse effect on our cash flows.

Latin American Tax Litigation and Claims

In connection with the 2022 divestiture of our Latin American business, the purchaser assumed responsibility for the Brazilian tax claims described in our prior periodic reports filed with the SEC. We agreed to indemnify the purchaser for amounts paid with respect to the Brazilian tax claims. The value of this indemnification and others associated with the Latin American business divestiture are included in the indemnification amount as disclosed in Note 5—Fair Value of Financial Instruments.

Huawei Network Deployment Investigations

Level 3 has received requests from the following federal agencies for information relating to the use of equipment manufactured by Huawei Technologies Company ("Huawei") in Lumen’s networks.

•DOJ. Lumen has received a civil investigative demand from the U.S. Department of Justice in the course of a False Claims Act investigation alleging that Lumen Technologies, Inc. and Lumen Technologies Government Solutions, Inc. failed to comply with certain specified requirements in federal contracts concerning their use of Huawei equipment. 
•FCC. The FCC’s Enforcement Bureau issued a Letter of Inquiry to Lumen Technologies, Inc. regarding its written certifications to the FCC that Lumen has complied with FCC rules governing the use of resources derived from the High Cost Program, Lifeline Program, Rural Health Care Program, E-Rate Program, Emergency Broadband Benefit Program, and the Affordable Connectivity Program. Under these programs, federal funds may not be used to facilitate the deployment or maintenance of equipment or services provided by Huawei, a company the FCC has determined poses a national security threat to the integrity of U.S. communications networks or the communications supply chain.

•Team Telecom. The Committee for the Assessment of Foreign Participation in the United States Telecommunications Service Sector (comprised of the U.S. Attorney General, and the Secretaries of the Department of Homeland Security, and the Department of Defense), commonly referred to as Team Telecom, issued questions and requests for information relating to Lumen’s FCC licenses and its use of Huawei equipment.

Other Proceedings, Disputes and Contingencies

From time to time, we are involved in other proceedings incidental to our business, including patent infringement allegations, regulatory hearings relating primarily to our rates or services, actions relating to employee claims, tax issues, or environmental law issues, grievance hearings before labor regulatory agencies, miscellaneous third-party tort actions, or commercial disputes.

We are currently defending several patent infringement lawsuits asserted against us by non-practicing entities which are seeking substantial recoveries. These cases have progressed to various stages and one or more may go to trial within the next 12 months if they are not otherwise resolved. Where applicable, we are seeking full or partial indemnification from our vendors and suppliers.

We are subject to various foreign, federal, state and local environmental protection and health and safety laws. From time to time, we are subject to judicial and administrative proceedings brought by various governmental authorities under these laws. Several such proceedings are currently pending, but none is reasonably expected to exceed $300,000 in fines and penalties. In addition, in the past we acquired companies that operated certain manufacturing companies in the first part of the 1900s. Under applicable environmental laws, we could be named as a potentially responsible party for a share of the remediation of environmental conditions arising from the historical operations of our predecessors.

The outcomes of these other proceedings described under this heading are not predictable. However, based on current circumstances, we do not believe that the ultimate resolution of these other proceedings, after considering available defenses and any insurance coverage or indemnification rights, will have a material adverse effect on us.

The matters listed in this Note do not reflect all our contingencies. For additional information on our contingencies, see Note 16—Commitments, Contingencies and Other Items to the consolidated financial statements and accompanying notes included in Item 8 of Part II of our Annual Report on Form 10-K for the year ended December 31, 2024. The ultimate outcome of the above-described matters may differ materially from the outcomes anticipated, estimated, projected or implied by us in certain of our statements appearing above in this Note, and proceedings we currently consider insignificant may ultimately affect us materially.
v3.25.2
Accumulated Other Comprehensive Loss
 6 Months Ended
Jun. 30, 2025
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]  
Accumulated Other Comprehensive Loss
Note 8—Accumulated Other Comprehensive Loss

The table below summarizes changes in Accumulated other comprehensive loss recorded on our consolidated balance sheets by component for the six months ended June 30, 2025:

Pension PlansForeign Currency Translation Adjustment and OtherTotal
(Dollars in millions)
Balance at December 31, 2024$(1)(25)(26)
Other comprehensive income, net of tax— 2 2 
Balance at June 30, 2025$(1)(23)(24)

The table below summarizes changes in Accumulated other comprehensive loss recorded on our consolidated balance sheets by component for the six months ended June 30, 2024:

Pension PlansForeign Currency Translation Adjustment and OtherTotal
(Dollars in millions)
Balance at December 31, 2023$(1)(27)(28)
Other comprehensive loss, net of tax— (2)(2)
Balance at June 30, 2024$(1)(29)(30)
v3.25.2
Other Financial Information
 6 Months Ended
Jun. 30, 2025
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
Other Financial Information
Note 9—Other Financial Information

Other Current Assets, Net
The following table presents details of Other current assets, net reflected on our consolidated balance sheets:

June 30, 2025December 31, 2024

(Dollars in millions)
Prepaid expenses$139 108 
Contract fulfillment costs66 57 
Contract acquisition costs42 41 
Contract assets10 10 
Assets held for sale23 23 
Other6 7 
Total Other current assets, net
$286 246 

Other Current Liabilities

Included in accounts payable at June 30, 2025 and December 31, 2024 were $135 million and $106 million, respectively, associated with capital expenditures.
v3.25.2
Pay vs Performance Disclosure - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
Pay vs Performance Disclosure        
NET LOSS $ (226) $ (101) $ (286) $ (165)
v3.25.2
Insider Trading Arrangements
 3 Months Ended
Jun. 30, 2025
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
v3.25.2
Background (Policies)
 6 Months Ended
Jun. 30, 2025
Accounting Policies [Abstract]  
Basis of Presentation
Basis of Presentation

Our consolidated balance sheet as of December 31, 2024, which was derived from our audited consolidated financial statements, and our unaudited interim consolidated financial statements provided herein have been prepared in accordance with the instructions for Form 10-Q. Certain information and note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") have been condensed or omitted pursuant to rules and regulations of the U.S. Securities and Exchange Commission ("SEC"). However, in our opinion, the disclosures made therein are adequate to make the information presented not misleading. We believe these consolidated financial statements include all normal recurring adjustments necessary to fairly state the results for the interim periods. The consolidated results of operations and cash flows for the first six months of the year are not necessarily indicative of the consolidated results of operations and cash flows that might be expected for the entire year. These consolidated financial statements and the accompanying notes should be read in conjunction with the audited consolidated financial statements and the notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2024.

The accompanying consolidated financial statements include our accounts and the accounts of our subsidiaries in which we have a controlling interest. Intercompany amounts and transactions with our consolidated subsidiaries have been eliminated. Transactions with our non-consolidated affiliates (Lumen Technologies and its other subsidiaries, referred to herein as affiliates) have not been eliminated.
Reclassification
We reclassified certain prior period amounts to conform to the current period presentation, including our revenue by product and service categories. See Note 3—Revenue Recognition for additional information. These changes had no impact on total operating revenue, total operating expenses or net loss for any period.
Segments
Segments

Our operations are integrated into and reported as part of Lumen Technologies. Lumen's CEO is our chief operating decision maker ("CODM") and reviews our financial information on an aggregate basis only in connection with our quarterly and annual reports that we file with the SEC. Our CODM assesses performance and allocates resources in conjunction with and based on the operations of Lumen Technologies. Consequently, we do not provide our discrete financial information to the CODM on a regular basis. As such, we have one reportable segment.
Recently Issued Accounting Pronouncements
Recently Issued Accounting Pronouncements

In November 2024, the Financial Accounting Standards Board (the "FASB") issued ASU 2024-04, "Debt—Debt with Conversion and Other Options (Subtopic 470-20): Induced Conversions of Convertible Debt Instruments." This ASU clarifies the requirements for determining whether certain settlements of convertible debt instruments should be accounted for as induced conversions rather than as debt extinguishments. This standard is effective for the annual period of fiscal 2026 and early adoption is permitted. As of June 30, 2025, we did not have any outstanding convertible debt instruments and do not expect this ASU will have any impact on our consolidated financial statements.

In November 2024, the FASB issued ASU 2024-03, "Disaggregation of Income Statement Expenses." This ASU requires additional footnote disclosure of the details of certain income statement expense line items as well as additional disclosure about selling expenses. This standard is effective for the annual period of fiscal 2027 and early adoption is permitted. The guidance will be applied prospectively, with the option for retrospective application. We are currently evaluating the impact the adoption of this standard will have on our disclosures.

In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures.” This ASU requires that public business entities must annually (1) disclose specific categories in their rate reconciliation and (2) provide additional information for reconciling items that meet a quantitative threshold (if the effect of those reconciling items is equal to or greater than five percent of the amount computed by multiplying pretax income or loss by the applicable statutory income tax rate). This ASU will become effective for us for the annual reporting period ending December 31, 2025. The Income Taxes footnote to the consolidated financial statements included in Item 8 of Part II of our Annual Report on Form 10-K for the year ended December 31, 2025 will align with the standard. We do not anticipate this standard will affect our operating results.
Operating Lease Revenue
Operating Lease Revenue

We lease various dark fiber and conduit, office facilities and colocation facilities to third parties under operating leases. Lease and sublease income are included in operating revenue in the consolidated statements of operations.
v3.25.2
Intangible Assets (Tables)
 6 Months Ended
Jun. 30, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of customer relationships and other intangible assets
Intangible assets, net on our consolidated balance sheets consisted of the following:

June 30, 2025
December 31, 2024
(Dollars in millions)
Customer relationships, less accumulated amortization of $4,648 and $4,504
$2,899 3,196 
Capitalized software, less accumulated amortization of $484 and $451
356 373 
Total Intangible assets, net
$3,255 3,569 
v3.25.2
Revenue Recognition (Tables)
 6 Months Ended
Jun. 30, 2025
Revenue from Contract with Customer [Abstract]  
Disaggregation of revenue
Three Months Ended June 30, 2025Six Months Ended June 30, 2025
Total Revenue
Adjustments for Non-ASC 606 Revenue(1)
Total Revenue from Contracts with CustomersTotal Revenue
Adjustments for Non-ASC 606 Revenue(1)
Total Revenue from Contracts with Customers
(Dollars in millions)
Grow$1,000 (178)822 2,004 (356)1,648 
Nurture341 (3)338 701 (6)695 
Harvest177 — 177 357 — 357 
Other40 — 40 71 — 71 
Affiliate Services68 (68)— 140 (140)— 
Total revenue$1,626 (249)1,377 3,273 (502)2,771 

Three Months Ended June 30, 2024Six Months Ended June 30, 2024
Total Revenue
Adjustments for Non-ASC 606 Revenue(1)
Total Revenue from Contracts with CustomersTotal Revenue
Adjustments for Non-ASC 606 Revenue(1)
Total Revenue from Contracts with Customers
(Dollars in millions)
Grow$929 (152)777 1,850 (277)1,573 
Nurture383 (4)379 768 (8)760 
Harvest184 — 184 379 — 379 
Other43 — 43 73 — 73 
Affiliate Services61 (61)— 120 (120)— 
Total revenue$1,600 (217)1,383 3,190 (405)2,785 
_____________________________________________________________________
(1)Includes lease revenue which is not within the scope of ASC 606.
Contract with customer, asset and liability
The following table provides balances of customer receivables, contract assets and contract liabilities:

June 30, 2025December 31, 2024
(Dollars in millions)
Customer receivables, less allowance of $11 and $12
$623 529 
Contract assets
11 12 
Contract liabilities
234 267 
Capitalized contract cost
The following tables provide changes in our contract acquisition costs and fulfillment costs:

Three Months Ended June 30, 2025Six Months Ended June 30, 2025
Acquisition CostsFulfillment CostsAcquisition CostsFulfillment Costs
(Dollars in millions)
Balance at beginning of period$82 133 77 127 
Costs incurred9 30 27 57 
Amortization(13)(22)(26)(43)
Balance at end of period$78 141 78 141 

Three Months Ended June 30, 2024Six Months Ended June 30, 2024
Acquisition CostsFulfillment CostsAcquisition CostsFulfillment Costs
(Dollars in millions)
Balance at beginning of period$70 99 70 97 
Costs incurred12 35 24 52 
Amortization(12)(18)(24)(33)
Balance at end of period$70 116 70 116 
v3.25.2
Long-Term Debt and Credit Facilities (Tables)
 6 Months Ended
Jun. 30, 2025
Debt Disclosure [Abstract]  
Schedule of long-term debt The following table reflects our consolidated long-term debt, including finance leases and other obligations, unamortized discounts, net, and unamortized debt issuance costs and excluding intercompany debt:
Interest Rates (1)
Maturities (1)
June 30, 2025December 31, 2024
(Dollars in millions)
Level 3 Financing, Inc.
Secured Senior Debt:(2)
Term Loan B-1(3)
N/A
N/A
$— 1,199 
Term Loan B-2(3)
N/A
N/A
— 1,199 
Term Loan B-3(3)
SOFR + 4.25%
20322,400 — 
Former Facility Tranche B Term Loan(4)
SOFR + 1.75%
202712 12 
First Lien notes(5)
6.875% to 11.000%
2029 - 2033
4,087 3,846 
Second Lien notes
3.875% to 10.000%
2029 - 2032
2,579 2,579 
Unsecured Senior Notes:
Senior Notes
3.625% - 4.250%
2028 - 2029
894 964 
Finance leases and other obligationsVariousVarious216 229 
Unamortized discounts, net(253)(225)
Unamortized debt issuance costs(139)(138)
Total long-term debt9,796 9,665 
Less current maturities(40)(36)
Long-term debt, excluding current maturities$9,756 9,629 
______________________________________________________________________
(1)As of June 30, 2025. All references to "SOFR" refer to the Secured Overnight Financing Rate.
(2)The debt listed under the caption “Secured Senior Debt” is secured by assets of Level 3 Financing and guaranteed on a secured basis by certain of its affiliates.
(3)Term Loan B-3 had an interest rate of 8.577% as of June 30, 2025. Term Loan B-1 and B-2 each had an interest rate composition of SOFR + 6.56% which equaled 11.133% as of December 31, 2024.
(4)Level 3 Financing's Tranche B 2027 Term Loan issued under a predecessor facility had an interest rate of 6.191% and 6.437% as of June 30, 2025 and December 31, 2024, respectively.
(5)Includes Level 3 Financing's (i) senior secured notes issued in early 2023, (ii) first lien notes issued on March 22, 2024, and (iii) first lien notes issued on June 30, 2025.
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 as of June 30, 2025 (excluding unamortized discounts, net, unamortized debt issuance costs, and intercompany debt), maturing during the following years:

(Dollars in millions)
2025 (remaining six months)$20 
202635 
202731 
2028198 
20292,749 
2030 and thereafter7,155 
Total long-term debt$10,188 
Schedule of debt redemptions
The following table sets forth the aggregate principal amount of each series of unsecured senior notes of Level 3 Financing fully redeemed in exchange for cash on February 15, 2025. Transaction fees related to these redemptions were not significant.

Debt Redeemed on February 15, 2025
Aggregate Principal Amount (in millions)
3.400% unsecured Senior Notes due 2027
$5 
4.625% unsecured Senior Notes due 2027
65 
Total
$70 
v3.25.2
Fair Value of Financial Instruments (Tables)
 6 Months Ended
Jun. 30, 2025
Fair Value Disclosures [Abstract]  
Schedule of carrying amounts and estimated fair values of long-term debt, excluding capital lease obligations, and input levels to determine fair values
The following table presents the carrying amounts and estimated fair values of our financial liabilities as of June 30, 2025 and December 31, 2024, as well as the input level used to determine the fair values indicated below:

June 30, 2025December 31, 2024
Input LevelCarrying AmountFair ValueCarrying AmountFair Value
(Dollars in millions)
Long-term debt, excluding finance leases and other obligations2$9,580 9,965 9,436 9,716 
Indemnifications related to the sale of the Latin American business(1)
387 84 87 84 
_______________________________________________________________________________
(1)Nonrecurring fair value is measured as of August 1, 2022.
v3.25.2
Affiliate Transactions (Tables)
 6 Months Ended
Jun. 30, 2025
Related Party Transactions [Abstract]  
Schedule of affiliate leases
The following table presents details of affiliate leases reflected on our consolidated balance sheets:

Balance Sheet Classification
June 30, 2025
December 31, 2024
(Dollars in millions)
Operating lease assets - affiliate
Other assets, net
$193 234 
Current operating lease liabilities - affiliate
Current operating lease liabilities107 113 
Operating lease liabilities - affiliate
Operating lease liabilities94 128 
v3.25.2
Accumulated Other Comprehensive Loss (Tables)
 6 Months Ended
Jun. 30, 2025
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]  
Schedule of accumulated other comprehensive income (loss)
The table below summarizes changes in Accumulated other comprehensive loss recorded on our consolidated balance sheets by component for the six months ended June 30, 2025:

Pension PlansForeign Currency Translation Adjustment and OtherTotal
(Dollars in millions)
Balance at December 31, 2024$(1)(25)(26)
Other comprehensive income, net of tax— 2 2 
Balance at June 30, 2025$(1)(23)(24)

The table below summarizes changes in Accumulated other comprehensive loss recorded on our consolidated balance sheets by component for the six months ended June 30, 2024:

Pension PlansForeign Currency Translation Adjustment and OtherTotal
(Dollars in millions)
Balance at December 31, 2023$(1)(27)(28)
Other comprehensive loss, net of tax— (2)(2)
Balance at June 30, 2024$(1)(29)(30)
v3.25.2
Other Financial Information (Tables)
 6 Months Ended
Jun. 30, 2025
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
Schedule of components other current assets, net
The following table presents details of Other current assets, net reflected on our consolidated balance sheets:

June 30, 2025December 31, 2024

(Dollars in millions)
Prepaid expenses$139 108 
Contract fulfillment costs66 57 
Contract acquisition costs42 41 
Contract assets10 10 
Assets held for sale23 23 
Other6 7 
Total Other current assets, net
$286 246 
v3.25.2
Background - Segments (Details)
 6 Months Ended
Jun. 30, 2025
segment
Accounting Policies [Abstract]  
Number of reportable segments 1
v3.25.2
Intangible Assets - Schedule of Goodwill and Other Intangible Assets (Details) - USD ($)
$ in Millions
Jun. 30, 2025
Dec. 31, 2024
Finite-Lived Intangible Assets [Line Items]    
Intangible assets, net $ 3,255 $ 3,569
Customer relationships    
Finite-Lived Intangible Assets [Line Items]    
Intangible assets, net 2,899 3,196
Accumulated amortization 4,648 4,504
Capitalized software    
Finite-Lived Intangible Assets [Line Items]    
Intangible assets, net 356 373
Accumulated amortization $ 484 $ 451
v3.25.2
Intangible Assets - Additional Information (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
Dec. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]          
Intangible assets, gross $ 8,400   $ 8,400   $ 8,500
Acquired finite-lived intangible asset amortization expense $ 172 $ 195 $ 343 $ 381  
v3.25.2
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
Disaggregation of Revenue [Line Items]        
Total revenues $ 1,626 $ 1,600 $ 3,273 $ 3,190
Adjustments for non-ASC 606 revenue (249) (217) (502) (405)
Total revenue from contracts with customers 1,377 1,383 2,771 2,785
Non-Affiliates        
Disaggregation of Revenue [Line Items]        
Total revenues 1,558 1,539 3,133 3,070
Non-Affiliates | Grow        
Disaggregation of Revenue [Line Items]        
Total revenues 1,000 929 2,004 1,850
Adjustments for non-ASC 606 revenue (178) (152) (356) (277)
Total revenue from contracts with customers 822 777 1,648 1,573
Non-Affiliates | Nurture        
Disaggregation of Revenue [Line Items]        
Total revenues 341 383 701 768
Adjustments for non-ASC 606 revenue (3) (4) (6) (8)
Total revenue from contracts with customers 338 379 695 760
Non-Affiliates | Harvest        
Disaggregation of Revenue [Line Items]        
Total revenues 177 184 357 379
Adjustments for non-ASC 606 revenue 0 0 0 0
Total revenue from contracts with customers 177 184 357 379
Non-Affiliates | Other        
Disaggregation of Revenue [Line Items]        
Total revenues 40 43 71 73
Adjustments for non-ASC 606 revenue 0 0 0 0
Total revenue from contracts with customers 40 43 71 73
Affiliates        
Disaggregation of Revenue [Line Items]        
Total revenues 68 61 140 120
Adjustments for non-ASC 606 revenue (68) (61) (140) (120)
Total revenue from contracts with customers $ 0 $ 0 $ 0 $ 0
v3.25.2
Revenue Recognition - Operating Lease Revenue (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
Revenue from Contract with Customer [Abstract]        
Rental income $ 195 $ 172 $ 413 $ 318
Percent of operating revenue 12.00% 11.00% 13.00% 10.00%
v3.25.2
Revenue Recognition - Customer Receivables and Contract Balances (Details) - USD ($)
$ in Millions
Jun. 30, 2025
Dec. 31, 2024
Revenue from Contract with Customer [Abstract]    
Customer receivables $ 623 $ 529
Contract assets 11 12
Contract liabilities 234 267
Allowance for credit loss $ 11 $ 12
v3.25.2
Revenue Recognition - Additional Information - Customer Receivables and Contract Balances (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
Jan. 01, 2025
Jan. 01, 2024
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]            
Revenue recognized $ 35 $ 13 $ 106 $ 82    
Contract liabilities         $ 267 $ 222
Minimum            
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]            
Contract term     1 year      
Maximum            
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]            
Contract term     5 years      
v3.25.2
Revenue Recognition - Additional Information - Remaining Performance Obligation (Details)
$ in Billions
Jun. 30, 2025
USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Remaining performance obligation $ 4.1
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-07-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Remaining performance obligation $ 1.1
Expected timing of satisfaction, period 6 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Remaining performance obligation $ 1.6
Expected timing of satisfaction, period 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Remaining performance obligation $ 1.4
Expected timing of satisfaction, period 1 year
v3.25.2
Revenue Recognition - Contract Cost (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
Contract acquisition costs        
Capitalized Contract Cost        
Beginning of period balance $ 82 $ 70 $ 77 $ 70
Costs incurred 9 12 27 24
Amortization (13) (12) (26) (24)
End of period balance 78 70 78 70
Contract fulfillment costs        
Capitalized Contract Cost        
Beginning of period balance 133 99 127 97
Costs incurred 30 35 57 52
Amortization (22) (18) (43) (33)
End of period balance $ 141 $ 116 $ 141 $ 116
v3.25.2
Revenue Recognition - Additional Information - Contract Costs (Details)
 6 Months Ended
Jun. 30, 2025
Business Customers | Weighted Average  
Capitalized Contract Cost [Line Items]  
Length of customer life 36 months
v3.25.2
Long-Term Debt and Credit Facilities - Schedule of Long Term Debt (Details) - USD ($)
$ in Millions
 6 Months Ended
Jun. 30, 2025
Dec. 31, 2024
Long-term debt    
Finance leases and other obligations $ 216 $ 229
Unamortized discounts, net (253) (225)
Unamortized debt issuance costs (139) (138)
Total long-term debt 9,796 9,665
Less current maturities (40) (36)
Long-term debt, excluding current maturities $ 9,756 9,629
Term loan | Term Loan B-1    
Long-term debt    
Basis spread on variable rate (as a percent) 6.56%  
Long-term debt, gross $ 0 $ 1,199
Long-term debt, weighted average interest rate   11.133%
Term loan | Term Loan B-2    
Long-term debt    
Basis spread on variable rate (as a percent) 6.56%  
Long-term debt, gross $ 0 $ 1,199
Long-term debt, weighted average interest rate   11.133%
Term loan | Term Loan B-3    
Long-term debt    
Basis spread on variable rate (as a percent) 4.25%  
Long-term debt, gross $ 2,400 $ 0
Long-term debt, weighted average interest rate 8.577%  
Term loan | Former Facility Tranche B Term Loan    
Long-term debt    
Basis spread on variable rate (as a percent) 1.75%  
Long-term debt, gross $ 12 $ 12
Long-term debt, weighted average interest rate 6.191% 6.437%
Senior notes | First Lien Notes    
Long-term debt    
Stated interest rate 6.875%  
Long-term debt, gross $ 4,087 $ 3,846
Senior notes | First Lien Notes | Minimum    
Long-term debt    
Stated interest rate 6.875%  
Senior notes | First Lien Notes | Maximum    
Long-term debt    
Stated interest rate 11.00%  
Senior notes | Second Lien Notes    
Long-term debt    
Long-term debt, gross $ 2,579 2,579
Senior notes | Second Lien Notes | Minimum    
Long-term debt    
Stated interest rate 3.875%  
Senior notes | Second Lien Notes | Maximum    
Long-term debt    
Stated interest rate 10.00%  
Senior notes | Senior Notes Due on 2028-2029    
Long-term debt    
Long-term debt, gross $ 894 $ 964
Senior notes | Senior Notes Due on 2028-2029 | Minimum    
Long-term debt    
Stated interest rate 3.625%  
Senior notes | Senior Notes Due on 2028-2029 | Maximum    
Long-term debt    
Stated interest rate 4.25%  
v3.25.2
Long-Term Debt and Credit Facilities - Debt Maturities (Details)
$ in Millions
Jun. 30, 2025
USD ($)
Debt Disclosure [Abstract]  
2025 (remaining six months) $ 20
2026 35
2027 31
2028 198
2029 2,749
2030 and thereafter 7,155
Total long-term debt $ 10,188
v3.25.2
Long-Term Debt and Credit Facilities - First Lien Note Refinancing (Details) - USD ($)
 3 Months Ended 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
Dec. 31, 2024
Long-term debt          
Net loss on early extinguishment of debt $ 236,000,000 $ 0 $ 270,000,000 $ (54,000,000)  
Senior notes | First Lien Notes          
Long-term debt          
Debt instrument, face amount $ 2,000,000,000   $ 2,000,000,000    
Stated interest rate 6.875%   6.875%    
Amount outstanding $ 4,087,000,000   $ 4,087,000,000   $ 3,846,000,000
Senior notes | First Lien Notes Refinancing          
Long-term debt          
Net loss on early extinguishment of debt $ 236,000,000   $ 236,000,000    
Senior notes | 10.500% First Lien Senior Secured Notes Due 2030          
Long-term debt          
Stated interest rate 10.50%   10.50%    
Amount outstanding $ 925,000,000   $ 925,000,000    
Senior notes | 10.500% First Lien Notes Due 2029          
Long-term debt          
Stated interest rate 10.50%   10.50%    
Amount outstanding $ 668,000,000   $ 668,000,000    
Senior notes | 11.000% First Lien Notes Due 2029          
Long-term debt          
Stated interest rate 11.00%   11.00%    
Amount outstanding $ 167,000,000   $ 167,000,000    
v3.25.2
Long-Term Debt and Credit Facilities - Redemptions (Details) - Senior notes
$ in Millions
Feb. 15, 2025
USD ($)
Long-term debt  
Aggregate principal amount $ 70
3.400% Senior Notes Due 2027  
Long-term debt  
Stated interest rate 3.40%
Aggregate principal amount $ 5
4.625% Senior Notes Due 2027  
Long-term debt  
Stated interest rate 4.625%
Aggregate principal amount $ 65
v3.25.2
Long-Term Debt and Credit Facilities - Level 3 Financing Credit Agreement and Guarantees (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
Dec. 31, 2024
Mar. 22, 2024
Long-term debt            
Net (loss) gain on early retirement of debt $ (236) $ 0 $ (270) $ 54    
Financial Guarantee            
Long-term debt            
Maximum guaranteed amount           $ 150
Term loan | Term Loan B-3            
Long-term debt            
Amount outstanding 2,400   $ 2,400   $ 0  
Net (loss) gain on early retirement of debt $ (34)          
Basis spread on variable rate (as a percent)     4.25%      
Prepayment premium (as a percent)     1.00%      
Prepayment from net cash proceeds of certain asset sales (as a percent)     100.00%      
Prepayment from net cash proceeds of certain debt issuances (as a percent)     100.00%      
Term loan | Term Loan B-3 | Fed Funds Rate            
Long-term debt            
Basis spread on variable rate (as a percent)     0.50%      
Term loan | Term Loan B-3 | One-Month SOFR            
Long-term debt            
Basis spread on variable rate (as a percent)     1.00%      
Term loan | Term Loan B-3 | SOFR            
Long-term debt            
Basis spread on variable rate (as a percent)     4.25%      
Term loan | Term Loan B-3 | SOFR | Minimum            
Long-term debt            
Basis spread on variable rate (as a percent)     0.50%      
v3.25.2
Long-Term Debt and Credit Facilities - Supplier Finance Programs (Details) - USD ($)
$ in Millions
Jun. 30, 2025
Dec. 31, 2024
Debt Disclosure [Abstract]    
Annual interest rate 1.25%  
Outstanding obligation under the plan $ 29 $ 39
Outstanding obligation included in current maturities 23 21
Outstanding obligation included in long-term debt 6 18
Supplier finance program, credit $ 25 $ 24
v3.25.2
Long-Term Debt and Credit Facilities - Covenants (Details)
 6 Months Ended
Jun. 30, 2025
Debt Disclosure [Abstract]  
Redemption price, percentage 101.00%
v3.25.2
Fair Value of Financial Instruments (Details) - Fair Value, Measurements, Recurring - USD ($)
$ in Millions
Jun. 30, 2025
Dec. 31, 2024
Level 2 | Carrying Amount    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Long-term debt, excluding finance leases and other obligations $ 9,580 $ 9,436
Level 2 | Fair Value    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Long-term debt, excluding finance leases and other obligations 9,965 9,716
Level 3 | Carrying Amount    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Indemnifications related to the sale of the Latin American business 87 87
Level 3 | Fair Value    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Indemnifications related to the sale of the Latin American business $ 84 $ 84
v3.25.2
Affiliate Transactions - Additional Information (Details) - Affiliates
$ in Millions
 6 Months Ended
Sep. 24, 2024
extension_period
Mar. 22, 2024
USD ($)
extension_period
Jun. 30, 2025
USD ($)
Dec. 31, 2024
USD ($)
Related Party Transaction [Line Items]        
Notes receivable - affiliate     $ 2,668 $ 2,668
Lumen Technologies, Inc.        
Related Party Transaction [Line Items]        
Notes receivable - affiliate     2,700 2,700
Lumen Technologies, Inc. | Secured Revolving Credit Facility        
Related Party Transaction [Line Items]        
Notes receivable - affiliate     1,200 1,200
Lumen Technologies, Inc. | Unsecured Revolving Credit Facility        
Related Party Transaction [Line Items]        
Notes receivable - affiliate     $ 1,500 $ 1,500
Lumen Technologies, Inc. | Unsecured Debt | Unsecured Credit Facility        
Related Party Transaction [Line Items]        
Principal amount   $ 1,825    
Stated interest rate     10.30%  
Maturity period, number of extensions | extension_period 2      
Maturity period 1 year      
Basis spread on variable rate (as a percent)     6.00%  
Lumen Technologies, Inc. | Revolving Credit Facility        
Related Party Transaction [Line Items]        
Principal amount   $ 1,200    
Lumen Technologies, Inc. | Revolving Credit Facility | Line of Credit        
Related Party Transaction [Line Items]        
Stated interest rate   11.00%    
Maturity period, number of extensions | extension_period   2    
Maturity period   1 year    
v3.25.2
Affiliate Transactions - Leases (Details) - USD ($)
$ in Millions
Jun. 30, 2025
Dec. 31, 2024
Related Party Transaction [Line Items]    
Current operating lease liabilities $ 271 $ 266
Operating lease liabilities 748 719
Affiliates    
Related Party Transaction [Line Items]    
Operating lease assets 193 234
Current operating lease liabilities 107 113
Operating lease liabilities $ 94 $ 128
v3.25.2
Commitments, Contingencies and Other Items (Details)
 6 Months Ended
Jun. 30, 2025
USD ($)
patent
Dec. 31, 2024
USD ($)
Commitments and Contingencies Disclosure [Abstract]    
Estimated litigation liability $ 35,000,000 $ 36,000,000
Number of patents allegedly infringed | patent 1  
Unfavorable Regulatory Action    
Loss Contingencies [Line Items]    
Estimate of possible loss (not expected to exceed) $ 300,000  
v3.25.2
Accumulated Other Comprehensive Loss (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
AOCI Attributable to Parent, Net of Tax        
Balance at beginning of period     $ 196  
Other comprehensive (loss) income, net of tax $ (1) $ 0 2 $ (2)
Balance at end of period (88) 1,903 (88) 1,903
Total        
AOCI Attributable to Parent, Net of Tax        
Balance at beginning of period (23) (30) (26) (28)
Balance at end of period (24) (30) (24) (30)
Pension Plans        
AOCI Attributable to Parent, Net of Tax        
Balance at beginning of period     (1) (1)
Other comprehensive (loss) income, net of tax     0 0
Balance at end of period (1) (1) (1) (1)
Foreign Currency Translation Adjustment and Other        
AOCI Attributable to Parent, Net of Tax        
Balance at beginning of period     (25) (27)
Other comprehensive (loss) income, net of tax     2 (2)
Balance at end of period $ (23) $ (29) $ (23) $ (29)
v3.25.2
Other Financial Information - Other Current Assets, Net (Details) - USD ($)
$ in Millions
Jun. 30, 2025
Dec. 31, 2024
Prepaid Expense and Other Assets, Current [Abstract]    
Prepaid expenses $ 139 $ 108
Contract assets 10 10
Assets held for sale 23 23
Other 6 7
Total Other current assets, net 286 246
Contract fulfillment costs    
Prepaid Expense and Other Assets, Current [Abstract]    
Contract costs 66 57
Contract acquisition costs    
Prepaid Expense and Other Assets, Current [Abstract]    
Contract costs $ 42 $ 41
v3.25.2
Other Financial Information - Additional Information (Details) - USD ($)
$ in Millions
 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]    
Capital expenditures $ 135 $ 106