LEVEL 3 COMMUNICATIONS INC, 10-K filed on 2/26/2016
Annual Report
Document and Entity Information Document (USD $)
In Millions, except Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Feb. 24, 2016
Jun. 30, 2015
Entity Information [Line Items]
 
 
 
Entity Registrant Name
LEVEL 3 COMMUNICATIONS INC 
 
 
Entity Central Index Key
0000794323 
 
 
Document Type
10-K 
 
 
Document Period End Date
Dec. 31, 2015 
 
 
Amendment Flag
false 
 
 
Current Fiscal Year End Date
--12-31 
 
 
Entity Well-known Seasoned Issuer
Yes 
 
 
Entity Voluntary Filers
No 
 
 
Entity Current Reporting Status
Yes 
 
 
Entity Filer Category
Large Accelerated Filer 
 
 
Entity Public Float
 
 
$ 13,018 
Entity Common Stock, Shares Outstanding
 
356,840,483 
 
Document Fiscal Year Focus
2015 
 
 
Document Fiscal Period Focus
FY 
 
 
Consolidated Statements of Operations (USD $)
In Millions, except Share data in Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Revenue
$ 8,229 
$ 6,777 
$ 6,313 
Costs and Expenses:
 
 
 
Network access costs
2,833 
2,529 
2,471 
Network related expenses
1,432 
1,246 
1,214 
Depreciation and amortization
1,166 
808 
800 
Selling, general and administrative expenses
1,467 
1,181 
1,162 
Total costs and expenses
6,898 
5,764 
5,647 
Operating Income
1,331 
1,013 
666 
Other Income (Expense):
 
 
 
Interest income
1 
1 
0 
Interest expense
(642)
(654)
(649)
Loss on modification and extinguishment of debt
(218)
(53)
(84)
Venezuela deconsolidation charge
(171)
0 
0 
Other, net
(18)
(69)
(4)
Total other expense
(1,048)
(775)
(737)
Income (Loss) Before Income Taxes
283 
238 
(71)
Income Tax Benefit (Expense)
3,150 
76 
(38)
Net Income (Loss)
$ 3,433 
$ 314 
$ (109)
Net Income (Loss) Per Share -Basic
$ 9.71 
$ 1.23 
$ (0.49)
Shares Used to Compute Basic Net Income (Loss)per Share (in thousands)
353,385 
254,428 
222,368 
Net Income (Loss) Per Share - Diluted
$ 9.58 
$ 1.21 
$ (0.49)
Shares Used to Compute Diluted Net Income (Loss)per Share (in thousands)
358,593 
258,483 
222,368 
Consolidated Statements of Comprehensive Income (Loss) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Net Income (Loss)
$ 3,433 
$ 314 
$ (109)
Foreign currency translation adjustments, net of tax effect of $13, $0, and $0
(162)
(178)
11 
Defined benefit pension plan adjustments, net of tax effect of ($2), $0, and $0
(8)
5 
1 
Other Comprehensive Income (Loss), Net of Tax
(154)
(183)
10 
Comprehensive Income (Loss)
$ 3,279 
$ 131 
$ (99)
Comprehensive Income (Loss) Parenthetical (Parentheticals) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
 
 
 
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax
$ 13 
$ 0 
$ 0 
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, Tax
$ (2)
$ 0 
$ 0 
Consolidated Balance Sheets (USD $)
In Millions, unless otherwise specified
Dec. 31, 2015
Dec. 31, 2014
Assets
 
 
Cash and cash equivalents
$ 854 
$ 580 
Restricted cash and securities
8 
7 
Receivables, less allowances for doubtful accounts of $32 and $30, respectively
757 
737 
Other
130 
157 
Total Current Assets
1,749 
1,481 
Property, Plant and Equipment, net of Accumulated Depreciation of $10,365 and $9,629, respectively
9,878 
9,860 
Restricted Cash and Securities
42 
20 
Goodwill
7,749 
7,689 
Other Intangibles, net
1,127 
1,414 
Deferred Tax Assets
3,441 
300 
Other Assets, net
159 
183 
Total Assets
24,145 
20,947 
Liabilities:
 
 
Accounts payable
629 
664 
Current portion of long-term debt
15 
349 
Accrued payroll and employee benefits
218 
273 
Accrued interest
108 
174 
Current portion of deferred revenue
267 
287 
Other
179 
159 
Total Current Liabilities
1,416 
1,906 
Long-Term Debt, less current portion
10,994 
10,984 
Deferred Revenue, less current portion
977 
921 
Other Liabilities
632 
773 
Total Liabilities
14,019 
14,584 
Commitments and Contingencies
0 
0 
Stockholders’ Equity:
 
 
Preferred stock, $.01 par value, authorized 10,000,000 shares: no shares issued or outstanding
0 
0 
Common stock, $.01 par value, authorized 433,333,333 shares in both periods; 356,374,473 shares issued and outstanding at December 31, 2015 and 341,361,420 shares issued and outstanding at December 31, 2014
4 
3 
Additional paid-in capital
19,642 
19,159 
Accumulated other comprehensive loss
(301)
(147)
Accumulated deficit
(9,219)
(12,652)
Total Stockholders’ Equity
10,126 
6,363 
Total Liabilities and Stockholders’ Equity
$ 24,145 
$ 20,947 
Consolidated Balance Sheets Parentheticals (Parentheticals) (USD $)
In Millions, except Share data, unless otherwise specified
Dec. 31, 2015
Dec. 31, 2014
Allowance for doubtful accounts
$ 32 
$ 30 
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment
$ 10,365 
$ 9,629 
Preferred stock, par value
$ 0.01 
$ 0.01 
Preferred stock, shares authorized
10,000,000 
10,000,000 
Preferred stock, shares issued
0 
0 
Preferred stock, shares outstanding
0 
0 
Common stock, par value
$ 0.01 
$ 0.01 
Common Stock, Shares Authorized
433,333,333 
433,333,333 
Common stock, shares issued
356,374,473 
341,361,420 
Common stock, shares outstanding
356,374,473 
341,361,420 
Consolidated Statements of Cash Flows (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Cash Flows from Operating Activities:
 
 
 
Net income (loss)
$ 3,433 
$ 314 
$ (109)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
 
 
 
Depreciation and amortization
1,166 
808 
800 
Loss on impairment
0 
18 
7 
Non-cash compensation expense attributable to stock awards
141 
73 
151 
Loss on modification and extinguishment of debt
218 
53 
84 
Venezuela deconsolidation charge
171 
0 
0 
Accretion of debt discount and amortization of debt issuance costs
24 
36 
36 
Accrued interest on long-term debt, net
(57)
12 
(49)
Non-cash tax adjustments
0 
(7)
(42)
Deferred income taxes
(3,202)
(116)
(29)
Loss (gain) on sale of property, plant, and equipment and other assets
1 
(3)
(2)
Other, net
35 
(8)
(41)
Changes in working capital items:
 
 
 
Receivables
(87)
9 
30 
Other current assets
(11)
2 
3 
Payables
4 
(77)
(162)
Deferred revenue
88 
6 
28 
Other current liabilities
(69)
41 
8 
Net Cash Provided by Operating Activities
1,855 
1,161 
713 
Cash Flows from Investing Activities:
 
 
 
Capital expenditures
(1,229)
(910)
(760)
Cash related to deconsolidated Venezuela operations
(83)
0 
0 
Decrease (increase) in restricted cash and securities, net
(22)
(10)
13 
Proceeds from sale of property, plant and equipment and other assets
4 
3 
0 
Investment in tw telecom, net of cash acquired
0 
(167)
0 
Other
(14)
(2)
2 
Net Cash Used in Investing Activities
(1,344)
(1,086)
(745)
Cash Flows from Financing Activities:
 
 
 
Long-term debt borrowings, net of issuance costs
4,832 
589 
1,502 
Payments on and repurchases of long-term debt, including current portion and refinancing costs
(5,051)
(671)
(1,796)
Net Cash Provided by (Used in) Financing Activities
(219)
(82)
(294)
Effect of Exchange Rates on Cash and Cash Equivalents
(18)
(44)
(22)
Net Change in Cash and Cash Equivalents
274 
(51)
(348)
Cash and Cash Equivalents at Beginning of Year
580 
631 
979 
Cash and Cash Equivalents at End of Year
854 
580 
631 
Supplemental Disclosure of Cash Flow Information:
 
 
 
Cash interest paid
668 
598 
674 
Income taxes paid, net of refunds
50 
44 
33 
Non-cash Investing and Financing Activities:
 
 
 
Capital lease obligations incurred
6 
2 
13 
Notes issued for property
0 
0 
12 
Long-term debt conversion into equity
333 
142 
200 
Accrued interest conversion into equity
10 
2 
3 
Long-term debt issued and proceeds placed in escrow
0 
3,000 
0 
Escrowed securities used in the acquisition of tw telecom
$ 0 
$ 3,014 
$ 0 
Consolidated Statements of Changes In Stockholders' Equity (USD $)
In Millions, except Share data, unless otherwise specified
Total
Common Stock
Additional Paid-in Capital
Accumulated Other Comprehensive Income (Loss)
Accumulated Deficit
Beginning balance at Dec. 31, 2012
$ 1,171 
$ 2 
$ 14,000 
$ 26 
$ (12,857)
Beginning balance (in shares) at Dec. 31, 2012
 
218,380,070 
 
 
 
Common Stock
 
 
 
 
 
Common stock issued under employee stock benefit plans and other
70 
0 
70 
0 
0 
Common stock issued under employee stock benefit plans and other (in shares)
 
5,493,729 
 
 
 
Stock-based compensation expense
69 
0 
69 
0 
0 
Conversion of debt to equity
200 
0 
200 
0 
0 
Conversion of debt to equity (in shares)
 
10,814,264 
 
 
 
Net Income (Loss)
(109)
0 
0 
0 
(109)
Other Comprehensive Income (Loss)
10 
0 
0 
10 
0 
Ending balance at Dec. 31, 2013
1,411 
2 
14,339 
36 
(12,966)
Ending balance (in shares) at Dec. 31, 2013
 
234,688,063 
 
 
 
Common Stock
 
 
 
 
 
Common stock issued under employee stock benefit plans and other
78 
0 
78 
0 
0 
Common stock issued under employee stock benefit plans and other (in shares)
 
4,528,559 
 
 
 
Stock-based compensation expense
55 
0 
55 
0 
0 
tw telecom acquisition equity consideration
4,544 
1 
4,543 
0 
0 
tw telecom acquisition equity consideration (in shares)
 
96,868,883 
 
 
 
Conversion of debt to equity
144 
0 
144 
0 
0 
Conversion of debt to equity (in shares)
 
5,275,915 
 
 
 
Net Income (Loss)
314 
0 
0 
0 
314 
Other Comprehensive Income (Loss)
(183)
0 
0 
(183)
0 
Ending balance at Dec. 31, 2014
6,363 
3 
19,159 
(147)
(12,652)
Ending balance (in shares) at Dec. 31, 2014
341,361,420 
341,361,420 
 
 
 
Common Stock
 
 
 
 
 
Common stock issued under employee stock benefit plans and other
35 
0 
35 
0 
0 
Common stock issued under employee stock benefit plans and other (in shares)
 
2,696,470 
 
 
 
Stock-based compensation expense
106 
0 
106 
0 
0 
Conversion of debt to equity
343 
1 
342 
0 
0 
Conversion of debt to equity (in shares)
 
12,316,583 
 
 
 
Net Income (Loss)
3,433 
0 
0 
0 
3,433 
Other Comprehensive Income (Loss)
(154)
0 
0 
(154)
0 
Ending balance at Dec. 31, 2015
$ 10,126 
$ 4 
$ 19,642 
$ (301)
$ (9,219)
Ending balance (in shares) at Dec. 31, 2015
356,374,473 
356,374,473 
 
 
 
Organization and Summary of Significant Accounting Policies
Organization and Summary of Significant Accounting Policies
Organization and Summary of Significant Accounting Policies

Description of Business

Level 3 Communications, Inc. and subsidiaries (the "Company" or "Level 3") is a facilities-based provider (that is, a provider that owns or leases a substantial portion of the plant, property and equipment necessary to provide its services) of a broad range of integrated communications services. The Company created its communications network by constructing its own assets and through a combination of purchasing other companies and purchasing or leasing facilities from others. Level 3's network is an international, facilities-based communications network. The Company designed its network to provide communications services that employ and take advantage of rapidly improving underlying optical, Internet Protocol, computing and storage technologies.

On October 31, 2014, the Company completed the acquisition of tw telecom inc. (“tw telecom”) and tw telecom became an indirect, wholly owned subsidiary of the Company through a tax-free, stock and cash reorganization (the "Merger"). See Note 2 - Events Associated with the Merger of tw telecom inc.

Principles of Consolidation and Basis of Presentation

The consolidated financial statements include the accounts of Level 3 Communications, Inc. and subsidiaries in which it has a controlling interest. All significant intercompany accounts and transactions have been eliminated. The accompanying Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States ("GAAP").

As part of its consolidation policy, the Company considers its controlled subsidiaries, investments in businesses in which the Company is not the primary beneficiary or does not have effective control but has the ability to significantly influence operating and financial policies, and variable interests resulting from economic arrangements that give the Company rights to economic risks or rewards of a legal entity. The Company does not have variable interests in a variable interest entity where it is required to consolidate the entity as the primary beneficiary.

Prior to October 1, 2015, the Company included the results of its wholly owned Venezuelan subsidiary in its Consolidated Financial Statements using the consolidation method of accounting. The Company’s Venezuelan subsidiary's earnings and cash flows are reflected in the Consolidated Financial Statements for the nine months ended September 30, 2015 and the years ended December 31, 2014 and 2013, respectively.

Venezuelan exchange control regulations have resulted in an other-than-temporary lack of exchangeability between the Venezuelan bolivar and U.S. dollar, and have restricted the Company's Venezuelan operations’ ability to pay dividends in U.S. dollars and settle intercompany obligations in U.S. dollars. The severe currency controls imposed by the Venezuelan government have significantly limited the ability to realize the benefits from earnings of the Company’s Venezuelan operations and access the resulting liquidity provided by those earnings in U.S. dollars. The Company expects that this condition will continue for the foreseeable future. Additionally, government regulations affecting the Company's ability to manage its Venezuelan subsidiary’s capital structure, purchasing, product pricing, customer invoicing and collections, and labor relations; and the current political and economic situation within Venezuela have resulted in an acute degradation in the Company's ability to make key operational decisions for its Venezuelan operations. This lack of exchangeability into U.S. dollars and the degradation in the Company's ability to control key operational decisions has resulted in a lack of control over the Company's Venezuelan subsidiary for U.S. accounting purposes. Therefore, while continuing to wholly own a variable interest in its Venezuelan subsidiary, in accordance with Accounting Standards Codification 810 -- Consolidation, the Company deconsolidated its Venezuelan subsidiary on September 30, 2015, and began accounting for its investment in its Venezuelan operations using the cost method of accounting. While the Company does not expect to enter into material transactions with its subsidiary in Venezuela that would result in the creation of additional intercompany receivable balances, if any such transactions were completed the Company would evaluate collectability of the intercompany receivable balance at that time, which could result in a charge that negatively affects its results of operations.

As a result of deconsolidating of its Venezuelan subsidiary, the Company recorded a one-time charge of $171 million in the third quarter of 2015, which had no accompanying tax benefit. This charge included the write-off of both the Company's investment in its Venezuelan subsidiary and $40 million of intercompany receivables from its Venezuelan subsidiary. The Company's Venezuelan operations’ bolivar-denominated cash balance of $83 million (at the SICAD I exchange rate of 13.5 bolivars per U.S. dollar) at September 30, 2015 is no longer reported in Cash and Cash Equivalents on the Consolidated Balance Sheet. The Company's financial results no longer include the operating results of its Venezuelan operations. Any dividends from the Company's Venezuelan subsidiaries are recorded as other income upon receipt of the cash. Prior period results have not been adjusted to reflect the deconsolidation of the Company's Venezuelan subsidiary.

Foreign Currency Translation

Local currencies of foreign subsidiaries are the functional currencies for financial reporting purposes except for certain foreign subsidiaries in Latin America. For operations outside the United States that have functional currencies other than the U.S. dollar, assets and liabilities are translated to U.S. dollars at period-end exchange rates, and revenue, expenses and cash flows are translated using average exchange rates prevailing during the year. A significant portion of the Company's non-United States subsidiaries have either the British pound, the euro or the Brazilian real as the functional currency, each of which experienced significant fluctuations against the U.S. dollar during 2015, 2014 and 2013. Foreign currency translation gains and losses are recognized as a component of accumulated other comprehensive income (loss) in stockholders' equity and in the Consolidated Statements of Comprehensive Income (Loss) in accordance with accounting guidance for foreign currency translation. The Company considers the majority of its investments in its foreign subsidiaries to be long-term in nature. The Company's non-United States exchange transaction gains (losses), including where transactions with its non-United States subsidiaries are not considered to be long-term in nature, are included within other income (expense) in Other, net on the Consolidated Statements of Operations.

Reclassifications

Certain amounts in the prior year Consolidated Financial Statements and accompanying footnotes have been reclassified to conform to the current year's presentation primarily pursuant to the early adoption of Accounting Standards Update ("ASU") 2015-17. As of December 31, 2014, approximately $8 million of current deferred tax assets has been reclassified to non-current deferred tax assets and approximately $8 million of current deferred tax liabilities has been reclassified to non-current deferred tax liabilities.

Use of Estimates

The preparation of the Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reported period. The accounting estimates that require management's judgments include revenue recognition, revenue reserves, network access costs, network access cost dispute reserves, determination of the useful lives of long-lived assets, measurement and recognition of stock-based compensation expense, valuation of long-lived assets, goodwill and acquired indefinite-lived intangible assets for purposes of impairment testing, valuation of asset retirement obligations, allowance for doubtful accounts, measurement of the fair value of assets acquired and liabilities assumed in business combinations, accruals for estimated tax and legal liabilities, and valuation allowance for deferred tax assets. Actual results could differ from these estimates under different assumptions or conditions and such differences could be material.

Revenue

Revenue is recognized monthly as the services are provided based on contractual amounts expected to be collected. Management establishes appropriate revenue reserves at the time services are rendered based on an analysis of historical credit activity to address, where significant, situations in which collection is not reasonably assured as a result of credit risk, potential billing disputes or other reasons. Actual results may differ from these estimates under different assumptions or conditions and these differences could be material.

Intercarrier compensation revenue is recognized when an interconnection agreement is in place with another carrier, or if an agreement has expired, when the parties have agreed to continue operating under the previous agreement until a new agreement is negotiated and executed, or at rates mandated by the Federal Communications Commission (the "FCC").

For certain sale and long-term indefeasible right of use, or IRU, contracts involving private line, wavelengths and dark fiber services, the Company may receive upfront payments for services to be delivered for a period of up to 25 years. In these situations, the Company defers the revenue and amortizes it on a straight-line basis to earnings over the term of the contract.

Termination revenue is recognized when a customer discontinues service prior to the end of the contract period for which Level 3 had previously received consideration and for which revenue recognition was deferred. Termination revenue also is recognized when customers are required to make termination penalty payments to Level 3 to settle contractually committed purchase amounts that the customer no longer expects to meet or when a customer and Level 3 renegotiate a contract under which Level 3 is no longer obligated to provide services for consideration previously received and for which revenue recognition has been deferred.

The Company is obligated under dark fiber IRUs and other capacity agreements to maintain its network in efficient working order and in accordance with industry standards. Customers are obligated for the term of the agreement to pay for their allocable share of the costs for operating and maintaining the network. The Company recognizes this revenue monthly as services are provided.

Level 3's customer contracts require the Company to meet certain service level commitments. If Level 3 does not meet the required service levels, it may be obligated to provide credits, usually in the form of free service, for a short period of time. The credits are a reduction to revenue and, to date, have not been material.

Network Access Costs

Network Access Costs for the communications business include leased capacity, right-of-way costs, access charges, satellite transponder lease costs and other third party costs directly attributable to providing access to customer locations from the Level 3 network, but excludes Network Related Expenses, and depreciation and amortization. Network Access Costs do not include any employee expenses or impairment expenses; these expenses are allocated to Network Related Expenses or Selling, General and Administrative Expenses.

The Company recognizes the network access costs as they are incurred in accordance with contractual requirements. The Company disputes incorrect billings from its suppliers of network services. The most prevalent types of disputes include disputes for circuits that are not disconnected by the supplier on a timely basis charges from suppliers for circuits that were not timely installed and incorrect rate or other inadequate information needed to determine the appropriate billing from the supplier. Depending on the type and complexity of the issues involved, it may and often does take several quarters to resolve the disputes. The Company establishes appropriate network access costs reserves for disputed supplier billings based on an analysis of its historical experience in resolving disputes with its suppliers and regulatory analysis regarding certain supplier billing matters. Judgment is required in estimating the ultimate outcome of the dispute resolution process, as well as any other amounts that may be incurred to conclude the negotiations or settle any litigation. Actual results may differ from these estimates under different assumptions or conditions and these differences could be material.

Network Related Expenses

Network Related Expenses includes certain expenses associated with the delivery of services to customers and the operation and maintenance of the Level 3 network, such as facility rent, utilities, maintenance and other costs, each related to the operation of its communications network, as well as salaries, wages and related benefits (including non-cash stock-based compensation expenses) associated with personnel who are responsible for the delivery of services, operation and maintenance of its communications network, and accretion expense on asset retirement obligations, but excludes depreciation and amortization.

Selling, General and Administrative Expenses

Selling, General and Administrative Expenses includes the salaries, wages and related benefits (including non-cash, stock-based compensation expenses) and the related costs of corporate and sales personnel, travel, insurance, non-network related rent, advertising, and other administrative expenses.

USF and Gross Receipts Taxes

The revenue recognition standards include guidance relating to any tax assessed by a governmental authority that is directly imposed on a revenue-producing transaction between a seller and a customer and may include, but is not limited to, gross receipts taxes and certain state regulatory fees. The Company records Universal Service Fund ("USF") contributions where the Company is the primary obligor for the taxes assessed in each jurisdiction where it does business on a gross basis in its Consolidated Statements of Operations, but generally records gross receipts taxes and certain state regulatory fees billed to its customers on a net basis in its Consolidated Statements of Operations. Total revenue and network access costs on the Consolidated Statements of Operations include USF contributions totaling $323 million, $234 million and $194 million for the years ended December 31, 2015, 2014 and 2013, respectively.


Stock-Based Compensation

The Company recognizes the estimated fair value of stock-based compensation costs, net of an estimated forfeiture rate, over the requisite service period of the award, which is generally the vesting term or term for restrictions on transfer that lapse, as the case may be. The Company funded a portion of its 2013 discretionary bonus in restricted stock unit awards that vested upon issuance. The Company estimates forfeiture rates based on its historical experience for the type of award, adjusted for expected activities as necessary.

Income Taxes

The Company recognizes deferred tax assets and liabilities for its United States and non-U.S. operations, for operating loss and other credit carry forwards and the expected tax consequences of temporary differences between the tax basis of assets and liabilities and their reported amounts using enacted tax rates in effect for the year the differences are expected to reverse. The Company records a valuation allowance to reduce the deferred tax assets to the amount that is more likely than not to be realized. This assessment requires judgment as to the likelihood and amounts of future taxable income by tax jurisdiction.


Cash and Cash Equivalents

The Company classifies investments as cash equivalents if they are readily convertible to cash and have original maturities of three months or less at the time of acquisition. Cash and cash equivalents consist primarily of highly liquid investments in government and government agency securities and money market funds issued or managed by financial institutions in the United States, Europe and Latin America and commercial paper depending on liquidity requirements. As of December 31, 2015 and 2014, the carrying value of cash equivalents approximates fair value due to the short period of time to maturity.

Restricted Cash and Securities

Restricted cash and securities consists primarily of cash and investments that serve to collateralize outstanding letters of credit and certain performance and operating obligations of the Company. Restricted cash and securities are recorded as current or non-current assets in the Consolidated Balance Sheets depending on the duration of the restriction and the purpose for which the restriction exists. Restricted securities are stated at cost which approximates fair value as of December 31, 2015 and 2014.

Allowance for Doubtful Accounts

Trade accounts receivable are recorded at the invoiced amount and can bear interest. The Company establishes an allowance for doubtful accounts for accounts receivable amounts that may not be collectible. The Company determines the allowance for doubtful accounts based on the aging of its accounts receivable balances, the credit quality of its customers and an analysis of its historical experience of bad debt write-offs. Accounts receivable balances are written off against the allowance for doubtful accounts after all means of collection have been exhausted and the potential for recovery is considered remote. The Company recognized bad debt expense, net of recoveries, of approximately $23 million in 2015, $22 million in 2014 and $17 million in 2013.

Property, Plant and Equipment

Property, plant and equipment are recorded at cost. Depreciation and amortization for the Company's property, plant and equipment are computed using the straight-line method based on the following estimated useful lives:

Facility and Leasehold Improvements
15
-
40
years
Network Infrastructure (including fiber and conduit)
25
-
50
years
Operating Equipment
5
-
15
years
Furniture, Fixtures, Office Equipment and Other
3
-
7
years


The Company performs internal reviews to evaluate the depreciable lives of its property, plant and equipment annually, or more frequently if new facts and circumstances arise, that may affect management's original estimates. Due to the rapid changes in technology and the competitive environment, selecting the estimated economic life of telecommunications property, plant, and equipment requires a significant amount of judgment. The Company's internal reviews take into account input from the Company's global engineering and network services personnel, actual usage, the physical condition of the Company's property, plant, and equipment, industry data, and other relevant factors. In connection with its periodic review of the estimated useful lives of property, plant and equipment, the Company may determine that the period it expects to use certain assets is different than the remaining previously estimated useful lives. The Company completed an evaluation in the first quarter 2014 and revised its estimated useful lives for: IP equipment from its historical estimate of four years to a revised estimate of seven years; racks and cabinets from its historical estimate of seven years to a revised estimate of 15 years; and facility equipment from its historical estimate of 10 years to its revised estimate of 15 years. In determining the change in estimated useful lives, the Company, with input from its engineering team, considered its historical usage patterns and retirements, estimates of technological obsolescence and expected usage and maintenance. The change in the estimated useful lives of the Company’s property, plant and equipment was accounted for as a change in accounting estimate on a prospective basis effective January 1, 2014 under the accounting standard related to changes in accounting estimates.

The carrying values of assets subject to these revisions were (in millions):
 
 
January 1, 2014
IP Equipment
 
$
222

Racks and Cabinets
 
114

Facility Equipment
 
151

 
 
$
487


The change in estimated useful lives of the Company’s property, plant and equipment resulted in less depreciation expense than would have otherwise been recorded and in the following increase in net income and net income per share for the year ended December 31, 2014 (in millions, except per share amounts):

Net Income
 
$
90

Basic Net Income per Share
 
$
0.35

Diluted Net Income per Share
 
$
0.35



Leasehold improvements are depreciated over the shorter of their estimated useful lives or lease terms that are reasonably assured.

The Company capitalizes costs directly associated with expansions and improvements of the Company's communications network and customer installations, including employee-related costs, and generally capitalizes costs associated with network construction and provisioning of services. The Company amortizes such costs over an estimated useful life of 3 to 7 years.

In addition, the Company continues to develop business support systems required for its business. The external direct costs of software, materials and services, and payroll and payroll-related expenses for employees directly associated with business support systems projects are capitalized. The total cost of the business support system is amortized over an estimated useful life of 3 years.

Capitalized labor and related costs associated with employees and contract labor working on capital projects were approximately $244 million, $187 million and $164 million for the years ended December 31, 2015, 2014 and 2013, respectively.

Asset Retirement Obligations

The Company recognizes a liability for the estimated fair value of legal obligations associated with the retirement of long-lived assets that result from the acquisition, construction, development and/or the normal operation of a long-lived asset in the period incurred. The fair value of the obligation is also capitalized as property, plant and equipment and then amortized over the estimated remaining useful life of the associated asset. Increases to the asset retirement obligation liability due to the passage of time are recognized as accretion expense and included within network related expenses. Changes in the liability due to revisions to the amount or timing of future cash flows are recognized by increasing or decreasing the liability with the offset adjusting the carrying amount of the related long-lived asset. To the extent that the downward revisions exceed the carrying amount of the related long-lived asset initially recorded when the asset retirement obligation liability was established, the Company records the remaining adjustment as a reduction to depreciation expense, to the extent of historical depreciation of the related long-lived asset, and then to network related expenses.

Goodwill and Acquired Indefinite-Lived Intangible Assets

Accounting guidance prohibits the amortization of goodwill and purchased intangible assets with indefinite useful lives. The Company reviews goodwill and purchased intangible assets with indefinite lives for impairment annually as of October 1st and whenever events or changes in circumstances indicate the carrying value of an asset may not be recoverable.

The Company's goodwill impairment review process considers the fair value of each reporting unit relative to its carrying value. If the fair value of the reporting unit exceeds its carrying value, goodwill is not impaired and no further testing is performed. If the carrying value of the reporting unit exceeds its fair value, then a second step must be performed, and the implied fair value of the reporting unit's goodwill must be determined and compared to the carrying value of the reporting unit's goodwill. If the carrying value of a reporting unit's goodwill exceeds its implied fair value, then an impairment loss equal to the difference will be recorded. Prior to performing the two step evaluation, an assessment of qualitative factors may be performed to determine whether it is more likely than not that the fair value of a reporting unit exceeds the carrying value. If it is determined that it is unlikely that the carrying value exceeds the fair value, the Company is not required to complete the two step goodwill impairment evaluation.

At the time of each impairment assessment date in 2015, 2014 and 2013, the Company's reporting units consisted of its three regional operating units in: North America; Europe, the Middle East and Africa ("EMEA"); and Latin America. As a result of the deconsolidation of the Company's Venezuelan subsidiary, the Company completed an assessment of the Latin American and its other reporting units' goodwill as of September 30, 2015 and concluded there was no impairment in 2015. The Company conducted its annual goodwill impairment analysis as of October 1, 2014, and concluded that its goodwill was not impaired in 2014.

The Company's indefinite-lived intangible assets impairment review process compares the estimated fair value of the indefinite-lived intangible assets to their respective carrying values. If the fair value of the indefinite-lived intangible assets exceeds their carrying values, then the indefinite-lived intangible assets are not impaired. If the carrying value of the indefinite-lived intangible assets exceeds their fair value, then an impairment loss equal to the difference will be recorded. In accordance with applicable accounting guidance, an entity may assess qualitative factors to determine whether it is more likely than not that the fair value exceeds the carrying value prior to performing the two step evaluation. If it is determined that it is unlikely the carrying value exceeds the fair value, then the entity is not required to complete the two step indefinite-lived intangible assets impairment evaluation.

Long-Lived Assets Including Finite-Lived Purchased Intangible Assets

The Company amortizes acquired intangible assets with finite lives using the straight-line method over the estimated economic lives of the assets, ranging from 2 to 12 years.

The Company evaluates long-lived assets, such as property, plant and equipment and acquired intangible assets with finite lives, for impairment whenever events or changes in circumstances indicate the carrying value of an asset may not be recoverable. The Company assesses the recoverability of the assets based on the undiscounted future cash flows the asset groups are expected to generate and recognizes an impairment loss when estimated undiscounted future cash flows expected to result from the use of the assets plus net proceeds expected from disposition of the assets, if any, are less than the carrying value of the assets. If an asset is deemed to be impaired, the amount of the impairment loss is the excess of the asset's carrying value over its estimated fair value.

The Company conducted a long-lived asset impairment analysis in 2015, 2014 and 2013 and in each case concluded that its long-lived assets, including finite-lived acquired intangible assets, were not impaired.

Concentration of Credit Risk

Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash equivalents, accounts receivable, restricted cash and securities and derivatives. The Company maintains its cash equivalents, restricted cash and securities and derivatives with various financial institutions. These financial institutions are primarily located in the United States, Europe and Latin America and the Company's policy is to limit exposure with any one institution. As part of its cash and risk management processes, the Company performs periodic evaluations of the relative credit standing of the financial institutions. The Company also has established guidelines relative to financial instrument credit ratings, diversification and maturities that seek to maintain safety and liquidity. The Company's investment strategy generally results in lower yields on investments but reduces the risk to principal in the short term prior to these funds being used in the Company's business. Notwithstanding the devaluation of the Venezuelan bolivar, the Company has not experienced any material losses on financial instruments held at financial institutions.

The Company provides communications services to a wide range of wholesale and enterprise customers, ranging from well capitalized national carriers to small early stage companies primarily in the United States, Europe, and Latin America. Credit risk with respect to accounts receivable is generally diversified due to the large number of entities comprising Level 3's customer base and their dispersion across many different industries and geographical regions. The Company performs ongoing credit evaluations of its customers' financial condition and generally requires no collateral from its customers, although letters of credit and deposits are required in certain limited circumstances. The Company has from time to time entered into agreements with value-added resellers and other channel partners to reach consumer and enterprise markets for voice services. The Company has policies and procedures in place
to evaluate the financial condition of these resellers prior to initiating service to the final customer. The Company maintains an allowance for doubtful accounts based upon the expected collectability of accounts receivable. Due to the Company's credit evaluation and collection process, bad debt expenses have not been significant; however, the Company is not able to predict changes in the financial stability of its customers. Any material change in the financial status of any one or a particular group of customers may cause the Company to adjust its estimate of the recoverability of receivables and could have a material effect on the Company's results of operations. Fair values of accounts receivable approximate carrying amount due to the short period of time to collection.

A relatively small number of customers account for a significant percentage of the Company's revenue. The Company's top ten customers accounted for approximately 16%, 17% and 17% of Level 3's revenue for the years ended December 31, 2015, 2014 and 2013, respectively.

Recently Issued Accounting Pronouncements

In February 2016, the FASB issued ASU 2016-02, Leases (ASC Topic 842), which requires entities that lease assets to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. This ASU will replace most existing leasing guidance in U.S. GAAP when it becomes effective. The new standard is effective for fiscal years beginning after December 15, 2018, and interim periods within those years. Early application is permitted. The standard requires the use of a modified retrospective transition method. The Company is evaluating the effect that ASU 2016-02 will have on its Consolidated Financial Statements and related disclosures, and expects the new guidance to significantly increase the reported assets and liabilities on its Consolidated Balance Sheets.

In November 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes (ASC Topic 740). This ASU was issued to simplify the presentation of deferred income taxes to require that all deferred income tax assets and liabilities be classified as noncurrent in the balance sheet. Early application of ASU 2015-17 is permitted and the Company elected to adopt this ASU effective as of December 31, 2015, with retrospective application. The effect of the retrospective application did not have significant effect on the Company's financial position.

In April 2015, the Financial Accounting Standards Board ("FASB") issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs, which requires debt issuance costs to be presented in the balance sheet as a direct deduction from the associated debt liability. The new guidance is effective retrospectively for public companies for fiscal years beginning after December 15, 2015, and interim periods within those years. It will be effective for the Company on January 1, 2016, and, upon adoption, debt issuance costs capitalized in other current assets and other assets in the consolidated balance sheet will be reclassified and presented as a reduction to current and noncurrent long-term debt. As of December 31, 2015, debt issuance costs, net of accumulated amortization, recognized in the consolidated balance sheet totaled $128 million, of which $19 million is recorded in other current assets.

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. This ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The new standard is effective for fiscal years beginning after December 15, 2017, and interim periods within those years. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The standard permits the use of either the retrospective or cumulative effect transition method. The Company is evaluating the effect that ASU 2014-09 will have on its Consolidated Financial Statements and related disclosures and has not yet selected a transition method nor has it determined the effect of the standard on its ongoing financial reporting.
Events Associated with the Merger of tw telecom inc.
Events Associated with the Amalgamation of Global Crossing
Events Associated with the Merger of tw telecom inc.

On October 31, 2014, the Company completed its acquisition of tw telecom and tw telecom became an indirect, wholly owned subsidiary of the Company through a tax-free, stock and cash reorganization (the "Merger"). As a result of the Merger, (1) each issued and outstanding share of common stock of tw telecom was exchanged for 0.7 shares of Level 3 common stock and $10 in cash ( together the "merger consideration"); (2) the outstanding stock options of tw telecom were canceled and the holders received the merger consideration, net of aggregate per share exercise price; (3) each restricted stock unit award of tw telecom was immediately vested and canceled and the holders received the merger consideration; and (4) each restricted stock unit of tw telecom was immediately vested and canceled and holders received the merger consideration.

In connection with the closing of the Merger, Level 3 Financing, Inc., a wholly owned subsidiary, amended its existing credit agreement to incur an additional $2 billion of borrowings through an additional Tranche (the "Tranche B 2022 Term Loan"). The aggregate net proceeds of the Tranche B 2022 Term Loan were used to finance the cash portion of the merger consideration payable to tw telecom's stockholders and to refinance certain existing indebtedness of tw telecom, including fees and premiums, in connection with the closing of the Merger (see Note 11 — Long-Term Debt for additional information). In addition, the net proceeds from the issuance of $1 billion of 5.375% Senior Notes due 2022 raised in August 2014 (see Note 11 — Long-Term Debt) were used to finance the cash portion of the merger consideration payable to tw telecom stockholders and to refinance certain existing indebtedness of tw telecom, including fees and premiums, in connection with the closing of the Merger.

On October 30, 2014, the Company increased the number of authorized shares of common stock to 433,333,333. As a result of the Merger, the Company issued approximately 96.9 million shares of Level 3 common stock to former holders of tw telecom common shares, stock options, restricted stock awards and restricted stock units. In addition, Level 3 called for redemption and discharged or repaid approximately $1.793 billion of tw telecom's outstanding consolidated debt including premiums of $154 million.

Based on the number of Level 3 shares issued, Level 3's closing stock price of $46.91 on October 31, 2014, the cash paid to the former holders of tw telecom common stock and the $2.1 billion of debt of tw telecom called for redemption and discharged or repaid, the aggregate consideration for acquisition
accounting, including assumed capital leases of $152 million, approximated $8.1 billion.

The premium paid by Level 3 in this transaction is attributable to strategic benefits, as the transaction further solidifies Level 3's position as a premier global communications provider to the enterprise, government and carrier market, combining tw telecom's extensive local operations and assets in North America with Level 3's global assets and capabilities. tw telecom's business model is directly aligned with Level 3's initiatives for growth, which include building managed solutions to meet customer needs through an advanced IP/optical network.

The goodwill associated with this transaction is not deductible for income tax purposes except that certain deductible goodwill of tw telecom will continue to be deductible following the Merger.

The combined results of operations of Level 3 and tw telecom are included in the Company's consolidated results of operations beginning in November 2014. The assets acquired and liabilities assumed of tw telecom were recognized at their acquisition date fair value. The purchase price allocation of acquired assets and assumed liabilities, including the assignment of goodwill to reporting units, was completed in the fourth quarter of 2015. The following is the final allocation of the purchase price.
 
Purchase Price Allocation
 
(dollars in millions)
Assets:
 
Cash, Cash Equivalents and Restricted Cash
$
309

Property, Plant and Equipment
1,553

Goodwill
5,181

Identifiable Intangible Assets
1,263

Other Assets
140

Total Assets
8,446

 
 
Liabilities:
 
Long-Term Debt
(2,099
)
Deferred Revenue
(57
)
Other Liabilities
(279
)
Total Liabilities
(2,435
)
Total Consideration to be Allocated
$
6,011



As a result of new information available since the acquisition date, the Company made certain immaterial adjustments to the preliminary purchase price allocation during the first quarter of 2015, which have been reflected in the above table. The primary adjustment was a result of a single change in the purchase price allocation of $60 million related to the estimated value associated with the identifiable intangible assets and goodwill.

The following unaudited pro forma financial information presents the combined results of Level 3 and tw telecom as if the completion of the Merger had occurred as of January 1, 2013 (dollars in millions, except per share data).
 
Year Ended December 31,
 
2014
2013
Total Revenue
$
8,123

$
7,825

Net Income (Loss)
$
149

$
(153
)
Net Income (Loss) per Share - Basic
$
0.44

$
(0.48
)
Net Income (Loss) per Share - Diluted
$
0.44

$
(0.48
)


These pro forma results include certain adjustments, primarily due to increases in depreciation and amortization expense due to fair value adjustments of tangible and intangible assets, increases in interest expense due to Level 3's issuance of incremental debt to finance cash consideration, partially offset by the refinancing of tw telecom debt that had higher interest rates than the incremental financing, and to eliminate historical transactions between Level 3 and tw telecom. The unaudited pro forma information is not intended to represent or be indicative of the actual results of operations of Level 3 that would have been reported had the Merger been completed on January 1, 2013, nor is it representative of future operating results of the Company. The pro forma information does not include any operating efficiencies or cost savings that Level 3 achieved with respect to combining the companies.

Acquisition related costs include transaction costs such as legal, accounting, valuation and other professional services as well as integration costs such as severance and retention. Acquisition related costs have been recorded in Network Related Expenses and Selling, General and Administrative Expenses in the Company's Consolidated Statements of Operations. Level 3 incurred total acquisition related transaction and integration costs of approximately $113 million through December 31, 2015.


Earnings Per Share
Loss Per Share
Earnings (Loss) Per Share

The Company computes basic net earnings (loss) per share by dividing net income or loss for the period by the weighted average number of shares of common stock outstanding during the period. Diluted net earnings (loss) per share is computed by dividing net income or loss for the period by the weighted average number of shares of common stock outstanding during the period and including the dilutive effects of common stock that would be issued assuming conversion of outstanding convertible notes and stock-based compensation awards. No such items were included in the computation of diluted earnings per share in the year ended 2013 because the Company incurred a loss from continuing operations in the year and the effect of inclusion would have been anti-dilutive.

The effect of approximately 17 million and 18 million shares issuable pursuant to the various series of convertible notes outstanding at December 31, 2014 and 2013, respectively, have not been included in the computation of diluted earnings (loss) per share because their inclusion would have been anti-dilutive to the computation. In addition, The effect of the approximately 6 million stock options, outperform stock appreciation rights ("OSOs"), and restricted stock units ("RSUs") and warrants outstanding at December 31, 2013, have not been included in the computation of diluted loss per share because their inclusion would have been anti-dilutive to the computation.
Property, Plant and Equipment
Property, Plant and Equipment
Property, Plant and Equipment

The components of the Company's property, plant and equipment as of December 31, 2015 and 2014 are as follows (dollars in millions):

 
 
Cost
 
 
Accumulated
Depreciation
 
Net
December 31, 2015
 
 
 
 
 
 
 
Land
 
$
180

 
 
$
—

 
$
180

Land Improvements
 
76

 
 
(53
)
 
23

Facility and Leasehold Improvements
 
2,582

 
 
(1,352
)
 
1,230

Network Infrastructure
 
8,979

 
 
(3,669
)
 
5,310

Operating Equipment
 
7,988

 
 
(5,079
)
 
2,909

Furniture, Fixtures and Office Equipment
 
242

 
 
(189
)
 
53

Other
 
28

 
 
(23
)
 
5

Construction-in-Progress
 
168

 
 
—

 
168

 
 
$
20,243

 
 
$
(10,365
)
 
$
9,878

December 31, 2014
 
 
 
 
 
 
 
Land
 
$
192

 
 
$
—

 
$
192

Land Improvements
 
73

 
 
(50
)
 
23

Facility and Leasehold Improvements
 
2,489

 
 
(1,265
)
 
1,224

Network Infrastructure
 
8,941

 
 
(3,447
)
 
5,494

Operating Equipment
 
7,217

 
 
(4,669
)
 
2,548

Furniture, Fixtures and Office Equipment
 
255

 
 
(177
)
 
78

Other
 
29

 
 
(21
)
 
8

Construction-in-Progress
 
293

 
 
—

 
293

 
 
$
19,489

 
 
$
(9,629
)
 
$
9,860



Depreciation expense was $939 million in 2015, $713 million in 2014 and $727 million in 2013
Asset Retirement Obligations
Asset Retirement Obligations
Asset Retirement Obligations

The Company's asset retirement obligations consist of legal requirements to remove certain of its network infrastructure at the expiration of the underlying right-of-way ("ROW") term and restoration requirements for leased facilities. The Company recognizes its estimate of the fair value of its asset retirement obligations in the period incurred in other long-term liabilities. The fair value of the asset retirement obligation is also capitalized as property, plant and equipment and then depreciated over the estimated remaining useful life of the associated asset.

The following table provides asset retirement obligation activity for the years ended December 31, 2015 and 2014 (dollars in millions):
 
 
2015
 
2014
Asset retirement obligation at January 1
 
$
85

 
$
56

Accretion expense
 
9

 
8

Liabilities assumed in tw telecom acquisition
 
—

 
22

Liabilities settled
 
(8
)
 
(7
)
Revision in estimated cash flows
 
5

 
7

Effect of foreign currency rate change
 
(1
)
 
(1
)
Asset retirement obligation at December 31
 
$
90

 
$
85

Goodwill
Goodwill
Goodwill

The changes in the carrying amount of goodwill during the years ended December 31, 2015 and 2014 are as follows (dollars in millions):
 
Total
Balance as of January 1, 2014
$
2,577

Goodwill adjustments including the effect of foreign currency rate change
(12
)
Goodwill acquired in tw telecom acquisition
5,124

Balance as of December 31, 2014
7,689

Goodwill adjustments including the effect of foreign currency rate change
60

Balance as of December 31, 2015
$
7,749




Acquired Intangible Assets
Acquired Intangible Assets
Acquired Intangible Assets

Identifiable acquisition-related intangible assets as of December 31, 2015 and 2014 were as follows (dollars in millions):

 
Gross
Carrying
Amount
 
Accumulated
Amortization
 
Net
December 31, 2015
 
 
 
 
 
Finite-Lived Intangible Assets:
 
 
 
 
 
Customer Contracts and Relationships
$
1,975

 
$
(932
)
 
$
1,043

Trademarks
55

 
(55
)
 
—

Patents and Developed Technology
230

 
(161
)
 
69

 
2,260

 
(1,148
)
 
1,112

Indefinite-Lived Intangible Assets:
 
 
 
 
 
Trade Name
15

 
—

 
15

 
$
2,275

 
$
(1,148
)
 
$
1,127

December 31, 2014
 
 
 
 
 
Finite-Lived Intangible Assets:
 
 
 
 
 
Customer Contracts and Relationships
$
1,977

 
$
(741
)
 
$
1,236

Trademarks
115

 
(47
)
 
68

Patents and Developed Technology
228

 
(133
)
 
95

 
2,320

 
(921
)
 
1,399

Indefinite-Lived Intangible Assets:
 
 
 
 
 
Trade Name
15

 
—

 
15

 
$
2,335

 
$
(921
)
 
$
1,414



During the fourth quarter of 2015 and 2014, the Company conducted its long-lived assets and indefinite-lived intangible assets impairment analysis and concluded that there was no impairment in 2015 and there was impairment of $17 million in its trade name indefinite-lived intangible asset in 2014.

Acquired finite-lived intangible assets amortization expense was $227 million in 2015, $95 million in 2014 and $73 million in 2013.

At December 31, 2015, the weighted average remaining useful lives of the Company's acquired finite-lived intangible assets was 5.9 years for customer contracts and relationships and 3.2 years for patents and developed technology.

As of December 31, 2015, estimated amortization expense for the Company’s finite-lived acquisition-related intangible assets over the next five years and thereafter is as follows (dollars in millions):

2016
$
212

2017
196

2018
193

2019
181

2020
166

Thereafter
164

 
$
1,112




Restructuring Charges
Restructuring Charges
Restructuring Charges

Employee Separations

Changing economic and business conditions as well as organizational structure optimization efforts have caused the Company to initiate from time to time various workforce reductions resulting in involuntary employee terminations. The Company also has initiated workforce reductions resulting from the integration of previously acquired companies.

During 2015 and 2014, as part of the Merger and to improve organizational effectiveness, the Company initiated workforce reductions. During 2013, the Company initiated workforce reductions primarily focused on labor cost savings and improving organizational effectiveness. Restructuring charges totaled $24 million, $45 million and $47 million in 2015, 2014 and 2013, respectively, of which $8 million, $11 million and $12 million in 2015, 2014 and 2013, respectively, were recorded in Network Related Expenses and $16 million, $34 million and $35 million in 2015, 2014 and 2013, respectively, were recorded in Selling, General and Administrative Expenses.

As of December 31, 2015 and 2014, the Company had $4 million and $37 million, respectively, of employee termination liabilities.

Facility Closings

The Company also has accrued contract termination costs of $11 million and $20 million as of December 31, 2015 and 2014, respectively, for facility lease costs that the Company continues to incur without economic benefit. Accrued contract termination costs are recorded in other liabilities (current and non-current) in the Consolidated Balance Sheets. The Company expects to pay the majority of these costs through 2025. The Company recognized a charge of approximately $3 million, a charge of less than $1 million and a charge of $7 million in 2015, 2014 and 2013, respectively, as a result of facility lease costs. The Company records charges for contract termination costs within Selling, General and Administrative Expenses in the Consolidated Statements of Operations.
Fair Value of Financial Instruments
Fair Value of Financial Instruments
Fair Value of Financial Instruments

The Company’s financial instruments consist of cash and cash equivalents, restricted cash and securities, accounts receivable, accounts payable, capital leases, other liabilities, interest rate swaps and long-term debt (including the current portion). The carrying values of cash and cash equivalents, restricted cash and securities, accounts receivable, accounts payable, capital leases and other liabilities approximated their fair values at December 31, 2015 and 2014.

GAAP defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements and disclosures for assets and liabilities required to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact and considers assumptions that market participants would use when pricing the asset or liability, such as interest and foreign exchange rates, transfer restrictions, and risk of nonperformance.

Fair Value Hierarchy

GAAP establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The fair value measurement of each class of assets and liabilities is dependent upon its categorization within the fair value hierarchy, based upon the lowest level of input that is significant to the fair value measurement of each class of asset and liability. GAAP establishes three levels of inputs that may be used to measure fair value:

Level 1— Unadjusted quoted prices in active markets for identical assets or liabilities.

Level 2— Unadjusted quoted prices for similar assets or liabilities in active markets, or
unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs other than quoted prices that are observable for the asset or liability.

Level 3— Unobservable inputs for the asset or liability.

The Company recognizes transfers between levels of the fair value hierarchy as of the end of the reporting period. There were no transfers within the fair value hierarchy during each of the years ended December 31, 2015 and 2014.

The table below presents the fair values for the Company’s long-term debt as well as the input levels used to determine these fair values as of December 31, 2015 and 2014:

 
 
 
 
 
 
Fair Value Measurement Using
 
 
Total Carrying Value in Consolidated Balance Sheets
 
Unadjusted Quoted Prices in Active
Markets for Identical Assets or Liabilities (Level 1)
 
Significant Other Observable Inputs (Level 2)
(dollars in millions)
 
December 31,
2015
 
December 31,
2014
 
December 31,
2015
 
December 31,
2014
 
December 31,
2015
 
December 31,
2014
Liabilities Not Recorded at Fair Value in the Financial Statements:
 
 
 
 
 
 
 
 
 
 
 
 
Long-term Debt, including the current portion:
 
 
 
 
 
 
 
 
 
 
 
 
Term Loans
 
$
4,595

 
$
4,590

 
$
4,570

 
$
4,593

 
$
—

 
$
—

Senior Notes
 
6,215

 
6,203

 
6,298

 
6,481

 
—

 
—

Convertible Notes
 
—

 
333

 
—

 
—

 
—

 
868

Capital Leases and Other
 
199

 
207

 
—

 
—

 
199

 
207

Total Long-term Debt, including the current portion:
 
$
11,009

 
$
11,333

 
$
10,868

 
$
11,074

 
$
199

 
$
1,075



The Company does not have any assets or liabilities where the fair value is measured using significant unobservable inputs (Level 3).

Term Loans

The fair value of the Term Loans referenced above was approximately $4.6 billion and $4.6 billion at December 31, 2015 and 2014, respectively. The fair value of each loan is based on quoted prices. Each loan tranche is actively traded.

Senior Notes

The fair value of the Senior Notes referenced above was approximately $6.3 billion and $6.5 billion at December 31, 2015 and 2014, respectively, based on quoted prices. Each series of notes is actively traded.



Convertible Notes

The fair value of the Company’s Convertible Notes was approximately $868 million at December 31, 2014. As of March 31, 2015, all of the Company's Convertible Notes had converted to common equity. The estimated fair value of the Convertible Notes was based on a Black-Scholes valuation model and an income approach using discounted cash flows. The most significant inputs affecting the valuation were the pricing quotes provided by market participants that incorporated spreads to the Treasury curve, security coupon, convertible optionality, corporate and security credit ratings, maturity date, liquidity and other equity option inputs, such as the risk-free rate, underlying stock price, strike price of the embedded derivative, estimated volatility and maturity inputs for the option component and for the bond component, among other security characteristics and relative value at both the borrower entity level and across other securities with similar terms. The fair value of each instrument was obtained by adding together the value derived by discounting the security’s coupon or interest payment using a risk-adjusted discount rate and the value calculated from the embedded equity option based on the estimated volatility of the Company’s stock price, conversion rate of the particular Convertible Note, remaining time to maturity and risk-free rate. The Convertible Notes were unsecured obligations of Level 3 Communications, Inc. No subsidiary of Level 3 Communications, Inc. provided a guarantee of the Convertible Notes.

Capital Leases

The fair value of the Company's capital leases are determined by discounting anticipated future cash flows derived from the contractual terms of the obligations and observable market interest and foreign exchange rates.
Derivative Financial Instruments
Derivative Financial Instruments
Derivative Financial Instruments

The Company has floating rate long-term debt (see Note 11 - Long-Term Debt). This type of debt exposes the Company to variability in interest payments due to changes in interest rates. If interest rates increase, interest expense increases. Conversely, if interest rates decrease, interest expense also generally decreases. The Company has used interest rate swaps, in an attempt to manage its exposure to fluctuations in interest rate movements. The Company’s primary objective in managing interest rate risk was to decrease the volatility of its earnings and cash flows affected by changes in the underlying rates. The Company does not use derivative financial instruments for speculative purposes.

In March 2007, Level 3 Financing, Inc. entered into two interest rate swap agreements to hedge the interest payments on $1 billion principal amount of floating rate debt. The Company had designated these interest rate swap agreements as cash flow hedges. The hedge designation was terminated in 2012 in connection with certain refinancing activities, and the instruments were settled upon maturity in 2014. Prior to the redesignation of the hedging relationship in 2012, the change in the fair value of the interest rate swap agreements was reflected in Accumulated Other Comprehensive Income (Loss) ("AOCI") and was subsequently reclassified into earnings through an interest expense yield adjustment, as interest expense on the hedged debt obligation was incurred.

After the redesignation in August 2012, the Company recorded the change in the fair value of the swaps in Other, net in its Consolidated Statement of Operations until maturity of the swaps in early 2014. The Company recognized a loss of zero and $2 million for the year ended December 31, 2014 and 2013, respectively.
Long-Term Debt
Long-Term Debt
Long-Term Debt

The following table summarizes the Company’s long-term debt (amounts in millions):
 
Date of
 
December 31,
2015
December 31,
2014
 
Issuance/Amendment
Maturity
Interest Payments
Interest Rate
Amount
Amount
Senior Secured Term Loans:
 
 
 
 
 
 
Borrowed by Level 3 Financing, Inc.
Tranche B-III 2019 Term Loan (1)(4)
Aug 2013
Aug 2019
Quarterly
LIBOR +3.00%
815

815

Tranche B 2020 Term Loan (1)(4)
Oct 2013
Jan 2020
Quarterly
LIBOR +3.00%
1,796

1,796

Tranche B 2022 Term Loan (1)(4)
Oct 2014
Jan 2022
Quarterly
LIBOR +3.50%
—

2,000

Tranche B-II 2022 Term Loan (1)(4)
May 2015
May 2022
Quarterly
LIBOR +2.75%
2,000

—

Senior Notes:
 
 
 
 
 
 
Issued by Level 3 Financing, Inc.
Floating Rate Senior Notes due 2018 (2)(4)
Nov 2013
Jan 2018
May/Nov
6-Month LIBOR +3.50%
300

300

9.375% Senior Notes due 2019 (2)
Mar 2011
Apr 2019
Apr/Oct
9.375%
—

500

8.125% Senior Notes due 2019 (2)
Jul 2011
Jul 2019
Jan/Jul
8.125%
—

1,200

8.625% Senior Notes due 2020 (2)
Jan 2012
Jul 2020
Jan/Jul
8.625%
—

900

7% Senior Notes due 2020 (2)
Aug 2012
Jun 2020
Jun/Dec
7.000%
775

775

6.125% Senior Notes due 2021 (2)
Nov 2013
Jan 2021
Apr/Oct
6.125%
640

640

5.375% Senior Notes due 2022 (2)
Aug 2014
Aug 2022
May/Nov
5.375%
1,000

1,000

5.625% Senior Notes due 2023 (2)
Jan 2015
Feb 2023
Jun/Dec
5.625%
500

—

5.125% Senior Notes due 2023 (2)
Apr 2015
May 2023
Mar/Sept
5.125%
700

—

5.375% Senior Notes due 2025 (2)
Apr 2015
May 2025
Mar/Sept
5.375%
800

—

5.375% Senior Notes due 2024 (2)
Nov 2015
Jan 2024
Jan/Jul
5.375%
900

—

Issued by Level 3 Communications, Inc.
8.875% Senior Notes due 2019 (3)
Aug 2012
Jun 2019
Jun/Dec
8.875%
—

300

5.75% Senior Notes due 2022 (3)
Dec 2014
Dec 2022
Mar/Sept
5.750%
600

600

7% Convertible Senior Notes Due 2015 (3)
Jun 2009
Mar 2015
Mar/Sept
7.000%
—

58

7% Convertible Senior Notes Due 2015 Series B (3)
Oct 2009
Mar 2015
Mar/Sept
7.000%
—

275

Capital Leases and Other Debt
 
 
 
 
199

207

Total Debt Obligations
 
 
 
 
11,025

11,366

Unamortized discounts
 
 
 
 
(16
)
(33
)
Current Portion
 
 
 
 
(15
)
(349
)
Total Long-Term Debt
 
 
 
 
10,994

10,984

(1) The term loans are secured obligations and guaranteed by the Company and Level 3 Communications, LLC and certain other subsidiaries.
(2) The notes are fully and unconditionally guaranteed on an unsubordinated unsecured basis by the Company and Level 3 Communications, LLC.
(3) The notes were not guaranteed by any of the Company’s subsidiaries.
(4) The Tranche B-III 2019 Term Loan and the Tranche B 2020 Term Loan each had an interest rate of 4.000% as of December 31, 2015 and 2014. The Tranche B-II 2022 Term Loan had an interest rate of 3.500% as of December 31, 2015 and the Tranche B 2022 Term Loan had an interest rate of 4.500% as of December 31, 2014. The Floating Rate Senior Notes due 2018 had an interest rate of 4.101% as of December 31, 2015 and 3.826% as of December 31, 2014. The interest rate on the Tranche B-III 2019 Term Loan, the Tranche B 2020 Term Loan and the Tranche B 2022 Term Loan are set with a minimum LIBOR of 1.00%, and the Tranche B-II 2022 Term Loan is set with a minimum LIBOR of 0.75%.



Senior Secured Term Loans

As of January 1, 2014, Level 3 Financing, Inc., the Company's direct wholly owned subsidiary ("Level 3 Financing") had a senior credit facility consisting of $815 million Tranche B-III Term Loan due 2019 and $1.796 billion Tranche B Term Loan due 2020.

On October 31, 2014, Level 3 Financing entered into a ninth amendment agreement to the Existing Credit Agreement to incur $2 billion in aggregate borrowings under the Existing Credit Agreement through the creation of a new Tranche B 2022 Term Loan (the "Tranche B 2022 Term Loan"). The Tranche B 2022 Term Loan included an upfront payment to the lenders of 0.75% of par and bears interest equal to LIBOR plus 3.50% with LIBOR set at a minimum of 1.00%.

On May 8, 2015, Level 3 Financing refinanced its existing $2 billion senior secured Tranche B 2022 Term Loan under a tenth amendment agreement to its Existing Credit Agreement through the creation of a new senior secured Tranche B-II 2022 term loan in the aggregate principal amount of $2 billion (the "Tranche B-II 2022 Term Loan"). The Tranche B-II 2022 Term Loan has an interest rate of LIBOR plus 2.75%, with a minimum LIBOR of 0.75%, and will mature on May 31, 2022. The Tranche B-II 2022 Term Loan was priced to lenders at par, with the payment to the lenders of an upfront fee of 25 basis points at closing. As a result of this transaction, the Company recognized a loss on the refinancing of approximately $27 million.

Senior Notes

The Company completed several offerings and refinancing of senior notes in 2015 and 2014. All of the notes pay interest semiannually, and allow for the redemption of the notes at the option of the issuer upon not less than 30 or more than 60 days’ prior notice by paying the greater of the principal amount or a “make-whole” amount, plus accrued interest. In addition, the following notes also have a provision that allows for an additional right of optional redemption using cash proceeds received from the sale of equity securities. For specific details of these features and requirements, including the applicable premiums and timing, refer to the indentures for the respective senior notes in connection with the original issuances.


5.375% Senior Notes due 2022

On August 12, 2014, Level 3 Escrow II, Inc. (“Level 3 Escrow”), an indirect, wholly owned subsidiary of Level 3 Communications, Inc., issued $1.0 billion in aggregate principal amount of its 5.375% Senior Notes due 2022 (the “5.375% Senior Notes due 2022”). The 5.375% Senior Notes due 2022 were assumed by Level 3 Financing and the proceeds were used to refinance certain existing indebtedness of tw telecom.

5.75% Senior Notes due 2022

On December 1, 2014, Level 3 issued a total of $600 million aggregate principal amount of its 5.75% Senior Notes due 2022 (the “5.75% Senior Notes”). The net proceeds from the offering of the notes, together with cash on hand were used to redeem all of the outstanding 11.875% Senior Notes due 2019 issued by Level 3 Financing, including the payment of accrued interest and applicable premiums, and in connection with that redemption, the indenture relating to the 11.875% Senior Notes due 2019 was discharged on December 31, 2014. Level 3 Financing redeemed its 11.875% Senior Notes due 2017 at a price of 106.859% of the principal amount and recognized a loss on extinguishment of debt of $53 million.



9.375% Senior Notes due 2019 and 5.625% Senior Notes due 2023

In January 2015, Level 3 Financing issued $500 million in aggregate principal amount of its 5.625% Senior Notes due 2023 (the “5.625% Senior Notes”). The net proceeds from the offering of the 5.625% Senior Notes, together with cash on hand, were used to redeem, on April 1, 2015, all of Level 3 Financing’s approximately $500 million aggregate principal amount of 9.375% Senior Notes due 2019, including accrued interest, applicable premiums and expenses. Total loss on extinguishment of debt related to the 9.375% Senior Notes due 2019 was $36 million.


8.125% Senior Notes due 2019, 8.875% Senior Notes due 2019, 5.125% Senior Notes due 2023 and 5.375% Senior Notes due 2025

In April 2015, Level 3 Financing issued $700 million in aggregate principal amount of its 5.125% Senior Notes due 2023 (the “5.125% Senior Notes”) and $800 million in aggregate principal amount of its 5.375% Senior Notes due 2025 (the “5.375% Senior Notes due 2025”). The net proceeds from the offering of the 5.125% Senior Notes and 5.375% Senior Notes due 2025, together with cash on hand, were used to redeem all $1.2 billion aggregate principal amount of Level 3 Financing’s 8.125% Senior Notes due 2019 and all $300 million aggregate principal amount of the Company's 8.875% Senior Notes due 2019. Total loss on extinguishment of debt related to the 8.125% Senior Notes due 2019 was $82 million and total loss on extinguishment of debt related to the 8.875% Senior Notes due 2019 was $18 million.

The 5.125% Senior Notes and 5.375% Senior Notes due 2025 were not originally registered under the Securities Act of 1933, as amended. The registration rights agreement became effective as of December 10, 2015.

8.625% Senior Notes due 2020 and 5.375% Senior Notes due 2024

On November 13, 2015, Level 3 Financing issued $900 million in aggregate principal amount of its 5.375% Senior Notes due 2024 (the “5.375% Senior Notes due 2024”). The net proceeds from the offering of the 5.375% Senior Notes due 2014, together with cash on hand, were used to redeem all $900 million aggregate principal amount of Level 3 Financing’s 8.625% Senior Notes due 2020. Total loss on modification and extinguishment of debt related to the 8.625% Senior Notes due 2020 was approximately $55 million.

The 5.375% Senior Notes due 2024 are fully and unconditionally guaranteed on an unsubordinated unsecured basis by the Company and now Level 3 Communications, LLC as of February 2016.

7% Convertible Senior Notes

During the fourth quarter of 2014, certain holders converted approximately $142 million of the 7% Convertible Senior Notes to common equity. Upon conversion, the Company issued an aggregate of approximately 5 million shares of Level 3 common stock, representing the approximately 37 shares per $1,000 note into which the notes were then convertible.

During the first quarter of 2015, holders converted the remaining $333 million aggregate principal amount of the Level 3's 7% Convertible Senior Notes due 2015 to common equity. Upon conversion, the Company issued an aggregate of approximately 12 million shares of Level 3 common stock, representing the approximately 37 shares per $1,000 note into which the notes were then convertible.



Capital Leases

As of December 31, 2015, the Company had $199 million of capital leases. The Company leases property, equipment, certain dark fiber facilities and metro fiber under non-cancelable IRU agreements that are accounted for as capital leases. Interest rates on these capital leases approximated 5.9% on average as of December 31, 2015.

Other Debt

As of December 31, 2015, the Company had less than $1 million of other debt with an average interest rate of 5.0%.

Debt Issuance Costs

For the years ended December 31, 2015, 2014 and 2013, the Company deferred debt issuance costs of $50 million, $49 million and $27 million, respectively, in connection with debt issuances, that are being amortized to interest expense over the respective terms of the debt. At December 31, 2015 and 2014, there was $128 million and $145 million, respectively, of unamortized debt issuance costs.

Covenant Compliance

At December 31, 2015 and 2014, the Company was in compliance with the financial covenants on all outstanding debt issuances.

Long-Term Debt Maturities

Aggregate future contractual maturities of long-term debt and capital leases (excluding discounts and fair value adjustments) were as follows as of December 31, 2015 (dollars in millions):

2016
$
15

2017
7

2018
307

2019
822

2020
2,579

Thereafter
7,295

 
$
11,025




Accumulated Other Comprehensive Income (Loss) (Notes)
Comprehensive Income (Loss) Note [Text Block]
Accumulated Other Comprehensive Income (Loss)

The accumulated balances for each classification of other comprehensive income (loss) are as follows:

(dollars in millions)
 
Net Foreign Currency Translation Adjustment
 
Net Defined Benefit Pension Plans
 
Total
Balance at January 1, 2013
 
$
56

 
$
(30
)
 
$
26

Other comprehensive income (loss) before reclassifications
 
11

 
(3
)
 
8

Amounts reclassified from accumulated other comprehensive loss
 
—

 
2

 
2

Balance at December 31, 2013
 
67

 
(31
)
 
36

Other comprehensive income (loss) before reclassifications
 
(178
)
 
(9
)
 
(187
)
Amounts reclassified from accumulated other comprehensive loss
 
—

 
4

 
4

Balance at December 31, 2014
 
(111
)
 
(36
)
 
(147
)
Other comprehensive income (loss) before reclassifications
 
(162
)
 
6

 
(156
)
Amounts reclassified from accumulated other comprehensive loss
 
—

 
2

 
2

Balance at December 31, 2015
 
$
(273
)
 
$
(28
)
 
$
(301
)
Employee Benefit Benefits and Stock-Based Compensation
Stock-Based Compensation
Employee Benefits and Stock-Based Compensation

The Company records non-cash compensation expense for its outperform stock appreciation rights ("OSOs"), performance restricted stock units, restricted stock units, 401(k) matching contributions, and, prior to 2014, other stock-based compensation expense associated with the Company's discretionary bonus grants.

The following table summarizes non-cash compensation expense and capitalized non-cash compensation for each of the three years ended December 31, 2015, 2014 and 2013 (dollars in millions):

 
 
2015
 
2014
 
2013
OSOs
 
$
6

 
$
8

 
$
21

Restricted Stock Units
 
65

 
34

 
38

Performance Restricted Stock Units
 
35

 
14

 
—

401(k) Match Expense
 
36

 
23

 
24

Restricted Stock Unit Bonus Grant
 
—

 
(5
)
 
59

Management Incentive and Retention Plan
 
—

 
—

 
10

 
 
142

 
74

 
152

Capitalized Non-Cash Compensation
 
(1
)
 
(1
)
 
(1
)
 
 
$
141

 
$
73

 
$
151



The Company capitalizes non-cash compensation for those employees directly involved in the construction of the network, installation of services for customers or the development of business support systems.

OSOs and restricted stock units are granted under the Level 3 Communications, Inc. Stock Incentive Plan, as amended (the "Stock Plan"), which term extends through May 21, 2025. The Stock Plan provides for accelerated vesting of stock awards upon retirement if an employee meets certain age and years of service requirements and certain other requirements. Under the Stock Compensation guidance, if an employee meets the age and years of service requirements under the accelerated vesting provision, the award would be expensed at grant or expensed over the period from the grant date to the date the employee meets the requirements, even if the employee has not actually retired. The Company recognized non-cash compensation expense for employees that met the age and years of service requirements for accelerated vesting at retirement of $14 million, $4 million and $5 million in 2015, 2014 and 2013, respectively.

Outperform Stock Appreciation Rights

OSOs were awarded through the end of 2013, and will continue to be outstanding through 2016. The Company's OSO program was designed so that the Company's stockholders would receive a market return on their investment before OSO holders receive any return on their OSOs. The Company believes that the OSO program directly aligned management's and stockholders' interests by basing stock option value on the Company's ability to outperform the market in general, as measured by the Standard & Poor's ("S&P") 500® Index. Participants in the OSO program do not realize any value from awards unless the Company's common stock price outperforms the S&P 500® Index during the life of the grant. When the stock price gain is greater than the corresponding gain on the S&P 500® Index, the value received for awards under the OSO plan is based on a formula involving a multiplier related to the level by which the Company's common stock outperforms the S&P 500® Index. To the extent that Level 3's common stock outperforms the S&P 500® Index, the value of OSO units to a holder may exceed the value of non-qualified stock options.

The initial strike price, as determined on the day prior to the OSO grant date, is adjusted over time (the "Adjusted Strike Price"), until the settlement date. The adjustment is an amount equal to the percentage appreciation or depreciation in the value of the S&P 500® Index from the date of grant to the date of exercise. The value of the OSO increased for increasing levels of outperformance. OSO units have a multiplier range from zero to four depending upon the performance of Level 3 common stock relative to the S&P 500® Index as shown in the following table.

If Level 3 Stock Outperforms the S&P 500® Index by:
 
Then the Pre-multiplier Gain Multiplied by a Success Multiplier of:
0% or Less
 
—
More than 0% but Less than 11%
 
Outperformance percentage multiplied by 4/11
11% or More
 
4.00

The Pre-multiplier Gain is the Level 3 common stock price minus the Adjusted Strike Price on the date of settlement.

Upon settlement of an OSO, the Company shall deliver or pay to the grantee the difference between the fair market value of a share of Level 3 common stock as of the day prior to the settlement date, less the Adjusted Strike Price (the "Exercise Consideration"). The Exercise Consideration may be paid in cash, Level 3 common stock or any combination of cash or Level 3 common stock at the Company's discretion. The number of shares of Level 3 common stock to be delivered by the Company to the grantee is determined by dividing the Exercise Consideration to be paid in Level 3 common stock by the fair market value of a share of Level 3 common stock as of the date prior to the settlement date. Fair market value was defined in the OSO agreement as the closing price per share of Level 3 common stock on the national securities exchange on which the common stock is traded. Settlement of the OSO units does not require any cash outlay by the employee.

OSO units have a three year life and vest 100% and are fully settled on the third anniversary of the date of the award. Recipients have no discretion on the timing to exercise OSO units, thus the expected life of all such OSO units was three years.

As of December 31, 2015, there was $1 million of unamortized compensation expense related to granted OSO units. The weighted average period over which this cost will be recognized is 0.60 years.

The fair value of the OSO units last granted in 2013 was calculated by applying a modified Black-Scholes model with the assumptions identified below. The Company utilized a modified Black-Scholes model due to the additional variables required to calculate the effect of the market conditions and success multiplier of the OSO program. The Company believes that given the relative short life of the OSOs and the other variables used in the model, the modified Black-Scholes model provides a reasonable estimate of the fair value of the OSO units at the time of grant.

 
 
Year Ended December 31, 2013
S&P 500 Expected Dividend Yield Rate
 
2.24%
Expected Life
 
3 years
S&P 500 Expected Volatility Rate
 
19%
Level 3 Common Stock Expected Volatility Rate
 
39%
Expected S&P 500 Correlation Factor
 
0.44
Calculated Theoretical Value
 
101%
Estimated Forfeiture Rate
 
15%


The fair value of each OSO unit equaled the calculated theoretical value multiplied by the Level 3 common stock price on the grant date.

As described above, recipients have no discretion on the timing to exercise OSO units. Thus the expected life of all such OSO units was three years. The Company estimates the stock price volatility using a combination of historical and implied volatility as Level 3 believes it is consistent with the approach most marketplace participants would consider using all available information to estimate expected volatility. The Company has determined that expected volatility is more reflective of market conditions and provides a more accurate indication of volatility than using solely historical volatility. In reaching this conclusion, the Company has considered many factors including the extent to which its future expectations of volatility over the respective term is likely to differ from historical measures.

The fair value for OSO units awarded to participants during the year ended December 31, 2013 was approximately $17 million.

Transactions involving OSO units awarded are summarized in the table below. The Option Price Per Unit identified in the table below represents the initial strike price, as determined on the day prior to the OSO grant date for those grants.
 
 
Units
 
Initial Strike Price Per Unit
 
Weighted
Average
Initial
Strike
Price
 
Aggregate
Intrinsic
Value
 
Weighted
Average
Remaining
Contractual
Term (years)
 
 
 
 
 
 
 
 
 
 
(in millions)
 
 
Balance January 1, 2013
 
2,066,419

 
$
14.10

-
$
36.60

 
$
23.40

 
$
6.6

 
1.73
OSOs granted
 
748,481

 
$
20.29

-
$
26.69

 
$
22.64

 
 
 
 
OSOs forfeited
 
(271,883
)
 
$
14.10

-
$
36.60

 
$
22.33

 
 
 
 
OSOs expired
 
(286,924
)
 
$
16.35

-
$
24.30

 
$
21.48

 
 
 
 
OSOs exercised
 
(107,228
)
 
$
14.10

-
$
14.10

 
$
14.10

 
 
 
 
Balance December 31, 2013
 
2,148,865

 
$
14.10

-
$
36.60

 
$
23.99

 
$
31.6

 
1.46
OSOs granted
 
—

 
$
—

-
$
—

 
$
—

 
 
 
 
OSOs forfeited
 
(52,901
)
 
$
16.99

-
$
27.53

 
$
22.99

 
 
 
 
OSOs expired
 
(106,844
)
 
$
36.60

-
$
36.60

 
$
36.60

 
 
 
 
OSOs exercised
 
(771,251
)
 
$
14.70

-
$
27.53

 
$
24.26

 
 
 
 
Balance December 31, 2014
 
1,217,869

 
$
16.99

-
$
27.53

 
$
22.76

 
$
88.0

 
0.90
OSOs granted
 
—

 
$
—

-
$
—

 
$
—

 
 
 
 
OSOs forfeited
 
(12,945
)
 
$
20.29

-
$
26.69

 
$
22.81

 
 
 
 
OSOs expired
 
—

 
$
—

-
$
—

 
$
—

 
 
 
 
OSOs exercised
 
(589,944
)
 
$
22.15

-
$
22.97

 
$
22.32

 
 
 
 
Balance December 31, 2015
 
614,980

 
$
20.29

-
$
26.69

 
$
22.77

 
$
48.5

 
0.37


 
 
 
 
OSO Units Outstanding
at December 31, 2015
 
OSO units Exercisable
at December 31, 2015
Range of Exercise Prices
 
Number
Outstanding
 
Weighted
Average
Remaining
Life (years)
 
Weighted
Average
Initial
Strike Price
 
Number
Exercisable
 
Weighted
Average
Initial
Strike Price
$
20.29

-
$
26.69

 
614,980

 
0.37
 
$
22.77

 
—

 
$
—



In the table above, the weighted average initial strike price represents the values used to calculate the theoretical value of OSO units on the grant date and the intrinsic value represents the value of OSO units that have outperformed the S&P 500® Index as of December 31, 2015, 2014 and 2013, respectively.

The total realized value of OSO units settled was $13 million, $19 million and $2 million for the years ended December 31, 2015, 2014 and 2013, respectively. The Company issued 622,755, 732,593 and 90,879 shares of Level 3 common stock upon the exercise of OSO units for the years ended December 31, 2015, 2014 and 2013, respectively. The number of shares of Level 3 common stock issued upon settlement of an OSO unit varies based upon the relative performance of Level 3 stock price and the S&P 500® Index between the initial grant date and settlement date of the OSO unit.

Restricted Stock and Units and Performance Restricted Stock Units

Restricted stock units are generally granted annually on July 1 to certain eligible recipients, including the Board of Directors, at no cost. Restrictions on transfer lapse over one to four year periods.

In April 2014, the Company began granting Performance Restricted Stock Units ("PRSUs"). PRSUs are designed to provide participants with a long-term stake in the Company’s success with both retention and performance components. Under these awards, a participant becomes vested in a number of PRSUs based on the Company's achievement of specified levels of financial performance during the performance period set forth in the applicable award letter issued pursuant to the award agreement, so long as the participant remains continuously employed by the Company until the applicable scheduled vesting date, subject to certain change in control provisions as outlined in the award agreement. The performance objective is based on the Company’s financial performance measures. Participants will be entitled to an award within a range of 50% at a minimum achievement level and 200% at a maximum achievement level.

PRSUs use a two-year performance measurement period and vest 50% on the second anniversary of the grant date (after the relevant performance has been measured) and the second 50% vest on the third anniversary of grant date.

The fair value of restricted stock units awarded totaled $144 million, $96 million and $34 million for the years ended December 31, 2015, 2014 and 2013, respectively. The fair value of these awards was calculated using the value of Level 3 common stock on the grant date and are being amortized over the periods in which the restrictions lapse. As of December 31, 2015, unamortized compensation cost related to nonvested restricted stock and restricted stock units was $109 million and the weighted average period over which this cost will be recognized is 2.17 years.

The changes in nonvested restricted stock and restricted stock units are shown in the following table:
 
 
Number
 
Weighted Average
Grant Date
Fair Value
Nonvested at January 1, 2013
 
3,636,976

 
$
24.71

Stock and units granted
 
1,617,592

 
$
21.26

Lapse of restrictions
 
(1,841,757
)
 
$
25.19

Stock and units forfeited
 
(488,461
)
 
$
23.10

Nonvested at December 31, 2013
 
2,924,350

 
$
22.77

Stock and units granted
 
1,650,772

 
$
43.48

Lapse of restrictions
 
(1,150,080
)
 
$
22.92

Stock and units forfeited
 
(206,305
)
 
$
27.14

Nonvested at December 31, 2014
 
3,218,737

 
$
32.95

Stock and units granted
 
2,087,942

 
$
50.60

Lapse of restrictions
 
(1,194,519
)
 
$
31.70

Stock and units forfeited
 
(358,227
)
 
$
44.25

Nonvested at December 31, 2015
 
3,753,933

 
$
42.09









The changes in nonvested performance restricted stock units are shown in the following table:

 
 
Number
 
Weighted Average
Grant Date
Fair Value
Nonvested at January 1, 2014
 
—

 
$
—

Stock and units granted
 
605,111

 
$
39.30

Lapse of restrictions
 
(1,750
)
 
$
39.14

Stock and units forfeited
 
(35,480
)
 
$
39.14

Nonvested at December 31, 2014
 
567,881

 
$
39.31

Stock and units granted
 
713,657

 
$
53.82

Lapse of restrictions
 
—

 
$
—

Stock and units forfeited
 
(53,073
)
 
$
49.25

Nonvested at December 31, 2015
 
1,228,465

 
$
47.31




The total fair value of restricted stock and restricted stock units and PRSUs whose restrictions lapsed in the years ended December 31, 2015, 2014 and 2013 was $38 million, $27 million and $46 million, respectively.

Management Incentive and Retention Plan

Effective March 2012, the Company adopted a Management Incentive and Retention Plan ("MIRP") as a means of encouraging key management personnel to remain employed with the Company or one of its subsidiaries and to reward the achievement of established performance criteria. The MIRP provided an opportunity to receive two types of awards: a retention award and an incentive award. Participants' retention and incentive awards had a cash component only or a cash component and an equity component. The equity component was granted in the form of restricted stock units under the Stock Plan. The MIRP has terminated pursuant to its terms and there are no remaining unamortized compensation costs related to MIRP.

A summary of the retention restricted stock units granted under the MIRP is shown in the following table:
 
 
Number
 
Weighted Average
Grant Date
Fair Value
Nonvested at January 1, 2013
 
465,000

 
$
25.92

Stock and units granted
 
—

 
$
—

Lapse of restrictions
 
(270,000
)
 
$
25.92

Stock and units forfeited
 
—

 
$
—

Nonvested at December 31, 2013
 
195,000

 
$
25.92

Stock and units granted
 
—

 


Lapse of restrictions
 
(195,000
)
 
$
25.92

Stock and units forfeited
 
—

 


Nonvested at December 31, 2014
 
—

 




No retention restricted stock units were awarded during the years ended December 31, 2015 and 2014 under the MIRP, and all prior awards were vested as of December 31, 2014.


Defined Contribution Plans

The Company sponsors a number of defined contribution plans. The principal defined contribution plans are discussed individually below. Other defined contribution plans are not individually significant and therefore have been summarized in aggregate below.

The Company and its subsidiaries offer their qualified employees the opportunity to participate in a defined contribution retirement plan qualifying under the provisions of Section 401(k) of the Internal Revenue Code ("401(k) Plan"). Each employee is eligible to contribute, on a tax deferred basis, a portion of annual earnings generally not to exceed $18,000 in 2015 and $18,000 in 2016. The Company matches 100% of employee contributions up to 4% of eligible earnings or applicable regulatory limits.

The Company's matching contributions are made with Level 3 common stock based on the closing stock price on each pay date. The Company's matching contributions are made through units in the Level 3 Stock Fund, which represent shares of Level 3 common stock. The Level 3 Stock Fund is the mechanism that is used for Level 3 to make employer matching and other contributions to employees through the Level 3 401(k) Plan. Prior to January 2016, employees were not able to purchase units in the Level 3 Stock Fund but effective January 2016, employees may allocate account balances to the Level 3 Stock Fund subject to a limitation on the total percentage of the employee's 401(K) account balances maintained in the Level 3 Stock Fund. Employees are able to diversify the Company's matching contribution as soon as it is made, even if they are not fully vested, subject to insider trading rules and regulations. The Company's matching contributions vest ratably over the first three years of service or over such shorter period until the employee has completed three years of service at such time the employee is then 100% vested in all Company matching contributions, including future contributions. The Company made 401(k) Plan matching contributions of $36 million, $23 million and $24 million for the years ended December 31, 2015, 2014 and 2013, respectively. The Company's matching contributions are recorded as non-cash compensation and included in network related expenses of $5 million, $4 million and $4 million for the years ended December 31, 2015, 2014 and 2013, respectively, and in selling, general and administrative expenses of $31 million, $19 million and $20 million for the years ended December 31, 2015, 2014 and 2013, respectively. Former tw telecom employees became eligible to participate in the Level 3 401(k) Plan starting January 1, 2015.

The tw telecom 401(k) Plan ("tw telecom 401(k) Plan") provided 100% matching cash contributions up to a maximum 5% of eligible compensation. The Company's contributions to the tw telecom 401(k) Plan vest immediately. Expenses recorded by the Company relating to the tw telecom 401(k) Plan for the two months in 2014 subsequent to the completion of the Merger were approximately $2 million.

Other defined contribution plans sponsored by the Company are individually not significant. On an aggregate basis the expenses recorded by the Company relating to these plans was approximately $6 million, $6 million and $5 million for the years ended December 31, 2015, 2014 and 2013, respectively.

Defined Benefit Plans

The Company has certain contributory and non-contributory employee pension plans, which are not significant to the financial position or operating results of the Company. The Company recognizes in its balance sheet the funded status of its defined benefit post-retirement plans, which is measured as the difference between the fair value of the plan assets and the plan benefit obligations. The Company is also required to recognize changes in the funded status within accumulated other comprehensive income, net of tax to the extent such changes are not recognized in earnings as components of periodic net benefit cost. The fair value of the plan assets was $142 million and $151 million as of December 31, 2015 and 2014, respectively. The total plan benefit obligations were $158 million and $176 million as of December 31, 2015 and 2014, respectively. Therefore, the total funded status was an obligation of $16 million and $25 million as of December 31, 2015 and 2014, respectively.

Annual Discretionary Bonus Grant

The Company's annual discretionary bonus program is intended to motivate employees to achieve the Company's financial and business goals. Each participant is provided a target award expressed as a percentage of base salary. Actual awards under the program are based on corporate results as well as achievement of specific individual performance criteria during the bonus plan period, and may be paid in cash, restricted stock units, or a combination of the two, at the sole discretion of the Compensation Committee of the Board of Directors. The annual discretionary bonus will be paid in cash for the 2015 bonus plan, was paid in cash for the 2014 bonus plan and was paid partially in cash and equity for the 2013 bonus plan. The Company paid out 1.4 million immediately-vested restricted stock units in 2014 for the 2013 bonus plan.
Income Taxes
Income Taxes
Income Taxes

The following table summarizes the income tax benefit (expense) attributable to the income (loss) before income taxes for each of the three years ended December 31, 2015, 2014 and 2013:

 
 
2015
 
2014
 
2013
(dollars in millions)
Current:
 
 
 
 
 
 
United States Federal
 
$
—

 
$
—

 
$
9

State
 
(3
)
 
(1
)
 
(1
)
Foreign
 
(33
)
 
(40
)
 
(37
)
 
 
(36
)
 
(41
)
 
(29
)
Deferred, net of changes in valuation allowances:
 
 
 
 
 
 
United States federal
 
2,941

 
6

 
(3
)
State
 
246

 
15

 
—

Foreign
 
(1
)
 
96

 
(6
)
 
 
3,186

 
117

 
(9
)
Income Tax Benefit (Expense)
 
$
3,150

 
$
76

 
$
(38
)


The United States and Foreign components of income (loss) before income taxes for each of the three years ended December 31, 2015, 2014 and 2013 are as follows (some of the income (loss) is subject to taxation in multiple jurisdictions):

 
 
2015
 
2014
 
2013
(dollars in millions)
United States
 
$
401

 
$
207

 
$
(122
)
Foreign
 
(118
)
 
31

 
51

 
 
$
283

 
$
238

 
$
(71
)


A reconciliation of the actual income tax benefit (expense) and the tax computed by applying the U.S. federal rate (35%) to the income (loss) before income taxes for each of the three years ended December 31, 2015, 2014 and 2013 is shown in the following table:

 
 
2015
 
2014
 
2013
 
 
(dollars in millions)
Computed Tax (Expense) Benefit at Statutory Rate
 
$
(99
)
 
$
(83
)
 
$
25

Effect of Earnings in Jurisdictions outside of the United States
 
30

 
13

 
12

Change in Valuation Allowance
 
3,386

 
197

 
(27
)
Disallowed Interest
 
(62
)
 
(25
)
 
(33
)
Non-Deductible Deconsolidation Loss
 
(57
)
 
—

 
—

Other Permanent Items
 
(25
)
 
(19
)
 
(11
)
Indefinite-Lived Assets
 
—

 
2

 
(3
)
Uncertain Tax Positions
 
(5
)
 
3

 
9

Changes in Tax Rates
 
(20
)
 
(7
)
 
(7
)
Other, net
 
2

 
(5
)
 
(3
)
Income Tax Benefit (Expense)
 
$
3,150

 
$
76

 
$
(38
)



The components of the net deferred tax assets (liabilities) as of December 31, 2015 and 2014 are as follows:

 
 
2015
 
2014
 
 
(dollars in millions)
Deferred Tax Assets:
 
 
 
 
Deferred revenue
 
351

 
322

Unutilized tax net operating loss carry forwards
 
4,959

 
5,218

Fixed assets
 
115

 
90

Intangible assets
 
—

 
—

Other
 
501

 
415

Total Deferred Tax Assets
 
5,926

 
6,045

Deferred Tax Liabilities:
 
 
 
 
Deferred revenue
 
(58
)
 
(73
)
Fixed assets
 
(924
)
 
(893
)
Intangible assets
 
(399
)
 
(486
)
Other
 
(350
)
 
(189
)
Total Deferred Tax Liabilities
 
(1,731
)
 
(1,641
)
Net Deferred Tax Assets before Valuation Allowance
 
4,195

 
4,404

Valuation Allowance
 
(1,002
)
 
(4,429
)
Net Deferred Tax Asset (Liability) after Valuation Allowance
 
$
3,193

 
$
(25
)



On October 31, 2014, the Company completed its acquisition of tw telecom. The Merger qualified as a tax-free reorganization within the meaning of Section 368(a) of the Internal Revenue Code, and therefore the Company assumed the carryover tax basis of the acquired assets and liabilities of tw telecom. As a result, the Company recorded a net deferred tax liability of $15 million as the acquired deferred tax assets, net of valuation allowance, were offset by the deferred tax liabilities created by the additional financial reporting basis of the identifiable intangible assets. Simultaneously, the Company released $15 million of valuation allowance against its deferred tax assets as the acquired deferred tax liabilities serve as a source of taxable income to support such release.

As of December 31, 2015, the Company had available net operating loss carry forwards of approximately $9.8 billion after taking into account the effects of Section 382 limitation of the Internal Revenue Code for U.S. federal income tax purposes, including $1 billion from the tw telecom acquisition ($9.7 billion net of stock compensation excess benefit). Although the tw telecom acquisition triggered an ownership change under Section 382 of the Internal Revenue Code, the Company has determined that its loss carryforwards should not be mathematically limited based on its value at the time of the ownership change and the expiration dates of its net operating losses.

As a result of certain realization requirements of applicable accounting guidance, the table of deferred tax asset and liabilities shown above does not include certain deferred tax assets as of December 31, 2015 and December 31, 2014 that arose directly from tax deductions related to equity compensation in excess of compensation recognized for financial reporting. Equity will be increased if and when such deferred tax assets are ultimately realized. The Company uses the ordering rules prescribed by recent accounting guidance to determine when the stock compensation excess tax benefits have been realized. If actual future tax deductions are less than the amount recognized for financial reporting, the tax-effect of the difference may result in an increase to income tax expense.

The Company’s loss carry forwards expire in future years through 2035 and are subject to examination by the tax authorities up to three years after the carry forwards are utilized. The U.S. net operating tax loss carry forwards available for federal income tax purposes expire as follows (dollars in millions):

Expiring December 31,
Amount
2023
$
239

2024
1,456

2025
1,267

2026
1,254

2027
1,644

2028
477

2029
694

2030
663

2031
833

2032
729

2033
172

2034
395

2035
3

 
$
9,826



Under the rules prescribed by Internal Revenue Code Section 382 and applicable regulations, if certain transactions occur with respect to an entity's capital stock that result in a cumulative ownership shift of more than 50 percentage points by 5% stockholders over a three-year testing period, annual limitations are imposed with respect to the entity's ability to utilize its net operating loss carry forwards and certain current deductions against any taxable income the entity achieves in future periods and could result in a substantial income tax expense at the time of the shift. Level 3 extended the term of its Stockholder Rights Plan, which was adopted to protect its U.S. federal net operating loss carry forwards from these limitations. This plan was designed to deter trading that would result in a change of control (as defined in Section 382) without the limitations imposed by Section 382, and therefore protect the Company's ability to use its historical U.S. federal net operating loss carry forwards in the future.

As of December 31, 2015, the Company had state net operating loss carry forwards of approximately $9.9 billion that are subject to limitations on their utilization and have various expiration periods through 2035. The Company had approximately $5.5 billion of foreign jurisdiction net operating loss carry forwards that are subject to limitations on their utilization. The majority of these foreign jurisdiction tax loss carry forwards have no expiration period.

The Company recognizes deferred tax assets and liabilities for its domestic and non-U.S. operations, for operating loss and other credit carry forwards and the expected tax consequences of temporary differences between the tax basis of assets and liabilities and their reported amounts using enacted tax rates in effect for the year the differences are expected to reverse. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. The valuation of deferred tax assets requires judgment in assessing the likely future tax consequences of events that have been recognized in the Company's financial statements or tax returns, and future profitability by tax jurisdiction. The Company has historically provided a valuation allowance to reduce its U.S federal and state and foreign deferred tax assets to the amount that is more likely than not to be realized. The Company monitors its cumulative loss position and other evidence each quarter to determine the appropriateness of its valuation allowance. Although the Company believes its estimates are reasonable, the ultimate determination of the appropriate amount of valuation allowance involves significant judgment.

In the fourth quarter 2015, the Company released the majority of the valuation allowance against its U.S. federal and state deferred tax assets, resulting in a non-cash benefit to income tax expense of approximately $3.3 billion, $3.1 billion of which was related to future years’ earnings. In making the determination to release the valuation allowance against U.S. federal and state deferred tax assets, the Company took into consideration its movement into a cumulative income position for the most recent 3-year period, including pro forma adjustments for acquired entities, its 8 out of 9 consecutive quarters of pre-tax operating income, and forecasts of future earnings for its U.S. business. The Company expects to continue to generate income before taxes in the United States in future periods.

In 2014, the Company released approximately $100 million of deferred tax valuation allowance primarily related to its business in the UK due to consolidation of legal entities whereby one UK entity with a full valuation allowance was merged with an entity that had no valuation allowance against its deferred tax assets.

The Company continues to maintain its existing valuation allowance against net deferred tax assets in many of its state and foreign jurisdictions where it does not currently believe that the realization of its deferred tax assets is more likely than not.

The valuation allowance for deferred tax assets was approximately $1.0 billion as of December 31, 2015 and $4.4 billion as of December 31, 2014. The change in valuation allowance is primarily due to the release of the valuation allowance against U.S. federal and state deferred tax assets.

The Company provides for U.S. income taxes on the undistributed earnings and the other outside basis temporary differences of foreign corporations unless they are considered indefinitely reinvested outside the United States. The amount of temporary differences related to undistributed earnings and other outside basis temporary differences of investments in foreign subsidiaries upon which U.S. income taxes have not been provided was immaterial. With respect to the Company’s foreign branches, it has established deferred tax liabilities for branches with an overall cumulative translation gain, but has not has established deferred tax assets for those with an overall translation loss as it is necessary to demonstrate that the temporary difference will reverse in the foreseeable future. The Company has no plans that would trigger such reversal.

The Company's liability for uncertain income tax positions totaled $18 million at December 31, 2015 and $17 million at December 31, 2014. If the remaining balance of unrecognized tax benefits were realized in a future period, it would result in a tax benefit of $17 million ($14 million as of December 31, 2014) and a reduction in the effective tax rate. The Company does not expect that the liability for uncertain tax positions will materially increase or decrease during the twelve months ended December 31, 2016. A reconciliation of the beginning and ending balance of unrecognized income tax benefits follows (dollars in millions):

 
Amount
Balance as of January 1, 2013
$
18

Gross increases - tax positions of prior years
—

Gross increases - tax positions during 2013
1

Gross decreases - lapse of statute of limitations
(6
)
Gross decreases - settlement with taxing authorities
—

Balance as of December 31, 2013
13

Tax positions of prior years netted against deferred tax assets
5

Gross increases - tax positions of prior years
1

Gross increases - tax positions during 2014
—

Gross decreases - lapse of statute of limitations
(2
)
Gross decreases - settlement with taxing authorities
—

Balance as of December 31, 2014
17

Tax positions of prior years netted against deferred tax assets
(2
)
Gross increases - tax positions of prior years
3

Gross increases - tax positions during 2015
2

Gross decreases - lapse of statute of limitations
(2
)
Gross decreases - settlement with taxing authorities
—

Balance as of December 31, 2015
$
18



The unrecognized tax benefits in the table above do not include accrued interest and penalties of $16 million, $17 million and $18 million as of December 31, 2015, 2014 and 2013, respectively. The Company's policy is to record interest and penalties related to uncertain tax positions in income tax expense. The Company recognized accrued interest and penalties related to uncertain tax positions in income tax expense in its Consolidated Statements of Operations of a benefit of less than $1 million, a benefit of approximately $1 million and a benefit of approximately $4 million for the years ended December 31, 2015, 2014 and 2013, respectively.

The Company, or at least one of its subsidiaries, files income tax returns in the U.S. federal jurisdiction and various states and foreign jurisdictions. With few exceptions, the Company is no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by tax authorities for years before 2003. The Internal Revenue Service and state and local taxing authorities reserve the right to audit any period where net operating loss carry forwards are available.

The Company incurs tax expense attributable to income in various subsidiaries that are required to file state or foreign income tax returns on a separate legal entity basis. The Company also recognizes accrued interest and penalties in income tax expense related to uncertain tax benefits. Our tax rate is volatile and may move up or down with changes in, among other things, the amount and source of income or loss, our ability to utilize foreign tax credits, changes in tax laws, and the movement of liabilities established for uncertain tax positions as statutes of limitations expire or positions are otherwise effectively settled.
Segment Information
Segment Information
Segment Information

Operating segments are defined under GAAP as components of an enterprise for which separate financial information is available and evaluated regularly by the Company's chief operating decision maker ("CODM") in deciding how to allocate resources and assess performance. The Company's CODM is Jeff K. Storey, President and Chief Executive Officer. As a result of the Merger, Mr. Storey also monitored performance of the former tw telecom business. Therefore, the Company was comprised of the following four reportable segments for financial reporting purposes for the fourth quarter of 2014: 1) North America; 2) Europe, the Middle East and Africa (EMEA); 3) Latin America; and 4) tw telecom, which represents the standalone operations of the former tw telecom business. As a result of the integration of tw telecom (see Note 2 - Events Associated with the Merger of tw telecom), the Company reorganized its management reporting structure to reflect the way in which it allocates resources and assesses performance. Effective the first quarter of 2015, tw telecom has been integrated into North America. As a result of the change, the Company's reportable segments now consist of: 1) North America; 2) EMEA; and 3) Latin America. Other separate business interests that are not segments include interest, certain corporate assets and overhead costs, and certain other general and administrative costs that are not allocated to any of the operating segments. Historical presentation of segment information has been retrospectively reclassified to conform to the new geographical presentation.

The CODM measures and evaluates segment performance primarily based upon revenue, revenue growth and Adjusted EBITDA. Adjusted EBITDA, as defined by the Company, is equal to net income (loss) from the Consolidated Statements of Operations before (1) income tax benefit (expense), (2) total other income (expense), (3) non-cash impairment charges included within selling, general and administrative expenses and network related expenses, (4) depreciation and amortization expense, and (5) non-cash stock-based compensation expense included within selling, general and administrative expenses and network related expenses.

Adjusted EBITDA is not a measurement under GAAP and may not be used in the same way by other companies. Management believes that Adjusted EBITDA is an important part of the Company's internal reporting and is a key measure used by management to evaluate profitability and operating performance of the Company and to make resource allocation decisions. Management believes such measurement is especially important in a capital-intensive industry such as telecommunications. Management also uses Adjusted EBITDA to compare the Company's performance to that of its competitors and to eliminate certain non-cash and non-operating items in order to consistently measure from period to period its ability to fund capital expenditures, fund growth, service debt and determine bonuses.

Adjusted EBITDA excludes non-cash impairment charges and non-cash stock-based compensation expense because of the non-cash nature of these items. Adjusted EBITDA also excludes interest income, interest expense and income tax benefit (expense) because these items are associated with the Company's capitalization and tax structures. Adjusted EBITDA also excludes depreciation and amortization expense because these non-cash expenses reflect the effect of capital investments which management believes are better evaluated through cash flow measures. Adjusted EBITDA excludes net other income (expense) because these items are not related to the primary operations of the Company.

There are limitations to using non-GAAP financial measures such as Adjusted EBITDA, including the difficulty associated with comparing companies that use similar performance measures whose calculations may differ from the Company's calculations. Additionally, this financial measure does not include certain significant items such as interest income, interest expense, income tax benefit (expense), depreciation and amortization expense, non-cash impairment charges, non-cash stock-based compensation expense, and net other income (expense). Adjusted EBITDA should not be considered a substitute for other measures of financial performance reported in accordance with GAAP.

Revenue and the related expenses are attributed to regions based on where services are provided. Revenue and costs for services provided in more than one region are allocated equally between the regions, and the Company does not otherwise charge for services between reportable segments. Therefore, segment results do not include any intercompany revenue. The operating activities of the separate regions along with the activities that are not attributable to a segment are interdependent, and the regional results in the tables below do not include all intercompany charges and allocations that would be necessary to report the regional results on a standalone basis.

Total revenue consists of:

•
Core Network Services revenue from colocation and data center services; transport and fiber; IP and data services; and local and enterprise voice services.

•
Wholesale Voice Services revenue from sales to other carriers of long distance voice services.

Core Network Services revenue represents higher profit services and Wholesale Voice Services revenue represents lower profit services. Core Network Services revenue requires different levels of investment and focus and provides different contributions to the Company's operating results than Wholesale Voice Services revenue. Management of the Company believes that growth in revenue from its Core Network Services is critical to the long-term success of its business. The Company also believes it must continue to effectively manage the profitability of the Wholesale Voice Services revenue. The Company believes that trends in its communications business are best gauged by analyzing revenue changes in Core Network Services.

The following table presents revenue by segment for each of the years ended December 31,

(dollars in millions)
 
2015
 
2014
 
2013
Core Network Services Revenue:
 
 
 
 
 
 
North America
 
$
6,208

 
$
4,525

 
$
3,949

EMEA
 
835

 
891

 
888

Latin America
 
714

 
779

 
754

Total Core Network Services Revenue
 
$
7,757

 
$
6,195

 
$
5,591

 
 
 
 
 
 
 
Wholesale Voice Services Revenue:
 
 
 
 
 
 
North America
 
$
446

 
$
530

 
$
681

EMEA
 
14

 
19

 
31

Latin America
 
12

 
33

 
10

Total Wholesale Voice Services Revenue
 
$
472

 
$
582

 
$
722

 
 
 
 
 
 
 
Total Consolidated Revenue
 
$
8,229

 
$
6,777

 
$
6,313




The following table presents Adjusted EBITDA by segment and reconciles Adjusted EBITDA to net income (loss) for each of the years ended December 31,

(dollars in millions)
 
2015
 
2014
 
2013
Adjusted EBITDA:
 
 
 
 
 
 
North America
 
$
3,048

 
$
2,065

 
$
1,799

EMEA
 
235

 
214

 
226

Latin America
 
302

 
348

 
313

Unallocated Corporate Expenses
 
(947
)
 
(732
)
 
(714
)
Consolidated Adjusted EBITDA
 
$
2,638

 
$
1,895

 
$
1,624

Income Tax Benefit (Expense)
 
3,150

 
76

 
(38
)
Total Other Expense
 
(1,048
)
 
(775
)
 
(737
)
Depreciation and Amortization
 
(1,166
)
 
(808
)
 
(800
)
Non-Cash Stock Compensation
 
(141
)
 
(73
)
 
(151
)
Non-Cash Impairment
 
—

 
(1
)
 
(7
)
Total Consolidated Net Income (Loss)
 
$
3,433

 
$
314


$
(109
)


The following table presents capital expenditures by segment and reconciles capital expenditures to consolidated capital expenditures for each of the years ended December 31:

(dollars in millions)
 
2015
 
2014
 
2013
Capital Expenditures:
 
 
 
 
 
 
North America
 
$
752

 
$
495

 
$
398

EMEA
 
158

 
117

 
128

Latin America
 
155

 
153

 
134

Unallocated Corporate Capital Expenditures
 
164

 
145

 
100

Consolidated Capital Expenditures
 
$
1,229

 
$
910

 
$
760



The following table presents total assets by segment:

 
 
As of December 31,
(dollars in millions)
 
2015
 
2014
Assets:
 
 
 
 
North America
 
$
19,961

 
$
16,242

EMEA
 
1,796

 
1,970

Latin America
 
2,131

 
2,451

Other
 
257

 
284

Total Consolidated Assets
 
$
24,145

 
$
20,947

Commitments, Contingencies and Other Items
Commitments, Contingencies and Other Items
Commitments, Contingencies and Other Items

The Company is subject to various legal proceedings and other contingent liabilities that individually or in the aggregate could materially affect its financial condition, future results of operations or cash flows. Amounts accrued for such contingencies aggregate to $129 million and are included in "Other" current liabilities and "Other liabilities" in the Company's Consolidated Balance Sheet at December 31, 2015. 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 the Company's results of operations but could materially adversely affect its cash flows for the affected period.

The Company reviews its accruals at least quarterly and adjusts them to reflect the impact of negotiations, settlements, rulings, advice of legal counsel, and other information and events pertaining to a particular matter. Below is a description of material legal proceedings and other contingencies pending at December 31, 2015. Although the Company believes it has accrued for these matters in accordance with the accounting guidance for contingencies, contingencies are inherently unpredictable and it is possible that results of operations or cash flows could be materially and adversely affected in any particular period by unfavorable developments in, or resolution or disposition of, one or more of these matters. For those contingencies in respect of which the Company believes that it is reasonably possible that a loss may result that is materially in excess of the accrual (if any) established for the matter, the Company has either provided an estimate of such possible loss or range of loss or included a statement that such an estimate cannot be made. In addition to the contingencies described below, the Company is party to many other legal proceedings and contingencies, the resolution of which is not expected to materially affect its financial condition or future results of operations beyond the amounts accrued.

Rights-of-Way Litigation

The Company is party to a number of purported class action lawsuits involving its right to install fiber optic cable network in railroad right-of-ways adjacent to plaintiffs' land. In general, the Company obtained the rights to construct its networks from railroads, utilities, and others, and has installed its networks along the rights-of-way so granted. Plaintiffs in the purported class actions assert that they are the owners of lands over which the fiber optic cable networks pass, and that the railroads, utilities, and others who granted the Company the right to construct and maintain its network did not have the legal authority to do so. The complaints seek damages on theories of trespass, unjust enrichment and slander of title and property, as well as punitive damages. The Company has also received, and may in the future receive, claims and demands related to rights-of-way issues similar to the issues in these cases that may be based on similar or different legal theories. The Company has defeated motions for class certification in a number of these actions but expects that, absent settlement of these actions, plaintiffs in the pending lawsuits will continue to seek certification of statewide or multi-state classes. The only lawsuit in which a class was certified against the Company, absent an agreed upon settlement, occurred in Koyle, et. al. v. Level 3 Communications, Inc., et. al., a purported two state class action filed in the United States District Court for the District of Idaho. The Koyle lawsuit has been dismissed pursuant to a settlement reached in November 2010 as described further below.

The Company negotiated a series of class settlements affecting all persons who own or owned land next to or near railroad rights of way in which it has installed its fiber optic cable networks. The United States District Court for the District of Massachusetts in Kingsborough v. Sprint Communications Co. L.P. granted preliminary approval of the proposed settlement; however, on September 10, 2009, the court denied a motion for final approval of the settlement on the basis that the court lacked subject matter jurisdiction and dismissed the case.

In November 2010, the Company negotiated revised settlement terms for a series of state class settlements affecting all persons who own or owned land next to or near railroad rights of way in which the Company has installed its fiber optic cable networks. The Company is currently pursuing presentment of the settlement in applicable jurisdictions. The settlements affecting current and former landowners have received final federal court approval in multiple states and the parties are engaged in the claims process for those states, including payments of claims. The settlement has also been presented to federal courts in additional states and approval is pending.

Management believes that the Company has substantial defenses to the claims asserted in all of these actions and intends to defend them vigorously if a satisfactory settlement is not ultimately approved for all affected landowners.

Peruvian Tax Litigation

Beginning in 2005, one of the Company's Peruvian subsidiaries received a number of assessments for tax, penalties and interest for calendar years 2001 and 2002. Peruvian tax authorities ("SUNAT") took the position that the Peruvian subsidiary incorrectly documented its importations resulting in additional income tax withholding and value-added taxes ("VAT"). The total amount of the asserted claims, including potential interest and penalties, was $26 million, consisting of $3 million for income tax withholding in connection with the import of services for calendar years 2001 and 2002, $7 million for VAT in connection with the import of services for calendar years 2001 and 2002, and $16 million in connection with the disallowance of VAT credits for periods beginning in 2005. Due to accrued interest and foreign exchange effects, and taking into account the developments described below, the total amount of exposure is $46 million at December 31, 2015.

The Company challenged the tax assessments during 2005 by filing administrative claims before SUNAT. During August 2006 and June 2007, SUNAT rejected the Company's administrative claims, thereby confirming the assessments. Appeals were filed in September 2006 and July 2007 with the Tribunal Fiscal, the highest level of administrative review, which is not part of the Peru judiciary (the "Tribunal"). The 2001 and 2002 assessed withholding tax assessments were resolved in favor of the Company in separate administrative resolutions; however, the penalties with respect to withholding tax remain at issue in the administrative appeals.

In October 2011, the Tribunal issued its administrative resolution with respect to the calendar year 2002 tax period regarding VAT, associated penalties and penalties associated with withholding taxes, deciding the central issue underlying the assessments in the government's favor, while confirming the assessment in part and denying a portion of the assessment on procedural grounds. The Company appealed the Tribunal's October 2011 administrative resolutions to the judicial court in Peru. In September 2014, the first judicial court rendered a decision largely in the Company’s favor on the central issue underlying the assessments. SUNAT appealed the court’s decision to the next judicial level. The court of appeal remanded the case to the first judicial court for further development of the facts and legal analysis supporting its decision.

In October 2013, the Tribunal notified the Company of its July 2013 administrative resolution with respect to the calendar year 2001 tax period regarding VAT, associated penalties and penalties associated with withholding taxes, determining the central issue underlying the assessments in the government's favor, while confirming the assessment in part and denying a portion of the assessment on procedural grounds. The Company appealed the Tribunal's July 2013 administrative resolutions to the judicial court in Peru. In April 2015, the first judicial court rendered a decision largely in SUNAT’s favor on the central issue underlying the assessments. The Company has appealed the court’s decision to the next judicial level.

In December 2013, SUNAT initiated an audit of calendar year 2001. In June 2014, the Company was served with SUNAT’s assessments of the 2001 VAT credits declared null by the Tribunal and the corresponding fine. In July 2014, the Company challenged these assessments by filing administrative claims before SUNAT. In January 2015, SUNAT rejected the administrative claims, thereby confirming the assessments. The Company filed an appeal with the Tribunal in February 2015. In May 2015, the Tribunal notified the Company of its administrative resolution declaring the assessments and corresponding fines null. The time for SUNAT to appeal this resolution has closed. While the Company is not yet aware of any appeal filed by SUNAT, under local practice, notification of an appeal can take several months. Nevertheless, SUNAT retains the right to reissue the assessments declared null or start a new audit.

Employee Severance and Contractor Termination Disputes

A number of former employees and third-party contractors have asserted a variety of claims in litigation against certain Latin American subsidiaries of the Company for separation pay, severance, commissions, pension benefits, unpaid vacation pay, breach of employment contracts, unpaid performance bonuses, property damages, moral damages and related statutory penalties, fines, costs and expenses (including accrued interest, attorneys fees and statutorily mandated inflation adjustments) as a result of their separation from the Company or termination of service relationships. The Company is vigorously defending itself against the asserted claims, which aggregate to approximately $42 million at December 31, 2015.

Brazilian Tax Claims

In December 2004, March 2009, April 2009 and July 2014, the São Paulo state tax authorities issued tax assessments against one of the Company's Brazilian subsidiaries for the Tax on Distribution of Goods and Services ("ICMS") with respect to revenue from leasing movable properties (in the case of the December 2004, March 2009 and July 2014 assessments) and revenue from the provision of Internet access services (in the case of the April 2009 and July 2014 assessments), by treating such activities as the provision of communications services, to which the ICMS tax applies. During the third quarter of 2014, the Company released a reserve of $6 million for tax, penalty and associated interest corresponding to the ICMS applicable on the provision of Internet access services due to the expiration of the statute of limitations for the January 2008 to June 2009 tax periods. In September 2002, July 2009 and May 2012, the Rio de Janeiro state tax authorities issued tax assessments to the same Brazilian subsidiary on similar issues. The Company has filed objections to these assessments, arguing that the lease of assets and the provision of Internet access are not communication services subject to ICMS. The objections to the September 2002, December 2004 and March 2009 assessments were rejected by the respective state administrative courts, and the Company has appealed those decisions to the judicial courts. In October 2012 and June 2014, the Company received favorable rulings from the lower court on the December 2004 and March 2009 assessments regarding equipment leasing, but those rulings are subject to appeal by the state. No ruling has been obtained with respect to the September 2002 assessment. The objections to the April and July 2009 and May 2012 assessments are still pending final administrative decisions. The July 2014 assessment was confirmed during the fourth quarter of 2014 at the first administrative level and the Company appealed this decision to the second administrative level. During the fourth quarter of 2014, the Company entered into an amnesty with the Rio de Janeiro state tax authorities with respect to potential ICMS liability for the 2008 tax period. As a result, the Company paid $5 million and released a reserve of $3 million of tax corresponding to the ICMS applicable on the provision of Internet access services.

The Company is vigorously contesting all such assessments in both states, and in particular, views the assessment of ICMS on revenue from leasing movable properties to be without merit. Nevertheless, the Company believes that it is reasonably possible that these assessments could result in a loss of up to $42 million at December 31, 2015 in excess of the accruals established for these matters.

Letters of Credit

It is customary for the Company to use various financial instruments in the normal course of business. These instruments include letters of credit. Letters of credit are conditional commitments issued on behalf of the Company in accordance with specified terms and conditions. As of December 31, 2015 and December 31, 2014, the Company had outstanding letters of credit or other similar obligations of approximately $46 million and $28 million, respectively, of which $43 million and $23 million, are collateralized by cash, that is reflected on the Consolidated Balance Sheets as restricted cash. The Company does not believe exposure to loss related to its letters of credit is material.

Operating Leases

The Company is leasing rights-of-way, facilities and other assets under various operating leases which, in addition to rental payments, may require payments for insurance, maintenance, property taxes and other executory costs related to the lease. Certain leases provide for adjustments in lease cost based upon adjustments in various price indexes and increases in the landlord's management costs.

The right-of-way agreements have various expiration dates through 2060. Payments under these right-of-way agreements were $211 million in 2015, $173 million in 2014 and $161 million in 2013.

The Company has obligations under non-cancelable operating leases for certain colocation, office facilities and other assets, including lease obligations for which facility related restructuring charges have been recorded. The lease agreements have various expiration dates through 2119. Rent expense, including common area maintenance, under non-cancelable lease agreements was $357 million in 2015, $318 million in 2014 and $311 million in 2013.

Certain non-cancelable right of way agreements provide for automatic renewal on a periodic basis. The Company includes payments due during these automatic renewal periods given the significant cost to relocate the Company's network and other facilities.

Future minimum payments for the next five years and thereafter under network and related right-of-way agreements and non-cancelable operating leases for facilities and other assets consist of the following as of December 31, 2015 (dollars in millions):

 
 
Right-of-Way
Agreements
 
Operating Leases
 
Total
 
Future Minimum Sublease Receipts
2016
 
$
151

 
$
278

 
$
429

 
$
4

2017
 
72

 
245

 
317

 
4

2018
 
69

 
209

 
278

 
3

2019
 
59

 
157

 
216

 
2

2020
 
54

 
123

 
177

 
—

Thereafter
 
295

 
578

 
873

 
—

 
 
$
700

 
$
1,590

 
$
2,290

 
$
13



Certain right-of-way agreements include provisions for increases in payments in future periods based on the rate of inflation as measured by various price indexes. The Company has not included estimates for these increases in future periods in the amounts included above.

Certain other right-of-way agreements are currently cancelable or can be terminated under certain conditions by the Company. The Company includes the payments under such cancelable right-of-way agreements in the table above for a period of 1 year from January 1, 2016, if the Company does not consider it likely that it will cancel the right of way agreement within the next year.

Cost of Access and Third-Party Maintenance

In addition, the Company has purchase commitments with third-party access vendors that require it to make payments to purchase network services, capacity and telecommunications equipment. Some of these access vendor commitments require the Company to maintain minimum monthly and/or annual billings, in certain cases based on usage. In addition, the Company has purchase commitments with third parties that require it to make payments for maintenance services for certain portions of its network.

The following table summarizes the Company's purchase commitments at December 31, 2015 (dollars in millions):

 
 
Total
 
Less than
1 Year
 
2 - 3
Years
 
4 - 5
Years
 
After 5
Years
Cost of Access Services
 
$
930

 
$
497

 
$
402

 
$
24

 
$
7

Third-Party Maintenance Services
 
222

 
60

 
44

 
38

 
80

 
 
$
1,152

 
$
557

 
$
446

 
$
62

 
$
87

Condensed Consolidating Financial Information
Condensed Consolidating Financial Information
Condensed Consolidating Financial Information

Level 3 Financing has issued Senior Notes that are unsecured obligations of Level 3 Financing, Inc.; however, they are also fully and unconditionally and jointly and severally guaranteed on an unsecured senior basis by Level 3 Communications, Inc. and Level 3 Communications, LLC.

In conjunction with the registration of the Level 3 Financing, Inc. Senior Notes, the accompanying condensed consolidating financial information has been prepared and presented pursuant to SEC Regulation S-X Rule 3-10 "Financial statements of guarantors and affiliates whose securities collateralize an issue registered or being registered."

The operating activities of the separate legal entities included in the Company’s Consolidated Financial Statements are interdependent. The accompanying condensed consolidating financial information presents the statements of operations, balance sheets and statements of cash flows of each legal entity and, on an aggregate basis, the other non-guarantor subsidiaries based on amounts incurred by such entities, and is not intended to present the operating results of those legal entities on a stand-alone basis. Level 3 Communications, LLC leases equipment and certain facilities from other wholly owned subsidiaries of Level 3 Communications, Inc. These transactions are eliminated in the consolidated results of the Company.
Condensed Consolidating Statements of Operations
For the year ended December 31, 2015

 
Level 3 Communications, Inc.
 
Level 3 Financing, Inc.
 
Level 3 Communications, LLC
 
Other Non-Guarantor Subsidiaries
 
Eliminations
 
Total
(dollars in millions)
Revenue
$
—

 
$
—

 
$
3,325

 
$
5,077

 
$
(173
)
 
$
8,229

Costs and Expenses:
 
 
 
 
 
 
 
 
 
 
 
Network access costs
—

 
—

 
1,243

 
1,763

 
(173
)
 
2,833

Network related expenses
—

 
—

 
947

 
485

 
—

 
1,432

Depreciation and amortization
—

 
—

 
309

 
857

 
—

 
1,166

Selling, general and administrative expenses
4

 
—

 
1,064

 
399

 
—

 
1,467

Total costs and expenses
4

 
—

 
3,563

 
3,504

 
(173
)
 
6,898

Operating Income (Loss)
(4
)
 
—

 
(238
)
 
1,573

 
—

 
1,331

Other Income (Expense):
 
 
 
 
 
 
 
 
 
 
 
Interest income
—

 
—

 
—

 
1

 
—

 
1

Interest expense
(51
)
 
(574
)
 
(3
)
 
(14
)
 
—

 
(642
)
Interest income (expense) affiliates, net
1,310

 
1,984

 
(3,041
)
 
(253
)
 
—

 
—

Equity in net earnings (losses) of subsidiaries
2,162

 
(1,693
)
 
177

 
—

 
(646
)
 
—

Other, net
(18
)
 
(200
)
 
3

 
(192
)
 
—

 
(407
)
Total other expense
3,403

 
(483
)
 
(2,864
)
 
(458
)
 
(646
)
 
(1,048
)
Income (Loss) before Income Taxes
3,399

 
(483
)
 
(3,102
)
 
1,115

 
(646
)
 
283

Income Tax (Expense) Benefit
34

 
2,645

 
(1
)
 
472

 
—

 
3,150

Net Income (Loss)
3,433

 
2,162

 
(3,103
)
 
1,587

 
(646
)
 
3,433

Other Comprehensive Income (Loss), Net of Income Taxes
(154
)
 
—

 
—

 
154

 
(154
)
 
(154
)
Comprehensive Income (Loss)
$
3,279

 
$
2,162

 
$
(3,103
)
 
$
1,741

 
$
(800
)
 
$
3,279



Condensed Consolidating Statements of Operations
For the year ended December 31, 2014

 
Level 3 Communications, Inc.
 
Level 3 Financing, Inc.
 
Level 3 Communications, LLC
 
Other Non-Guarantor Subsidiaries
 
Eliminations
 
Total
(dollars in millions)
Revenue
$
—

 
$
—

 
$
3,073

 
$
3,918

 
$
(214
)
 
$
6,777

Costs and Expenses:
 
 
 
 
 
 
 
 
 
 
 
Network access costs
—

 
—

 
1,177

 
1,566

 
(214
)
 
2,529

Network related expenses
—

 
—

 
762

 
484

 
—

 
1,246

Depreciation and amortization
—

 
—

 
277

 
531

 
—

 
808

Selling, general and administrative expenses
21

 
2

 
735

 
423

 
—

 
1,181

Total costs and expenses
21

 
2

 
2,951

 
3,004

 
(214
)
 
5,764

Operating Income (Loss)
(21
)
 
(2
)
 
122

 
914

 
—

 
1,013

Other Income (Expense):
 
 
 
 
 
 
 
 
 
 
 
Interest income
—

 
—

 
—

 
1

 
—

 
1

Interest expense
(143
)
 
(492
)
 
(2
)
 
(17
)
 
—

 
(654
)
Interest income (expense) affiliates, net
1,227

 
1,827

 
(2,890
)
 
(164
)
 
—

 
—

Equity in net earnings (losses) of subsidiaries
(710
)
 
(2,047
)
 
663

 
—

 
2,094

 
—

Other, net
(53
)
 
—

 
7

 
(76
)
 
—

 
(122
)
Total other expense
321

 
(712
)
 
(2,222
)
 
(256
)
 
2,094

 
(775
)
Income (Loss) before Income Taxes
300

 
(714
)
 
(2,100
)
 
658

 
2,094

 
238

Income Tax (Expense) Benefit
14

 
4

 
(1
)
 
59

 
—

 
76

Net Income (Loss)
314

 
(710
)
 
(2,101
)
 
717

 
2,094

 
314

Other Comprehensive Income (Loss), Net of Income Taxes
(183
)
 
—

 
—

 
(183
)
 
183

 
(183
)
Comprehensive Income (Loss)
$
131

 
$
(710
)
 
$
(2,101
)
 
$
534

 
$
2,277

 
$
131

Condensed Consolidating Statements of Operations
For the year ended December 31, 2013

 
Level 3 Communications, Inc.
 
Level 3 Financing, Inc.
 
Level 3 Communications, LLC
 
Other Non-Guarantor Subsidiaries
 
Eliminations
 
Total
(dollars in millions)
Revenue
$
—

 
$
—

 
$
2,825

 
$
3,734

 
$
(246
)
 
$
6,313

Costs and Expenses:
 
 
 
 
 
 
 
 
 
 
 
Network access costs
—

 
—

 
1,068

 
1,649

 
(246
)
 
2,471

Network related expenses
—

 
—

 
753

 
461

 
—

 
1,214

Depreciation and amortization
—

 
—

 
289

 
511

 
—

 
800

Selling, general and administrative expenses
3

 
1

 
791

 
367

 
—

 
1,162

Total costs and expenses
3

 
1

 
2,901

 
2,988

 
(246
)
 
5,647

Operating Income (Loss)
(3
)
 
(1
)
 
(76
)
 
746

 
—

 
666

Other Income (Expense):
 
 
 
 
 
 
 
 
 
 
 
Interest income
—

 
—

 
—

 
—

 
—

 
—

Interest expense
(151
)
 
(497
)
 
(3
)
 
2

 
—

 
(649
)
Interest income (expense) affiliates, net
1,091

 
1,706

 
(2,679
)
 
(118
)
 
—

 
—

Equity in net earnings (losses) of subsidiaries
(1,039
)
 
(2,164
)
 
550

 
—

 
2,653

 
—

Other, net
—

 
(85
)
 
4

 
(7
)
 
—

 
(88
)
Total other expense
(99
)
 
(1,040
)
 
(2,128
)
 
(123
)
 
2,653

 
(737
)
Income (Loss) before Income Taxes
(102
)
 
(1,041
)
 
(2,204
)
 
623

 
2,653

 
(71
)
Income Tax (Expense) Benefit
(7
)
 
2

 
—

 
(33
)
 
—

 
(38
)
Net Income (Loss)
(109
)
 
(1,039
)
 
(2,204
)
 
590

 
2,653

 
(109
)
Other Comprehensive Income (Loss), Net of Income Taxes
10

 
10

 
—

 
10

 
(20
)
 
10

Comprehensive Income (Loss)
$
(99
)
 
$
(1,029
)
 
$
(2,204
)
 
$
600

 
$
2,633

 
$
(99
)
Condensed Consolidating Balance Sheets
December 31, 2015

 
Level 3 Communications, Inc.
 
Level 3 Financing, Inc.
 
Level 3 Communications, LLC
 
Other Non-Guarantor Subsidiaries
 
Eliminations
 
Total
(dollars in millions)
Assets
 
 
 
 
 
 
 
 
 
 
 
Current Assets:
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
12

 
$
6

 
$
727

 
$
109

 
$
—

 
$
854

Restricted cash and securities
—

 
—

 
1

 
7

 
—

 
8

Receivables, less allowances for doubtful accounts
—

 
—

 
47

 
710

 
—

 
757

Due from affiliates
12,415

 
22,759

 
—

 
2,816

 
(37,990
)
 
—

Other
1

 
18

 
56

 
55

 
—

 
130

Total Current Assets
12,428

 
22,783

 
831

 
3,697

 
(37,990
)
 
1,749

Property, Plant, and Equipment, net
—

 
—

 
3,423

 
6,455

 
—

 
9,878

Restricted Cash and Securities
27

 
—

 
14

 
1

 
—

 
42

Goodwill and Other Intangibles, net
—

 
—

 
363

 
8,513

 
—

 
8,876

Investment in Subsidiaries
16,772

 
17,714

 
3,734

 
—

 
(38,220
)
 
—

Deferred Tax Assets
38

 
2,847

 
—

 
556

 
—

 
3,441

Other Assets, net
8

 
100

 
12

 
39

 
—

 
159

Total Assets
$
29,273

 
$
43,444

 
$
8,377

 
$
19,261

 
$
(76,210
)
 
$
24,145

 
 
 
 
 
 
 
 
 
 
 
 
Liabilities and Stockholders' Equity (Deficit)
 
 
 
 
 
 
 
 
 
 
 
Current Liabilities:
 
 
 
 
 
 
 
 
 
 
 
Accounts payable
$
—

 
$
1

 
$
195

 
$
433

 
$
—

 
$
629

Current portion of long-term debt
—

 
—

 
2

 
13

 
—

 
15

Accrued payroll and employee benefits
—

 
—

 
186

 
32

 
—

 
218

Accrued interest
11

 
90

 
—

 
7

 
—

 
108

Current portion of deferred revenue
—

 
—

 
119

 
148

 
—

 
267

Due to affiliates
—

 
—

 
37,990

 
—

 
(37,990
)
 
—

Other
—

 
—

 
115

 
64

 
—

 
179

Total Current Liabilities
11

 
91

 
38,607

 
697

 
(37,990
)
 
1,416

Long-Term Debt, less current portion
600

 
10,210

 
15

 
169

 
—

 
10,994

Deferred Revenue, less current portion
—

 
—

 
680

 
297

 
—

 
977

Other Liabilities
15

 
—

 
133

 
484

 
—

 
632

Commitments and Contingencies
 
 
 
 
 
 
 
 
 
 
 
Stockholders' Equity (Deficit)
28,647

 
33,143

 
(31,058
)
 
17,614

 
(38,220
)
 
10,126

Total Liabilities and Stockholders' Equity (Deficit)
$
29,273

 
$
43,444

 
$
8,377

 
$
19,261

 
$
(76,210
)
 
$
24,145

Condensed Consolidating Balance Sheets
December 31, 2014

 
Level 3 Communications, Inc.
 
Level 3 Financing, Inc.
 
Level 3 Communications, LLC
 
Other Non-Guarantor Subsidiaries
 
Eliminations
 
Total
(dollars in millions)
Assets
 
 
 
 
 
 
 
 
 
 
 
Current Assets:
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
7

 
$
5

 
$
307

 
$
261

 
$
—

 
$
580

Restricted cash and securities
—

 
—

 
1

 
6

 
—

 
7

Receivables, less allowances for doubtful accounts
—

 
—

 
34

 
703

 
—

 
737

Due from affiliates
14,522

 
21,270

 
—

 
—

 
(35,792
)
 
—

Other
2

 
21

 
45

 
89

 
—

 
157

Total Current Assets
14,531

 
21,296

 
387

 
1,059

 
(35,792
)
 
1,481

Property, Plant, and Equipment, net
—

 
—

 
3,152

 
6,708

 
—

 
9,860

Restricted Cash and Securities
3

 
—

 
16

 
1

 
—

 
20

Goodwill and Other Intangibles, net
—

 
—

 
373

 
8,730

 
—

 
9,103

Investment in Subsidiaries
16,686

 
14,777

 
3,729

 
—

 
(35,192
)
 
—

Deferred Tax Assets
—

 
—

 
—

 
300

 
—

 
300

Other Assets, net
28

 
129

 
9

 
17

 
—

 
183

Total Assets
$
31,248

 
$
36,202

 
$
7,666

 
$
16,815

 
$
(70,984
)
 
$
20,947

 
 
 
 
 
 
 
 
 
 
 
 
Liabilities and Stockholders' Equity (Deficit)
 
 
 
 
 
 
 
 
 
 
 
Current Liabilities:
 
 
 
 
 
 
 
 
 
 
 
Accounts payable
$
—

 
$
—

 
$
215

 
$
449

 
$
—

 
$
664

Current portion of long-term debt
333

 
—

 
3

 
13

 
—

 
349

Accrued payroll and employee benefits
—

 
—

 
174

 
99

 
—

 
273

Accrued interest
12

 
158

 
—

 
4

 
—

 
174

Current portion of deferred revenue
—

 
—

 
118

 
169

 
—

 
287

Due to affiliates
—

 
—

 
34,401

 
1,391

 
(35,792
)
 
—

Other
—

 
2

 
62

 
95

 
—

 
159

Total Current Liabilities
345

 
160

 
34,973

 
2,220

 
(35,792
)
 
1,906

Long-Term Debt, less current portion
900

 
9,893

 
16

 
175

 
—

 
10,984

Deferred Revenue, less current portion
—

 
—

 
617

 
304

 
—

 
921

Other Liabilities
16

 
24

 
125

 
608

 
—

 
773

Commitments and Contingencies
 
 
 
 
 
 
 
 
 
 
 
Stockholders' Equity (Deficit)
29,987

 
26,125

 
(28,065
)
 
13,508

 
(35,192
)
 
6,363

Total Liabilities and Stockholders' Equity (Deficit)
$
31,248

 
$
36,202

 
$
7,666

 
$
16,815

 
$
(70,984
)
 
$
20,947

Condensed Consolidating Statements of Cash Flows
For the year ended December 31, 2015

 
Level 3 Communications, Inc.
 
Level 3 Financing, Inc.
 
Level 3 Communications, LLC
 
Other Non-Guarantor Subsidiaries
 
Eliminations
 
Total
(dollars in millions)
Net Cash Provided by (Used in) Operating Activities
$
(40
)
 
$
(617
)
 
$
193

 
$
2,319

 
$
—

 
$
1,855

Cash Flows from Investing Activities:
 
 
 
 
 
 
 
 
 
 
 
Capital expenditures
—

 
—

 
(453
)
 
(776
)
 
—

 
(1,229
)
Cash related to deconsolidated Venezuela operations
—

 
—

 
—

 
(83
)
 
—

 
(83
)
Change in restricted cash and securities, net
(25
)
 
—

 
3

 
—

 
—

 
(22
)
Proceeds from sale of property, plant and equipment and other assets
—

 
—

 
—

 
4

 
—

 
4

Other
—

 
—

 
(14
)
 
—

 
—

 
(14
)
Net Cash Provided by (Used in) Investing Activities
(25
)
 
—

 
(464
)
 
(855
)
 
—

 
(1,344
)
Cash Flows from Financing Activities:
 
 
 
 
 
 
 
 
 
 
 
Long-term debt borrowings, net of issuance costs
—

 
4,832

 
—

 
—

 
—

 
4,832

Payments on and repurchases of long-term debt, including current portion and refinancing costs
(313
)
 
(4,725
)
 
(2
)
 
(11
)
 
—

 
(5,051
)
Increase (decrease) due from/to affiliates, net
383

 
511

 
693

 
(1,587
)
 
—

 
—

Net Cash Provided by (Used in) Financing Activities
70

 
618

 
691

 
(1,598
)
 
—

 
(219
)
Effect of Exchange Rates on Cash and Cash Equivalents
—

 
—

 
—

 
(18
)
 
—

 
(18
)
Net Change in Cash and Cash Equivalents
5

 
1

 
420

 
(152
)
 
—

 
274

Cash and Cash Equivalents at Beginning of Year
7

 
5

 
307

 
261

 
—

 
580

Cash and Cash Equivalents at End of Year
$
12

 
$
6

 
$
727

 
$
109

 
$
—

 
$
854


Condensed Consolidating Statements of Cash Flows
For the year ended December 31, 2014

 
Level 3 Communications, Inc.
 
Level 3 Financing, Inc.
 
Level 3 Communications, LLC
 
Other Non-Guarantor Subsidiaries
 
Eliminations
 
Total
(dollars in millions)
Net Cash Provided by (Used in) Operating Activities
$
(178
)
 
$
(458
)
 
$
625

 
$
1,172

 
$
—

 
$
1,161

Cash Flows from Investing Activities:
 
 
 
 
 
 
 
 
 
 
 
Capital expenditures
—

 
—

 
(362
)
 
(548
)
 
—

 
(910
)
Change in restricted cash and securities, net
—

 
—

 
2

 
(12
)
 
—

 
(10
)
Proceeds from sale of property, plant and equipment and other assets
—

 
—

 
—

 
3

 
—

 
3

Investment in tw telecom, net of cash acquired
(474
)
 
—

 
—

 
307

 
—

 
(167
)
Other
—

 
—

 
—

 
(2
)
 
—

 
(2
)
Net Cash Provided by (Used in) Investing Activities
(474
)
 
—

 
(360
)
 
(252
)
 
—

 
(1,086
)
Cash Flows from Financing Activities:
 
 
 
 
 
 
 
 
 
 
 
Long-term debt borrowings, net of issuance costs
590

 
—

 
—

 
(1
)
 
—

 
589

Payments on and repurchases of long-term debt, including current portion and refinancing costs
(647
)
 
—

 
—

 
(24
)
 
—

 
(671
)
Increase (decrease) due from/to affiliates, net
708

 
457

 
(305
)
 
(860
)
 
—

 
—

Net Cash Provided by (Used in) Financing Activities
651

 
457

 
(305
)
 
(885
)
 
—

 
(82
)
Effect of Exchange Rates on Cash and Cash Equivalents
—

 
—

 
—

 
(44
)
 
—

 
(44
)
Net Change in Cash and Cash Equivalents
(1
)
 
(1
)
 
(40
)
 
(9
)
 
—

 
(51
)
Cash and Cash Equivalents at Beginning of Year
8

 
6

 
347

 
270

 
—

 
631

Cash and Cash Equivalents at End of Year
$
7

 
$
5

 
$
307

 
$
261

 
$
—

 
$
580

Condensed Consolidating Statements of Cash Flows
For the year ended December 31, 2013

 
Level 3 Communications, Inc.
 
Level 3 Financing, Inc.
 
Level 3 Communications, LLC
 
Other Non-Guarantor Subsidiaries
 
Eliminations
 
Total
(dollars in millions)
Net Cash Provided by (Used in) Operating Activities
$
(169
)
 
$
(557
)
 
$
710

 
$
729

 
$
—

 
$
713

Cash Flows from Investing Activities:
 
 
 
 
 
 
 
 
 
 
 
Capital expenditures
—

 
—

 
(312
)
 
(448
)
 
—

 
(760
)
Change in restricted cash and securities, net
9

 
—

 
(1
)
 
5

 
—

 
13

Other
—

 
—

 
1

 
1

 
—

 
2

Net Cash Provided by (Used in) Investing Activities
9

 
—

 
(312
)
 
(442
)
 
—

 
(745
)
Cash Flows from Financing Activities:
 
 
 
 
 
 
 
 
 
 
 
Long-term debt borrowings, net of issuance costs
—

 
1,502

 
—

 
—

 
—

 
1,502

Payments on and repurchases of long-term debt, including current portion and refinancing costs
(173
)
 
(1,586
)
 
(4
)
 
(33
)
 
—

 
(1,796
)
Increase (decrease) due from affiliates, net
88

 
642

 
(433
)
 
(297
)
 
—

 
—

Net Cash Provided by (Used in) Financing Activities
(85
)
 
558

 
(437
)
 
(330
)
 
—

 
(294
)
Effect of Exchange Rates on Cash and Cash Equivalents
—

 
—

 
—

 
(22
)
 
—

 
(22
)
Net Change in Cash and Cash Equivalents
(245
)
 
1

 
(39
)
 
(65
)
 
—

 
(348
)
Cash and Cash Equivalents at Beginning of Year
253

 
5

 
386

 
335

 
—

 
979

Cash and Cash Equivalents at End of Year
$
8

 
$
6

 
$
347

 
$
270

 
$
—

 
$
631

Unaudited Quarterly Financial Data
Unaudited Quarterly Financial Data
Unaudited Quarterly Financial Data
 
 
Three Months Ended
 
 
March 31,
 
June 30,
 
September 30,
 
December 31,
 
 
2015
 
2014
 
2015
 
2014
 
2015
 
2014
 
2015
 
2014
 
 
 
 
 
 
 
 
 
 
 
 
 
(dollars in millions except per share data)
Revenue
 
$
2,053

 
$
1,609

 
$
2,061

 
$
1,625

 
$
2,062

 
$
1,629

 
$
2,053

 
$
1,914

Costs and Expenses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Network Access Costs
 
723

 
614

 
696

 
613

 
706

 
607

 
708

 
695

Network Related Expenses
 
356

 
292

 
363

 
302

 
369

 
307

 
344

 
345

Depreciation and Amortization
 
288

 
184

 
288

 
187

 
296

 
187

 
294

 
250

Selling, General and Administrative Expenses
 
370

 
255

 
364

 
267

 
364

 
266

 
369

 
393

Total Costs and Expenses
 
1,737

 
1,345

 
1,711

 
1,369

 
1,735

 
1,367

 
1,715

 
1,683

Operating Income
 
316

 
264

 
350

 
256

 
327

 
262

 
338

 
231

Other Income (Expense):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest Income
 
1

 
—

 
—

 
—

 
—

 
1

 
—

 
—

Interest Expense
 
(180
)
 
(151
)
 
(165
)
 
(149
)
 
(145
)
 
(159
)
 
(152
)
 
(195
)
Loss on Modification and Extinguishment of Debt
 
—

 
—

 
(163
)
 
—

 
—

 
—

 
(55
)
 
(53
)
Venezuela Deconsolidation Charge
 
—

 
—

 
—

 
—

 
(171
)
 
—

 
—

 
—

Other, net
 
(10
)
 
6

 
(17
)
 
(44
)
 
6

 
(11
)
 
3

 
(20
)
Total Other Expense
 
(189
)
 
(145
)
 
(345
)
 
(193
)
 
(310
)
 
(169
)
 
(204
)
 
(268
)
Income (Loss) Before Income Taxes
 
127

 
119

 
5

 
63

 
17

 
93

 
134

 
(37
)
Income Tax (Expense) Benefit
 
(5
)
 
(7
)
 
(18
)
 
(12
)
 
(16
)
 
(8
)
 
3,189

 
103

Net Income (Loss)
 
$
122

 
$
112

 
$
(13
)
 
$
51

 
$
1

 
$
85

 
$
3,323

 
$
66

Net Income (Loss) Per Share - Basic
 
$
0.35

 
$
0.48

 
$
(0.04
)
 
$
0.21

 
$
—

 
$
0.36

 
$
9.33

 
$
0.22

Net Income (Loss) Per Share - Diluted
 
$
0.35

 
$
0.47

 
$
(0.04
)
 
$
0.21

 
$
—

 
$
0.35

 
$
9.24

 
$
0.21



Net income (loss) per share for each quarter is computed using the weighted-average number of shares outstanding during that quarter, while net income (loss) per share for the year is computed using the weighted-average number of shares outstanding during the year. Thus, the sum of the income (loss) per share for each of the four quarters may not equal the net income (loss) per share for the year.

During the fourth quarter of 2015, the Company recognized a $3.3 billion income tax benefit primarily related to the release of U.S. federal and state deferred tax valuation allowances.

During the fourth quarter of 2015, the Company recognized a loss on extinguishment of debt of $55 million, related to the refinancing of the 8.625% Senior Notes due 2020.

During the second quarter of 2015, the Company recognized a loss on extinguishment of debt of $36 million, related to the refinancing of the 9.375% Senior Notes due 2019.

During the second quarter of 2015, the Company recognized a loss on extinguishment of debt of $82 million, related to the refinancing of the 8.125% Senior Notes due 2019.

During the second quarter of 2015, the Company recognized a loss on extinguishment of debt of $18 million, related to the refinancing of the 8.875% Senior Notes due 2019.

During the second quarter of 2015, the Company recognized a loss on modification and extinguishment of debt of $27 million, related to the refinancing of the senior secured Tranche B Term Loan due 2022.

During the fourth quarter of 2014, the Company recognized a loss on extinguishment of debt of $53 million, related to the refinancing of the 11.875% Senior Notes due 2019.

During the fourth quarter of 2014, the Company completed its acquisition of tw telecom and therefore the results of operations for the fourth quarter of 2014 include the results of tw telecom for November and December. Additionally, the Company incurred $70 million in expenses related to the acquisition of tw telecom that was recognized in Selling, General and Administrative Expenses .

During the fourth quarter of 2014, the Company increased its senior secured credit facility by adding a $2 billion Tranche B 2022 Term Loan. The proceeds were used for the tw telecom acquisition.

During the fourth quarter of 2014, the Company also recognized a $100 million income tax benefit primarily related to the release of a foreign deferred tax valuation allowance.

During the third quarter of 2014, the Company entered into an indenture totaling $1 billion for 5.375% Senior Notes due 2022. The proceeds were used for the tw telecom acquisition.

During the second quarter of 2014. the Company recognized a loss of approximately $34 million resulting from the devaluation of Venezuelan bolivar denominated monetary assets and liabilities from the official rate of 6.3 to the SICAD 1 rate of 10.6.
Organization and Summary of Significant Accounting Policies (Policies)
Principles of Consolidation and Basis of Presentation 
Principles of Consolidation and Basis of Presentation

The consolidated financial statements include the accounts of Level 3 Communications, Inc. and subsidiaries in which it has a controlling interest. All significant intercompany accounts and transactions have been eliminated. The accompanying Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States ("GAAP").

As part of its consolidation policy, the Company considers its controlled subsidiaries, investments in businesses in which the Company is not the primary beneficiary or does not have effective control but has the ability to significantly influence operating and financial policies, and variable interests resulting from economic arrangements that give the Company rights to economic risks or rewards of a legal entity. The Company does not have variable interests in a variable interest entity where it is required to consolidate the entity as the primary beneficiary.

Prior to October 1, 2015, the Company included the results of its wholly owned Venezuelan subsidiary in its Consolidated Financial Statements using the consolidation method of accounting. The Company’s Venezuelan subsidiary's earnings and cash flows are reflected in the Consolidated Financial Statements for the nine months ended September 30, 2015 and the years ended December 31, 2014 and 2013, respectively.

Venezuelan exchange control regulations have resulted in an other-than-temporary lack of exchangeability between the Venezuelan bolivar and U.S. dollar, and have restricted the Company's Venezuelan operations’ ability to pay dividends in U.S. dollars and settle intercompany obligations in U.S. dollars. The severe currency controls imposed by the Venezuelan government have significantly limited the ability to realize the benefits from earnings of the Company’s Venezuelan operations and access the resulting liquidity provided by those earnings in U.S. dollars. The Company expects that this condition will continue for the foreseeable future. Additionally, government regulations affecting the Company's ability to manage its Venezuelan subsidiary’s capital structure, purchasing, product pricing, customer invoicing and collections, and labor relations; and the current political and economic situation within Venezuela have resulted in an acute degradation in the Company's ability to make key operational decisions for its Venezuelan operations. This lack of exchangeability into U.S. dollars and the degradation in the Company's ability to control key operational decisions has resulted in a lack of control over the Company's Venezuelan subsidiary for U.S. accounting purposes. Therefore, while continuing to wholly own a variable interest in its Venezuelan subsidiary, in accordance with Accounting Standards Codification 810 -- Consolidation, the Company deconsolidated its Venezuelan subsidiary on September 30, 2015, and began accounting for its investment in its Venezuelan operations using the cost method of accounting. While the Company does not expect to enter into material transactions with its subsidiary in Venezuela that would result in the creation of additional intercompany receivable balances, if any such transactions were completed the Company would evaluate collectability of the intercompany receivable balance at that time, which could result in a charge that negatively affects its results of operations.

As a result of deconsolidating of its Venezuelan subsidiary, the Company recorded a one-time charge of $171 million in the third quarter of 2015, which had no accompanying tax benefit. This charge included the write-off of both the Company's investment in its Venezuelan subsidiary and $40 million of intercompany receivables from its Venezuelan subsidiary. The Company's Venezuelan operations’ bolivar-denominated cash balance of $83 million (at the SICAD I exchange rate of 13.5 bolivars per U.S. dollar) at September 30, 2015 is no longer reported in Cash and Cash Equivalents on the Consolidated Balance Sheet. The Company's financial results no longer include the operating results of its Venezuelan operations. Any dividends from the Company's Venezuelan subsidiaries are recorded as other income upon receipt of the cash. Prior period results have not been adjusted to reflect the deconsolidation of the Company's Venezuelan subsidiary.
Foreign Currency Translation 
Foreign Currency Translation

Local currencies of foreign subsidiaries are the functional currencies for financial reporting purposes except for certain foreign subsidiaries in Latin America. For operations outside the United States that have functional currencies other than the U.S. dollar, assets and liabilities are translated to U.S. dollars at period-end exchange rates, and revenue, expenses and cash flows are translated using average exchange rates prevailing during the year. A significant portion of the Company's non-United States subsidiaries have either the British pound, the euro or the Brazilian real as the functional currency, each of which experienced significant fluctuations against the U.S. dollar during 2015, 2014 and 2013. Foreign currency translation gains and losses are recognized as a component of accumulated other comprehensive income (loss) in stockholders' equity and in the Consolidated Statements of Comprehensive Income (Loss) in accordance with accounting guidance for foreign currency translation. The Company considers the majority of its investments in its foreign subsidiaries to be long-term in nature. The Company's non-United States exchange transaction gains (losses), including where transactions with its non-United States subsidiaries are not considered to be long-term in nature, are included within other income (expense) in Other, net on the Consolidated Statements of Operations.
Reclassifications 
Reclassifications

Certain amounts in the prior year Consolidated Financial Statements and accompanying footnotes have been reclassified to conform to the current year's presentation primarily pursuant to the early adoption of Accounting Standards Update ("ASU") 2015-17. As of December 31, 2014, approximately $8 million of current deferred tax assets has been reclassified to non-current deferred tax assets and approximately $8 million of current deferred tax liabilities has been reclassified to non-current deferred tax liabilities.
Use of Estimates 
Use of Estimates

The preparation of the Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reported period. The accounting estimates that require management's judgments include revenue recognition, revenue reserves, network access costs, network access cost dispute reserves, determination of the useful lives of long-lived assets, measurement and recognition of stock-based compensation expense, valuation of long-lived assets, goodwill and acquired indefinite-lived intangible assets for purposes of impairment testing, valuation of asset retirement obligations, allowance for doubtful accounts, measurement of the fair value of assets acquired and liabilities assumed in business combinations, accruals for estimated tax and legal liabilities, and valuation allowance for deferred tax assets. Actual results could differ from these estimates under different assumptions or conditions and such differences could be material.
Revenue and Cost of Revenue for Communications Services 

Revenue

Revenue is recognized monthly as the services are provided based on contractual amounts expected to be collected. Management establishes appropriate revenue reserves at the time services are rendered based on an analysis of historical credit activity to address, where significant, situations in which collection is not reasonably assured as a result of credit risk, potential billing disputes or other reasons. Actual results may differ from these estimates under different assumptions or conditions and these differences could be material.

Intercarrier compensation revenue is recognized when an interconnection agreement is in place with another carrier, or if an agreement has expired, when the parties have agreed to continue operating under the previous agreement until a new agreement is negotiated and executed, or at rates mandated by the Federal Communications Commission (the "FCC").

For certain sale and long-term indefeasible right of use, or IRU, contracts involving private line, wavelengths and dark fiber services, the Company may receive upfront payments for services to be delivered for a period of up to 25 years. In these situations, the Company defers the revenue and amortizes it on a straight-line basis to earnings over the term of the contract.

Termination revenue is recognized when a customer discontinues service prior to the end of the contract period for which Level 3 had previously received consideration and for which revenue recognition was deferred. Termination revenue also is recognized when customers are required to make termination penalty payments to Level 3 to settle contractually committed purchase amounts that the customer no longer expects to meet or when a customer and Level 3 renegotiate a contract under which Level 3 is no longer obligated to provide services for consideration previously received and for which revenue recognition has been deferred.

The Company is obligated under dark fiber IRUs and other capacity agreements to maintain its network in efficient working order and in accordance with industry standards. Customers are obligated for the term of the agreement to pay for their allocable share of the costs for operating and maintaining the network. The Company recognizes this revenue monthly as services are provided.

Level 3's customer contracts require the Company to meet certain service level commitments. If Level 3 does not meet the required service levels, it may be obligated to provide credits, usually in the form of free service, for a short period of time. The credits are a reduction to revenue and, to date, have not been material.

Network Access Costs

Network Access Costs for the communications business include leased capacity, right-of-way costs, access charges, satellite transponder lease costs and other third party costs directly attributable to providing access to customer locations from the Level 3 network, but excludes Network Related Expenses, and depreciation and amortization. Network Access Costs do not include any employee expenses or impairment expenses; these expenses are allocated to Network Related Expenses or Selling, General and Administrative Expenses.

The Company recognizes the network access costs as they are incurred in accordance with contractual requirements. The Company disputes incorrect billings from its suppliers of network services. The most prevalent types of disputes include disputes for circuits that are not disconnected by the supplier on a timely basis charges from suppliers for circuits that were not timely installed and incorrect rate or other inadequate information needed to determine the appropriate billing from the supplier. Depending on the type and complexity of the issues involved, it may and often does take several quarters to resolve the disputes. The Company establishes appropriate network access costs reserves for disputed supplier billings based on an analysis of its historical experience in resolving disputes with its suppliers and regulatory analysis regarding certain supplier billing matters. Judgment is required in estimating the ultimate outcome of the dispute resolution process, as well as any other amounts that may be incurred to conclude the negotiations or settle any litigation. Actual results may differ from these estimates under different assumptions or conditions and these differences could be material.
Selling, General and Administrative Expenses, Policy [Policy Text Block] 
Network Related Expenses

Network Related Expenses includes certain expenses associated with the delivery of services to customers and the operation and maintenance of the Level 3 network, such as facility rent, utilities, maintenance and other costs, each related to the operation of its communications network, as well as salaries, wages and related benefits (including non-cash stock-based compensation expenses) associated with personnel who are responsible for the delivery of services, operation and maintenance of its communications network, and accretion expense on asset retirement obligations, but excludes depreciation and amortization.

Selling, General and Administrative Expenses

Selling, General and Administrative Expenses includes the salaries, wages and related benefits (including non-cash, stock-based compensation expenses) and the related costs of corporate and sales personnel, travel, insurance, non-network related rent, advertising, and other administrative expenses.

USF and Gross Receipts Taxes 
USF and Gross Receipts Taxes

The revenue recognition standards include guidance relating to any tax assessed by a governmental authority that is directly imposed on a revenue-producing transaction between a seller and a customer and may include, but is not limited to, gross receipts taxes and certain state regulatory fees. The Company records Universal Service Fund ("USF") contributions where the Company is the primary obligor for the taxes assessed in each jurisdiction where it does business on a gross basis in its Consolidated Statements of Operations, but generally records gross receipts taxes and certain state regulatory fees billed to its customers on a net basis in its Consolidated Statements of Operations. Total revenue and network access costs on the Consolidated Statements of Operations include USF contributions totaling $323 million, $234 million and $194 million for the years ended December 31, 2015, 2014 and 2013, respectively.
Share-Based Compensation 
Stock-Based Compensation

The Company recognizes the estimated fair value of stock-based compensation costs, net of an estimated forfeiture rate, over the requisite service period of the award, which is generally the vesting term or term for restrictions on transfer that lapse, as the case may be. The Company funded a portion of its 2013 discretionary bonus in restricted stock unit awards that vested upon issuance. The Company estimates forfeiture rates based on its historical experience for the type of award, adjusted for expected activities as necessary.
Income Taxes 
Income Taxes

The Company recognizes deferred tax assets and liabilities for its United States and non-U.S. operations, for operating loss and other credit carry forwards and the expected tax consequences of temporary differences between the tax basis of assets and liabilities and their reported amounts using enacted tax rates in effect for the year the differences are expected to reverse. The Company records a valuation allowance to reduce the deferred tax assets to the amount that is more likely than not to be realized. This assessment requires judgment as to the likelihood and amounts of future taxable income by tax jurisdiction.
Cash and Cash Equivalents 
Cash and Cash Equivalents

The Company classifies investments as cash equivalents if they are readily convertible to cash and have original maturities of three months or less at the time of acquisition. Cash and cash equivalents consist primarily of highly liquid investments in government and government agency securities and money market funds issued or managed by financial institutions in the United States, Europe and Latin America and commercial paper depending on liquidity requirements. As of December 31, 2015 and 2014, the carrying value of cash equivalents approximates fair value due to the short period of time to maturity.
Restricted Cash and Securities 
Restricted Cash and Securities

Restricted cash and securities consists primarily of cash and investments that serve to collateralize outstanding letters of credit and certain performance and operating obligations of the Company. Restricted cash and securities are recorded as current or non-current assets in the Consolidated Balance Sheets depending on the duration of the restriction and the purpose for which the restriction exists. Restricted securities are stated at cost which approximates fair value as of December 31, 2015 and 2014.
Allowance for Doubtful Accounts 
Allowance for Doubtful Accounts

Trade accounts receivable are recorded at the invoiced amount and can bear interest. The Company establishes an allowance for doubtful accounts for accounts receivable amounts that may not be collectible. The Company determines the allowance for doubtful accounts based on the aging of its accounts receivable balances, the credit quality of its customers and an analysis of its historical experience of bad debt write-offs. Accounts receivable balances are written off against the allowance for doubtful accounts after all means of collection have been exhausted and the potential for recovery is considered remote. The Company recognized bad debt expense, net of recoveries, of approximately $23 million in 2015, $22 million in 2014 and $17 million in
Property, Plant and Equipment 
Property, Plant and Equipment

Property, plant and equipment are recorded at cost. Depreciation and amortization for the Company's property, plant and equipment are computed using the straight-line method based on the following estimated useful lives:

Facility and Leasehold Improvements
15
-
40
years
Network Infrastructure (including fiber and conduit)
25
-
50
years
Operating Equipment
5
-
15
years
Furniture, Fixtures, Office Equipment and Other
3
-
7
years


The Company performs internal reviews to evaluate the depreciable lives of its property, plant and equipment annually, or more frequently if new facts and circumstances arise, that may affect management's original estimates. Due to the rapid changes in technology and the competitive environment, selecting the estimated economic life of telecommunications property, plant, and equipment requires a significant amount of judgment. The Company's internal reviews take into account input from the Company's global engineering and network services personnel, actual usage, the physical condition of the Company's property, plant, and equipment, industry data, and other relevant factors. In connection with its periodic review of the estimated useful lives of property, plant and equipment, the Company may determine that the period it expects to use certain assets is different than the remaining previously estimated useful lives. The Company completed an evaluation in the first quarter 2014 and revised its estimated useful lives for: IP equipment from its historical estimate of four years to a revised estimate of seven years; racks and cabinets from its historical estimate of seven years to a revised estimate of 15 years; and facility equipment from its historical estimate of 10 years to its revised estimate of 15 years. In determining the change in estimated useful lives, the Company, with input from its engineering team, considered its historical usage patterns and retirements, estimates of technological obsolescence and expected usage and maintenance. The change in the estimated useful lives of the Company’s property, plant and equipment was accounted for as a change in accounting estimate on a prospective basis effective January 1, 2014 under the accounting standard related to changes in accounting estimates.

The carrying values of assets subject to these revisions were (in millions):
 
 
January 1, 2014
IP Equipment
 
$
222

Racks and Cabinets
 
114

Facility Equipment
 
151

 
 
$
487


The change in estimated useful lives of the Company’s property, plant and equipment resulted in less depreciation expense than would have otherwise been recorded and in the following increase in net income and net income per share for the year ended December 31, 2014 (in millions, except per share amounts):

Net Income
 
$
90

Basic Net Income per Share
 
$
0.35

Diluted Net Income per Share
 
$
0.35



Leasehold improvements are depreciated over the shorter of their estimated useful lives or lease terms that are reasonably assured.

The Company capitalizes costs directly associated with expansions and improvements of the Company's communications network and customer installations, including employee-related costs, and generally capitalizes costs associated with network construction and provisioning of services. The Company amortizes such costs over an estimated useful life of 3 to 7 years.

In addition, the Company continues to develop business support systems required for its business. The external direct costs of software, materials and services, and payroll and payroll-related expenses for employees directly associated with business support systems projects are capitalized. The total cost of the business support system is amortized over an estimated useful life of 3 years.

Capitalized labor and related costs associated with employees and contract labor working on capital projects were approximately $244 million, $187 million and $164 million for the years ended December 31, 2015, 2014 and 2013, respectively.

Impairment of Finite Lived Intangible Assets and Property Plant and Equipment 
Long-Lived Assets Including Finite-Lived Purchased Intangible Assets

The Company amortizes acquired intangible assets with finite lives using the straight-line method over the estimated economic lives of the assets, ranging from 2 to 12 years.

The Company evaluates long-lived assets, such as property, plant and equipment and acquired intangible assets with finite lives, for impairment whenever events or changes in circumstances indicate the carrying value of an asset may not be recoverable. The Company assesses the recoverability of the assets based on the undiscounted future cash flows the asset groups are expected to generate and recognizes an impairment loss when estimated undiscounted future cash flows expected to result from the use of the assets plus net proceeds expected from disposition of the assets, if any, are less than the carrying value of the assets. If an asset is deemed to be impaired, the amount of the impairment loss is the excess of the asset's carrying value over its estimated fair value.

The Company conducted a long-lived asset impairment analysis in 2015, 2014 and 2013 and in each case concluded that its long-lived assets, including finite-lived acquired intangible assets, were not impaired.
Asset Retirement Obligations 
Asset Retirement Obligations

The Company recognizes a liability for the estimated fair value of legal obligations associated with the retirement of long-lived assets that result from the acquisition, construction, development and/or the normal operation of a long-lived asset in the period incurred. The fair value of the obligation is also capitalized as property, plant and equipment and then amortized over the estimated remaining useful life of the associated asset. Increases to the asset retirement obligation liability due to the passage of time are recognized as accretion expense and included within network related expenses. Changes in the liability due to revisions to the amount or timing of future cash flows are recognized by increasing or decreasing the liability with the offset adjusting the carrying amount of the related long-lived asset. To the extent that the downward revisions exceed the carrying amount of the related long-lived asset initially recorded when the asset retirement obligation liability was established, the Company records the remaining adjustment as a reduction to depreciation expense, to the extent of historical depreciation of the related long-lived asset, and then to network related expenses.

Goodwill and Acquired Indefinite-Lived Intangible Assets 
Goodwill and Acquired Indefinite-Lived Intangible Assets

Accounting guidance prohibits the amortization of goodwill and purchased intangible assets with indefinite useful lives. The Company reviews goodwill and purchased intangible assets with indefinite lives for impairment annually as of October 1st and whenever events or changes in circumstances indicate the carrying value of an asset may not be recoverable.

The Company's goodwill impairment review process considers the fair value of each reporting unit relative to its carrying value. If the fair value of the reporting unit exceeds its carrying value, goodwill is not impaired and no further testing is performed. If the carrying value of the reporting unit exceeds its fair value, then a second step must be performed, and the implied fair value of the reporting unit's goodwill must be determined and compared to the carrying value of the reporting unit's goodwill. If the carrying value of a reporting unit's goodwill exceeds its implied fair value, then an impairment loss equal to the difference will be recorded. Prior to performing the two step evaluation, an assessment of qualitative factors may be performed to determine whether it is more likely than not that the fair value of a reporting unit exceeds the carrying value. If it is determined that it is unlikely that the carrying value exceeds the fair value, the Company is not required to complete the two step goodwill impairment evaluation.

At the time of each impairment assessment date in 2015, 2014 and 2013, the Company's reporting units consisted of its three regional operating units in: North America; Europe, the Middle East and Africa ("EMEA"); and Latin America. As a result of the deconsolidation of the Company's Venezuelan subsidiary, the Company completed an assessment of the Latin American and its other reporting units' goodwill as of September 30, 2015 and concluded there was no impairment in 2015. The Company conducted its annual goodwill impairment analysis as of October 1, 2014, and concluded that its goodwill was not impaired in 2014.

The Company's indefinite-lived intangible assets impairment review process compares the estimated fair value of the indefinite-lived intangible assets to their respective carrying values. If the fair value of the indefinite-lived intangible assets exceeds their carrying values, then the indefinite-lived intangible assets are not impaired. If the carrying value of the indefinite-lived intangible assets exceeds their fair value, then an impairment loss equal to the difference will be recorded. In accordance with applicable accounting guidance, an entity may assess qualitative factors to determine whether it is more likely than not that the fair value exceeds the carrying value prior to performing the two step evaluation. If it is determined that it is unlikely the carrying value exceeds the fair value, then the entity is not required to complete the two step indefinite-lived intangible assets impairment evaluation.

Concentration of Credit Risk 
Concentration of Credit Risk

Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash equivalents, accounts receivable, restricted cash and securities and derivatives. The Company maintains its cash equivalents, restricted cash and securities and derivatives with various financial institutions. These financial institutions are primarily located in the United States, Europe and Latin America and the Company's policy is to limit exposure with any one institution. As part of its cash and risk management processes, the Company performs periodic evaluations of the relative credit standing of the financial institutions. The Company also has established guidelines relative to financial instrument credit ratings, diversification and maturities that seek to maintain safety and liquidity. The Company's investment strategy generally results in lower yields on investments but reduces the risk to principal in the short term prior to these funds being used in the Company's business. Notwithstanding the devaluation of the Venezuelan bolivar, the Company has not experienced any material losses on financial instruments held at financial institutions.

The Company provides communications services to a wide range of wholesale and enterprise customers, ranging from well capitalized national carriers to small early stage companies primarily in the United States, Europe, and Latin America. Credit risk with respect to accounts receivable is generally diversified due to the large number of entities comprising Level 3's customer base and their dispersion across many different industries and geographical regions. The Company performs ongoing credit evaluations of its customers' financial condition and generally requires no collateral from its customers, although letters of credit and deposits are required in certain limited circumstances. The Company has from time to time entered into agreements with value-added resellers and other channel partners to reach consumer and enterprise markets for voice services. The Company has policies and procedures in place
to evaluate the financial condition of these resellers prior to initiating service to the final customer. The Company maintains an allowance for doubtful accounts based upon the expected collectability of accounts receivable. Due to the Company's credit evaluation and collection process, bad debt expenses have not been significant; however, the Company is not able to predict changes in the financial stability of its customers. Any material change in the financial status of any one or a particular group of customers may cause the Company to adjust its estimate of the recoverability of receivables and could have a material effect on the Company's results of operations. Fair values of accounts receivable approximate carrying amount due to the short period of time to collection.

A relatively small number of customers account for a significant percentage of the Company's revenue. The Company's top ten customers accounted for approximately 16%, 17% and 17% of Level 3's revenue for the years ended December 31, 2015, 2014 and 2013, respectively.
Organization and Summary of Significant Accounting Policies (Tables)
12 Months Ended
Dec. 31, 2015
Dec. 31, 2013
Accounting Policies [Abstract]
 
 
Property, Plant and Equipment
Text Block 
 
Change in Accounting Estimate
 
Text Block 
Property, Plant and Equipment 
Property, Plant and Equipment

Property, plant and equipment are recorded at cost. Depreciation and amortization for the Company's property, plant and equipment are computed using the straight-line method based on the following estimated useful lives:

Facility and Leasehold Improvements
15
-
40
years
Network Infrastructure (including fiber and conduit)
25
-
50
years
Operating Equipment
5
-
15
years
Furniture, Fixtures, Office Equipment and Other
3
-
7
years


The Company performs internal reviews to evaluate the depreciable lives of its property, plant and equipment annually, or more frequently if new facts and circumstances arise, that may affect management's original estimates. Due to the rapid changes in technology and the competitive environment, selecting the estimated economic life of telecommunications property, plant, and equipment requires a significant amount of judgment. The Company's internal reviews take into account input from the Company's global engineering and network services personnel, actual usage, the physical condition of the Company's property, plant, and equipment, industry data, and other relevant factors. In connection with its periodic review of the estimated useful lives of property, plant and equipment, the Company may determine that the period it expects to use certain assets is different than the remaining previously estimated useful lives. The Company completed an evaluation in the first quarter 2014 and revised its estimated useful lives for: IP equipment from its historical estimate of four years to a revised estimate of seven years; racks and cabinets from its historical estimate of seven years to a revised estimate of 15 years; and facility equipment from its historical estimate of 10 years to its revised estimate of 15 years. In determining the change in estimated useful lives, the Company, with input from its engineering team, considered its historical usage patterns and retirements, estimates of technological obsolescence and expected usage and maintenance. The change in the estimated useful lives of the Company’s property, plant and equipment was accounted for as a change in accounting estimate on a prospective basis effective January 1, 2014 under the accounting standard related to changes in accounting estimates.
The components of the Company's property, plant and equipment as of December 31, 2015 and 2014 are as follows (dollars in millions):

 
 
Cost
 
 
Accumulated
Depreciation
 
Net
December 31, 2015
 
 
 
 
 
 
 
Land
 
$
180

 
 
$
—

 
$
180

Land Improvements
 
76

 
 
(53
)
 
23

Facility and Leasehold Improvements
 
2,582

 
 
(1,352
)
 
1,230

Network Infrastructure
 
8,979

 
 
(3,669
)
 
5,310

Operating Equipment
 
7,988

 
 
(5,079
)
 
2,909

Furniture, Fixtures and Office Equipment
 
242

 
 
(189
)
 
53

Other
 
28

 
 
(23
)
 
5

Construction-in-Progress
 
168

 
 
—

 
168

 
 
$
20,243

 
 
$
(10,365
)
 
$
9,878

December 31, 2014
 
 
 
 
 
 
 
Land
 
$
192

 
 
$
—

 
$
192

Land Improvements
 
73

 
 
(50
)
 
23

Facility and Leasehold Improvements
 
2,489

 
 
(1,265
)
 
1,224

Network Infrastructure
 
8,941

 
 
(3,447
)
 
5,494

Operating Equipment
 
7,217

 
 
(4,669
)
 
2,548

Furniture, Fixtures and Office Equipment
 
255

 
 
(177
)
 
78

Other
 
29

 
 
(21
)
 
8

Construction-in-Progress
 
293

 
 
—

 
293

 
 
$
19,489

 
 
$
(9,629
)
 
$
9,860

Change in Accounting Estimate 

The carrying values of assets subject to these revisions were (in millions):
 
 
January 1, 2014
IP Equipment
 
$
222

Racks and Cabinets
 
114

Facility Equipment
 
151

 
 
$
487


The change in estimated useful lives of the Company’s property, plant and equipment resulted in less depreciation expense than would have otherwise been recorded and in the following increase in net income and net income per share for the year ended December 31, 2014 (in millions, except per share amounts):

Net Income
 
$
90

Basic Net Income per Share
 
$
0.35

Diluted Net Income per Share
 
$
0.35

Events Associated with the Merger of tw telecom inc. (Tables)
Schedule of the Final Purchase Price Allocation 
 
Purchase Price Allocation
 
(dollars in millions)
Assets:
 
Cash, Cash Equivalents and Restricted Cash
$
309

Property, Plant and Equipment
1,553

Goodwill
5,181

Identifiable Intangible Assets
1,263

Other Assets
140

Total Assets
8,446

 
 
Liabilities:
 
Long-Term Debt
(2,099
)
Deferred Revenue
(57
)
Other Liabilities
(279
)
Total Liabilities
(2,435
)
Total Consideration to be Allocated
$
6,011

Schedule of Unaudited Pro Forma Financial Information for the Amalgamation 
The following unaudited pro forma financial information presents the combined results of Level 3 and tw telecom as if the completion of the Merger had occurred as of January 1, 2013 (dollars in millions, except per share data).
 
Year Ended December 31,
 
2014
2013
Total Revenue
$
8,123

$
7,825

Net Income (Loss)
$
149

$
(153
)
Net Income (Loss) per Share - Basic
$
0.44

$
(0.48
)
Net Income (Loss) per Share - Diluted
$
0.44

$
(0.48
)
Property, Plant and Equipment (Tables)
Property, Plant and Equipment
Property, Plant and Equipment

Property, plant and equipment are recorded at cost. Depreciation and amortization for the Company's property, plant and equipment are computed using the straight-line method based on the following estimated useful lives:

Facility and Leasehold Improvements
15
-
40
years
Network Infrastructure (including fiber and conduit)
25
-
50
years
Operating Equipment
5
-
15
years
Furniture, Fixtures, Office Equipment and Other
3
-
7
years


The Company performs internal reviews to evaluate the depreciable lives of its property, plant and equipment annually, or more frequently if new facts and circumstances arise, that may affect management's original estimates. Due to the rapid changes in technology and the competitive environment, selecting the estimated economic life of telecommunications property, plant, and equipment requires a significant amount of judgment. The Company's internal reviews take into account input from the Company's global engineering and network services personnel, actual usage, the physical condition of the Company's property, plant, and equipment, industry data, and other relevant factors. In connection with its periodic review of the estimated useful lives of property, plant and equipment, the Company may determine that the period it expects to use certain assets is different than the remaining previously estimated useful lives. The Company completed an evaluation in the first quarter 2014 and revised its estimated useful lives for: IP equipment from its historical estimate of four years to a revised estimate of seven years; racks and cabinets from its historical estimate of seven years to a revised estimate of 15 years; and facility equipment from its historical estimate of 10 years to its revised estimate of 15 years. In determining the change in estimated useful lives, the Company, with input from its engineering team, considered its historical usage patterns and retirements, estimates of technological obsolescence and expected usage and maintenance. The change in the estimated useful lives of the Company’s property, plant and equipment was accounted for as a change in accounting estimate on a prospective basis effective January 1, 2014 under the accounting standard related to changes in accounting estimates.
The components of the Company's property, plant and equipment as of December 31, 2015 and 2014 are as follows (dollars in millions):

 
 
Cost
 
 
Accumulated
Depreciation
 
Net
December 31, 2015
 
 
 
 
 
 
 
Land
 
$
180

 
 
$
—

 
$
180

Land Improvements
 
76

 
 
(53
)
 
23

Facility and Leasehold Improvements
 
2,582

 
 
(1,352
)
 
1,230

Network Infrastructure
 
8,979

 
 
(3,669
)
 
5,310

Operating Equipment
 
7,988

 
 
(5,079
)
 
2,909

Furniture, Fixtures and Office Equipment
 
242

 
 
(189
)
 
53

Other
 
28

 
 
(23
)
 
5

Construction-in-Progress
 
168

 
 
—

 
168

 
 
$
20,243

 
 
$
(10,365
)
 
$
9,878

December 31, 2014
 
 
 
 
 
 
 
Land
 
$
192

 
 
$
—

 
$
192

Land Improvements
 
73

 
 
(50
)
 
23

Facility and Leasehold Improvements
 
2,489

 
 
(1,265
)
 
1,224

Network Infrastructure
 
8,941

 
 
(3,447
)
 
5,494

Operating Equipment
 
7,217

 
 
(4,669
)
 
2,548

Furniture, Fixtures and Office Equipment
 
255

 
 
(177
)
 
78

Other
 
29

 
 
(21
)
 
8

Construction-in-Progress
 
293

 
 
—

 
293

 
 
$
19,489

 
 
$
(9,629
)
 
$
9,860

Asset Retirement Obligations (Tables)
Schedule of Asset Retirement Obligations [Table Text Block]
The following table provides asset retirement obligation activity for the years ended December 31, 2015 and 2014 (dollars in millions):
 
 
2015
 
2014
Asset retirement obligation at January 1
 
$
85

 
$
56

Accretion expense
 
9

 
8

Liabilities assumed in tw telecom acquisition
 
—

 
22

Liabilities settled
 
(8
)
 
(7
)
Revision in estimated cash flows
 
5

 
7

Effect of foreign currency rate change
 
(1
)
 
(1
)
Asset retirement obligation at December 31
 
$
90

 
$
85

Goodwill (Tables)
Schedule of changes in carrying amount of goodwill
The changes in the carrying amount of goodwill during the years ended December 31, 2015 and 2014 are as follows (dollars in millions):
 
Total
Balance as of January 1, 2014
$
2,577

Goodwill adjustments including the effect of foreign currency rate change
(12
)
Goodwill acquired in tw telecom acquisition
5,124

Balance as of December 31, 2014
7,689

Goodwill adjustments including the effect of foreign currency rate change
60

Balance as of December 31, 2015
$
7,749

Acquired Intangible Assets (Tables)
Schedule of acquisition-related intangible assets 
Identifiable acquisition-related intangible assets as of December 31, 2015 and 2014 were as follows (dollars in millions):

 
Gross
Carrying
Amount
 
Accumulated
Amortization
 
Net
December 31, 2015
 
 
 
 
 
Finite-Lived Intangible Assets:
 
 
 
 
 
Customer Contracts and Relationships
$
1,975

 
$
(932
)
 
$
1,043

Trademarks
55

 
(55
)
 
—

Patents and Developed Technology
230

 
(161
)
 
69

 
2,260

 
(1,148
)
 
1,112

Indefinite-Lived Intangible Assets:
 
 
 
 
 
Trade Name
15

 
—

 
15

 
$
2,275

 
$
(1,148
)
 
$
1,127

December 31, 2014
 
 
 
 
 
Finite-Lived Intangible Assets:
 
 
 
 
 
Customer Contracts and Relationships
$
1,977

 
$
(741
)
 
$
1,236

Trademarks
115

 
(47
)
 
68

Patents and Developed Technology
228

 
(133
)
 
95

 
2,320

 
(921
)
 
1,399

Indefinite-Lived Intangible Assets:
 
 
 
 
 
Trade Name
15

 
—

 
15

 
$
2,335

 
$
(921
)
 
$
1,414

Schedule of estimated amortization expense of acquired finite-lived intangible asset 
As of December 31, 2015, estimated amortization expense for the Company’s finite-lived acquisition-related intangible assets over the next five years and thereafter is as follows (dollars in millions):

2016
$
212

2017
196

2018
193

2019
181

2020
166

Thereafter
164

 
$
1,112

Fair Value of Financial Instruments (Tables)
Schedule of fair value of liabilities measured on a recurring basis
The table below presents the fair values for the Company’s long-term debt as well as the input levels used to determine these fair values as of December 31, 2015 and 2014:

 
 
 
 
 
 
Fair Value Measurement Using
 
 
Total Carrying Value in Consolidated Balance Sheets
 
Unadjusted Quoted Prices in Active
Markets for Identical Assets or Liabilities (Level 1)
 
Significant Other Observable Inputs (Level 2)
(dollars in millions)
 
December 31,
2015
 
December 31,
2014
 
December 31,
2015
 
December 31,
2014
 
December 31,
2015
 
December 31,
2014
Liabilities Not Recorded at Fair Value in the Financial Statements:
 
 
 
 
 
 
 
 
 
 
 
 
Long-term Debt, including the current portion:
 
 
 
 
 
 
 
 
 
 
 
 
Term Loans
 
$
4,595

 
$
4,590

 
$
4,570

 
$
4,593

 
$
—

 
$
—

Senior Notes
 
6,215

 
6,203

 
6,298

 
6,481

 
—

 
—

Convertible Notes
 
—

 
333

 
—

 
—

 
—

 
868

Capital Leases and Other
 
199

 
207

 
—

 
—

 
199

 
207

Total Long-term Debt, including the current portion:
 
$
11,009

 
$
11,333

 
$
10,868

 
$
11,074

 
$
199

 
$
1,075



The Company does not have any assets or liabilities where the fair value is measured using significant unobservable inputs (Level 3).
Long-Term Debt (Tables)
Schedule of long-term debt 

The following table summarizes the Company’s long-term debt (amounts in millions):
 
Date of
 
December 31,
2015
December 31,
2014
 
Issuance/Amendment
Maturity
Interest Payments
Interest Rate
Amount
Amount
Senior Secured Term Loans:
 
 
 
 
 
 
Borrowed by Level 3 Financing, Inc.
Tranche B-III 2019 Term Loan (1)(4)
Aug 2013
Aug 2019
Quarterly
LIBOR +3.00%
815

815

Tranche B 2020 Term Loan (1)(4)
Oct 2013
Jan 2020
Quarterly
LIBOR +3.00%
1,796

1,796

Tranche B 2022 Term Loan (1)(4)
Oct 2014
Jan 2022
Quarterly
LIBOR +3.50%
—

2,000

Tranche B-II 2022 Term Loan (1)(4)
May 2015
May 2022
Quarterly
LIBOR +2.75%
2,000

—

Senior Notes:
 
 
 
 
 
 
Issued by Level 3 Financing, Inc.
Floating Rate Senior Notes due 2018 (2)(4)
Nov 2013
Jan 2018
May/Nov
6-Month LIBOR +3.50%
300

300

9.375% Senior Notes due 2019 (2)
Mar 2011
Apr 2019
Apr/Oct
9.375%
—

500

8.125% Senior Notes due 2019 (2)
Jul 2011
Jul 2019
Jan/Jul
8.125%
—

1,200

8.625% Senior Notes due 2020 (2)
Jan 2012
Jul 2020
Jan/Jul
8.625%
—

900

7% Senior Notes due 2020 (2)
Aug 2012
Jun 2020
Jun/Dec
7.000%
775

775

6.125% Senior Notes due 2021 (2)
Nov 2013
Jan 2021
Apr/Oct
6.125%
640

640

5.375% Senior Notes due 2022 (2)
Aug 2014
Aug 2022
May/Nov
5.375%
1,000

1,000

5.625% Senior Notes due 2023 (2)
Jan 2015
Feb 2023
Jun/Dec
5.625%
500

—

5.125% Senior Notes due 2023 (2)
Apr 2015
May 2023
Mar/Sept
5.125%
700

—

5.375% Senior Notes due 2025 (2)
Apr 2015
May 2025
Mar/Sept
5.375%
800

—

5.375% Senior Notes due 2024 (2)
Nov 2015
Jan 2024
Jan/Jul
5.375%
900

—

Issued by Level 3 Communications, Inc.
8.875% Senior Notes due 2019 (3)
Aug 2012
Jun 2019
Jun/Dec
8.875%
—

300

5.75% Senior Notes due 2022 (3)
Dec 2014
Dec 2022
Mar/Sept
5.750%
600

600

7% Convertible Senior Notes Due 2015 (3)
Jun 2009
Mar 2015
Mar/Sept
7.000%
—

58

7% Convertible Senior Notes Due 2015 Series B (3)
Oct 2009
Mar 2015
Mar/Sept
7.000%
—

275

Capital Leases and Other Debt
 
 
 
 
199

207

Total Debt Obligations
 
 
 
 
11,025

11,366

Unamortized discounts
 
 
 
 
(16
)
(33
)
Current Portion
 
 
 
 
(15
)
(349
)
Total Long-Term Debt
 
 
 
 
10,994

10,984

(1) The term loans are secured obligations and guaranteed by the Company and Level 3 Communications, LLC and certain other subsidiaries.
(2) The notes are fully and unconditionally guaranteed on an unsubordinated unsecured basis by the Company and Level 3 Communications, LLC.
(3) The notes were not guaranteed by any of the Company’s subsidiaries.
(4) The Tranche B-III 2019 Term Loan and the Tranche B 2020 Term Loan each had an interest rate of 4.000% as of December 31, 2015 and 2014. The Tranche B-II 2022 Term Loan had an interest rate of 3.500% as of December 31, 2015 and the Tranche B 2022 Term Loan had an interest rate of 4.500% as of December 31, 2014. The Floating Rate Senior Notes due 2018 had an interest rate of 4.101% as of December 31, 2015 and 3.826% as of December 31, 2014.
Schedule of aggregate future contractual maturities of long-term debt and capital leases (excluding issue discounts and fair value adjustments) 

Long-Term Debt Maturities

Aggregate future contractual maturities of long-term debt and capital leases (excluding discounts and fair value adjustments) were as follows as of December 31, 2015 (dollars in millions):

2016
$
15

2017
7

2018
307

2019
822

2020
2,579

Thereafter
7,295

 
$
11,025

Accumulated Other Comprehensive Income (Loss) (Tables)
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]
The accumulated balances for each classification of other comprehensive income (loss) are as follows:

(dollars in millions)
 
Net Foreign Currency Translation Adjustment
 
Net Defined Benefit Pension Plans
 
Total
Balance at January 1, 2013
 
$
56

 
$
(30
)
 
$
26

Other comprehensive income (loss) before reclassifications
 
11

 
(3
)
 
8

Amounts reclassified from accumulated other comprehensive loss
 
—

 
2

 
2

Balance at December 31, 2013
 
67

 
(31
)
 
36

Other comprehensive income (loss) before reclassifications
 
(178
)
 
(9
)
 
(187
)
Amounts reclassified from accumulated other comprehensive loss
 
—

 
4

 
4

Balance at December 31, 2014
 
(111
)
 
(36
)
 
(147
)
Other comprehensive income (loss) before reclassifications
 
(162
)
 
6

 
(156
)
Amounts reclassified from accumulated other comprehensive loss
 
—

 
2

 
2

Balance at December 31, 2015
 
$
(273
)
 
$
(28
)
 
$
(301
)
Employee Benefit Benefits and Stock-Based Compensation (Tables)
Schedule of non-cash compensation expense and capitalized non-cash compensation 
The following table summarizes non-cash compensation expense and capitalized non-cash compensation for each of the three years ended December 31, 2015, 2014 and 2013 (dollars in millions):

 
 
2015
 
2014
 
2013
OSOs
 
$
6

 
$
8

 
$
21

Restricted Stock Units
 
65

 
34

 
38

Performance Restricted Stock Units
 
35

 
14

 
—

401(k) Match Expense
 
36

 
23

 
24

Restricted Stock Unit Bonus Grant
 
—

 
(5
)
 
59

Management Incentive and Retention Plan
 
—

 
—

 
10

 
 
142

 
74

 
152

Capitalized Non-Cash Compensation
 
(1
)
 
(1
)
 
(1
)
 
 
$
141

 
$
73

 
$
151

Schedule of OSO valuation assumptions 
The Company believes that given the relative short life of the OSOs and the other variables used in the model, the modified Black-Scholes model provides a reasonable estimate of the fair value of the OSO units at the time of grant.

 
 
Year Ended December 31, 2013
S&P 500 Expected Dividend Yield Rate
 
2.24%
Expected Life
 
3 years
S&P 500 Expected Volatility Rate
 
19%
Level 3 Common Stock Expected Volatility Rate
 
39%
Expected S&P 500 Correlation Factor
 
0.44
Calculated Theoretical Value
 
101%
Estimated Forfeiture Rate
 
15%
Schedule of restricted stock and restricted stock units 
The changes in nonvested restricted stock and restricted stock units are shown in the following table:
 
 
Number
 
Weighted Average
Grant Date
Fair Value
Nonvested at January 1, 2013
 
3,636,976

 
$
24.71

Stock and units granted
 
1,617,592

 
$
21.26

Lapse of restrictions
 
(1,841,757
)
 
$
25.19

Stock and units forfeited
 
(488,461
)
 
$
23.10

Nonvested at December 31, 2013
 
2,924,350

 
$
22.77

Stock and units granted
 
1,650,772

 
$
43.48

Lapse of restrictions
 
(1,150,080
)
 
$
22.92

Stock and units forfeited
 
(206,305
)
 
$
27.14

Nonvested at December 31, 2014
 
3,218,737

 
$
32.95

Stock and units granted
 
2,087,942

 
$
50.60

Lapse of restrictions
 
(1,194,519
)
 
$
31.70

Stock and units forfeited
 
(358,227
)
 
$
44.25

Nonvested at December 31, 2015
 
3,753,933

 
$
42.09

Schedule OSO activity 
Transactions involving OSO units awarded are summarized in the table below. The Option Price Per Unit identified in the table below represents the initial strike price, as determined on the day prior to the OSO grant date for those grants.
 
 
Units
 
Initial Strike Price Per Unit
 
Weighted
Average
Initial
Strike
Price
 
Aggregate
Intrinsic
Value
 
Weighted
Average
Remaining
Contractual
Term (years)
 
 
 
 
 
 
 
 
 
 
(in millions)
 
 
Balance January 1, 2013
 
2,066,419

 
$
14.10

-
$
36.60

 
$
23.40

 
$
6.6

 
1.73
OSOs granted
 
748,481

 
$
20.29

-
$
26.69

 
$
22.64

 
 
 
 
OSOs forfeited
 
(271,883
)
 
$
14.10

-
$
36.60

 
$
22.33

 
 
 
 
OSOs expired
 
(286,924
)
 
$
16.35

-
$
24.30

 
$
21.48

 
 
 
 
OSOs exercised
 
(107,228
)
 
$
14.10

-
$
14.10

 
$
14.10

 
 
 
 
Balance December 31, 2013
 
2,148,865

 
$
14.10

-
$
36.60

 
$
23.99

 
$
31.6

 
1.46
OSOs granted
 
—

 
$
—

-
$
—

 
$
—

 
 
 
 
OSOs forfeited
 
(52,901
)
 
$
16.99

-
$
27.53

 
$
22.99

 
 
 
 
OSOs expired
 
(106,844
)
 
$
36.60

-
$
36.60

 
$
36.60

 
 
 
 
OSOs exercised
 
(771,251
)
 
$
14.70

-
$
27.53

 
$
24.26

 
 
 
 
Balance December 31, 2014
 
1,217,869

 
$
16.99

-
$
27.53

 
$
22.76

 
$
88.0

 
0.90
OSOs granted
 
—

 
$
—

-
$
—

 
$
—

 
 
 
 
OSOs forfeited
 
(12,945
)
 
$
20.29

-
$
26.69

 
$
22.81

 
 
 
 
OSOs expired
 
—

 
$
—

-
$
—

 
$
—

 
 
 
 
OSOs exercised
 
(589,944
)
 
$
22.15

-
$
22.97

 
$
22.32

 
 
 
 
Balance December 31, 2015
 
614,980

 
$
20.29

-
$
26.69

 
$
22.77

 
$
48.5

 
0.37
Schedule of OSO by exercise price range 
 
 
 
 
OSO Units Outstanding
at December 31, 2015
 
OSO units Exercisable
at December 31, 2015
Range of Exercise Prices
 
Number
Outstanding
 
Weighted
Average
Remaining
Life (years)
 
Weighted
Average
Initial
Strike Price
 
Number
Exercisable
 
Weighted
Average
Initial
Strike Price
$
20.29

-
$
26.69

 
614,980

 
0.37
 
$
22.77

 
—

 
$
—

Share-based Compensation, Performance Shares Award Outstanding Activity [Table Text Block] 
The changes in nonvested performance restricted stock units are shown in the following table:

 
 
Number
 
Weighted Average
Grant Date
Fair Value
Nonvested at January 1, 2014
 
—

 
$
—

Stock and units granted
 
605,111

 
$
39.30

Lapse of restrictions
 
(1,750
)
 
$
39.14

Stock and units forfeited
 
(35,480
)
 
$
39.14

Nonvested at December 31, 2014
 
567,881

 
$
39.31

Stock and units granted
 
713,657

 
$
53.82

Lapse of restrictions
 
—

 
$
—

Stock and units forfeited
 
(53,073
)
 
$
49.25

Nonvested at December 31, 2015
 
1,228,465

 
$
47.31

Schedule of restricted stock and restricted stock units 
A summary of the retention restricted stock units granted under the MIRP is shown in the following table:
 
 
Number
 
Weighted Average
Grant Date
Fair Value
Nonvested at January 1, 2013
 
465,000

 
$
25.92

Stock and units granted
 
—

 
$
—

Lapse of restrictions
 
(270,000
)
 
$
25.92

Stock and units forfeited
 
—

 
$
—

Nonvested at December 31, 2013
 
195,000

 
$
25.92

Stock and units granted
 
—

 


Lapse of restrictions
 
(195,000
)
 
$
25.92

Stock and units forfeited
 
—

 


Nonvested at December 31, 2014
 
—

 


Income Taxes (Tables)
Components of income tax expense (benefit) 
The following table summarizes the income tax benefit (expense) attributable to the income (loss) before income taxes for each of the three years ended December 31, 2015, 2014 and 2013:

 
 
2015
 
2014
 
2013
(dollars in millions)
Current:
 
 
 
 
 
 
United States Federal
 
$
—

 
$
—

 
$
9

State
 
(3
)
 
(1
)
 
(1
)
Foreign
 
(33
)
 
(40
)
 
(37
)
 
 
(36
)
 
(41
)
 
(29
)
Deferred, net of changes in valuation allowances:
 
 
 
 
 
 
United States federal
 
2,941

 
6

 
(3
)
State
 
246

 
15

 
—

Foreign
 
(1
)
 
96

 
(6
)
 
 
3,186

 
117

 
(9
)
Income Tax Benefit (Expense)
 
$
3,150

 
$
76

 
$
(38
)
Schedule of income before income tax, domestic and foreign 
The United States and Foreign components of income (loss) before income taxes for each of the three years ended December 31, 2015, 2014 and 2013 are as follows (some of the income (loss) is subject to taxation in multiple jurisdictions):

 
 
2015
 
2014
 
2013
(dollars in millions)
United States
 
$
401

 
$
207

 
$
(122
)
Foreign
 
(118
)
 
31

 
51

 
 
$
283

 
$
238

 
$
(71
)
Schedule of effective income tax rate reconciliation 
A reconciliation of the actual income tax benefit (expense) and the tax computed by applying the U.S. federal rate (35%) to the income (loss) before income taxes for each of the three years ended December 31, 2015, 2014 and 2013 is shown in the following table:

 
 
2015
 
2014
 
2013
 
 
(dollars in millions)
Computed Tax (Expense) Benefit at Statutory Rate
 
$
(99
)
 
$
(83
)
 
$
25

Effect of Earnings in Jurisdictions outside of the United States
 
30

 
13

 
12

Change in Valuation Allowance
 
3,386

 
197

 
(27
)
Disallowed Interest
 
(62
)
 
(25
)
 
(33
)
Non-Deductible Deconsolidation Loss
 
(57
)
 
—

 
—

Other Permanent Items
 
(25
)
 
(19
)
 
(11
)
Indefinite-Lived Assets
 
—

 
2

 
(3
)
Uncertain Tax Positions
 
(5
)
 
3

 
9

Changes in Tax Rates
 
(20
)
 
(7
)
 
(7
)
Other, net
 
2

 
(5
)
 
(3
)
Income Tax Benefit (Expense)
 
$
3,150

 
$
76

 
$
(38
)
Deferred tax assets and liabilities 
The components of the net deferred tax assets (liabilities) as of December 31, 2015 and 2014 are as follows:

 
 
2015
 
2014
 
 
(dollars in millions)
Deferred Tax Assets:
 
 
 
 
Deferred revenue
 
351

 
322

Unutilized tax net operating loss carry forwards
 
4,959

 
5,218

Fixed assets
 
115

 
90

Intangible assets
 
—

 
—

Other
 
501

 
415

Total Deferred Tax Assets
 
5,926

 
6,045

Deferred Tax Liabilities:
 
 
 
 
Deferred revenue
 
(58
)
 
(73
)
Fixed assets
 
(924
)
 
(893
)
Intangible assets
 
(399
)
 
(486
)
Other
 
(350
)
 
(189
)
Total Deferred Tax Liabilities
 
(1,731
)
 
(1,641
)
Net Deferred Tax Assets before Valuation Allowance
 
4,195

 
4,404

Valuation Allowance
 
(1,002
)
 
(4,429
)
Net Deferred Tax Asset (Liability) after Valuation Allowance
 
$
3,193

 
$
(25
)
Operating loss carryforwards 
As of December 31, 2015, the Company had available net operating loss carry forwards of approximately $9.8 billion after taking into account the effects of Section 382 limitation of the Internal Revenue Code for U.S. federal income tax purposes, including $1 billion from the tw telecom acquisition ($9.7 billion net of stock compensation excess benefit). Although the tw telecom acquisition triggered an ownership change under Section 382 of the Internal Revenue Code, the Company has determined that its loss carryforwards should not be mathematically limited based on its value at the time of the ownership change and the expiration dates of its net operating losses.

As a result of certain realization requirements of applicable accounting guidance, the table of deferred tax asset and liabilities shown above does not include certain deferred tax assets as of December 31, 2015 and December 31, 2014 that arose directly from tax deductions related to equity compensation in excess of compensation recognized for financial reporting. Equity will be increased if and when such deferred tax assets are ultimately realized. The Company uses the ordering rules prescribed by recent accounting guidance to determine when the stock compensation excess tax benefits have been realized. If actual future tax deductions are less than the amount recognized for financial reporting, the tax-effect of the difference may result in an increase to income tax expense.

The Company’s loss carry forwards expire in future years through 2035 and are subject to examination by the tax authorities up to three years after the carry forwards are utilized. The U.S. net operating tax loss carry forwards available for federal income tax purposes expire as follows (dollars in millions):

Expiring December 31,
Amount
2023
$
239

2024
1,456

2025
1,267

2026
1,254

2027
1,644

2028
477

2029
694

2030
663

2031
833

2032
729

2033
172

2034
395

2035
3

 
$
9,826

Uncertain tax benefits 
A reconciliation of the beginning and ending balance of unrecognized income tax benefits follows (dollars in millions):

 
Amount
Balance as of January 1, 2013
$
18

Gross increases - tax positions of prior years
—

Gross increases - tax positions during 2013
1

Gross decreases - lapse of statute of limitations
(6
)
Gross decreases - settlement with taxing authorities
—

Balance as of December 31, 2013
13

Tax positions of prior years netted against deferred tax assets
5

Gross increases - tax positions of prior years
1

Gross increases - tax positions during 2014
—

Gross decreases - lapse of statute of limitations
(2
)
Gross decreases - settlement with taxing authorities
—

Balance as of December 31, 2014
17

Tax positions of prior years netted against deferred tax assets
(2
)
Gross increases - tax positions of prior years
3

Gross increases - tax positions during 2015
2

Gross decreases - lapse of statute of limitations
(2
)
Gross decreases - settlement with taxing authorities
—

Balance as of December 31, 2015
$
18

Segment Information (Tables)
Reconciliation of Revenue from Segments to Consolidated [Table Text Block] 
The following table presents revenue by segment for each of the years ended December 31,

(dollars in millions)
 
2015
 
2014
 
2013
Core Network Services Revenue:
 
 
 
 
 
 
North America
 
$
6,208

 
$
4,525

 
$
3,949

EMEA
 
835

 
891

 
888

Latin America
 
714

 
779

 
754

Total Core Network Services Revenue
 
$
7,757

 
$
6,195

 
$
5,591

 
 
 
 
 
 
 
Wholesale Voice Services Revenue:
 
 
 
 
 
 
North America
 
$
446

 
$
530

 
$
681

EMEA
 
14

 
19

 
31

Latin America
 
12

 
33

 
10

Total Wholesale Voice Services Revenue
 
$
472

 
$
582

 
$
722

 
 
 
 
 
 
 
Total Consolidated Revenue
 
$
8,229

 
$
6,777

 
$
6,313

Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Table Text Block] 
The following table presents Adjusted EBITDA by segment and reconciles Adjusted EBITDA to net income (loss) for each of the years ended December 31,

(dollars in millions)
 
2015
 
2014
 
2013
Adjusted EBITDA:
 
 
 
 
 
 
North America
 
$
3,048

 
$
2,065

 
$
1,799

EMEA
 
235

 
214

 
226

Latin America
 
302

 
348

 
313

Unallocated Corporate Expenses
 
(947
)
 
(732
)
 
(714
)
Consolidated Adjusted EBITDA
 
$
2,638

 
$
1,895

 
$
1,624

Income Tax Benefit (Expense)
 
3,150

 
76

 
(38
)
Total Other Expense
 
(1,048
)
 
(775
)
 
(737
)
Depreciation and Amortization
 
(1,166
)
 
(808
)
 
(800
)
Non-Cash Stock Compensation
 
(141
)
 
(73
)
 
(151
)
Non-Cash Impairment
 
—

 
(1
)
 
(7
)
Total Consolidated Net Income (Loss)
 
$
3,433

 
$
314


$
(109
)
Summary of segment information 
The following table presents capital expenditures by segment and reconciles capital expenditures to consolidated capital expenditures for each of the years ended December 31:

(dollars in millions)
 
2015
 
2014
 
2013
Capital Expenditures:
 
 
 
 
 
 
North America
 
$
752

 
$
495

 
$
398

EMEA
 
158

 
117

 
128

Latin America
 
155

 
153

 
134

Unallocated Corporate Capital Expenditures
 
164

 
145

 
100

Consolidated Capital Expenditures
 
$
1,229

 
$
910

 
$
760

Reconciliation of Assets from Segment to Consolidated [Table Text Block] 
The following table presents total assets by segment:

 
 
As of December 31,
(dollars in millions)
 
2015
 
2014
Assets:
 
 
 
 
North America
 
$
19,961

 
$
16,242

EMEA
 
1,796

 
1,970

Latin America
 
2,131

 
2,451

Other
 
257

 
284

Total Consolidated Assets
 
$
24,145

 
$
20,947

Commitments, Contingencies and Other Items (Tables)
Schedule of Operating Leases, Future Minimum Payments Due and Unrecorded Unconditional Purchase Obligation 
Future minimum payments for the next five years and thereafter under network and related right-of-way agreements and non-cancelable operating leases for facilities and other assets consist of the following as of December 31, 2015 (dollars in millions):

 
 
Right-of-Way
Agreements
 
Operating Leases
 
Total
 
Future Minimum Sublease Receipts
2016
 
$
151

 
$
278

 
$
429

 
$
4

2017
 
72

 
245

 
317

 
4

2018
 
69

 
209

 
278

 
3

2019
 
59

 
157

 
216

 
2

2020
 
54

 
123

 
177

 
—

Thereafter
 
295

 
578

 
873

 
—

 
 
$
700

 
$
1,590

 
$
2,290

 
$
13

Schedule of long-term purchase commitments 
The following table summarizes the Company's purchase commitments at December 31, 2015 (dollars in millions):

 
 
Total
 
Less than
1 Year
 
2 - 3
Years
 
4 - 5
Years
 
After 5
Years
Cost of Access Services
 
$
930

 
$
497

 
$
402

 
$
24

 
$
7

Third-Party Maintenance Services
 
222

 
60

 
44

 
38

 
80

 
 
$
1,152

 
$
557

 
$
446

 
$
62

 
$
87

Condensed Consolidating Financial Information (Tables)
Schedule of Condensed Consolidating Statements of Operations 
Condensed Consolidating Statements of Operations
For the year ended December 31, 2015

 
Level 3 Communications, Inc.
 
Level 3 Financing, Inc.
 
Level 3 Communications, LLC
 
Other Non-Guarantor Subsidiaries
 
Eliminations
 
Total
(dollars in millions)
Revenue
$
—

 
$
—

 
$
3,325

 
$
5,077

 
$
(173
)
 
$
8,229

Costs and Expenses:
 
 
 
 
 
 
 
 
 
 
 
Network access costs
—

 
—

 
1,243

 
1,763

 
(173
)
 
2,833

Network related expenses
—

 
—

 
947

 
485

 
—

 
1,432

Depreciation and amortization
—

 
—

 
309

 
857

 
—

 
1,166

Selling, general and administrative expenses
4

 
—

 
1,064

 
399

 
—

 
1,467

Total costs and expenses
4

 
—

 
3,563

 
3,504

 
(173
)
 
6,898

Operating Income (Loss)
(4
)
 
—

 
(238
)
 
1,573

 
—

 
1,331

Other Income (Expense):
 
 
 
 
 
 
 
 
 
 
 
Interest income
—

 
—

 
—

 
1

 
—

 
1

Interest expense
(51
)
 
(574
)
 
(3
)
 
(14
)
 
—

 
(642
)
Interest income (expense) affiliates, net
1,310

 
1,984

 
(3,041
)
 
(253
)
 
—

 
—

Equity in net earnings (losses) of subsidiaries
2,162

 
(1,693
)
 
177

 
—

 
(646
)
 
—

Other, net
(18
)
 
(200
)
 
3

 
(192
)
 
—

 
(407
)
Total other expense
3,403

 
(483
)
 
(2,864
)
 
(458
)
 
(646
)
 
(1,048
)
Income (Loss) before Income Taxes
3,399

 
(483
)
 
(3,102
)
 
1,115

 
(646
)
 
283

Income Tax (Expense) Benefit
34

 
2,645

 
(1
)
 
472

 
—

 
3,150

Net Income (Loss)
3,433

 
2,162

 
(3,103
)
 
1,587

 
(646
)
 
3,433

Other Comprehensive Income (Loss), Net of Income Taxes
(154
)
 
—

 
—

 
154

 
(154
)
 
(154
)
Comprehensive Income (Loss)
$
3,279

 
$
2,162

 
$
(3,103
)
 
$
1,741

 
$
(800
)
 
$
3,279

Condensed Consolidating Statements of Operations
For the year ended December 31, 2014

 
Level 3 Communications, Inc.
 
Level 3 Financing, Inc.
 
Level 3 Communications, LLC
 
Other Non-Guarantor Subsidiaries
 
Eliminations
 
Total
(dollars in millions)
Revenue
$
—

 
$
—

 
$
3,073

 
$
3,918

 
$
(214
)
 
$
6,777

Costs and Expenses:
 
 
 
 
 
 
 
 
 
 
 
Network access costs
—

 
—

 
1,177

 
1,566

 
(214
)
 
2,529

Network related expenses
—

 
—

 
762

 
484

 
—

 
1,246

Depreciation and amortization
—

 
—

 
277

 
531

 
—

 
808

Selling, general and administrative expenses
21

 
2

 
735

 
423

 
—

 
1,181

Total costs and expenses
21

 
2

 
2,951

 
3,004

 
(214
)
 
5,764

Operating Income (Loss)
(21
)
 
(2
)
 
122

 
914

 
—

 
1,013

Other Income (Expense):
 
 
 
 
 
 
 
 
 
 
 
Interest income
—

 
—

 
—

 
1

 
—

 
1

Interest expense
(143
)
 
(492
)
 
(2
)
 
(17
)
 
—

 
(654
)
Interest income (expense) affiliates, net
1,227

 
1,827

 
(2,890
)
 
(164
)
 
—

 
—

Equity in net earnings (losses) of subsidiaries
(710
)
 
(2,047
)
 
663

 
—

 
2,094

 
—

Other, net
(53
)
 
—

 
7

 
(76
)
 
—

 
(122
)
Total other expense
321

 
(712
)
 
(2,222
)
 
(256
)
 
2,094

 
(775
)
Income (Loss) before Income Taxes
300

 
(714
)
 
(2,100
)
 
658

 
2,094

 
238

Income Tax (Expense) Benefit
14

 
4

 
(1
)
 
59

 
—

 
76

Net Income (Loss)
314

 
(710
)
 
(2,101
)
 
717

 
2,094

 
314

Other Comprehensive Income (Loss), Net of Income Taxes
(183
)
 
—

 
—

 
(183
)
 
183

 
(183
)
Comprehensive Income (Loss)
$
131

 
$
(710
)
 
$
(2,101
)
 
$
534

 
$
2,277

 
$
131

Condensed Consolidating Statements of Operations
For the year ended December 31, 2013

 
Level 3 Communications, Inc.
 
Level 3 Financing, Inc.
 
Level 3 Communications, LLC
 
Other Non-Guarantor Subsidiaries
 
Eliminations
 
Total
(dollars in millions)
Revenue
$
—

 
$
—

 
$
2,825

 
$
3,734

 
$
(246
)
 
$
6,313

Costs and Expenses:
 
 
 
 
 
 
 
 
 
 
 
Network access costs
—

 
—

 
1,068

 
1,649

 
(246
)
 
2,471

Network related expenses
—

 
—

 
753

 
461

 
—

 
1,214

Depreciation and amortization
—

 
—

 
289

 
511

 
—

 
800

Selling, general and administrative expenses
3

 
1

 
791

 
367

 
—

 
1,162

Total costs and expenses
3

 
1

 
2,901

 
2,988

 
(246
)
 
5,647

Operating Income (Loss)
(3
)
 
(1
)
 
(76
)
 
746

 
—

 
666

Other Income (Expense):
 
 
 
 
 
 
 
 
 
 
 
Interest income
—

 
—

 
—

 
—

 
—

 
—

Interest expense
(151
)
 
(497
)
 
(3
)
 
2

 
—

 
(649
)
Interest income (expense) affiliates, net
1,091

 
1,706

 
(2,679
)
 
(118
)
 
—

 
—

Equity in net earnings (losses) of subsidiaries
(1,039
)
 
(2,164
)
 
550

 
—

 
2,653

 
—

Other, net
—

 
(85
)
 
4

 
(7
)
 
—

 
(88
)
Total other expense
(99
)
 
(1,040
)
 
(2,128
)
 
(123
)
 
2,653

 
(737
)
Income (Loss) before Income Taxes
(102
)
 
(1,041
)
 
(2,204
)
 
623

 
2,653

 
(71
)
Income Tax (Expense) Benefit
(7
)
 
2

 
—

 
(33
)
 
—

 
(38
)
Net Income (Loss)
(109
)
 
(1,039
)
 
(2,204
)
 
590

 
2,653

 
(109
)
Other Comprehensive Income (Loss), Net of Income Taxes
10

 
10

 
—

 
10

 
(20
)
 
10

Comprehensive Income (Loss)
$
(99
)
 
$
(1,029
)
 
$
(2,204
)
 
$
600

 
$
2,633

 
$
(99
)


Schedule of Condensed Consolidating Balance Sheets 
Condensed Consolidating Balance Sheets
December 31, 2015

 
Level 3 Communications, Inc.
 
Level 3 Financing, Inc.
 
Level 3 Communications, LLC
 
Other Non-Guarantor Subsidiaries
 
Eliminations
 
Total
(dollars in millions)
Assets
 
 
 
 
 
 
 
 
 
 
 
Current Assets:
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
12

 
$
6

 
$
727

 
$
109

 
$
—

 
$
854

Restricted cash and securities
—

 
—

 
1

 
7

 
—

 
8

Receivables, less allowances for doubtful accounts
—

 
—

 
47

 
710

 
—

 
757

Due from affiliates
12,415

 
22,759

 
—

 
2,816

 
(37,990
)
 
—

Other
1

 
18

 
56

 
55

 
—

 
130

Total Current Assets
12,428

 
22,783

 
831

 
3,697

 
(37,990
)
 
1,749

Property, Plant, and Equipment, net
—

 
—

 
3,423

 
6,455

 
—

 
9,878

Restricted Cash and Securities
27

 
—

 
14

 
1

 
—

 
42

Goodwill and Other Intangibles, net
—

 
—

 
363

 
8,513

 
—

 
8,876

Investment in Subsidiaries
16,772

 
17,714

 
3,734

 
—

 
(38,220
)
 
—

Deferred Tax Assets
38

 
2,847

 
—

 
556

 
—

 
3,441

Other Assets, net
8

 
100

 
12

 
39

 
—

 
159

Total Assets
$
29,273

 
$
43,444

 
$
8,377

 
$
19,261

 
$
(76,210
)
 
$
24,145

 
 
 
 
 
 
 
 
 
 
 
 
Liabilities and Stockholders' Equity (Deficit)
 
 
 
 
 
 
 
 
 
 
 
Current Liabilities:
 
 
 
 
 
 
 
 
 
 
 
Accounts payable
$
—

 
$
1

 
$
195

 
$
433

 
$
—

 
$
629

Current portion of long-term debt
—

 
—

 
2

 
13

 
—

 
15

Accrued payroll and employee benefits
—

 
—

 
186

 
32

 
—

 
218

Accrued interest
11

 
90

 
—

 
7

 
—

 
108

Current portion of deferred revenue
—

 
—

 
119

 
148

 
—

 
267

Due to affiliates
—

 
—

 
37,990

 
—

 
(37,990
)
 
—

Other
—

 
—

 
115

 
64

 
—

 
179

Total Current Liabilities
11

 
91

 
38,607

 
697

 
(37,990
)
 
1,416

Long-Term Debt, less current portion
600

 
10,210

 
15

 
169

 
—

 
10,994

Deferred Revenue, less current portion
—

 
—

 
680

 
297

 
—

 
977

Other Liabilities
15

 
—

 
133

 
484

 
—

 
632

Commitments and Contingencies
 
 
 
 
 
 
 
 
 
 
 
Stockholders' Equity (Deficit)
28,647

 
33,143

 
(31,058
)
 
17,614

 
(38,220
)
 
10,126

Total Liabilities and Stockholders' Equity (Deficit)
$
29,273

 
$
43,444

 
$
8,377

 
$
19,261

 
$
(76,210
)
 
$
24,145

Condensed Consolidating Balance Sheets
December 31, 2014

 
Level 3 Communications, Inc.
 
Level 3 Financing, Inc.
 
Level 3 Communications, LLC
 
Other Non-Guarantor Subsidiaries
 
Eliminations
 
Total
(dollars in millions)
Assets
 
 
 
 
 
 
 
 
 
 
 
Current Assets:
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
7

 
$
5

 
$
307

 
$
261

 
$
—

 
$
580

Restricted cash and securities
—

 
—

 
1

 
6

 
—

 
7

Receivables, less allowances for doubtful accounts
—

 
—

 
34

 
703

 
—

 
737

Due from affiliates
14,522

 
21,270

 
—

 
—

 
(35,792
)
 
—

Other
2

 
21

 
45

 
89

 
—

 
157

Total Current Assets
14,531

 
21,296

 
387

 
1,059

 
(35,792
)
 
1,481

Property, Plant, and Equipment, net
—

 
—

 
3,152

 
6,708

 
—

 
9,860

Restricted Cash and Securities
3

 
—

 
16

 
1

 
—

 
20

Goodwill and Other Intangibles, net
—

 
—

 
373

 
8,730

 
—

 
9,103

Investment in Subsidiaries
16,686

 
14,777

 
3,729

 
—

 
(35,192
)
 
—

Deferred Tax Assets
—

 
—

 
—

 
300

 
—

 
300

Other Assets, net
28

 
129

 
9

 
17

 
—

 
183

Total Assets
$
31,248

 
$
36,202

 
$
7,666

 
$
16,815

 
$
(70,984
)
 
$
20,947

 
 
 
 
 
 
 
 
 
 
 
 
Liabilities and Stockholders' Equity (Deficit)
 
 
 
 
 
 
 
 
 
 
 
Current Liabilities:
 
 
 
 
 
 
 
 
 
 
 
Accounts payable
$
—

 
$
—

 
$
215

 
$
449

 
$
—

 
$
664

Current portion of long-term debt
333

 
—

 
3

 
13

 
—

 
349

Accrued payroll and employee benefits
—

 
—

 
174

 
99

 
—

 
273

Accrued interest
12

 
158

 
—

 
4

 
—

 
174

Current portion of deferred revenue
—

 
—

 
118

 
169

 
—

 
287

Due to affiliates
—

 
—

 
34,401

 
1,391

 
(35,792
)
 
—

Other
—

 
2

 
62

 
95

 
—

 
159

Total Current Liabilities
345

 
160

 
34,973

 
2,220

 
(35,792
)
 
1,906

Long-Term Debt, less current portion
900

 
9,893

 
16

 
175

 
—

 
10,984

Deferred Revenue, less current portion
—

 
—

 
617

 
304

 
—

 
921

Other Liabilities
16

 
24

 
125

 
608

 
—

 
773

Commitments and Contingencies
 
 
 
 
 
 
 
 
 
 
 
Stockholders' Equity (Deficit)
29,987

 
26,125

 
(28,065
)
 
13,508

 
(35,192
)
 
6,363

Total Liabilities and Stockholders' Equity (Deficit)
$
31,248

 
$
36,202

 
$
7,666

 
$
16,815

 
$
(70,984
)
 
$
20,947

Schedule of Condensed Consolidating Statements of Cash Flows 
Condensed Consolidating Statements of Cash Flows
For the year ended December 31, 2015

 
Level 3 Communications, Inc.
 
Level 3 Financing, Inc.
 
Level 3 Communications, LLC
 
Other Non-Guarantor Subsidiaries
 
Eliminations
 
Total
(dollars in millions)
Net Cash Provided by (Used in) Operating Activities
$
(40
)
 
$
(617
)
 
$
193

 
$
2,319

 
$
—

 
$
1,855

Cash Flows from Investing Activities:
 
 
 
 
 
 
 
 
 
 
 
Capital expenditures
—

 
—

 
(453
)
 
(776
)
 
—

 
(1,229
)
Cash related to deconsolidated Venezuela operations
—

 
—

 
—

 
(83
)
 
—

 
(83
)
Change in restricted cash and securities, net
(25
)
 
—

 
3

 
—

 
—

 
(22
)
Proceeds from sale of property, plant and equipment and other assets
—

 
—

 
—

 
4

 
—

 
4

Other
—

 
—

 
(14
)
 
—

 
—

 
(14
)
Net Cash Provided by (Used in) Investing Activities
(25
)
 
—

 
(464
)
 
(855
)
 
—

 
(1,344
)
Cash Flows from Financing Activities:
 
 
 
 
 
 
 
 
 
 
 
Long-term debt borrowings, net of issuance costs
—

 
4,832

 
—

 
—

 
—

 
4,832

Payments on and repurchases of long-term debt, including current portion and refinancing costs
(313
)
 
(4,725
)
 
(2
)
 
(11
)
 
—

 
(5,051
)
Increase (decrease) due from/to affiliates, net
383

 
511

 
693

 
(1,587
)
 
—

 
—

Net Cash Provided by (Used in) Financing Activities
70

 
618

 
691

 
(1,598
)
 
—

 
(219
)
Effect of Exchange Rates on Cash and Cash Equivalents
—

 
—

 
—

 
(18
)
 
—

 
(18
)
Net Change in Cash and Cash Equivalents
5

 
1

 
420

 
(152
)
 
—

 
274

Cash and Cash Equivalents at Beginning of Year
7

 
5

 
307

 
261

 
—

 
580

Cash and Cash Equivalents at End of Year
$
12

 
$
6

 
$
727

 
$
109

 
$
—

 
$
854


Condensed Consolidating Statements of Cash Flows
For the year ended December 31, 2014

 
Level 3 Communications, Inc.
 
Level 3 Financing, Inc.
 
Level 3 Communications, LLC
 
Other Non-Guarantor Subsidiaries
 
Eliminations
 
Total
(dollars in millions)
Net Cash Provided by (Used in) Operating Activities
$
(178
)
 
$
(458
)
 
$
625

 
$
1,172

 
$
—

 
$
1,161

Cash Flows from Investing Activities:
 
 
 
 
 
 
 
 
 
 
 
Capital expenditures
—

 
—

 
(362
)
 
(548
)
 
—

 
(910
)
Change in restricted cash and securities, net
—

 
—

 
2

 
(12
)
 
—

 
(10
)
Proceeds from sale of property, plant and equipment and other assets
—

 
—

 
—

 
3

 
—

 
3

Investment in tw telecom, net of cash acquired
(474
)
 
—

 
—

 
307

 
—

 
(167
)
Other
—

 
—

 
—

 
(2
)
 
—

 
(2
)
Net Cash Provided by (Used in) Investing Activities
(474
)
 
—

 
(360
)
 
(252
)
 
—

 
(1,086
)
Cash Flows from Financing Activities:
 
 
 
 
 
 
 
 
 
 
 
Long-term debt borrowings, net of issuance costs
590

 
—

 
—

 
(1
)
 
—

 
589

Payments on and repurchases of long-term debt, including current portion and refinancing costs
(647
)
 
—

 
—

 
(24
)
 
—

 
(671
)
Increase (decrease) due from/to affiliates, net
708

 
457

 
(305
)
 
(860
)
 
—

 
—

Net Cash Provided by (Used in) Financing Activities
651

 
457

 
(305
)
 
(885
)
 
—

 
(82
)
Effect of Exchange Rates on Cash and Cash Equivalents
—

 
—

 
—

 
(44
)
 
—

 
(44
)
Net Change in Cash and Cash Equivalents
(1
)
 
(1
)
 
(40
)
 
(9
)
 
—

 
(51
)
Cash and Cash Equivalents at Beginning of Year
8

 
6

 
347

 
270

 
—

 
631

Cash and Cash Equivalents at End of Year
$
7

 
$
5

 
$
307

 
$
261

 
$
—

 
$
580

Condensed Consolidating Statements of Cash Flows
For the year ended December 31, 2013

 
Level 3 Communications, Inc.
 
Level 3 Financing, Inc.
 
Level 3 Communications, LLC
 
Other Non-Guarantor Subsidiaries
 
Eliminations
 
Total
(dollars in millions)
Net Cash Provided by (Used in) Operating Activities
$
(169
)
 
$
(557
)
 
$
710

 
$
729

 
$
—

 
$
713

Cash Flows from Investing Activities:
 
 
 
 
 
 
 
 
 
 
 
Capital expenditures
—

 
—

 
(312
)
 
(448
)
 
—

 
(760
)
Change in restricted cash and securities, net
9

 
—

 
(1
)
 
5

 
—

 
13

Other
—

 
—

 
1

 
1

 
—

 
2

Net Cash Provided by (Used in) Investing Activities
9

 
—

 
(312
)
 
(442
)
 
—

 
(745
)
Cash Flows from Financing Activities:
 
 
 
 
 
 
 
 
 
 
 
Long-term debt borrowings, net of issuance costs
—

 
1,502

 
—

 
—

 
—

 
1,502

Payments on and repurchases of long-term debt, including current portion and refinancing costs
(173
)
 
(1,586
)
 
(4
)
 
(33
)
 
—

 
(1,796
)
Increase (decrease) due from affiliates, net
88

 
642

 
(433
)
 
(297
)
 
—

 
—

Net Cash Provided by (Used in) Financing Activities
(85
)
 
558

 
(437
)
 
(330
)
 
—

 
(294
)
Effect of Exchange Rates on Cash and Cash Equivalents
—

 
—

 
—

 
(22
)
 
—

 
(22
)
Net Change in Cash and Cash Equivalents
(245
)
 
1

 
(39
)
 
(65
)
 
—

 
(348
)
Cash and Cash Equivalents at Beginning of Year
253

 
5

 
386

 
335

 
—

 
979

Cash and Cash Equivalents at End of Year
$
8

 
$
6

 
$
347

 
$
270

 
$
—

 
$
631

Unaudited Quarterly Financial Data (Tables)
Unaudited Quarterly Financial Data
 
 
Three Months Ended
 
 
March 31,
 
June 30,
 
September 30,
 
December 31,
 
 
2015
 
2014
 
2015
 
2014
 
2015
 
2014
 
2015
 
2014
 
 
 
 
 
 
 
 
 
 
 
 
 
(dollars in millions except per share data)
Revenue
 
$
2,053

 
$
1,609

 
$
2,061

 
$
1,625

 
$
2,062

 
$
1,629

 
$
2,053

 
$
1,914

Costs and Expenses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Network Access Costs
 
723

 
614

 
696

 
613

 
706

 
607

 
708

 
695

Network Related Expenses
 
356

 
292

 
363

 
302

 
369

 
307

 
344

 
345

Depreciation and Amortization
 
288

 
184

 
288

 
187

 
296

 
187

 
294

 
250

Selling, General and Administrative Expenses
 
370

 
255

 
364

 
267

 
364

 
266

 
369

 
393

Total Costs and Expenses
 
1,737

 
1,345

 
1,711

 
1,369

 
1,735

 
1,367

 
1,715

 
1,683

Operating Income
 
316

 
264

 
350

 
256

 
327

 
262

 
338

 
231

Other Income (Expense):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest Income
 
1

 
—

 
—

 
—

 
—

 
1

 
—

 
—

Interest Expense
 
(180
)
 
(151
)
 
(165
)
 
(149
)
 
(145
)
 
(159
)
 
(152
)
 
(195
)
Loss on Modification and Extinguishment of Debt
 
—

 
—

 
(163
)
 
—

 
—

 
—

 
(55
)
 
(53
)
Venezuela Deconsolidation Charge
 
—

 
—

 
—

 
—

 
(171
)
 
—

 
—

 
—

Other, net
 
(10
)
 
6

 
(17
)
 
(44
)
 
6

 
(11
)
 
3

 
(20
)
Total Other Expense
 
(189
)
 
(145
)
 
(345
)
 
(193
)
 
(310
)
 
(169
)
 
(204
)
 
(268
)
Income (Loss) Before Income Taxes
 
127

 
119

 
5

 
63

 
17

 
93

 
134

 
(37
)
Income Tax (Expense) Benefit
 
(5
)
 
(7
)
 
(18
)
 
(12
)
 
(16
)
 
(8
)
 
3,189

 
103

Net Income (Loss)
 
$
122

 
$
112

 
$
(13
)
 
$
51

 
$
1

 
$
85

 
$
3,323

 
$
66

Net Income (Loss) Per Share - Basic
 
$
0.35

 
$
0.48

 
$
(0.04
)
 
$
0.21

 
$
—

 
$
0.36

 
$
9.33

 
$
0.22

Net Income (Loss) Per Share - Diluted
 
$
0.35

 
$
0.47

 
$
(0.04
)
 
$
0.21

 
$
—

 
$
0.35

 
$
9.24

 
$
0.21

Organization and Summary of Significant Accounting Policies (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2015
Sep. 30, 2015
Jun. 30, 2015
Mar. 31, 2015
Dec. 31, 2014
Sep. 30, 2014
Jun. 30, 2014
Mar. 31, 2014
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Jan. 1, 2014
Description of Business
 
 
 
 
 
 
 
 
 
 
 
 
Venezuela deconsolidation charge
$ 0 
$ (171)
$ 0 
$ 0 
$ 0 
$ 0 
$ 0 
$ 0 
$ (171)
$ 0 
$ 0 
 
intercompany receivables write-off
 
40 
 
 
 
 
 
 
 
 
 
 
Deferred Tax Assets, Net, Current
 
 
 
 
8 
 
 
 
 
8 
 
 
Business Acquisition, Effective Date of Acquisition
 
 
 
 
Oct. 31, 2014 
 
 
 
Oct. 31, 2014 
 
 
 
IP Equipment
 
 
 
 
 
 
 
 
 
 
 
222 
New Accounting Pronouncement or Change in Accounting Principle, Effect of Change on Net Income
 
 
 
 
 
 
 
 
 
90 
 
 
Period company may receive up front payments for services to be provided in the future (in years)
 
 
 
 
 
 
 
 
25 
 
 
 
USF contributions
 
 
 
 
 
 
 
 
323 
234 
194 
 
Bad debt expense
 
 
 
 
 
 
 
 
23 
22 
17 
 
Net Income (Loss)
3,323 
1 
(13)
122 
66 
85 
51 
112 
3,433 
314 
(109)
 
Impairment of Intangible Assets (Excluding Goodwill)
 
 
 
 
 
 
 
 
17 
 
 
 
New Accounting Pronouncement or Change in Accounting Principle, Effect of Change on Basic Earnings Per Share
 
 
 
 
 
 
 
 
 
$ 0.35 
 
 
Network Access Costs
708 
706 
696 
723 
695 
607 
613 
614 
2,833 
2,529 
2,471 
 
Network Related Expenses
344 
369 
363 
356 
345 
307 
302 
292 
1,432 
1,246 
1,214 
 
Selling, General and Administrative Expenses
369 
364 
364 
370 
393 
266 
267 
255 
1,467 
1,181 
1,162 
 
Total Costs and Expenses
1,715 
1,735 
1,711 
1,737 
1,683 
1,367 
1,369 
1,345 
6,898 
5,764 
5,647 
 
Racks and Cabinets
 
 
 
 
 
 
 
 
 
 
 
114 
Facility Equipment
 
 
 
 
 
 
 
 
 
 
 
151 
Fixtures and Equipment, Gross
 
 
 
 
 
 
 
 
 
 
 
487 
New Accounting Pronouncement or Change in Accounting Principle, Effect of Change on Diluted Earnings Per Share
 
 
 
 
 
 
 
 
 
$ 0.35 
 
 
Debt Instrument, Unamortized Debt Issuance Costs
128 
 
 
 
145 
 
 
 
128 
145 
 
 
Deferred Finance Costs, Current, Net
19 
 
 
 
 
 
 
 
19 
 
 
 
Deferred Tax Liabilities, Net, Current
 
 
 
 
8 
 
 
 
 
8 
 
 
Cash Divested from Deconsolidation
 
83 
 
 
 
 
 
 
83 
0 
0 
 
Foreign Currency Exchange Rate, Translation
 
13.5 
 
 
 
 
6.3 
 
 
 
 
 
Capitalized labor and related costs associated with employee and contract labor working on capital projects
 
 
 
 
 
 
 
 
$ 244 
$ 187 
$ 164 
 
Sales Revenue |
Customer Concentration Risk
 
 
 
 
 
 
 
 
 
 
 
 
Description of Business
 
 
 
 
 
 
 
 
 
 
 
 
Percentage of communications revenue from top ten customers
 
 
 
 
 
 
 
 
16.00% 
17.00% 
17.00% 
 
IP Equipment [Member]
 
 
 
 
 
 
 
 
 
 
 
 
Description of Business
 
 
 
 
 
 
 
 
 
 
 
 
Property, plant and equipment, useful life, minimum (in years)
 
 
 
 
 
 
 
 
7 years 
 
4 years 
 
racks and cabinets [Member]
 
 
 
 
 
 
 
 
 
 
 
 
Description of Business
 
 
 
 
 
 
 
 
 
 
 
 
Property, plant and equipment, useful life, minimum (in years)
 
 
 
 
 
 
 
 
15 years 
 
7 years 
 
Office Equipment [Member]
 
 
 
 
 
 
 
 
 
 
 
 
Description of Business
 
 
 
 
 
 
 
 
 
 
 
 
Property, plant and equipment, useful life, minimum (in years)
 
 
 
 
 
 
 
 
15 years 
 
10 years 
 
Minimum [Member]
 
 
 
 
 
 
 
 
 
 
 
 
Description of Business
 
 
 
 
 
 
 
 
 
 
 
 
Finite-lived intangible assets, useful life, minimum (in years)
 
 
 
 
 
 
 
 
2 years 
 
 
 
Minimum [Member] |
Facility and Leasehold Improvements
 
 
 
 
 
 
 
 
 
 
 
 
Description of Business
 
 
 
 
 
 
 
 
 
 
 
 
Property, plant and equipment, useful life, minimum (in years)
 
 
 
 
 
 
 
 
15 years 
 
 
 
Minimum [Member] |
Network infrastructure (including fiber and conduit)
 
 
 
 
 
 
 
 
 
 
 
 
Description of Business
 
 
 
 
 
 
 
 
 
 
 
 
Property, plant and equipment, useful life, minimum (in years)
 
 
 
 
 
 
 
 
25 years 
 
 
 
Minimum [Member] |
Operating Equipment
 
 
 
 
 
 
 
 
 
 
 
 
Description of Business
 
 
 
 
 
 
 
 
 
 
 
 
Property, plant and equipment, useful life, minimum (in years)
 
 
 
 
 
 
 
 
5 years 
 
 
 
Minimum [Member] |
Expansion and improvements of communications network and customer installations
 
 
 
 
 
 
 
 
 
 
 
 
Description of Business
 
 
 
 
 
 
 
 
 
 
 
 
Property, plant and equipment, useful life, minimum (in years)
 
 
 
 
 
 
 
 
3 years 
 
 
 
Minimum [Member] |
Office Equipment [Member]
 
 
 
 
 
 
 
 
 
 
 
 
Description of Business
 
 
 
 
 
 
 
 
 
 
 
 
Property, plant and equipment, useful life, minimum (in years)
 
 
 
 
 
 
 
 
3 years 
 
 
 
Maximum
 
 
 
 
 
 
 
 
 
 
 
 
Description of Business
 
 
 
 
 
 
 
 
 
 
 
 
Finite-lived intangible assets, useful life, minimum (in years)
 
 
 
 
 
 
 
 
12 years 
 
 
 
Maximum |
Facility and Leasehold Improvements
 
 
 
 
 
 
 
 
 
 
 
 
Description of Business
 
 
 
 
 
 
 
 
 
 
 
 
Property, plant and equipment, useful life, minimum (in years)
 
 
 
 
 
 
 
 
40 years 
 
 
 
Maximum |
Network infrastructure (including fiber and conduit)
 
 
 
 
 
 
 
 
 
 
 
 
Description of Business
 
 
 
 
 
 
 
 
 
 
 
 
Property, plant and equipment, useful life, minimum (in years)
 
 
 
 
 
 
 
 
50 years 
 
 
 
Maximum |
Operating Equipment
 
 
 
 
 
 
 
 
 
 
 
 
Description of Business
 
 
 
 
 
 
 
 
 
 
 
 
Property, plant and equipment, useful life, minimum (in years)
 
 
 
 
 
 
 
 
15 years 
 
 
 
Maximum |
Expansion and improvements of communications network and customer installations
 
 
 
 
 
 
 
 
 
 
 
 
Description of Business
 
 
 
 
 
 
 
 
 
 
 
 
Property, plant and equipment, useful life, minimum (in years)
 
 
 
 
 
 
 
 
7 years 
 
 
 
Maximum |
Software development
 
 
 
 
 
 
 
 
 
 
 
 
Description of Business
 
 
 
 
 
 
 
 
 
 
 
 
Property, plant and equipment, useful life, minimum (in years)
 
 
 
 
 
 
 
 
3 years 
 
 
 
Maximum |
Office Equipment [Member]
 
 
 
 
 
 
 
 
 
 
 
 
Description of Business
 
 
 
 
 
 
 
 
 
 
 
 
Property, plant and equipment, useful life, minimum (in years)
 
 
 
 
 
 
 
 
7 years 
 
 
 
Events Associated with the Merger of tw telecom inc. (Details) (USD $)
3 Months Ended 12 Months Ended 12 Months Ended
Dec. 31, 2015
Sep. 30, 2015
Jun. 30, 2015
Mar. 31, 2015
Dec. 31, 2014
Sep. 30, 2014
Jun. 30, 2014
Mar. 31, 2014
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Oct. 31, 2014
Oct. 30, 2014
Dec. 31, 2015
TrancheB2022TermLoanTotal [Member]
Dec. 31, 2015
Senior Notes due 2019 (8.125%)
Dec. 31, 2014
Senior Notes due 2019 (8.125%)
Dec. 31, 2015
Senior Notes 5.375percent Due 2022 [Member]
Aug. 12, 2014
Senior Notes 5.375percent Due 2022 [Member]
Dec. 31, 2015
Guarantor Subsidiaries [Member]
Dec. 31, 2014
Guarantor Subsidiaries [Member]
Dec. 31, 2013
Guarantor Subsidiaries [Member]
Dec. 31, 2015
Guarantor Subsidiaries [Member]
TrancheB2022TermLoanTotal [Member]
Acquisition
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Acquisition, Effective Date of Acquisition
 
 
 
 
Oct. 31, 2014 
 
 
 
Oct. 31, 2014 
 
 
 
 
 
 
 
 
 
 
 
 
 
Stock consideration per share
 
 
 
 
0.7 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
business acquisition, cash consideration per share
 
 
 
 
$ 10 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term Debt, Gross
11,025,000,000 
 
 
 
11,366,000,000 
 
 
 
11,025,000,000 
11,366,000,000 
 
 
 
2,000,000,000 
0 
1,200,000,000 
 
 
 
 
 
2,000,000,000 
Debt Instrument, Face Amount
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1,000,000,000 
1,000,000,000 
 
 
 
 
Revenue
2,053,000,000 
2,062,000,000 
2,061,000,000 
2,053,000,000 
1,914,000,000 
1,629,000,000 
1,625,000,000 
1,609,000,000 
8,229,000,000 
6,777,000,000 
6,313,000,000 
 
 
 
 
 
 
 
0 
0 
0 
 
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Other Noncurrent Assets
 
 
 
 
 
 
 
 
 
 
 
140,000,000 
 
 
 
 
 
 
 
 
 
 
Debt instrument, stated interest rate (as a percent)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
8.125% 
 
5.375% 
 
 
 
 
 
Common Stock, Shares Authorized
433,333,333 
 
 
 
433,333,333 
 
 
 
433,333,333 
433,333,333 
 
 
433,333,333 
 
 
 
 
 
 
 
 
 
Shares issued in Amalgamation transaction (in shares)
 
 
 
 
96,900,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Acquisition, Debt Assumed
 
 
 
 
 
 
 
 
 
 
 
1,793,000,000 
 
 
 
 
 
 
 
 
 
 
Estimated total Amalgamation transaction consideration
 
 
 
 
 
 
 
 
 
 
 
6,011,000,000 
 
 
 
 
 
 
 
 
 
 
Final Purchase Price Allocation [Abstract]
 
 
 
 
 
 
 
 
Text Block 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents
 
 
 
 
 
 
 
 
 
 
 
309,000,000 
 
 
 
 
 
 
 
 
 
 
Business Acquisition, Purchase Price Allocation, Property and Equipment
 
 
 
 
 
 
 
 
 
 
 
1,553,000,000 
 
 
 
 
 
 
 
 
 
 
Business Acquisition, Purchase Price Allocation, Goodwill
7,749,000,000 
 
 
 
7,689,000,000 
 
 
 
7,749,000,000 
7,689,000,000 
2,577,000,000 
5,181,000,000 
 
 
 
 
 
 
 
 
 
 
Business Acquisition, Purchase Price Allocation, Intangible Assets not Goodwill
 
 
 
 
 
 
 
 
 
 
 
1,263,000,000 
 
 
 
 
 
 
 
 
 
 
Business Acquisition, Purchase Price Allocation, Other Assets Acquired
 
 
 
 
 
 
 
 
 
 
 
8,446,000,000 
 
 
 
 
 
 
 
 
 
 
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Long-term Debt
 
 
 
 
 
 
 
 
 
 
 
(2,099,000,000)
 
 
 
 
 
 
 
 
 
 
Business Acquisition, Purchase Price Allocation, Noncurrent Liabilities, Deferred Revenue
 
 
 
 
 
 
 
 
 
 
 
(57,000,000)
 
 
 
 
 
 
 
 
 
 
Business Acquisition, Purchase Price Allocation, Other Liabilities Assumed
 
 
 
 
 
 
 
 
 
 
 
(279,000,000)
 
 
 
 
 
 
 
 
 
 
Business Acquisition, Purchase Price Allocation, Total Liabilities Assumed
 
 
 
 
 
 
 
 
 
 
 
2,435,000,000 
 
 
 
 
 
 
 
 
 
 
business combination debt premiums incurred
 
 
 
 
 
 
 
 
154,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Capital Lease Obligation
 
 
 
 
 
 
 
 
 
 
 
152,000,000 
 
 
 
 
 
 
 
 
 
 
Business Acquisition, Share Price
 
 
 
 
 
 
 
 
 
 
 
$ 46.91 
 
 
 
 
 
 
 
 
 
 
Business Combination, Consideration Transferred
 
 
 
 
8,100,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pro Forma Financial Information [Abstract]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Revenue
 
 
 
 
 
 
 
 
8,123,000,000 
7,825,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
Net Loss
 
 
 
 
 
 
 
 
149,000,000 
(153,000,000)
 
 
 
 
 
 
 
 
 
 
 
 
Net Loss per share (in dollars per share)
 
 
 
 
 
 
 
 
$ 0.44 
$ (0.48)
 
 
 
 
 
 
 
 
 
 
 
 
Business Combination, Integration Related Costs
 
 
 
 
70,000,000 
 
 
 
113,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Acquisition, Pro Forma Earnings Per Share, Diluted
 
 
 
 
 
 
 
 
$ 0.44 
$ (0.48)
 
 
 
 
 
 
 
 
 
 
 
 
Purchase price allocation adjustment
 
 
 
 
 
 
 
 
$ 60,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Final Purchase Price Allocation [Abstract] 
 
Purchase Price Allocation
 
(dollars in millions)
Assets:
 
Cash, Cash Equivalents and Restricted Cash
$
309

Property, Plant and Equipment
1,553

Goodwill
5,181

Identifiable Intangible Assets
1,263

Other Assets
140

Total Assets
8,446

 
 
Liabilities:
 
Long-Term Debt
(2,099
)
Deferred Revenue
(57
)
Other Liabilities
(279
)
Total Liabilities
(2,435
)
Total Consideration to be Allocated
$
6,011

Earnings Per Share (Details)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Convertible Senior Notes
 
 
Loss per share
 
 
Securities not included in computation of diluted loss per share (in millions of shares)
17 
18 
Stock options, restricted stock units and warrants
 
 
Loss per share
 
 
Securities not included in computation of diluted loss per share (in millions of shares)
 
6 
Property, Plant and Equipment (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Property, Plant and Equipment, Net [Abstract]
 
 
 
Property, Plant and Equipment, Gross
$ 20,243 
$ 19,489 
 
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment
(10,365)
(9,629)
 
Net
9,878 
9,860 
 
Depreciation expense
939 
713 
727 
Land
 
 
 
Property, Plant and Equipment, Net [Abstract]
 
 
 
Property, Plant and Equipment, Gross
180 
192 
 
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment
0 
0 
 
Net
180 
192 
 
Land Improvements
 
 
 
Property, Plant and Equipment, Net [Abstract]
 
 
 
Property, Plant and Equipment, Gross
76 
73 
 
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment
(53)
(50)
 
Net
23 
23 
 
Facility and Leasehold Improvements
 
 
 
Property, Plant and Equipment, Net [Abstract]
 
 
 
Property, Plant and Equipment, Gross
2,582 
2,489 
 
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment
(1,352)
(1,265)
 
Net
1,230 
1,224 
 
Network infrastructure
 
 
 
Property, Plant and Equipment, Net [Abstract]
 
 
 
Property, Plant and Equipment, Gross
8,979 
8,941 
 
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment
(3,669)
(3,447)
 
Net
5,310 
5,494 
 
Operating Equipment
 
 
 
Property, Plant and Equipment, Net [Abstract]
 
 
 
Property, Plant and Equipment, Gross
7,988 
7,217 
 
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment
(5,079)
(4,669)
 
Net
2,909 
2,548 
 
Furniture, Fixtures and Office Equipment
 
 
 
Property, Plant and Equipment, Net [Abstract]
 
 
 
Property, Plant and Equipment, Gross
242 
255 
 
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment
(189)
(177)
 
Net
53 
78 
 
Other
 
 
 
Property, Plant and Equipment, Net [Abstract]
 
 
 
Property, Plant and Equipment, Gross
28 
29 
 
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment
(23)
(21)
 
Net
5 
8 
 
Construction-in-Progress
 
 
 
Property, Plant and Equipment, Net [Abstract]
 
 
 
Property, Plant and Equipment, Gross
168 
293 
 
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment
0 
0 
 
Net
$ 168 
$ 293 
 
Asset Retirement Obligations (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2015
Sep. 30, 2015
Jun. 30, 2015
Mar. 31, 2015
Dec. 31, 2014
Sep. 30, 2014
Jun. 30, 2014
Mar. 31, 2014
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Asset Retirement Obligation, Change in Accounting Estimate
 
 
 
 
 
 
 
 
 
 
 
Property, Plant and Equipment, Gross
$ (20,243)
 
 
 
$ (19,489)
 
 
 
$ (20,243)
$ (19,489)
 
Selling, General and Administrative and Depreciation Expense
(1,715)
(1,735)
(1,711)
(1,737)
(1,683)
(1,367)
(1,369)
(1,345)
(6,898)
(5,764)
(5,647)
Selling, General and Administrative Expenses
(369)
(364)
(364)
(370)
(393)
(266)
(267)
(255)
(1,467)
(1,181)
(1,162)
Depreciation and Amortization
(294)
(296)
(288)
(288)
(250)
(187)
(187)
(184)
(1,166)
(808)
(800)
Network Related Expenses
344 
369 
363 
356 
345 
307 
302 
292 
1,432 
1,246 
1,214 
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward]
 
 
 
 
 
 
 
 
 
 
 
Asset retirement obligation, beginning balance
 
 
 
85 
 
 
 
56 
85 
56 
 
Accretion expense
 
 
 
 
 
 
 
 
9 
8 
 
ARO liabilities assumed in acquisition
 
 
 
 
 
 
 
 
0 
22 
 
Liabilities settled
 
 
 
 
 
 
 
 
(8)
(7)
 
Effect of foreign currency rate change
 
 
 
 
 
 
 
 
(1)
(1)
 
Asset retirement obligation, ending balance
$ 90 
 
 
 
$ 85 
 
 
 
$ 90 
$ 85 
$ 56 
Goodwill (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Oct. 31, 2014
Changes in carrying amount of goodwill
 
 
 
Balance at the beginning of the period
$ 7,689 
$ 2,577 
$ 5,181 
Goodwill adjustments
60 
(12)
 
Balance at the end of the period
7,749 
7,689 
5,181 
Goodwill, Acquired During Period
 
$ 5,124 
 
Acquired Intangible Assets (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Finite-Lived Intangible Assets:
 
 
 
Finite-Lived Intangible Assets, Gross Carrying Amount
$ 2,260 
$ 2,320 
 
Finite-Lived Intangible Assets, Accumulated Amortization
(1,148)
(921)
 
Finite-Lived Intangible Assets, Net
1,112 
1,399 
 
Impairment of Intangible Assets (Excluding Goodwill)
17 
 
 
Acquired finite-lived intangible asset amortization expense
227 
95 
73 
Total Acquired Intangible Assets
 
 
 
Total Intangible assets, Gross Carrying Amount
2,275 
2,335 
 
Total intangible assets, Net
1,127 
1,414 
 
Estimated amortization expense of acquired finite-lived intangible asset
 
 
 
2013
212 
 
 
2014
196 
 
 
2015
193 
 
 
2016
181 
 
 
2017
166 
 
 
Thereafter
164 
 
 
Finite-Lived Intangible Assets, Net
1,112 
1,399 
 
Vyvx Trade Name
 
 
 
Indefinite-Lived Intangible Assets:
 
 
 
Indefinite-Lived Intangible Assets, Net
15 
15 
 
Customer Contracts and Relationships
 
 
 
Finite-Lived Intangible Assets:
 
 
 
Finite-Lived Intangible Assets, Gross Carrying Amount
1,975 
1,977 
 
Finite-Lived Intangible Assets, Accumulated Amortization
(932)
(741)
 
Finite-Lived Intangible Assets, Net
1,043 
1,236 
 
Acquired finite-lived intangible assets, amortization period (in years)
5 years 10 months 24 days 
 
 
Estimated amortization expense of acquired finite-lived intangible asset
 
 
 
Finite-Lived Intangible Assets, Net
1,043 
1,236 
 
Trademarks
 
 
 
Finite-Lived Intangible Assets:
 
 
 
Finite-Lived Intangible Assets, Gross Carrying Amount
55 
115 
 
Finite-Lived Intangible Assets, Accumulated Amortization
(55)
(47)
 
Finite-Lived Intangible Assets, Net
0 
68 
 
Estimated amortization expense of acquired finite-lived intangible asset
 
 
 
Finite-Lived Intangible Assets, Net
0 
68 
 
Patents and Developed Technology
 
 
 
Finite-Lived Intangible Assets:
 
 
 
Finite-Lived Intangible Assets, Gross Carrying Amount
230 
228 
 
Finite-Lived Intangible Assets, Accumulated Amortization
(161)
(133)
 
Finite-Lived Intangible Assets, Net
69 
95 
 
Acquired finite-lived intangible assets, amortization period (in years)
3 years 2 months 12 days 
 
 
Estimated amortization expense of acquired finite-lived intangible asset
 
 
 
Finite-Lived Intangible Assets, Net
$ 69 
$ 95 
 
Restructuring Charges (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended 144 Months Ended
Dec. 31, 2015
Employee Separations
Dec. 31, 2014
Employee Separations
Dec. 31, 2013
Employee Separations
Dec. 31, 2015
Facility Closings
Dec. 31, 2014
Facility Closings
Dec. 31, 2013
Facility Closings
Dec. 31, 2015
Network Related Expenses [Member]
Employee Separations
Dec. 31, 2014
Network Related Expenses [Member]
Employee Separations
Dec. 31, 2013
Network Related Expenses [Member]
Employee Separations
Dec. 31, 2015
General and Administrative Expense [Member]
Employee Separations
Dec. 31, 2014
General and Administrative Expense [Member]
Employee Separations
Dec. 31, 2013
General and Administrative Expense [Member]
Employee Separations
Dec. 31, 2025
Subsequent Event [Member]
Restructuring charge and reserve
 
 
 
 
 
 
 
 
 
 
 
 
 
Restructuring reserve
$ 4 
$ 37 
 
$ 11 
$ 20 
 
 
 
 
 
 
 
 
Restructuring and Related Activities, Description
 
 
 
 
 
 
 
 
 
 
 
 
2025 
Restructuring charges
24 
45 
47 
 
 
 
8 
11 
12 
16 
34 
35 
 
Benefit (loss) recognized as a result of lease modification
 
 
 
$ 3 
$ 1 
$ 7 
 
 
 
 
 
 
 
Fair Value of Financial Instruments - Liabilities, Recurring (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended 65 Months Ended 12 Months Ended 24 Months Ended 11 Months Ended 12 Months Ended
Dec. 31, 2015
Fair Value, Measurements, Recurring
Reported Value Measurement [Member]
Dec. 31, 2014
Fair Value, Measurements, Recurring
Reported Value Measurement [Member]
Dec. 31, 2015
Fair Value, Measurements, Recurring
Unadjusted quoted prices in active markets for identical assets or liabilities (Level 1)
Dec. 31, 2014
Fair Value, Measurements, Recurring
Unadjusted quoted prices in active markets for identical assets or liabilities (Level 1)
Dec. 31, 2015
Fair Value, Measurements, Recurring
Significant Other Observable Inputs (Level 2)
Dec. 31, 2014
Fair Value, Measurements, Recurring
Significant Other Observable Inputs (Level 2)
Mar. 31, 2015
Convertible Senior Notes 7 Percent Due 2015 [Member]
Dec. 31, 2014
Convertible Senior Notes 7 Percent Due 2015 [Member]
Dec. 31, 2011
Tranche A Term Loan [Member]
Jul. 31, 2012
Tranche A Term Loan [Member]
Dec. 31, 2011
Tranche B II Term Loan Six Hundred Fifty Million Dollars [Member]
Oct. 4, 2013
Tranche B II Term Loan Six Hundred Fifty Million Dollars [Member]
Sep. 30, 2012
Tranche B III Term Loan Five Hundred Fifty Million Dollars [Member]
Dec. 31, 2011
Tranche B III Term Loan Five Hundred Fifty Million Dollars [Member]
Dec. 31, 2015
Tranche B 2016 Term Loan [Member]
Aug. 1, 2013
Tranche B 2016 Term Loan [Member]
Dec. 31, 2015
Tranche B 2019 Term Loan [Member]
Aug. 1, 2013
Tranche B 2019 Term Loan [Member]
Dec. 31, 2015
TrancheBII2019TermLoan [Member]
Oct. 4, 2013
TrancheBII2019TermLoan [Member]
Liabilities measured on a recurring basis
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt Instrument, Description of Variable Rate Basis
 
 
 
 
 
 
 
 
LIBOR 
 
LIBOR 
 
 
LIBOR 
LIBOR 
 
LIBOR 
 
LIBOR 
 
Debt Instrument, Basis Spread on Variable Rate
 
 
 
 
 
 
 
 
 
2.25% 
 
4.25% 
4.25% 
 
 
3.25% 
 
3.75% 
 
3.25% 
Long-term Debt, including the current portion:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Term Loans
$ 4,595 
$ 4,590 
$ 4,570 
$ 4,593 
$ 0 
$ 0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Senior Notes
6,215 
6,203 
6,298 
6,481 
0 
0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Convertible Notes
0 
333 
0 
0 
0 
868 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Capital Leases and Other
199 
207 
0 
0 
199 
207 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Long-term Debt, including the current portion:
11,009 
11,333 
10,868 
11,074 
199 
1,075 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt conversion, shares issued upon conversion (in shares)
 
 
 
 
 
 
12 
5 
 
 
 
 
 
 
 
 
 
 
 
 
Debt Conversion, Original Debt, Amount
 
 
 
 
 
 
$ 333 
$ 142 
 
 
 
 
 
 
 
 
 
 
 
 
Debt Instrument, Basis Floor
 
 
 
 
 
 
 
 
 
 
1.50% 
 
 
1.50% 
1.50% 
 
1.50% 
 
1.50% 
 
Fair Value of Financial Instruments - Liabilities, Non Recurring (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended 12 Months Ended 12 Months Ended 11 Months Ended 24 Months Ended 65 Months Ended
Oct. 4, 2013
Tranche B-II 2019 Term Loan
Dec. 31, 2015
Tranche B-II 2019 Term Loan
Aug. 1, 2013
Tranche B 2019 Term Loan
Dec. 31, 2015
Tranche B 2019 Term Loan
Aug. 1, 2013
Tranche B 2016 Term Loan
Dec. 31, 2015
Tranche B 2016 Term Loan
Sep. 30, 2012
Tranche B III Term Loan
Dec. 31, 2011
Tranche B III Term Loan
Oct. 4, 2013
Tranche B II Term Loan
Dec. 31, 2011
Tranche B II Term Loan
Jul. 31, 2012
Tranche A Term Loan
Dec. 31, 2015
Senior Notes 11 Point 875 Percent Due 2019 [Member]
Dec. 31, 2015
Senior Notes due 2019 (8.875%)
Dec. 31, 2015
Fair Value, Measurements, Recurring
Fair Value, Inputs, Level 1 [Member]
Dec. 31, 2014
Fair Value, Measurements, Recurring
Fair Value, Inputs, Level 1 [Member]
Dec. 31, 2015
Fair Value, Measurements, Recurring
Fair Value, Inputs, Level 2 [Member]
Dec. 31, 2014
Fair Value, Measurements, Recurring
Fair Value, Inputs, Level 2 [Member]
Liabilities measured on a recurring basis
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Term Loans
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 4,570 
$ 4,593 
$ 0 
$ 0 
Debt instrument, Interest spread on debt (as percent)
3.25% 
 
3.75% 
 
3.25% 
 
4.25% 
 
4.25% 
 
2.25% 
 
 
 
 
 
 
Debt instrument, basis floor (as percent)
 
1.50% 
 
1.50% 
 
1.50% 
 
1.50% 
 
1.50% 
 
 
 
 
 
 
 
Senior Notes
 
 
 
 
 
 
 
 
 
 
 
 
 
6,298 
6,481 
0 
0 
Convertible Notes
 
 
 
 
 
 
 
 
 
 
 
 
 
0 
0 
0 
868 
Debt instrument, stated interest rate (as a percent)
 
 
 
 
 
 
 
 
 
 
 
11.875% 
8.875% 
 
 
 
 
Fair value of long-term debt
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 10,868 
$ 11,074 
$ 199 
$ 1,075 
Derivative Financial Instruments (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended 1 Months Ended 12 Months Ended 1 Months Ended
Dec. 31, 2013
Interest Rate Swap
Mar. 31, 2007
Parent Company [Member]
Dec. 31, 2015
Parent Company [Member]
Mar. 31, 2007
Parent Company [Member]
Interest Rate Swap, Agreement One
Mar. 31, 2007
Parent Company [Member]
Interest Rate Swap, Agreement Two
Derivative
 
 
 
 
 
Interest rate swaps, number of instruments
 
2 
 
 
 
Interest rate swaps, notional amount
 
$ 1,000 
 
 
$ 500 
Basis of interest payment
 
three month LIBOR 
three month LIBOR 
three month LIBOR 
three month LIBOR 
Gain (Loss) on interest rate swap agreements not designated as hedging instruments
$ (2)
 
 
 
 
Long-Term Debt - Schedule of Long Term Debt (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended 3 Months Ended 3 Months Ended 12 Months Ended 1 Months Ended 12 Months Ended 3 Months Ended 3 Months Ended 12 Months Ended 3 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2015
TrancheBIII2019TermLoan [Member]
Dec. 31, 2014
TrancheBIII2019TermLoan [Member]
Dec. 31, 2015
Senior Notes 5point 125Percent Due 2023 [Member]
Dec. 31, 2014
Senior Notes 5point 125Percent Due 2023 [Member]
Dec. 31, 2015
Senior Notes 5point 375Percent Due 2025 [Member]
Dec. 31, 2014
Senior Notes 5point 375Percent Due 2025 [Member]
Dec. 31, 2015
Senior Notes 5.375 Percent Due 2024 [Member]
Dec. 31, 2014
Senior Notes 5.375 Percent Due 2024 [Member]
Dec. 31, 2015
TrancheB2020TermLoanTotal [Member]
Dec. 31, 2014
TrancheB2020TermLoanTotal [Member]
Dec. 31, 2015
Tranche B 2022 Term Loans [Member]
Dec. 31, 2014
Tranche B 2022 Term Loans [Member]
Dec. 31, 2015
2.0 Billion Tranche B-II 2022 Term Loan [Member]
Dec. 31, 2014
2.0 Billion Tranche B-II 2022 Term Loan [Member]
Dec. 31, 2015
Floating Rate Senior Notes due 2015
Dec. 31, 2011
Floating Rate Senior Notes due 2015
Dec. 31, 2015
Floating Rate Senior Notes due 2018 [Member]
Dec. 31, 2014
Floating Rate Senior Notes due 2018 [Member]
Dec. 31, 2015
Senior Notes 11 Point 875 Percent Due 2019 [Member]
Dec. 31, 2015
Senior Notes due 2019 (9.375%)
Dec. 31, 2014
Senior Notes due 2019 (9.375%)
Dec. 31, 2015
Senior Notes due 2019 (8.125%)
Dec. 31, 2014
Senior Notes due 2019 (8.125%)
Dec. 31, 2015
Senior Notes due 2019 (8.875%)
Dec. 31, 2014
Senior Notes due 2019 (8.875%)
Dec. 31, 2015
Senior Notes 5point75Percent Due 2022 [Member]
Dec. 31, 2014
Senior Notes 5point75Percent Due 2022 [Member]
Dec. 31, 2015
Senior Notes 8 Point 625 Percent Due 2020 [Member]
Dec. 31, 2014
Senior Notes 8 Point 625 Percent Due 2020 [Member]
Dec. 31, 2015
Senior Notes due 2020 (7.0%)
Dec. 31, 2014
Senior Notes due 2020 (7.0%)
Dec. 31, 2015
Senior Notes due 2021 (6.125%)
Dec. 31, 2014
Senior Notes due 2021 (6.125%)
Dec. 31, 2015
Senior Notes 5.375percent Due 2022 [Member]
Dec. 31, 2015
5point375SeniorNotesdue2022 [Member]
Dec. 31, 2014
5point375SeniorNotesdue2022 [Member]
Dec. 31, 2015
Senior Notes 5point 625Percent Due 2023 [Member]
Dec. 31, 2014
Senior Notes 5point 625Percent Due 2023 [Member]
Dec. 31, 2015
Convertible Senior Notes 7 Percent Due 2015 [Member]
Dec. 31, 2014
Convertible Senior Notes 7 Percent Due 2015 [Member]
Dec. 31, 2015
Convertible Senior Notes due 2015 Series B (7.0%)
Dec. 31, 2014
Convertible Senior Notes due 2015 Series B (7.0%)
Dec. 31, 2015
Capital Leases
Dec. 31, 2014
Capital Leases
Dec. 31, 2015
Tranche B 2016 Term Loan [Member]
Dec. 31, 2015
Tranche B 2019 Term Loan [Member]
Dec. 31, 2015
TrancheBII2019TermLoan [Member]
Mar. 31, 2007
Level 3 Financing [Member]
Dec. 31, 2015
Level 3 Financing [Member]
Dec. 31, 2015
Level 3 Financing [Member]
Senior Notes 5point 125Percent Due 2023 [Member]
Dec. 31, 2015
Level 3 Financing [Member]
Senior Notes 5point 375Percent Due 2025 [Member]
Dec. 31, 2015
Level 3 Financing [Member]
Senior Notes 5point 375Percent Due 2024 [Member]
Dec. 31, 2015
Level 3 Financing [Member]
Senior Notes due 2019 (9.375%)
Dec. 31, 2015
Level 3 Financing [Member]
Senior Notes due 2019 (8.125%)
Dec. 31, 2015
Level 3 Financing [Member]
Senior Notes 8 Point 625 Percent Due 2020 [Member]
Dec. 31, 2015
Level 3 Financing [Member]
Senior Notes due 2020 (7.0%)
Dec. 31, 2015
Level 3 Financing [Member]
Senior Notes due 2021 (6.125%)
Dec. 31, 2015
Level 3 Financing [Member]
Senior Notes 5.375percent Due 2022 [Member]
Dec. 31, 2015
Level 3 Financing [Member]
Senior Notes 5point 625Percent Due 2023 [Member]
Dec. 31, 2015
Guarantor Subsidiaries [Member]
Dec. 31, 2014
Guarantor Subsidiaries [Member]
Dec. 31, 2015
Guarantor Subsidiaries [Member]
TrancheBIII2019TermLoan [Member]
Dec. 31, 2015
Guarantor Subsidiaries [Member]
TrancheB2020TermLoanTotal [Member]
Jan. 1, 2014
Guarantor Subsidiaries [Member]
TrancheB2020TermLoanTotal [Member]
Dec. 31, 2015
Level 3 Communications, Inc.
Dec. 31, 2014
Level 3 Communications, Inc.
Dec. 31, 2015
Level 3 Communications, Inc.
Senior Notes 11 Point 875 Percent Due 2019 [Member]
Dec. 31, 2015
Level 3 Communications, Inc.
Senior Notes due 2019 (8.875%)
Dec. 31, 2015
Level 3 Communications, Inc.
Senior Notes 5point75Percent Due 2022 [Member]
Dec. 31, 2015
Level 3 Communications, Inc.
Convertible Senior Notes 7 Percent Due 2015 [Member]
Dec. 31, 2015
Level 3 Communications, Inc.
Convertible Senior Notes due 2015 Series B (7.0%)
Dec. 31, 2015
London Interbank Offered Rate (LIBOR) [Member]
Level 3 Financing [Member]
2.0 Billion Tranche B-II 2022 Term Loan [Member]
Sep. 30, 2015
London Interbank Offered Rate (LIBOR) [Member]
Level 3 Financing [Member]
2.0 Billion Tranche B-II 2022 Term Loan [Member]
Dec. 31, 2014
London Interbank Offered Rate (LIBOR) [Member]
Level 3 Financing [Member]
2.0 Billion Tranche B-II 2022 Term Loan [Member]
Dec. 31, 2015
London Interbank Offered Rate (LIBOR) [Member]
Level 3 Financing [Member]
Tranche B-III 2019, Tranche B 2020 and Tranche B 2022 Term Loans [Member]
Sep. 30, 2015
London Interbank Offered Rate (LIBOR) [Member]
Guarantor Subsidiaries [Member]
Tranche B-III 2019, Tranche B 2020 and Tranche B 2022 Term Loans [Member]
Oct. 31, 2014
Minimum [Member]
London Interbank Offered Rate (LIBOR) [Member]
Guarantor Subsidiaries [Member]
Tranche B 2022 Term Loans [Member]
Long-term debt
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0.75% 
 
1.00% 
 
 
Debt Instrument, Interest Rate Terms
 
 
 
 
 
 
 
 
 
 
 
 
LIBOR +3.50% 
 
LIBOR +2.75% 
 
 
 
6-Month LIBOR +3.50% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
LIBOR +3.00% 
LIBOR +3.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Debt Obligations
$ 11,025 
$ 11,366 
$ 815 
$ 815 
$ 700 
$ 0 
$ 800 
$ 0 
$ 900 
$ 0 
$ 1,796 
$ 1,796 
$ 0 
$ 2,000 
$ 2,000 
$ 0 
 
 
$ 300 
$ 300 
 
$ 0 
$ 500 
$ 0 
$ 1,200 
$ 0 
$ 300 
$ 600 
$ 600 
$ 0 
$ 900 
$ 775 
$ 775 
$ 640 
$ 640 
 
$ 1,000 
$ 1,000 
$ 500 
$ 0 
$ 0 
$ 58 
$ 0 
$ 275 
$ 199 
$ 207 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 1,796 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt Instrument, Interest Rate, Stated Percentage
 
 
 
 
 
 
 
 
 
 
 
 
 
4.50% 
3.50% 
 
3.846% 
3.826% 
4.101% 
3.826% 
11.875% 
9.375% 
 
8.125% 
 
8.875% 
 
 
 
8.625% 
 
 
 
 
 
5.375% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
5.125% 
5.375% 
5.375% 
9.375% 
8.125% 
8.625% 
7.00% 
6.125% 
5.375% 
5.625% 
 
 
 
 
 
 
 
11.875% 
8.875% 
5.75% 
7.00% 
7.00% 
 
 
 
 
 
1.00% 
Debt Instrument, Description of Variable Rate Basis
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
LIBOR 
LIBOR 
LIBOR 
three month LIBOR 
three month LIBOR 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
LIBOR 
LIBOR 
LIBOR 
 
LIBOR 
 
Total Unamortized (Discount) Premium
(16)
(33)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Less current portion
(15)
(349)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0 
0 
 
 
 
0 
(333)
 
 
 
 
 
 
 
 
 
 
 
Long-Term Debt, less current portion
$ 10,994 
$ 10,984 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 10,210 
$ 9,893 
 
 
 
$ 600 
$ 900 
 
 
 
 
 
 
 
 
 
 
 
Long-Term Debt - Textuals (Details) (USD $)
3 Months Ended 12 Months Ended 1 Months Ended 12 Months Ended 3 Months Ended 3 Months Ended 12 Months Ended 12 Months Ended 65 Months Ended 12 Months Ended 24 Months Ended 11 Months Ended 12 Months Ended 12 Months Ended 3 Months Ended 3 Months Ended 12 Months Ended 3 Months Ended 12 Months Ended 3 Months Ended 12 Months Ended 3 Months Ended 12 Months Ended 3 Months Ended 3 Months Ended
Dec. 31, 2015
Sep. 30, 2015
Jun. 30, 2015
Mar. 31, 2015
Dec. 31, 2014
Sep. 30, 2014
Jun. 30, 2014
Mar. 31, 2014
Dec. 31, 2015
days
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2015
Level 3 Communications, Inc.
Dec. 31, 2014
Level 3 Communications, Inc.
Dec. 31, 2013
Level 3 Communications, Inc.
Mar. 31, 2007
Level 3 Financing [Member]
Dec. 31, 2015
Level 3 Financing [Member]
Dec. 31, 2015
Guarantor Subsidiaries [Member]
Dec. 31, 2014
Guarantor Subsidiaries [Member]
Dec. 31, 2013
Guarantor Subsidiaries [Member]
Dec. 31, 2015
2.0 Billion Tranche B-II 2022 Term Loan [Member]
Dec. 31, 2014
2.0 Billion Tranche B-II 2022 Term Loan [Member]
Sep. 30, 2015
2.0 Billion Tranche B-II 2022 Term Loan [Member]
Level 3 Financing [Member]
May 8, 2015
2.0 Billion Tranche B-II 2022 Term Loan [Member]
Level 3 Financing [Member]
Dec. 31, 2015
TrancheB2022TermLoanTotal [Member]
Dec. 31, 2015
TrancheB2022TermLoanTotal [Member]
Guarantor Subsidiaries [Member]
Jun. 30, 2015
Tranche B 2022 Term Loans [Member]
Dec. 31, 2015
Tranche B 2022 Term Loans [Member]
Dec. 31, 2014
Tranche B 2022 Term Loans [Member]
Dec. 31, 2015
Tranche B 2022 Term Loans [Member]
Level 3 Financing [Member]
Oct. 31, 2014
Tranche B 2022 Term Loans [Member]
Level 3 Financing [Member]
Oct. 31, 2014
Tranche B 2022 Term Loans [Member]
Guarantor Subsidiaries [Member]
Dec. 31, 2015
SeniorNotes6Point125PercentDue2021 [Member]
Dec. 31, 2014
SeniorNotes6Point125PercentDue2021 [Member]
Dec. 31, 2015
SeniorNotes6Point125PercentDue2021 [Member]
Level 3 Financing [Member]
Dec. 31, 2015
Senior Notes 7 Percent Due 2020 [Member]
Dec. 31, 2014
Senior Notes 7 Percent Due 2020 [Member]
Dec. 31, 2015
Senior Notes 7 Percent Due 2020 [Member]
Level 3 Financing [Member]
Dec. 31, 2015
TrancheB2020TermLoanTotal [Member]
Dec. 31, 2014
TrancheB2020TermLoanTotal [Member]
Jan. 1, 2014
TrancheB2020TermLoanTotal [Member]
Guarantor Subsidiaries [Member]
Dec. 31, 2015
Tranche B III 2019 and Tranche B 2020 Term Loans [Member]
Dec. 31, 2011
Tranche A Term Loan
Jul. 31, 2012
Tranche A Term Loan
Dec. 31, 2011
Tranche B II Term Loan
Oct. 4, 2013
Tranche B II Term Loan
Sep. 30, 2012
Tranche B III Term Loan
Dec. 31, 2011
Tranche B III Term Loan
Dec. 31, 2015
Tranche B 2016 Term Loan
Aug. 1, 2013
Tranche B 2016 Term Loan
Dec. 31, 2015
Tranche B 2019 Term Loan
Aug. 1, 2013
Tranche B 2019 Term Loan
Dec. 31, 2015
TrancheBIII2019TermLoan [Member]
Dec. 31, 2014
TrancheBIII2019TermLoan [Member]
Jan. 1, 2014
TrancheBIII2019TermLoan [Member]
Guarantor Subsidiaries [Member]
Dec. 31, 2015
Tranche B-II 2019 Term Loan
Oct. 4, 2013
Tranche B-II 2019 Term Loan
Dec. 31, 2015
Floating Rate Senior Notes due 2018 [Member]
Dec. 31, 2014
Floating Rate Senior Notes due 2018 [Member]
Dec. 31, 2015
Floating Rate Senior Notes due 2015
Dec. 31, 2011
Floating Rate Senior Notes due 2015
Dec. 31, 2015
Senior Notes 11 Point 875 Percent Due 2019 [Member]
Dec. 31, 2014
Senior Notes 11 Point 875 Percent Due 2019 [Member]
Level 3 Communications, Inc.
Dec. 31, 2015
Senior Notes 11 Point 875 Percent Due 2019 [Member]
Level 3 Communications, Inc.
Jun. 30, 2015
Senior Notes due 2019 (9.375%)
Dec. 31, 2015
Senior Notes due 2019 (9.375%)
Dec. 31, 2014
Senior Notes due 2019 (9.375%)
Dec. 31, 2015
Senior Notes due 2019 (9.375%)
Level 3 Financing [Member]
Mar. 4, 2011
Senior Notes due 2019 (9.375%)
Level 3 Financing [Member]
Dec. 31, 2015
Senior Notes 5point 625Percent Due 2023 [Member]
Dec. 31, 2014
Senior Notes 5point 625Percent Due 2023 [Member]
Dec. 31, 2015
Senior Notes 5point 625Percent Due 2023 [Member]
Level 3 Financing [Member]
Jan. 29, 2015
Senior Notes 5point 625Percent Due 2023 [Member]
Level 3 Financing [Member]
Jun. 30, 2015
Senior Notes due 2019 (8.125%)
Dec. 31, 2015
Senior Notes due 2019 (8.125%)
Dec. 31, 2014
Senior Notes due 2019 (8.125%)
Dec. 31, 2015
Senior Notes due 2019 (8.125%)
Level 3 Financing [Member]
Jun. 9, 2011
Senior Notes due 2019 (8.125%)
Level 3 Financing [Member]
Jun. 30, 2015
Senior Notes due 2019 (8.875%)
Dec. 31, 2015
Senior Notes due 2019 (8.875%)
Dec. 31, 2014
Senior Notes due 2019 (8.875%)
Dec. 31, 2015
Senior Notes due 2019 (8.875%)
Level 3 Communications, Inc.
Dec. 31, 2015
Senior Notes due 2019 (8.875%)
Level 3 Financing [Member]
Jul. 31, 2012
Senior Notes due 2019 (8.875%)
Level 3 Financing [Member]
Dec. 31, 2015
Senior Notes 5point 125Percent Due 2023 [Member]
Dec. 31, 2014
Senior Notes 5point 125Percent Due 2023 [Member]
Dec. 31, 2015
Senior Notes 5point 125Percent Due 2023 [Member]
Level 3 Financing [Member]
Apr. 28, 2015
Senior Notes 5point 125Percent Due 2023 [Member]
Level 3 Financing [Member]
Dec. 31, 2015
Senior Notes 5point 375Percent Due 2025 [Member]
Dec. 31, 2014
Senior Notes 5point 375Percent Due 2025 [Member]
Dec. 31, 2015
Senior Notes 5point 375Percent Due 2025 [Member]
Level 3 Financing [Member]
Apr. 28, 2015
Senior Notes 5point 375Percent Due 2025 [Member]
Level 3 Financing [Member]
Dec. 31, 2015
Senior Notes 8 Point 625 Percent Due 2020 [Member]
Dec. 31, 2014
Senior Notes 8 Point 625 Percent Due 2020 [Member]
Dec. 31, 2015
Senior Notes 8 Point 625 Percent Due 2020 [Member]
Level 3 Financing [Member]
Jan. 13, 2012
Senior Notes 8 Point 625 Percent Due 2020 [Member]
Level 3 Financing [Member]
Dec. 31, 2015
Senior Notes 5point 375Percent Due 2024 [Member]
Dec. 31, 2015
Senior Notes 5point 375Percent Due 2024 [Member]
Level 3 Financing [Member]
Nov. 13, 2015
Senior Notes 5point 375Percent Due 2024 [Member]
Level 3 Financing [Member]
Dec. 31, 2015
Senior Notes 5.375percent Due 2022 [Member]
Aug. 12, 2014
Senior Notes 5.375percent Due 2022 [Member]
Dec. 31, 2015
Senior Notes 5.375percent Due 2022 [Member]
Level 3 Financing [Member]
Aug. 12, 2014
Senior Notes 5.375percent Due 2022 [Member]
Level 3 Escrow II, Inc. [Member]
Dec. 31, 2015
Senior Notes 5point75Percent Due 2022 [Member]
Dec. 31, 2014
Senior Notes 5point75Percent Due 2022 [Member]
Dec. 31, 2015
Senior Notes 5point75Percent Due 2022 [Member]
Level 3 Communications, Inc.
Dec. 1, 2014
Senior Notes 5point75Percent Due 2022 [Member]
Level 3 Communications, Inc.
Mar. 31, 2015
Convertible Senior Notes 7 Percent Due 2015 [Member]
Dec. 31, 2014
Convertible Senior Notes 7 Percent Due 2015 [Member]
Dec. 31, 2015
Convertible Senior Notes 7 Percent Due 2015 [Member]
Dec. 31, 2015
Convertible Senior Notes 7 Percent Due 2015 [Member]
Level 3 Communications, Inc.
Dec. 31, 2015
Convertible Senior Notes due 2015 Series B (7.0%)
Dec. 31, 2014
Convertible Senior Notes due 2015 Series B (7.0%)
Dec. 31, 2015
Convertible Senior Notes due 2015 Series B (7.0%)
Level 3 Communications, Inc.
Dec. 31, 2015
Capital Leases
Dec. 31, 2014
Capital Leases
Dec. 31, 2015
Other
Dec. 31, 2015
London Interbank Offered Rate (LIBOR) [Member]
2.0 Billion Tranche B-II 2022 Term Loan [Member]
Level 3 Financing [Member]
Sep. 30, 2015
London Interbank Offered Rate (LIBOR) [Member]
2.0 Billion Tranche B-II 2022 Term Loan [Member]
Level 3 Financing [Member]
Dec. 31, 2014
London Interbank Offered Rate (LIBOR) [Member]
2.0 Billion Tranche B-II 2022 Term Loan [Member]
Level 3 Financing [Member]
Dec. 31, 2014
London Interbank Offered Rate (LIBOR) [Member]
Tranche B 2022 Term Loans [Member]
Guarantor Subsidiaries [Member]
Oct. 31, 2014
London Interbank Offered Rate (LIBOR) [Member]
Tranche B 2022 Term Loans [Member]
Guarantor Subsidiaries [Member]
Minimum [Member]
Long-term debt
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt Instrument, Face Amount
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 2,000,000,000 
 
 
 
 
 
 
$ 2,000,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 815,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 500,000,000 
 
 
 
$ 500,000,000 
 
 
 
 
$ 1,200,000,000 
 
 
 
 
 
$ 300,000,000 
 
 
 
$ 700,000,000 
 
 
 
$ 800,000,000 
 
 
 
$ 900,000,000 
 
 
$ 900,000,000 
$ 1,000,000,000 
$ 1,000,000,000 
 
$ 1,000,000,000 
 
 
 
$ 600,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt Instrument, Description of Variable Rate Basis
 
 
 
 
 
 
 
 
 
 
 
 
 
 
three month LIBOR 
three month LIBOR 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
LIBOR 
 
LIBOR 
 
 
LIBOR 
LIBOR 
 
LIBOR 
 
 
 
 
LIBOR 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
LIBOR 
LIBOR 
LIBOR 
 
 
Debt instrument, stated interest rate (as a percent)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3.50% 
 
 
 
 
 
 
 
4.50% 
 
 
 
 
 
6.125% 
 
 
7.00% 
 
 
 
4.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4.101% 
3.826% 
3.846% 
3.826% 
11.875% 
 
11.875% 
 
9.375% 
 
9.375% 
 
 
 
5.625% 
 
 
8.125% 
 
8.125% 
 
 
8.875% 
 
8.875% 
 
 
 
 
5.125% 
 
 
 
5.375% 
 
8.625% 
 
8.625% 
 
 
5.375% 
 
5.375% 
 
5.375% 
 
 
 
5.75% 
 
 
 
 
7.00% 
 
 
7.00% 
 
 
 
 
 
 
 
1.00% 
Debt Conversion, Original Debt, Amount
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
333,000,000 
142,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt Instrument, Redemption Price, Percentage
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
106.859% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt Conversion, Converted Instrument, Amount
 
 
 
 
 
 
 
 
333,000,000 
142,000,000 
200,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1,000 
1,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt Issuance Cost
 
 
 
 
 
 
 
 
50,000,000 
49,000,000 
27,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt instrument, basis floor (as percent)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1.50% 
 
 
1.50% 
1.50% 
 
1.50% 
 
 
 
 
1.50% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt instrument, Interest spread on debt (as percent)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2.25% 
 
4.25% 
4.25% 
 
 
3.25% 
 
3.75% 
 
 
 
 
3.25% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2.75% 
 
3.50% 
 
Debt instrument, weighted average interest rate (as percent)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
5.90% 
 
5.00% 
 
 
 
 
 
Debt Instrument, Unamortized Debt Issuance Costs
128,000,000 
 
 
 
145,000,000 
 
 
 
128,000,000 
145,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt Instrument, Net Proceeds
 
 
 
 
 
 
 
 
4,832,000,000 
589,000,000 
1,502,000,000 
0 
590,000,000 
0 
 
 
4,832,000,000 
0 
1,502,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accrued interest conversion into equity
 
 
 
 
 
 
 
 
10,000,000 
2,000,000 
3,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loss on extinguishment of debt
(55,000,000)
0 
(163,000,000)
0 
(53,000,000)
0 
0 
0 
(218,000,000)
(53,000,000)
(84,000,000)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
27,000,000 
 
 
27,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(53,000,000)
 
(36,000,000)
(36,000,000)
 
 
 
 
 
 
 
(82,000,000)
 
 
(82,000,000)
 
(18,000,000)
 
 
 
(18,000,000)
 
 
 
 
 
 
 
 
 
 
 
 
 
(55,000,000)
(55,000,000)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative, Notional Amount
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1,000,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt conversion, shares issued upon conversion (in shares)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
12,000,000 
5,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Conversion of Stock, Shares Converted
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
37 
37 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt instrument, redemption period notice minimum (number of days)
 
 
 
 
 
 
 
 
30 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt instrument, redemption period notice maximum (number of days)
 
 
 
 
 
 
 
 
60 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Future contractual maturities of long-term debt and capital leases (excluding issue discounts, premiums and fair value adjustments)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2013
15,000,000 
 
 
 
 
 
 
 
15,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2014
7,000,000 
 
 
 
 
 
 
 
7,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2015
307,000,000 
 
 
 
 
 
 
 
307,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2016
822,000,000 
 
 
 
 
 
 
 
822,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2017
2,579,000,000 
 
 
 
 
 
 
 
2,579,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Thereafter
7,295,000,000 
 
 
 
 
 
 
 
7,295,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Debt Obligations
11,025,000,000 
 
 
 
 
 
 
 
11,025,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
199,000,000 
 
1,000,000 
 
 
 
 
 
Long-term Debt, Gross
$ 11,025,000,000 
 
 
 
$ 11,366,000,000 
 
 
 
$ 11,025,000,000 
$ 11,366,000,000 
 
 
 
 
 
 
 
 
 
$ 2,000,000,000 
$ 0 
 
 
$ 2,000,000,000 
$ 2,000,000,000 
 
$ 0 
$ 2,000,000,000 
 
 
 
$ 640,000,000 
$ 640,000,000 
 
$ 775,000,000 
$ 775,000,000 
 
$ 1,796,000,000 
$ 1,796,000,000 
$ 1,796,000,000 
 
 
 
 
 
 
 
 
 
 
 
$ 815,000,000 
$ 815,000,000 
 
 
 
$ 300,000,000 
$ 300,000,000 
 
 
 
 
 
 
$ 0 
$ 500,000,000 
 
 
$ 500,000,000 
$ 0 
 
 
 
$ 0 
$ 1,200,000,000 
 
 
 
$ 0 
$ 300,000,000 
 
 
 
$ 700,000,000 
$ 0 
 
 
$ 800,000,000 
$ 0 
 
 
$ 0 
$ 900,000,000 
 
 
 
 
 
 
 
 
 
$ 600,000,000 
$ 600,000,000 
 
 
 
$ 58,000,000 
$ 0 
 
$ 0 
$ 275,000,000 
 
$ 199,000,000 
$ 207,000,000 
 
 
 
 
 
 
Tranche B Term Loan 2022 upfront payment percentage
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0.75% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0.75% 
 
 
 
Upfront basis point
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
25 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accumulated Other Comprehensive Income (Loss) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
 
 
Accumulated Other Comprehensive Income (Loss), Net of Tax
$ (301)
$ (147)
$ 36 
$ 26 
Other comprehensive income before reclassifications
(156)
(187)
8 
 
Amounts reclassified from accumulated other comprehensive income
2 
4 
2 
 
Accumulated Translation Adjustment [Member]
 
 
 
 
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
 
 
Accumulated Other Comprehensive Income (Loss), Net of Tax
(273)
(111)
67 
56 
Other comprehensive income before reclassifications
(162)
(178)
11 
 
Amounts reclassified from accumulated other comprehensive income
0 
0 
0 
 
Accumulated Defined Benefit Plans Adjustment [Member]
 
 
 
 
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
 
 
Accumulated Other Comprehensive Income (Loss), Net of Tax
(28)
(36)
(31)
(30)
Other comprehensive income before reclassifications
6 
(9)
(3)
 
Amounts reclassified from accumulated other comprehensive income
$ 2 
$ 4 
$ 2 
 
Employee Benefit Benefits and Stock-Based Compensation - Non-cash compensation expensed and capitalized (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Stock-based compensation expense
 
 
 
Stock- based compensation expense
$ 142 
$ 74 
$ 152 
Capitalized Noncash Compensation
(1)
(1)
(1)
Non-cash compensation expense
141 
73 
151 
Share-based Compensation Arrangement by Share-based Payment Award Accelerated Compensation Cost
14 
4 
5 
Outperform Stock Options
 
 
 
Stock-based compensation expense
 
 
 
Stock- based compensation expense
6 
8 
21 
Restricted Stock Units and Shares
 
 
 
Stock-based compensation expense
 
 
 
Stock- based compensation expense
65 
34 
38 
Performance Restricted Stock Units [Member]
 
 
 
Stock-based compensation expense
 
 
 
Stock- based compensation expense
35 
14 
0 
401 (K) Match [Member]
 
 
 
Stock-based compensation expense
 
 
 
Stock- based compensation expense
36 
23 
24 
Restricted Stock Unit Bonus Grant
 
 
 
Stock-based compensation expense
 
 
 
Stock- based compensation expense
0 
 
59 
Release of RSU bonus grant
 
(5)
 
Management Incentive and Retention Plan
 
 
 
Stock-based compensation expense
 
 
 
Stock- based compensation expense
$ 0 
$ 0 
$ 10 
Employee Benefit Benefits and Stock-Based Compensation - Outperform Stock Options (Details) (Outperform Stock Options, USD $)
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Share-based Compensation Arrangement by Share-based Payment Award
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value
$ 13,000,000 
$ 19,000,000 
$ 2,000,000 
 
Unamortized compensation expense
1,000,000 
 
 
 
Weighted average period over which unamortized compensation cost will be recognized (in years)
7 months 6 days 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology
 
 
 
 
Expected Dividend Yield Rate
 
 
2.24% 
 
Expected Life (in years)
 
 
3 years 
 
Expected Correlation Factor
 
 
0.44 
 
Theoretical Value
 
 
101.00% 
 
Estimated Forfeiture Rate
 
 
15.00% 
 
Fair value of OSO units awarded
 
 
17,000,000 
 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding
 
 
 
 
Options outstanding, beginning (in shares)
1,217,869.000000 
2,148,865.000000 
2,066,419 
 
Options granted (in shares)
0 
0 
748,481 
 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period
(12,945)
(52,901)
(271,883)
 
Options expired (in shares)
0 
(106,844)
(286,924)
 
Options exercised (in shares)
(589,944)
(771,251)
(107,228)
 
Options outstanding, ending (in shares)
614,980.00000 
1,217,869.000000 
2,148,865.000000 
2,066,419 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures
 
 
 
 
Options, Beginning, Initial Strike Price Per Unit, Minimum (in dollars per share)
$ 16.99 
$ 14.1 
$ 14.10 
 
Options, Beginning, Initial Strike Price Per Unit, Maximum (in dollars per share)
$ 27.53 
$ 36.60 
$ 36.60 
 
Options, Beginning, Weighted Average Initial Strike Price (in dollars per share)
$ 22.76 
$ 23.99 
$ 23.40 
 
Options, Beginning, Aggregate Intrinsic Value
$ 48,500,000 
$ 88,000,000 
$ 31,580,000.00 
$ 6,600,000 
OSO units Outstanding, Average Remaining Contractual Term
4 months 13 days 
10 months 24 days 
1 year 5 months 15 days 
1 year 8 months 23 days 
Options granted, Initial Strike Price Per Unit, Minimum (in dollars per share)
$ 0 
$ 0 
$ 20.29 
 
Options granted, Initial Strike Price Per Unit, Maximum (in dollars per share)
$ 0 
$ 0 
$ 26.69 
 
Options granted, Weighted Average Initial Strike Price (in dollars per share)
$ 0.00 
$ 0.00 
$ 22.64 
 
Options forfeited, Initial Strike Price Per Unit, Minimum (in dollars per share)
$ 20.29 
$ 16.99 
$ 14.10 
 
Options forfeited, Initial Strike Price Per Unit, Maximum (in dollars per share)
$ 26.69 
$ 27.53 
$ 36.60 
 
Options forfeited, Weighted Average Initial Strike Price (in dollars per share)
$ 22.81 
$ 22.99 
$ 22.33 
 
Options expired, Initial Strke Price Per Unit, Minimum (in dollars per share)
$ 0 
$ 36.6 
$ 16.35 
 
Options expired, Initial Strke Price Per Unit, Maximum (in dollars per share)
$ 0 
$ 36.6 
$ 24.30 
 
Options expired, Weighted Average Initial Strike Price (in dollars per share)
$ 0.00 
$ 36.60 
$ 21.48 
 
Options exercised, Initial Strike Price Per Unit, Minimum (in dollars per share)
$ 22.15 
$ 14.7 
$ 14.10 
 
Options exercised, Initial Strike Price Per Unit, Maximum (in dollars per share)
$ 22.97 
$ 27.53 
$ 14.10 
 
Options exercised, Weighted Average Initial Strike Price (in dollars per share)
$ 22.32 
$ 24.26 
$ 14.10 
 
Options, Ending, Initial Strike Price Per Unit, Minimum (in dollars per share)
$ 20.29 
$ 16.99 
$ 14.1 
$ 14.10 
Options, Ending, Initial Strike Price Per Unit, Maximum (in dollars per share)
$ 26.69 
$ 27.53 
$ 36.60 
$ 36.60 
Options, Ending, Weighted Average Initial Strike Price (in dollars per share)
$ 22.77 
$ 22.76 
$ 23.99 
$ 23.40 
On or After April 1, 2007
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Life of Award
3 
 
 
 
Percent vested after three years
100.00% 
 
 
 
S and P 500 Index
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology
 
 
 
 
Expected volatility rate
 
 
19.00% 
 
Level 3 Communications, Inc.
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology
 
 
 
 
Expected volatility rate
 
 
39.00% 
 
Performance Range 1
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Performance Qualifier to Index, Maximum
0.00% 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Success Multiplier of Pre Multiplier Gain
0.00 
 
 
 
Performance Range 2
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Performance Qualifier to Index, Minimum
0.00% 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Performance Qualifier to Index, Maximum
11.00% 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Success Multiplier of Pre Multiplier Gain
0.36 
 
 
 
Performance Range 3
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Performance Qualifier to Index, Minimum
11.00% 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Success Multiplier of Pre Multiplier Gain
4.00 
 
 
 
Employee Benefit Benefits and Stock-Based Compensation - Range of OSO Exercise Prices (Details) (Outperform Stock Options, USD $)
In Millions, except Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Outperform Stock Options
 
 
 
 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range
 
 
 
 
Options exercised, Weighted Average Initial Strike Price (in dollars per share)
$ 22.32 
$ 24.26 
$ 14.10 
 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number
614,980 
1,217,869 
2,148,865 
2,066,419 
Total realized value of OSO units
$ 13 
$ 19 
$ 2 
 
OSO units Outstanding, Range of Exercise Prices, Minimum (in dollars per share)
$ 20.29 
$ 16.99 
$ 14.1 
$ 14.10 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Initial Exercise Price, Maximum
$ 26.69 
$ 27.53 
$ 36.60 
$ 36.60 
OSO units Outstanding, Number Outstanding (in shares)
614,980 
 
 
 
OSO units Outstanding, Average Remaining Contractual Term
4 months 13 days 
10 months 24 days 
1 year 5 months 15 days 
1 year 8 months 23 days 
OSO units Outstanding, Weighted Average Initial Strike Price (in dollars per share)
$ 22.77 
$ 22.76 
$ 23.99 
$ 23.40 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period
(589,944)
(771,251)
(107,228)
 
OSO units Exercisable, Number Exercisable (in shares)
0 
 
 
 
OSO units Exercisable, Weighted Average Initial Strike Price (in dollars per share)
$ 0.00 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period
(12,945)
(52,901)
(271,883)
 
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period
622,755 
732,593 
0 
 
Employee Benefit Benefits and Stock-Based Compensation - Restricted Stock and Units (Details) (USD $)
In Millions, except Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2015
year
Dec. 31, 2014
Dec. 31, 2013
Restricted Stock Units and Shares
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award
 
 
 
Restrictions on transfer lapse, minimum (in years)
1 
 
 
Restrictions on transfer lapse, maximum (in years)
4 
 
 
Fair value of units and shares awarded
$ 144 
$ 96 
$ 34 
Unamortized compensation expense
109 
 
 
Weighted average period over which unamortized compensation cost will be recognized (in years)
2 years 2 months 1 day 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares
 
 
 
Nonvested, Beginning balance (in shares)
3,218,737 
2,924,350 
3,636,976 
Stock and units granted (in shares)
2,087,942 
1,650,772 
1,617,592 
Lapse of restrictions (in shares)
(1,194,519)
(1,150,080)
(1,841,757)
Stock and units forfeited (in shares)
(358,227)
(206,305)
(488,461)
Nonvested, Ending balance (in shares)
3,753,933 
3,218,737 
2,924,350 
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures
 
 
 
Nonvested, Beginning balance, Weighted Average Grant Date Fair Value (in dollars per share)
$ 32.95 
$ 22.77 
$ 24.71 
Stock and units granted, Weighted Average Grant Date Fair Value (in dollars per share)
$ 50.60 
$ 43.48 
$ 21.26 
Lapse of restrictions, Weighted Average Grant Date Fair Value (in dollars per share)
$ 31.70 
$ 22.92 
$ 25.19 
Stock and units forfeited, Weighted Average Grant Date Fair Value (in dollars per share)
$ 44.25 
$ 27.14 
$ 23.10 
Nonvested, Ending balance, Weighted Average Grant Date Fair Value (in dollars per share)
$ 42.09 
$ 32.95 
$ 22.77 
Total fair value of restricted stock and restricted stock units whose restriction lapsed
$ 38 
$ 27 
$ 46 
Performance Restricted Stock Units [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Life of Award
2 years 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares
 
 
 
Nonvested, Beginning balance (in shares)
567,881 
0 
 
Stock and units granted (in shares)
713,657 
605,111 
 
Lapse of restrictions (in shares)
0 
(1,750)
 
Stock and units forfeited (in shares)
(53,073)
(35,480)
 
Nonvested, Ending balance (in shares)
1,228,465 
567,881 
 
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures
 
 
 
Nonvested, Beginning balance, Weighted Average Grant Date Fair Value (in dollars per share)
$ 39.31 
$ 0.00 
 
Stock and units granted, Weighted Average Grant Date Fair Value (in dollars per share)
$ 53.82 
$ 39.30 
 
Lapse of restrictions, Weighted Average Grant Date Fair Value (in dollars per share)
$ 0.00 
$ 39.14 
 
Stock and units forfeited, Weighted Average Grant Date Fair Value (in dollars per share)
$ 49.25 
$ 39.14 
 
Nonvested, Ending balance, Weighted Average Grant Date Fair Value (in dollars per share)
$ 47.31 
$ 39.31 
 
second anniversary of grant date [Member] |
Performance Restricted Stock Units [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage
50.00% 
 
 
third anniversary of grant date [Member] |
Performance Restricted Stock Units [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage
50.00% 
 
 
Minimum [Member] |
Performance Restricted Stock Units [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award
 
 
 
share based compensation arrangement by share-based payment award, achievement level percent
50.00% 
 
 
Maximum [Member] |
Performance Restricted Stock Units [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award
 
 
 
share based compensation arrangement by share-based payment award, achievement level percent
200.00% 
 
 
Employee Benefit Benefits and Stock-Based Compensation - MIRP Stock and Units (Details) (Management Incentive and Retention Plan, USD $)
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Management Incentive and Retention Plan
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares
 
 
Nonvested, Beginning balance (in shares)
195,000 
465,000 
Stock and units granted (in shares)
0 
0 
Lapse of restrictions (in shares)
(195,000)
(270,000)
Stock and units forfeited (in shares)
0 
0 
Nonvested, Ending balance (in shares)
0 
195,000 
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures
 
 
Nonvested, Beginning balance, Weighted Average Grant Date Fair Value (in dollars per share)
$ 25.92 
$ 25.92 
Stock and units granted, Weighted Average Grant Date Fair Value (in dollars per share)
   
$ 0.00 
Lapse of restrictions, Weighted Average Grant Date Fair Value (in dollars per share)
$ 25.92 
$ 25.92 
Stock and units forfeited, Weighted Average Grant Date Fair Value (in dollars per share)
   
$ 0.00 
Nonvested, Ending balance, Weighted Average Grant Date Fair Value (in dollars per share)
    
$ 25.92 
Employee Benefit Benefits and Stock-Based Compensation - Defined Contribution (Details) (USD $)
12 Months Ended 3 Months Ended 12 Months Ended
Dec. 31, 2015
year
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2015
After January 1, 2012
Dec. 31, 2014
tw telecom 401(K) Plan [Member]
Dec. 31, 2015
tw telecom 401(K) Plan [Member]
Dec. 31, 2015
All Other Defined Contribution
Dec. 31, 2014
All Other Defined Contribution
Dec. 31, 2013
All Other Defined Contribution
Dec. 31, 2015
Network Related Expenses [Member]
Dec. 31, 2014
Network Related Expenses [Member]
Dec. 31, 2013
Network Related Expenses [Member]
Dec. 31, 2015
Selling, General and Administrative Expenses [Member]
Dec. 31, 2014
Selling, General and Administrative Expenses [Member]
Dec. 31, 2013
Selling, General and Administrative Expenses [Member]
Schedule of Defined Contribution Plans Disclosures
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Defined Contribution Plan, Maximum Annual Contribution Per Employee
$ 18,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Defined Contribution Plan, Maximum Annual Contribution Per Employee, Percentage
 
 
 
100.00% 
 
100.00% 
 
 
 
 
 
 
 
 
 
Defined Contribution Plan, Employer Matching Contribution, Percentage
 
 
 
4.00% 
 
5.00% 
 
 
 
 
 
 
 
 
 
Defined Contribution Plan, Vesting Period (in years)
3 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Defined Contribution Plan, Vesting Percentage After Vesting Period
100.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Defined Contribution Plan, Cost Recognized
$ 36,000,000 
$ 23,000,000 
$ 24,000,000 
 
$ 2,000,000 
 
$ 6,000,000 
$ 6,000,000 
$ 5,000,000 
$ 5,000,000 
$ 4,000,000 
$ 4,000,000 
$ 31,000,000 
$ 19,000,000 
$ 20,000,000 
Employee Benefit Benefits and Stock-Based Compensation - Defined Benefits (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2015
Dec. 31, 2014
Defined Benefit Plan Disclosure
 
 
Defined Benefit Plan, Fair Value of Plan Assets
$ 142 
$ 151 
Defined Benefit Plan, Benefit Obligation
158 
176 
Defined Benefit Plan, Funded Status of Plan
$ 16 
$ 25 
Employee Benefit Benefits and Stock-Based Compensation - Annual Discretionary Bonus Grant (Details) (USD $)
Share data in Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2013
Restricted Stock Unit Bonus Grant
Dec. 31, 2016
Subsequent Event [Member]
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits
 
 
 
Defined Contribution Plan, Maximum Annual Contribution Per Employee
$ 18,000 
 
$ 18,000 
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Granted or Expected to Be Granted in Next Fiscal Period
 
1.4 
 
Employee Benefit Benefits and Stock-Based Compensation Performance Restricted Stock Units (Details) (Performance Restricted Stock Units [Member], USD $)
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Performance Restricted Stock Units [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number
1,228,465 
567,881 
0 
Stock and units forfeited, Weighted Average Grant Date Fair Value (in dollars per share)
$ 49.25 
$ 39.14 
 
Lapse of restrictions, Weighted Average Grant Date Fair Value (in dollars per share)
$ 0.00 
$ 39.14 
 
Stock and units granted, Weighted Average Grant Date Fair Value (in dollars per share)
$ 53.82 
$ 39.30 
 
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value
$ 47.31 
$ 39.31 
$ 0.00 
Stock and units forfeited (in shares)
(53,073)
(35,480)
 
Lapse of restrictions (in shares)
0 
(1,750)
 
Stock and units granted (in shares)
713,657 
605,111 
 
Income Taxes - Income Tax Expense (Benefit) by Current and Deferred (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2015
Sep. 30, 2015
Jun. 30, 2015
Mar. 31, 2015
Dec. 31, 2014
Sep. 30, 2014
Jun. 30, 2014
Mar. 31, 2014
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Current:
 
 
 
 
 
 
 
 
 
 
 
United States federal
 
 
 
 
 
 
 
 
$ 0 
$ 0 
$ (9)
State
 
 
 
 
 
 
 
 
3 
1 
1 
Foreign
 
 
 
 
 
 
 
 
33 
40 
37 
Current income tax provision (benefit)
 
 
 
 
 
 
 
 
36 
41 
29 
Deferred, net of changes in valuation allowances:
 
 
 
 
 
 
 
 
 
 
 
United States federal
 
 
 
 
 
 
 
 
(2,941)
(6)
3 
State
 
 
 
 
 
 
 
 
(246)
(15)
0 
Foreign
 
 
 
 
 
 
 
 
1 
(96)
6 
Deferred Income Tax Expense (Benefit)
 
 
 
 
 
 
 
 
3,186 
117 
(9)
Income Tax Benefit (Expense)
$ 3,189 
$ (16)
$ (18)
$ (5)
$ 103 
$ (8)
$ (12)
$ (7)
$ 3,150 
$ 76 
$ (38)
Income Taxes - Income (Loss) by Geographic Region (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2015
Sep. 30, 2015
Jun. 30, 2015
Mar. 31, 2015
Dec. 31, 2014
Sep. 30, 2014
Jun. 30, 2014
Mar. 31, 2014
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Income Tax Disclosure [Abstract]
 
 
 
 
 
 
 
 
 
 
 
United States
 
 
 
 
 
 
 
 
$ 401 
$ 207 
$ (122)
Foreign
 
 
 
 
 
 
 
 
(118)
31 
51 
Income (Loss) Before Income Taxes
$ 134 
$ 17 
$ 5 
$ 127 
$ (37)
$ 93 
$ 63 
$ 119 
$ 283 
$ 238 
$ (71)
Income Taxes - Reconciliation of Income Tax Expense (Benefit) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2015
Sep. 30, 2015
Jun. 30, 2015
Mar. 31, 2015
Dec. 31, 2014
Sep. 30, 2014
Jun. 30, 2014
Mar. 31, 2014
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Income Tax Reconciliation [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent
 
 
 
 
 
 
 
 
35.00% 
35.00% 
35.00% 
Effective Income Tax Rate Reconciliation, Amount [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Computed Tax (Expense) Benefit at Statutory Rate
 
 
 
 
 
 
 
 
$ 99 
$ 83 
$ (25)
Effect of Earnings in Jurisdictions outside of the United States
 
 
 
 
 
 
 
 
(30)
(13)
(12)
Change in Valuation Allowance
 
 
 
 
 
 
 
 
(3,386)
(197)
27 
Disallowed Interest
 
 
 
 
 
 
 
 
(62)
(25)
(33)
Non-Deductible Deconsolidation Loss
 
 
 
 
 
 
 
 
(57)
0 
0 
Other Permanent Items
 
 
 
 
 
 
 
 
(25)
(19)
(11)
Indefinite-lived assets
 
 
 
 
 
 
 
 
0 
(2)
3 
Uncertain Tax Positions
 
 
 
 
 
 
 
 
(5)
3 
9 
Change in Tax Rate
 
 
 
 
 
 
 
 
(20)
(7)
(7)
Other, net
 
 
 
 
 
 
 
 
(2)
5 
3 
Income Tax Benefit (Expense)
$ 3,189 
$ (16)
$ (18)
$ (5)
$ 103 
$ (8)
$ (12)
$ (7)
$ 3,150 
$ 76 
$ (38)
Income Taxes - Deferred Tax Assets (Liabilities) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Oct. 31, 2014
Dec. 31, 2014
U.S. Internal Revenue Service (IRS)
Dec. 31, 2015
U.S. Internal Revenue Service (IRS)
Deferred Tax Assets (Liabilities) [Line Items]
 
 
 
 
 
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount
 
 
 
$ 100 
 
Deferred Tax Liabilities, Intangible Assets
(399)
(486)
(15)
 
 
Deferred Tax Assets:
 
 
 
 
 
Deferred revenue
351 
322 
 
 
 
Unutilized tax net operating loss carry forwards
4,959 
5,218 
 
 
 
Fixed assets and intangible assets
115 
90 
 
 
 
Deferred Tax Assets, Goodwill and Intangible Assets
0 
0 
 
 
 
Other
501 
415 
 
 
 
Total Deferred Tax Assets
5,926 
6,045 
 
 
 
Deferred Tax Liabilities:
 
 
 
 
 
Fixed assets and intangible assets
(924)
(893)
 
 
 
Deferred revenue
(58)
(73)
 
 
 
Other
(350)
(189)
 
 
 
Total Deferred Tax Liabilities
(1,731)
(1,641)
 
 
 
Net Deferred Tax Assets before valuation allowance
4,195 
4,404 
 
 
 
Valuation Allowance
(1,002)
(4,429)
 
(4,400)
(1,000)
Net Deferred Tax (Liability) Asset after Valuation Allowance
(3,193)
25 
 
 
 
Operating Loss Carryforwards
 
 
 
 
9,826 
Deferred Tax Assets, Net of Valuation Allowance
 
 
$ 15 
 
 
Income Taxes - Operating Loss Carryforward (Details) (USD $)
3 Months Ended 12 Months Ended
Dec. 31, 2015
Sep. 30, 2015
Jun. 30, 2015
Mar. 31, 2015
Dec. 31, 2014
Sep. 30, 2014
Jun. 30, 2014
Mar. 31, 2014
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Operating Loss Carryforwards [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Recognized Income Tax Benefit
$ 3,300,000,000 
 
 
 
$ 100,000,000 
 
 
 
 
 
 
percentage change in a cumulative ownership shift
 
 
 
 
 
 
 
 
50 
 
 
percent of stockholders
 
 
 
 
 
 
 
 
5.00% 
 
 
Deferred Tax Assets, Valuation Allowance
1,002,000,000 
 
 
 
4,429,000,000 
 
 
 
1,002,000,000 
4,429,000,000 
 
Income Tax Expense (Benefit)
(3,189,000,000)
16,000,000 
18,000,000 
5,000,000 
(103,000,000)
8,000,000 
12,000,000 
7,000,000 
(3,150,000,000)
(76,000,000)
38,000,000 
Deferred Income Tax Expense (Benefit)
 
 
 
 
 
 
 
 
3,186,000,000 
117,000,000 
(9,000,000)
U.S. Internal Revenue Service (IRS)
 
 
 
 
 
 
 
 
 
 
 
Operating Loss Carryforwards [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Recognized Income Tax Benefit
 
 
 
 
 
 
 
 
3,300,000,000 
 
 
Operating Loss Carryforwards
9,826,000,000 
 
 
 
 
 
 
 
9,826,000,000 
 
 
Operating Loss Carryforwards net of stock compensation excess benefit
9,700,000,000 
 
 
 
 
 
 
 
9,700,000,000 
 
 
Deferred Tax Assets, Valuation Allowance
1,000,000,000 
 
 
 
4,400,000,000 
 
 
 
1,000,000,000 
4,400,000,000 
 
Deferred Income Tax Expense (Benefit)
 
 
 
 
 
 
 
 
3,100,000,000 
 
 
U.S. Internal Revenue Service (IRS) |
Operating Loss Expiring, 2022 [Member]
 
 
 
 
 
 
 
 
 
 
 
Operating Loss Carryforwards [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Operating Loss Carryforwards
239,000,000 
 
 
 
 
 
 
 
239,000,000 
 
 
U.S. Internal Revenue Service (IRS) |
Expiring, 2023
 
 
 
 
 
 
 
 
 
 
 
Operating Loss Carryforwards [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Operating Loss Carryforwards
1,456,000,000 
 
 
 
 
 
 
 
1,456,000,000 
 
 
U.S. Internal Revenue Service (IRS) |
Expiring, 2024
 
 
 
 
 
 
 
 
 
 
 
Operating Loss Carryforwards [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Operating Loss Carryforwards
1,267,000,000 
 
 
 
 
 
 
 
1,267,000,000 
 
 
U.S. Internal Revenue Service (IRS) |
Expiring, 2025
 
 
 
 
 
 
 
 
 
 
 
Operating Loss Carryforwards [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Operating Loss Carryforwards
1,254,000,000 
 
 
 
 
 
 
 
1,254,000,000 
 
 
U.S. Internal Revenue Service (IRS) |
Expiring, 2026
 
 
 
 
 
 
 
 
 
 
 
Operating Loss Carryforwards [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Operating Loss Carryforwards
1,644,000,000 
 
 
 
 
 
 
 
1,644,000,000 
 
 
U.S. Internal Revenue Service (IRS) |
Expiring, 2027
 
 
 
 
 
 
 
 
 
 
 
Operating Loss Carryforwards [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Operating Loss Carryforwards
477,000,000 
 
 
 
 
 
 
 
477,000,000 
 
 
U.S. Internal Revenue Service (IRS) |
Expiring, 2028
 
 
 
 
 
 
 
 
 
 
 
Operating Loss Carryforwards [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Operating Loss Carryforwards
694,000,000 
 
 
 
 
 
 
 
694,000,000 
 
 
U.S. Internal Revenue Service (IRS) |
Expiring, 2029
 
 
 
 
 
 
 
 
 
 
 
Operating Loss Carryforwards [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Operating Loss Carryforwards
663,000,000 
 
 
 
 
 
 
 
663,000,000 
 
 
U.S. Internal Revenue Service (IRS) |
Expiring, 2030
 
 
 
 
 
 
 
 
 
 
 
Operating Loss Carryforwards [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Operating Loss Carryforwards
833,000,000 
 
 
 
 
 
 
 
833,000,000 
 
 
U.S. Internal Revenue Service (IRS) |
Expiring, 2031
 
 
 
 
 
 
 
 
 
 
 
Operating Loss Carryforwards [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Operating Loss Carryforwards
729,000,000 
 
 
 
 
 
 
 
729,000,000 
 
 
U.S. Internal Revenue Service (IRS) |
Expiring, 2032
 
 
 
 
 
 
 
 
 
 
 
Operating Loss Carryforwards [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Operating Loss Carryforwards
172,000,000 
 
 
 
 
 
 
 
172,000,000 
 
 
U.S. Internal Revenue Service (IRS) |
Expiring, 2033
 
 
 
 
 
 
 
 
 
 
 
Operating Loss Carryforwards [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Operating Loss Carryforwards
395,000,000 
 
 
 
 
 
 
 
395,000,000 
 
 
U.S. Internal Revenue Service (IRS) |
Operating Loss Expiring, 2034 [Member]
 
 
 
 
 
 
 
 
 
 
 
Operating Loss Carryforwards [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Operating Loss Carryforwards
3,000,000 
 
 
 
 
 
 
 
3,000,000 
 
 
Foreign jurisdiction
 
 
 
 
 
 
 
 
 
 
 
Operating Loss Carryforwards [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Operating Loss Carryforward, Disregarded for Domestic Country Tax Purposes
5,500,000,000 
 
 
 
 
 
 
 
5,500,000,000 
 
 
State jurisdiction
 
 
 
 
 
 
 
 
 
 
 
Operating Loss Carryforwards [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Operating Loss Carryforwards
9,900,000,000 
 
 
 
 
 
 
 
9,900,000,000 
 
 
tw telecom [Member] |
U.S. Internal Revenue Service (IRS)
 
 
 
 
 
 
 
 
 
 
 
Operating Loss Carryforwards [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Operating Loss Carryforwards
$ 1,000,000,000 
 
 
 
 
 
 
 
$ 1,000,000,000 
 
 
Income Taxes - Unrecognized Tax Benefits (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Operating Loss Carryforwards [Line Items]
 
 
 
Unrecognized tax benefits, increase from prior years positions netted against DTA
$ (2)
$ 5 
 
Unrecognized Tax Benefits that Would Impact Effective Tax Rate
17 
14 
 
Unrecognized Tax Benefits, Increase Resulting from Prior Period Tax Positions
3 
1 
0 
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
 
 
 
Unrecognized tax benefits, Beginning balance
17 
13 
18 
Gross increases - tax positions during 2012
2 
0 
(1)
Gross decreases - lapse of statue of limitations
(2)
(2)
(6)
Gross decreases - settlements with taxing authorities
0 
0 
0 
Unrecognized tax benefits, Ending Balance
18 
17 
13 
Accrued interest and penalties in the Company's liability for uncertain tax positions
(16)
(17)
(18)
Unrecognized Tax Benefits, Interest on Income Taxes Expense
(1)
 
 
Accrued interest and penalties related to uncertain tax positions in income tax expense in its consolidated statements of operation
 
$ (1)
$ 4 
Segment Information Summarized Segment Information (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2015
Sep. 30, 2015
Jun. 30, 2015
Mar. 31, 2015
Dec. 31, 2014
Sep. 30, 2014
Jun. 30, 2014
Mar. 31, 2014
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Segment Reporting Information
 
 
 
 
 
 
 
 
 
 
 
Net Income (Loss) Available to Common Stockholders, Basic
 
 
 
 
 
 
 
 
$ 3,433 
$ 314 
$ (109)
Other Nonoperating Income (Expense)
 
 
 
 
 
 
 
 
(1,048)
(775)
(737)
Adjusted EBITDA by Segment [Line Items]
 
 
 
 
 
 
 
 
2,638 
1,895 
1,624 
Income Tax Benefit (Expense)
3,189 
(16)
(18)
(5)
103 
(8)
(12)
(7)
3,150 
76 
(38)
Revenue
2,053 
2,062 
2,061 
2,053 
1,914 
1,629 
1,625 
1,609 
8,229 
6,777 
6,313 
Capital expenditures
 
 
 
 
 
 
 
 
(1,229)
(910)
(760)
Depreciation and amortization
(294)
(296)
(288)
(288)
(250)
(187)
(187)
(184)
(1,166)
(808)
(800)
Total Assets
24,145 
 
 
 
20,947 
 
 
 
24,145 
20,947 
 
Share-based Compensation
 
 
 
 
 
 
 
 
(141)
(73)
(151)
non-cash impairment
 
 
 
 
 
 
 
 
0 
(1)
(7)
Corporate and Other [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information
 
 
 
 
 
 
 
 
 
 
 
Adjusted EBITDA by Segment [Line Items]
 
 
 
 
 
 
 
 
(947)
(732)
(714)
Capital expenditures
 
 
 
 
 
 
 
 
(164)
(145)
(100)
Total Assets
257 
 
 
 
284 
 
 
 
257 
284 
 
North America [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information
 
 
 
 
 
 
 
 
 
 
 
Adjusted EBITDA by Segment [Line Items]
 
 
 
 
 
 
 
 
3,048 
2,065 
1,799 
Capital expenditures
 
 
 
 
 
 
 
 
(752)
(495)
(398)
Total Assets
19,961 
 
 
 
16,242 
 
 
 
19,961 
16,242 
 
Europe [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information
 
 
 
 
 
 
 
 
 
 
 
Adjusted EBITDA by Segment [Line Items]
 
 
 
 
 
 
 
 
235 
214 
226 
Capital expenditures
 
 
 
 
 
 
 
 
(158)
(117)
(128)
Total Assets
1,796 
 
 
 
1,970 
 
 
 
1,796 
1,970 
 
Latin America [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information
 
 
 
 
 
 
 
 
 
 
 
Adjusted EBITDA by Segment [Line Items]
 
 
 
 
 
 
 
 
302 
348 
313 
Capital expenditures
 
 
 
 
 
 
 
 
(155)
(153)
(134)
Total Assets
$ 2,131 
 
 
 
$ 2,451 
 
 
 
$ 2,131 
$ 2,451 
 
Segment Information Revenue From External Customers (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2015
Sep. 30, 2015
Jun. 30, 2015
Mar. 31, 2015
Dec. 31, 2014
Sep. 30, 2014
Jun. 30, 2014
Mar. 31, 2014
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Segment information
 
 
 
 
 
 
 
 
 
 
 
Revenue from external customers
$ 2,053 
$ 2,062 
$ 2,061 
$ 2,053 
$ 1,914 
$ 1,629 
$ 1,625 
$ 1,609 
$ 8,229 
$ 6,777 
$ 6,313 
Core Network Service [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment information
 
 
 
 
 
 
 
 
 
 
 
Revenue from external customers
 
 
 
 
 
 
 
 
7,757 
6,195 
5,591 
Core Network Service [Member] |
North America
 
 
 
 
 
 
 
 
 
 
 
Segment information
 
 
 
 
 
 
 
 
 
 
 
Revenue from external customers
 
 
 
 
 
 
 
 
6,208 
4,525 
3,949 
Core Network Service [Member] |
Europe
 
 
 
 
 
 
 
 
 
 
 
Segment information
 
 
 
 
 
 
 
 
 
 
 
Revenue from external customers
 
 
 
 
 
 
 
 
835 
891 
888 
Core Network Service [Member] |
Latin America
 
 
 
 
 
 
 
 
 
 
 
Segment information
 
 
 
 
 
 
 
 
 
 
 
Revenue from external customers
 
 
 
 
 
 
 
 
714 
779 
754 
Wholesale Voice Services and Other [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment information
 
 
 
 
 
 
 
 
 
 
 
Revenue from external customers
 
 
 
 
 
 
 
 
472 
582 
722 
Wholesale Voice Services and Other [Member] |
North America
 
 
 
 
 
 
 
 
 
 
 
Segment information
 
 
 
 
 
 
 
 
 
 
 
Revenue from external customers
 
 
 
 
 
 
 
 
446 
530 
681 
Wholesale Voice Services and Other [Member] |
Europe
 
 
 
 
 
 
 
 
 
 
 
Segment information
 
 
 
 
 
 
 
 
 
 
 
Revenue from external customers
 
 
 
 
 
 
 
 
14 
19 
31 
Wholesale Voice Services and Other [Member] |
Latin America
 
 
 
 
 
 
 
 
 
 
 
Segment information
 
 
 
 
 
 
 
 
 
 
 
Revenue from external customers
 
 
 
 
 
 
 
 
$ 12 
$ 33 
$ 10 
Segment Information Revenue By Service Offering (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2015
Sep. 30, 2015
Jun. 30, 2015
Mar. 31, 2015
Dec. 31, 2014
Sep. 30, 2014
Jun. 30, 2014
Mar. 31, 2014
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Revenue from External Customer
 
 
 
 
 
 
 
 
 
 
 
Revenue
$ 2,053 
$ 2,062 
$ 2,061 
$ 2,053 
$ 1,914 
$ 1,629 
$ 1,625 
$ 1,609 
$ 8,229 
$ 6,777 
$ 6,313 
Core Network Service
 
 
 
 
 
 
 
 
 
 
 
Revenue from External Customer
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
 
 
 
 
 
 
 
7,757 
6,195 
5,591 
Wholesale Voice Services and Other
 
 
 
 
 
 
 
 
 
 
 
Revenue from External Customer
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
 
 
 
 
 
 
 
$ 472 
$ 582 
$ 722 
Commitments, Contingencies and Other Items - Lawsuits (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Dec. 31, 2015
Dec. 31, 2015
Peruvian Tax Litigation
Pending Litigation
Dec. 31, 2015
Peruvian Tax Litigation, Before Interest
Pending Litigation
Dec. 31, 2015
Peruvian Tax Litigation, Income Taxwitholding 2001 and 2002
Pending Litigation
Dec. 31, 2015
Peruvian Tax Litigation, Disallowance of VAT in 2005
Pending Litigation
Dec. 31, 2015
Peruvian Tax Litigation, Vat for 2001 and 2002
Pending Litigation
Dec. 31, 2015
Employee Severance and Contractor Termination Disputes
Pending Litigation
Dec. 31, 2015
Maximum
Brazilian Tax Claims
Pending Litigation
Dec. 31, 2014
Brazilian Tax Reserve Release [Member]
Brazilian Tax Claims
Pending Litigation
Sep. 30, 2014
Brazilian Tax Reserve Release [Member]
Brazilian Tax Claims
Pending Litigation
Loss Contingencies
 
 
 
 
 
 
 
 
 
 
Estimated Litigation Liability
$ 129 
 
 
 
 
 
 
 
 
 
Loss Contingency, Asserted Claim
 
46 
26 
3 
16 
7 
42 
 
 
 
Loss Contingency Accrual, Period Increase (Decrease)
 
 
 
 
 
 
 
 
3 
6 
Loss Contingency Accrual, Payments
 
 
 
 
 
 
 
 
5 
 
Loss Contingency, Range of Possible Loss, Portion Not Accrued
 
 
 
 
 
 
 
$ 42 
 
 
Commitments, Contingencies and Other Items - Other Commitments (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2015
year
Dec. 31, 2014
Dec. 31, 2013
Commitments and Contingencies Disclosure [Abstract]
 
 
 
Amount outstanding under letters of credit
$ 46 
$ 28 
 
Collateralized Financings
43 
23 
 
Payments under these right-of-way agreements
211 
173 
161 
Rent expense, including common area maintenance, under non-cancelable lease agreements
357 
318 
311 
Right-of-Way Agreements
 
 
 
Right-of-Way Agreements, 2013
151 
 
 
Right-of-Way Agreements, 2014
72 
 
 
Right-of-Way Agreements, 2015
69 
 
 
Right-of-Way Agreements, 2016
59 
 
 
Right-of-Way Agreements, 2017
54 
 
 
Right-of-Way Agreements, Thereafter
295 
 
 
Right-of-Way Agreements, Total
700 
 
 
Facilities
 
 
 
Facilities, 2013
278 
 
 
Facilities, 2014
245 
 
 
Facilities, 2015
209 
 
 
Facilities, 2016
157 
 
 
Facilities, 2017
123 
 
 
Facilities, Thereafter
578 
 
 
Facilities, Total
1,590 
 
 
Total
 
 
 
Right-of-Way Agreements and Facilities, 2013
429 
 
 
Right-of-Way Agreements and Facilities, 2014
317 
 
 
Right-of-Way Agreements and Facilities, 2015
278 
 
 
Right-of-Way Agreements and Facilities, 2016
216 
 
 
Right-of-Way Agreements and Facilities, 2017
177 
 
 
Right-of-Way Agreements and Facilities, Thereafter
873 
 
 
Right-of-Way Agreements and Facilities, Total
2,290 
 
 
Future Minimum Sublease Receipts
 
 
 
2013
4 
 
 
2014
4 
 
 
2015
3 
 
 
2016
2 
 
 
2017
0 
 
 
Thereafter
0 
 
 
Total
$ 13 
 
 
Period of Right-of-Way Agreements with cancelable agreements (in years)
1 
 
 
Commitments, Contingencies and Other Items - Purchase Commitments (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Long-term Purchase Commitment
 
Total
$ 1,152 
Less than 1 Year
557 
2 - 3 Years
446 
4 - 5 Years
62 
After 5 Years
87 
Cost of Access Services
 
Long-term Purchase Commitment
 
Total
930 
Less than 1 Year
497 
2 - 3 Years
402 
4 - 5 Years
24 
After 5 Years
7 
Third Party Maintenance Services
 
Long-term Purchase Commitment
 
Total
222 
Less than 1 Year
60 
2 - 3 Years
44 
4 - 5 Years
38 
After 5 Years
$ 80 
Condensed Consolidating Financial Information - Narrative (Details) (Level 3 Financing [Member], Senior Notes due 2020 (7.0%))
Dec. 31, 2015
Level 3 Financing [Member] |
Senior Notes due 2020 (7.0%)
 
Long-term debt
 
Debt instrument, stated interest rate (as a percent)
7.00% 
Condensed Consolidating Financial Information - Statements of Operations (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2015
Sep. 30, 2015
Jun. 30, 2015
Mar. 31, 2015
Dec. 31, 2014
Sep. 30, 2014
Jun. 30, 2014
Mar. 31, 2014
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Condensed Consolidating Financial Information
 
 
 
 
 
 
 
 
 
 
 
Revenue
$ 2,053 
$ 2,062 
$ 2,061 
$ 2,053 
$ 1,914 
$ 1,629 
$ 1,625 
$ 1,609 
$ 8,229 
$ 6,777 
$ 6,313 
Network Access Costs
708 
706 
696 
723 
695 
607 
613 
614 
2,833 
2,529 
2,471 
Network Related Expenses
344 
369 
363 
356 
345 
307 
302 
292 
1,432 
1,246 
1,214 
Costs and Expenses:
 
 
 
 
 
 
 
 
 
 
 
Depreciation and Amortization
294 
296 
288 
288 
250 
187 
187 
184 
1,166 
808 
800 
Selling, General and Administrative Expenses
369 
364 
364 
370 
393 
266 
267 
255 
1,467 
1,181 
1,162 
Total Costs and Expenses
1,715 
1,735 
1,711 
1,737 
1,683 
1,367 
1,369 
1,345 
6,898 
5,764 
5,647 
Operating Income (Loss)
338 
327 
350 
316 
231 
262 
256 
264 
1,331 
1,013 
666 
Other Income (Expense):
 
 
 
 
 
 
 
 
 
 
 
Interest Income
0 
0 
0 
1 
0 
1 
0 
0 
1 
1 
0 
Interest expense
(152)
(145)
(165)
(180)
(195)
(159)
(149)
(151)
(642)
(654)
(649)
Interest income (expense) affiliates, net
 
 
 
 
 
 
 
 
0 
0 
0 
Equity in net earnings (losses) of subsidiaries
 
 
 
 
 
 
 
 
0 
0 
0 
Other income (expense), net
 
 
 
 
 
 
 
 
(407)
(122)
(88)
Total Other Expense
(204)
(310)
(345)
(189)
(268)
(169)
(193)
(145)
(1,048)
(775)
(737)
Income (Loss) Before Income Taxes
134 
17 
5 
127 
(37)
93 
63 
119 
283 
238 
(71)
Income Tax Benefit (Expense)
3,189 
(16)
(18)
(5)
103 
(8)
(12)
(7)
3,150 
76 
(38)
Net income (loss)
 
 
 
 
 
 
 
 
3,433 
314 
(109)
Net Income (Loss)
3,323 
1 
(13)
122 
66 
85 
51 
112 
3,433 
314 
(109)
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent
 
 
 
 
 
 
 
 
(154)
(183)
10 
Comprehensive Income (Loss), Net of Tax, Attributable to Parent
 
 
 
 
 
 
 
 
3,279 
131 
(99)
Level 3 Communications, Inc.
 
 
 
 
 
 
 
 
 
 
 
Condensed Consolidating Financial Information
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
 
 
 
 
 
 
 
0 
0 
0 
Network Access Costs
 
 
 
 
 
 
 
 
0 
0 
0 
Network Related Expenses
 
 
 
 
 
 
 
 
0 
0 
0 
Costs and Expenses:
 
 
 
 
 
 
 
 
 
 
 
Depreciation and Amortization
 
 
 
 
 
 
 
 
0 
0 
0 
Selling, General and Administrative Expenses
 
 
 
 
 
 
 
 
4 
21 
3 
Total Costs and Expenses
 
 
 
 
 
 
 
 
4 
21 
3 
Operating Income (Loss)
 
 
 
 
 
 
 
 
(4)
(21)
(3)
Other Income (Expense):
 
 
 
 
 
 
 
 
 
 
 
Interest Income
 
 
 
 
 
 
 
 
0 
0 
0 
Interest expense
 
 
 
 
 
 
 
 
(51)
(143)
(151)
Interest income (expense) affiliates, net
 
 
 
 
 
 
 
 
1,310 
1,227 
1,091 
Equity in net earnings (losses) of subsidiaries
 
 
 
 
 
 
 
 
2,162 
(710)
(1,039)
Other income (expense), net
 
 
 
 
 
 
 
 
(18)
(53)
0 
Total Other Expense
 
 
 
 
 
 
 
 
3,403 
321 
(99)
Income (Loss) Before Income Taxes
 
 
 
 
 
 
 
 
3,399 
300 
(102)
Income Tax Benefit (Expense)
 
 
 
 
 
 
 
 
34 
14 
(7)
Net income (loss)
 
 
 
 
 
 
 
 
 
 
(109)
Net Income (Loss)
 
 
 
 
 
 
 
 
3,433 
314 
 
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent
 
 
 
 
 
 
 
 
(154)
(183)
10 
Comprehensive Income (Loss), Net of Tax, Attributable to Parent
 
 
 
 
 
 
 
 
3,279 
131 
(99)
Level 3 Financing, Inc.
 
 
 
 
 
 
 
 
 
 
 
Condensed Consolidating Financial Information
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
 
 
 
 
 
 
 
0 
0 
0 
Network Access Costs
 
 
 
 
 
 
 
 
0 
0 
0 
Network Related Expenses
 
 
 
 
 
 
 
 
0 
0 
0 
Costs and Expenses:
 
 
 
 
 
 
 
 
 
 
 
Depreciation and Amortization
 
 
 
 
 
 
 
 
0 
0 
0 
Selling, General and Administrative Expenses
 
 
 
 
 
 
 
 
0 
2 
1 
Total Costs and Expenses
 
 
 
 
 
 
 
 
0 
2 
1 
Operating Income (Loss)
 
 
 
 
 
 
 
 
0 
(2)
(1)
Other Income (Expense):
 
 
 
 
 
 
 
 
 
 
 
Interest Income
 
 
 
 
 
 
 
 
0 
0 
0 
Interest expense
 
 
 
 
 
 
 
 
(574)
(492)
(497)
Interest income (expense) affiliates, net
 
 
 
 
 
 
 
 
1,984 
1,827 
1,706 
Equity in net earnings (losses) of subsidiaries
 
 
 
 
 
 
 
 
(1,693)
(2,047)
(2,164)
Other income (expense), net
 
 
 
 
 
 
 
 
(200)
0 
(85)
Total Other Expense
 
 
 
 
 
 
 
 
(483)
(712)
(1,040)
Income (Loss) Before Income Taxes
 
 
 
 
 
 
 
 
(483)
(714)
(1,041)
Income Tax Benefit (Expense)
 
 
 
 
 
 
 
 
2,645 
4 
2 
Net income (loss)
 
 
 
 
 
 
 
 
 
 
(1,039)
Net Income (Loss)
 
 
 
 
 
 
 
 
2,162 
(710)
 
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent
 
 
 
 
 
 
 
 
0 
0 
10 
Comprehensive Income (Loss), Net of Tax, Attributable to Parent
 
 
 
 
 
 
 
 
2,162 
(710)
(1,029)
Level 3 Communications, LLC
 
 
 
 
 
 
 
 
 
 
 
Condensed Consolidating Financial Information
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
 
 
 
 
 
 
 
3,325 
3,073 
2,825 
Network Access Costs
 
 
 
 
 
 
 
 
1,243 
1,177 
1,068 
Network Related Expenses
 
 
 
 
 
 
 
 
947 
762 
753 
Costs and Expenses:
 
 
 
 
 
 
 
 
 
 
 
Depreciation and Amortization
 
 
 
 
 
 
 
 
309 
277 
289 
Selling, General and Administrative Expenses
 
 
 
 
 
 
 
 
1,064 
735 
791 
Total Costs and Expenses
 
 
 
 
 
 
 
 
3,563 
2,951 
2,901 
Operating Income (Loss)
 
 
 
 
 
 
 
 
(238)
122 
(76)
Other Income (Expense):
 
 
 
 
 
 
 
 
 
 
 
Interest Income
 
 
 
 
 
 
 
 
0 
0 
0 
Interest expense
 
 
 
 
 
 
 
 
(3)
(2)
(3)
Interest income (expense) affiliates, net
 
 
 
 
 
 
 
 
(3,041)
(2,890)
(2,679)
Equity in net earnings (losses) of subsidiaries
 
 
 
 
 
 
 
 
177 
663 
550 
Other income (expense), net
 
 
 
 
 
 
 
 
3 
7 
4 
Total Other Expense
 
 
 
 
 
 
 
 
(2,864)
(2,222)
(2,128)
Income (Loss) Before Income Taxes
 
 
 
 
 
 
 
 
(3,102)
(2,100)
(2,204)
Income Tax Benefit (Expense)
 
 
 
 
 
 
 
 
(1)
(1)
0 
Net income (loss)
 
 
 
 
 
 
 
 
 
 
(2,204)
Net Income (Loss)
 
 
 
 
 
 
 
 
(3,103)
(2,101)
 
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent
 
 
 
 
 
 
 
 
0 
0 
0 
Comprehensive Income (Loss), Net of Tax, Attributable to Parent
 
 
 
 
 
 
 
 
(3,103)
(2,101)
(2,204)
Other Non-Guarantor Subsidiaries
 
 
 
 
 
 
 
 
 
 
 
Condensed Consolidating Financial Information
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
 
 
 
 
 
 
 
5,077 
3,918 
3,734 
Network Access Costs
 
 
 
 
 
 
 
 
1,763 
1,566 
1,649 
Network Related Expenses
 
 
 
 
 
 
 
 
485 
484 
461 
Costs and Expenses:
 
 
 
 
 
 
 
 
 
 
 
Depreciation and Amortization
 
 
 
 
 
 
 
 
857 
531 
511 
Selling, General and Administrative Expenses
 
 
 
 
 
 
 
 
399 
423 
367 
Total Costs and Expenses
 
 
 
 
 
 
 
 
3,504 
3,004 
2,988 
Operating Income (Loss)
 
 
 
 
 
 
 
 
1,573 
914 
746 
Other Income (Expense):
 
 
 
 
 
 
 
 
 
 
 
Interest Income
 
 
 
 
 
 
 
 
1 
1 
0 
Interest expense
 
 
 
 
 
 
 
 
(14)
(17)
2 
Interest income (expense) affiliates, net
 
 
 
 
 
 
 
 
(253)
(164)
(118)
Equity in net earnings (losses) of subsidiaries
 
 
 
 
 
 
 
 
0 
0 
0 
Other income (expense), net
 
 
 
 
 
 
 
 
(192)
(76)
(7)
Total Other Expense
 
 
 
 
 
 
 
 
(458)
(256)
(123)
Income (Loss) Before Income Taxes
 
 
 
 
 
 
 
 
1,115 
658 
623 
Income Tax Benefit (Expense)
 
 
 
 
 
 
 
 
472 
59 
(33)
Net income (loss)
 
 
 
 
 
 
 
 
 
 
590 
Net Income (Loss)
 
 
 
 
 
 
 
 
1,587 
717 
 
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent
 
 
 
 
 
 
 
 
154 
(183)
10 
Comprehensive Income (Loss), Net of Tax, Attributable to Parent
 
 
 
 
 
 
 
 
1,741 
534 
600 
Eliminations
 
 
 
 
 
 
 
 
 
 
 
Condensed Consolidating Financial Information
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
 
 
 
 
 
 
 
(173)
(214)
(246)
Network Access Costs
 
 
 
 
 
 
 
 
(173)
(214)
(246)
Network Related Expenses
 
 
 
 
 
 
 
 
0 
0 
0 
Costs and Expenses:
 
 
 
 
 
 
 
 
 
 
 
Depreciation and Amortization
 
 
 
 
 
 
 
 
0 
0 
0 
Selling, General and Administrative Expenses
 
 
 
 
 
 
 
 
0 
0 
0 
Total Costs and Expenses
 
 
 
 
 
 
 
 
(173)
(214)
(246)
Operating Income (Loss)
 
 
 
 
 
 
 
 
0 
0 
0 
Other Income (Expense):
 
 
 
 
 
 
 
 
 
 
 
Interest Income
 
 
 
 
 
 
 
 
0 
0 
0 
Interest expense
 
 
 
 
 
 
 
 
0 
0 
0 
Interest income (expense) affiliates, net
 
 
 
 
 
 
 
 
0 
0 
0 
Equity in net earnings (losses) of subsidiaries
 
 
 
 
 
 
 
 
(646)
2,094 
2,653 
Other income (expense), net
 
 
 
 
 
 
 
 
0 
0 
0 
Total Other Expense
 
 
 
 
 
 
 
 
(646)
2,094 
2,653 
Income (Loss) Before Income Taxes
 
 
 
 
 
 
 
 
(646)
2,094 
2,653 
Income Tax Benefit (Expense)
 
 
 
 
 
 
 
 
0 
0 
0 
Net income (loss)
 
 
 
 
 
 
 
 
 
 
2,653 
Net Income (Loss)
 
 
 
 
 
 
 
 
(646)
2,094 
 
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent
 
 
 
 
 
 
 
 
(154)
183 
(20)
Comprehensive Income (Loss), Net of Tax, Attributable to Parent
 
 
 
 
 
 
 
 
$ (800)
$ 2,277 
$ 2,633 
Condensed Consolidating Financial Information - Balance Sheets (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2010
Current Assets:
 
 
 
 
 
Cash and cash equivalents
$ 854 
$ 580 
$ 631 
$ 979 
$ 979 
Restricted cash and securities
8 
7 
 
 
 
Receivables, less allowances for doubtful accounts
757 
737 
 
 
 
Due from affiliates
0 
0 
 
 
 
Other
130 
157 
 
 
 
Total Current Assets
1,749 
1,481 
 
 
 
Property, Plant and Equipment, net
9,878 
9,860 
 
 
 
Restricted Cash and Securities
42 
20 
 
 
 
Goodwill and Other Intangibles Assets, net
8,876 
9,103 
 
 
 
Investment in Subsidiaries
0 
0 
 
 
 
Deferred Tax Assets
3,441 
300 
 
 
 
Other Assets, net
159 
183 
 
 
 
Total Assets
24,145 
20,947 
 
 
 
Liabilities:
 
 
 
 
 
Accounts payable
629 
664 
 
 
 
Current portion of long-term debt
15 
349 
 
 
 
Accrued payroll and employee benefits
218 
273 
 
 
 
Accrued interest
108 
174 
 
 
 
Current portion of deferred revenue
267 
287 
 
 
 
Due to affiliates
0 
0 
 
 
 
Other
179 
159 
 
 
 
Total Current Liabilities
1,416 
1,906 
 
 
 
Long-Term Debt, less current portion
10,994 
10,984 
 
 
 
Deferred Revenue, less current portion
977 
921 
 
 
 
Other Liabilities
632 
773 
 
 
 
Commitments and Contingencies
0 
0 
 
 
 
Stockholders' Equity (Deficit)
10,126 
6,363 
1,411 
1,171 
 
Total Liabilities and Stockholders’ Equity
24,145 
20,947 
 
 
 
Level 3 Communications, Inc.
 
 
 
 
 
Current Assets:
 
 
 
 
 
Cash and cash equivalents
12 
7 
8 
 
253 
Restricted cash and securities
0 
0 
 
 
 
Receivables, less allowances for doubtful accounts
0 
0 
 
 
 
Due from affiliates
12,415 
14,522 
 
 
 
Other
1 
2 
 
 
 
Total Current Assets
12,428 
14,531 
 
 
 
Property, Plant and Equipment, net
0 
0 
 
 
 
Restricted Cash and Securities
27 
3 
 
 
 
Goodwill and Other Intangibles Assets, net
0 
0 
 
 
 
Investment in Subsidiaries
16,772 
16,686 
 
 
 
Deferred Tax Assets
38 
0 
 
 
 
Other Assets, net
8 
28 
 
 
 
Total Assets
29,273 
31,248 
 
 
 
Liabilities:
 
 
 
 
 
Accounts payable
0 
0 
 
 
 
Current portion of long-term debt
0 
333 
 
 
 
Accrued payroll and employee benefits
0 
0 
 
 
 
Accrued interest
11 
12 
 
 
 
Current portion of deferred revenue
0 
0 
 
 
 
Due to affiliates
0 
0 
 
 
 
Other
0 
0 
 
 
 
Total Current Liabilities
11 
345 
 
 
 
Long-Term Debt, less current portion
600 
900 
 
 
 
Deferred Revenue, less current portion
0 
0 
 
 
 
Other Liabilities
15 
16 
 
 
 
Stockholders' Equity (Deficit)
28,647 
29,987 
 
 
 
Total Liabilities and Stockholders’ Equity
29,273 
31,248 
 
 
 
Level 3 Financing, Inc.
 
 
 
 
 
Current Assets:
 
 
 
 
 
Cash and cash equivalents
6 
5 
6 
 
5 
Restricted cash and securities
0 
0 
 
 
 
Receivables, less allowances for doubtful accounts
0 
0 
 
 
 
Due from affiliates
22,759 
21,270 
 
 
 
Other
18 
21 
 
 
 
Total Current Assets
22,783 
21,296 
 
 
 
Property, Plant and Equipment, net
0 
0 
 
 
 
Restricted Cash and Securities
0 
0 
 
 
 
Goodwill and Other Intangibles Assets, net
0 
0 
 
 
 
Investment in Subsidiaries
17,714 
14,777 
 
 
 
Deferred Tax Assets
2,847 
0 
 
 
 
Other Assets, net
100 
129 
 
 
 
Total Assets
43,444 
36,202 
 
 
 
Liabilities:
 
 
 
 
 
Accounts payable
1 
0 
 
 
 
Current portion of long-term debt
0 
0 
 
 
 
Accrued payroll and employee benefits
0 
0 
 
 
 
Accrued interest
90 
158 
 
 
 
Current portion of deferred revenue
0 
0 
 
 
 
Due to affiliates
0 
0 
 
 
 
Other
0 
2 
 
 
 
Total Current Liabilities
91 
160 
 
 
 
Long-Term Debt, less current portion
10,210 
9,893 
 
 
 
Deferred Revenue, less current portion
0 
0 
 
 
 
Other Liabilities
0 
24 
 
 
 
Stockholders' Equity (Deficit)
33,143 
26,125 
 
 
 
Total Liabilities and Stockholders’ Equity
43,444 
36,202 
 
 
 
Level 3 Communications, LLC
 
 
 
 
 
Current Assets:
 
 
 
 
 
Cash and cash equivalents
727 
307 
347 
 
386 
Restricted cash and securities
1 
1 
 
 
 
Receivables, less allowances for doubtful accounts
47 
34 
 
 
 
Due from affiliates
0 
0 
 
 
 
Other
56 
45 
 
 
 
Total Current Assets
831 
387 
 
 
 
Property, Plant and Equipment, net
3,423 
3,152 
 
 
 
Restricted Cash and Securities
14 
16 
 
 
 
Goodwill and Other Intangibles Assets, net
363 
373 
 
 
 
Investment in Subsidiaries
3,734 
3,729 
 
 
 
Deferred Tax Assets
0 
0 
 
 
 
Other Assets, net
12 
9 
 
 
 
Total Assets
8,377 
7,666 
 
 
 
Liabilities:
 
 
 
 
 
Accounts payable
195 
215 
 
 
 
Current portion of long-term debt
2 
3 
 
 
 
Accrued payroll and employee benefits
186 
174 
 
 
 
Accrued interest
0 
0 
 
 
 
Current portion of deferred revenue
119 
118 
 
 
 
Due to affiliates
37,990 
34,401 
 
 
 
Other
115 
62 
 
 
 
Total Current Liabilities
38,607 
34,973 
 
 
 
Long-Term Debt, less current portion
15 
16 
 
 
 
Deferred Revenue, less current portion
680 
617 
 
 
 
Other Liabilities
133 
125 
 
 
 
Stockholders' Equity (Deficit)
(31,058)
(28,065)
 
 
 
Total Liabilities and Stockholders’ Equity
8,377 
7,666 
 
 
 
Other Non-Guarantor Subsidiaries
 
 
 
 
 
Current Assets:
 
 
 
 
 
Cash and cash equivalents
109 
261 
270 
 
335 
Restricted cash and securities
7 
6 
 
 
 
Receivables, less allowances for doubtful accounts
710 
703 
 
 
 
Due from affiliates
2,816 
0 
 
 
 
Other
55 
89 
 
 
 
Total Current Assets
3,697 
1,059 
 
 
 
Property, Plant and Equipment, net
6,455 
6,708 
 
 
 
Restricted Cash and Securities
1 
1 
 
 
 
Goodwill and Other Intangibles Assets, net
8,513 
8,730 
 
 
 
Investment in Subsidiaries
0 
0 
 
 
 
Deferred Tax Assets
556 
300 
 
 
 
Other Assets, net
39 
17 
 
 
 
Total Assets
19,261 
16,815 
 
 
 
Liabilities:
 
 
 
 
 
Accounts payable
433 
449 
 
 
 
Current portion of long-term debt
13 
13 
 
 
 
Accrued payroll and employee benefits
32 
99 
 
 
 
Accrued interest
7 
4 
 
 
 
Current portion of deferred revenue
148 
169 
 
 
 
Due to affiliates
0 
1,391 
 
 
 
Other
64 
95 
 
 
 
Total Current Liabilities
697 
2,220 
 
 
 
Long-Term Debt, less current portion
169 
175 
 
 
 
Deferred Revenue, less current portion
297 
304 
 
 
 
Other Liabilities
484 
608 
 
 
 
Stockholders' Equity (Deficit)
17,614 
13,508 
 
 
 
Total Liabilities and Stockholders’ Equity
19,261 
16,815 
 
 
 
Eliminations
 
 
 
 
 
Current Assets:
 
 
 
 
 
Cash and cash equivalents
0 
0 
0 
 
0 
Restricted cash and securities
0 
0 
 
 
 
Receivables, less allowances for doubtful accounts
0 
0 
 
 
 
Due from affiliates
(37,990)
(35,792)
 
 
 
Other
0 
0 
 
 
 
Total Current Assets
(37,990)
(35,792)
 
 
 
Property, Plant and Equipment, net
0 
0 
 
 
 
Restricted Cash and Securities
0 
0 
 
 
 
Goodwill and Other Intangibles Assets, net
0 
0 
 
 
 
Investment in Subsidiaries
(38,220)
(35,192)
 
 
 
Deferred Tax Assets
0 
0 
 
 
 
Other Assets, net
0 
0 
 
 
 
Total Assets
(76,210)
(70,984)
 
 
 
Liabilities:
 
 
 
 
 
Accounts payable
0 
0 
 
 
 
Current portion of long-term debt
0 
0 
 
 
 
Accrued payroll and employee benefits
0 
0 
 
 
 
Accrued interest
0 
0 
 
 
 
Current portion of deferred revenue
0 
0 
 
 
 
Due to affiliates
(37,990)
(35,792)
 
 
 
Other
0 
0 
 
 
 
Total Current Liabilities
(37,990)
(35,792)
 
 
 
Long-Term Debt, less current portion
0 
0 
 
 
 
Deferred Revenue, less current portion
0 
0 
 
 
 
Other Liabilities
0 
0 
 
 
 
Stockholders' Equity (Deficit)
(38,220)
(35,192)
 
 
 
Total Liabilities and Stockholders’ Equity
$ (76,210)
$ (70,984)
 
 
 
Condensed Consolidating Financial Information - Statements of Cash Flows (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Condensed Consolidating Financial Information
 
 
 
Net Cash Provided by (Used in) Operating Activities
$ 1,855 
$ 1,161 
$ 713 
Cash Flows from Investing Activities:
 
 
 
Capital expenditures
(1,229)
(910)
(760)
Cash related to deconsolidated Venezuela operations
(83)
0 
0 
Increase (Decrease) in Restricted Cash and Investments
(22)
(10)
13 
Proceeds from sale of property, plant and equipment and other assets
4 
3 
0 
Payments to Acquire Businesses, Net of Cash Acquired
0 
(167)
0 
Other
(14)
(2)
2 
Net Cash Used in Investing Activities
(1,344)
(1,086)
(745)
Cash Flows from Financing Activities:
 
 
 
Long-term debt borrowings, net of issuance costs
4,832 
589 
1,502 
Payments on and repurchases of long-term debt, including current portions and refinancing costs
(5,051)
(671)
(1,796)
Increase (decrease) due from affiliates, net
0 
0 
0 
Net Cash Provided by (Used in) Financing Activities
(219)
(82)
(294)
Effect of Exchange Rates on Cash and Cash Equivalents
(18)
(44)
(22)
Net Change in Cash and Cash Equivalents
274 
(51)
(348)
Cash and Cash Equivalents at Beginning of Year
580 
631 
979 
Cash and Cash Equivalents at End of Year
854 
580 
631 
Level 3 Communications, Inc.
 
 
 
Condensed Consolidating Financial Information
 
 
 
Net Cash Provided by (Used in) Operating Activities
(40)
(178)
(169)
Cash Flows from Investing Activities:
 
 
 
Capital expenditures
0 
0 
0 
Cash related to deconsolidated Venezuela operations
0 
 
 
Increase (Decrease) in Restricted Cash and Investments
(25)
0 
9 
Proceeds from sale of property, plant and equipment and other assets
0 
0 
 
Payments to Acquire Businesses, Net of Cash Acquired
 
(474)
 
Other
0 
0 
0 
Net Cash Used in Investing Activities
(25)
(474)
9 
Cash Flows from Financing Activities:
 
 
 
Long-term debt borrowings, net of issuance costs
0 
590 
0 
Payments on and repurchases of long-term debt, including current portions and refinancing costs
(313)
(647)
(173)
Increase (decrease) due from affiliates, net
383 
708 
88 
Net Cash Provided by (Used in) Financing Activities
70 
651 
(85)
Effect of Exchange Rates on Cash and Cash Equivalents
0 
0 
0 
Net Change in Cash and Cash Equivalents
5 
(1)
(245)
Cash and Cash Equivalents at Beginning of Year
7 
8 
 
Cash and Cash Equivalents at End of Year
12 
7 
8 
Level 3 Financing, Inc.
 
 
 
Condensed Consolidating Financial Information
 
 
 
Net Cash Provided by (Used in) Operating Activities
(617)
(458)
(557)
Cash Flows from Investing Activities:
 
 
 
Capital expenditures
0 
0 
0 
Cash related to deconsolidated Venezuela operations
0 
 
 
Increase (Decrease) in Restricted Cash and Investments
0 
0 
0 
Proceeds from sale of property, plant and equipment and other assets
0 
0 
 
Payments to Acquire Businesses, Net of Cash Acquired
 
0 
 
Other
0 
0 
0 
Net Cash Used in Investing Activities
0 
0 
0 
Cash Flows from Financing Activities:
 
 
 
Long-term debt borrowings, net of issuance costs
4,832 
0 
1,502 
Payments on and repurchases of long-term debt, including current portions and refinancing costs
(4,725)
0 
(1,586)
Increase (decrease) due from affiliates, net
511 
457 
642 
Net Cash Provided by (Used in) Financing Activities
618 
457 
558 
Effect of Exchange Rates on Cash and Cash Equivalents
0 
0 
0 
Net Change in Cash and Cash Equivalents
1 
(1)
1 
Cash and Cash Equivalents at Beginning of Year
5 
6 
 
Cash and Cash Equivalents at End of Year
6 
5 
6 
Level 3 Communications, LLC
 
 
 
Condensed Consolidating Financial Information
 
 
 
Net Cash Provided by (Used in) Operating Activities
193 
625 
710 
Cash Flows from Investing Activities:
 
 
 
Capital expenditures
(453)
(362)
(312)
Cash related to deconsolidated Venezuela operations
0 
 
 
Increase (Decrease) in Restricted Cash and Investments
3 
2 
(1)
Proceeds from sale of property, plant and equipment and other assets
0 
0 
 
Payments to Acquire Businesses, Net of Cash Acquired
 
0 
 
Other
(14)
0 
1 
Net Cash Used in Investing Activities
(464)
(360)
(312)
Cash Flows from Financing Activities:
 
 
 
Long-term debt borrowings, net of issuance costs
0 
0 
0 
Payments on and repurchases of long-term debt, including current portions and refinancing costs
(2)
0 
(4)
Increase (decrease) due from affiliates, net
693 
(305)
(433)
Net Cash Provided by (Used in) Financing Activities
691 
(305)
(437)
Effect of Exchange Rates on Cash and Cash Equivalents
0 
0 
0 
Net Change in Cash and Cash Equivalents
420 
(40)
(39)
Cash and Cash Equivalents at Beginning of Year
307 
347 
 
Cash and Cash Equivalents at End of Year
727 
307 
347 
Other Non-Guarantor Subsidiaries
 
 
 
Condensed Consolidating Financial Information
 
 
 
Net Cash Provided by (Used in) Operating Activities
2,319 
1,172 
729 
Cash Flows from Investing Activities:
 
 
 
Capital expenditures
(776)
(548)
(448)
Cash related to deconsolidated Venezuela operations
(83)
 
 
Increase (Decrease) in Restricted Cash and Investments
0 
(12)
5 
Proceeds from sale of property, plant and equipment and other assets
4 
3 
 
Payments to Acquire Businesses, Net of Cash Acquired
 
307 
 
Other
0 
(2)
1 
Net Cash Used in Investing Activities
(855)
(252)
(442)
Cash Flows from Financing Activities:
 
 
 
Long-term debt borrowings, net of issuance costs
0 
(1)
0 
Payments on and repurchases of long-term debt, including current portions and refinancing costs
(11)
(24)
(33)
Increase (decrease) due from affiliates, net
(1,587)
(860)
(297)
Net Cash Provided by (Used in) Financing Activities
(1,598)
(885)
(330)
Effect of Exchange Rates on Cash and Cash Equivalents
(18)
(44)
(22)
Net Change in Cash and Cash Equivalents
(152)
(9)
(65)
Cash and Cash Equivalents at Beginning of Year
261 
270 
 
Cash and Cash Equivalents at End of Year
109 
261 
270 
Eliminations
 
 
 
Condensed Consolidating Financial Information
 
 
 
Net Cash Provided by (Used in) Operating Activities
0 
0 
0 
Cash Flows from Investing Activities:
 
 
 
Capital expenditures
0 
0 
0 
Cash related to deconsolidated Venezuela operations
0 
 
 
Increase (Decrease) in Restricted Cash and Investments
0 
0 
0 
Proceeds from sale of property, plant and equipment and other assets
0 
0 
 
Payments to Acquire Businesses, Net of Cash Acquired
 
0 
 
Other
0 
0 
0 
Net Cash Used in Investing Activities
0 
0 
0 
Cash Flows from Financing Activities:
 
 
 
Long-term debt borrowings, net of issuance costs
0 
0 
0 
Payments on and repurchases of long-term debt, including current portions and refinancing costs
0 
0 
0 
Increase (decrease) due from affiliates, net
0 
0 
0 
Net Cash Provided by (Used in) Financing Activities
0 
0 
0 
Effect of Exchange Rates on Cash and Cash Equivalents
0 
0 
0 
Net Change in Cash and Cash Equivalents
0 
0 
0 
Cash and Cash Equivalents at Beginning of Year
0 
0 
 
Cash and Cash Equivalents at End of Year
$ 0 
$ 0 
$ 0 
Unaudited Quarterly Financial Data (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 12 Months Ended 3 Months Ended 3 Months Ended 12 Months Ended 3 Months Ended 3 Months Ended 3 Months Ended 3 Months Ended 12 Months Ended 12 Months Ended 12 Months Ended 12 Months Ended 12 Months Ended 12 Months Ended 3 Months Ended
Dec. 31, 2015
Sep. 30, 2015
Jun. 30, 2015
Mar. 31, 2015
Dec. 31, 2014
Sep. 30, 2014
Jun. 30, 2014
Mar. 31, 2014
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2015
Senior Notes 5point 375Percent Due 2024 [Member]
Dec. 31, 2015
Senior Notes 8 Point 625 Percent Due 2020 [Member]
Dec. 31, 2014
Senior Notes 8 Point 625 Percent Due 2020 [Member]
Jun. 30, 2015
Senior Notes due 2019 (9.375%)
Dec. 31, 2015
Senior Notes due 2019 (9.375%)
Dec. 31, 2014
Senior Notes due 2019 (9.375%)
Jun. 30, 2015
Senior Notes due 2019 (8.125%)
Dec. 31, 2015
Senior Notes due 2019 (8.125%)
Dec. 31, 2014
Senior Notes due 2019 (8.125%)
Jun. 30, 2015
Senior Notes due 2019 (8.875%)
Dec. 31, 2015
Senior Notes due 2019 (8.875%)
Dec. 31, 2014
Senior Notes due 2019 (8.875%)
Jun. 30, 2015
Tranche B 2022 Term Loans [Member]
Dec. 31, 2015
Tranche B 2022 Term Loans [Member]
Dec. 31, 2014
Tranche B 2022 Term Loans [Member]
Dec. 31, 2014
Tranche B-II Term Loans and Senior Notes [Member]
Dec. 31, 2015
Senior Notes 11 Point 875 Percent Due 2019 [Member]
Dec. 31, 2015
TrancheB2022TermLoanTotal [Member]
Dec. 31, 2015
Senior Notes 5.375percent Due 2022 [Member]
Aug. 12, 2014
Senior Notes 5.375percent Due 2022 [Member]
Dec. 31, 2015
Floating Rate Senior Notes due 2015 [Member]
Dec. 31, 2011
Floating Rate Senior Notes due 2015 [Member]
Dec. 31, 2015
Level 3 Financing [Member]
Senior Notes 5point 375Percent Due 2024 [Member]
Nov. 13, 2015
Level 3 Financing [Member]
Senior Notes 5point 375Percent Due 2024 [Member]
Dec. 31, 2015
Level 3 Financing [Member]
Senior Notes 8 Point 625 Percent Due 2020 [Member]
Jan. 13, 2012
Level 3 Financing [Member]
Senior Notes 8 Point 625 Percent Due 2020 [Member]
Dec. 31, 2015
Level 3 Financing [Member]
Senior Notes due 2019 (9.375%)
Mar. 4, 2011
Level 3 Financing [Member]
Senior Notes due 2019 (9.375%)
Dec. 31, 2015
Level 3 Financing [Member]
Senior Notes due 2019 (8.125%)
Jun. 9, 2011
Level 3 Financing [Member]
Senior Notes due 2019 (8.125%)
Dec. 31, 2015
Level 3 Financing [Member]
Senior Notes due 2019 (8.875%)
Jul. 31, 2012
Level 3 Financing [Member]
Senior Notes due 2019 (8.875%)
Dec. 31, 2015
Level 3 Financing [Member]
Tranche B 2022 Term Loans [Member]
Oct. 31, 2014
Level 3 Financing [Member]
Tranche B 2022 Term Loans [Member]
Dec. 31, 2015
Level 3 Financing [Member]
Senior Notes 5.375percent Due 2022 [Member]
Aug. 12, 2014
Level 3 Escrow II, Inc. [Member]
Senior Notes 5.375percent Due 2022 [Member]
Dec. 31, 2015
Guarantor Subsidiaries [Member]
Dec. 31, 2014
Guarantor Subsidiaries [Member]
Dec. 31, 2013
Guarantor Subsidiaries [Member]
Dec. 31, 2015
Guarantor Subsidiaries [Member]
TrancheB2022TermLoanTotal [Member]
Dec. 31, 2015
Level 3 Communications, Inc.
Dec. 31, 2014
Level 3 Communications, Inc.
Dec. 31, 2013
Level 3 Communications, Inc.
Dec. 31, 2015
Level 3 Communications, Inc.
Senior Notes due 2019 (8.875%)
Dec. 31, 2014
Level 3 Communications, Inc.
Senior Notes 11 Point 875 Percent Due 2019 [Member]
Dec. 31, 2015
Level 3 Communications, Inc.
Senior Notes 11 Point 875 Percent Due 2019 [Member]
Selected Quarterly Financial Information [Abstract]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue
$ 2,053 
$ 2,062 
$ 2,061 
$ 2,053 
$ 1,914 
$ 1,629 
$ 1,625 
$ 1,609 
$ 8,229 
$ 6,777 
$ 6,313 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 0 
$ 0 
$ 0 
 
$ 0 
$ 0 
$ 0 
 
 
 
Network Access Costs
708 
706 
696 
723 
695 
607 
613 
614 
2,833 
2,529 
2,471 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0 
0 
0 
 
0 
0 
0 
 
 
 
Network Related Expenses
344 
369 
363 
356 
345 
307 
302 
292 
1,432 
1,246 
1,214 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0 
0 
0 
 
0 
0 
0 
 
 
 
Operating Income (Loss)
338 
327 
350 
316 
231 
262 
256 
264 
1,331 
1,013 
666 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0 
(2)
(1)
 
(4)
(21)
(3)
 
 
 
Interest Income
0 
0 
0 
1 
0 
1 
0 
0 
1 
1 
0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0 
0 
0 
 
0 
0 
0 
 
 
 
Interest Expense
(152)
(145)
(165)
(180)
(195)
(159)
(149)
(151)
(642)
(654)
(649)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(574)
(492)
(497)
 
(51)
(143)
(151)
 
 
 
Net Income (Loss)
3,323 
1 
(13)
122 
66 
85 
51 
112 
3,433 
314 
(109)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2,162 
(710)
 
 
3,433 
314 
 
 
 
 
Net Income (Loss) Per Share -Basic
$ 9.33 
$ 0 
$ (0.04)
$ 0.35 
$ 0.22 
$ 0.36 
$ 0.21 
$ 0.48 
$ 9.71 
$ 1.23 
$ (0.49)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Income (Loss) Per Share - Diluted
$ 9.24 
$ 0 
$ (0.04)
$ 0.35 
$ 0.21 
$ 0.35 
$ 0.21 
$ 0.47 
$ 9.58 
$ 1.21 
$ (0.49)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Selling, General and Administrative Expenses
369 
364 
364 
370 
393 
266 
267 
255 
1,467 
1,181 
1,162 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0 
2 
1 
 
4 
21 
3 
 
 
 
Total Costs and Expenses
1,715 
1,735 
1,711 
1,737 
1,683 
1,367 
1,369 
1,345 
6,898 
5,764 
5,647 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0 
2 
1 
 
4 
21 
3 
 
 
 
Depreciation expense
 
 
 
 
 
 
 
 
939 
713 
727 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and Amortization
294 
296 
288 
288 
250 
187 
187 
184 
1,166 
808 
800 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0 
0 
0 
 
0 
0 
0 
 
 
 
Impairment of Intangible Assets (Excluding Goodwill)
 
 
 
 
 
 
 
 
17 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loss on modification and extinguishment of debt
(55)
0 
(163)
0 
(53)
0 
0 
0 
(218)
(53)
(84)
(55)
 
 
(36)
(36)
 
(82)
 
 
(18)
 
 
27 
 
 
53 
 
 
 
 
 
 
(55)
 
 
 
 
 
(82)
 
(18)
 
27 
 
 
 
 
 
 
 
 
 
 
 
(53)
 
Venezuela deconsolidation charge
0 
(171)
0 
0 
0 
0 
0 
0 
(171)
0 
0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Combination, Integration Related Costs
 
 
 
 
70 
 
 
 
113 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other, net
3 
6 
(17)
(10)
(20)
(11)
(44)
6 
(18)
(69)
(4)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Other Expense
(204)
(310)
(345)
(189)
(268)
(169)
(193)
(145)
(1,048)
(775)
(737)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(483)
(712)
(1,040)
 
3,403 
321 
(99)
 
 
 
Income (Loss) Before Income Taxes
134 
17 
5 
127 
(37)
93 
63 
119 
283 
238 
(71)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(483)
(714)
(1,041)
 
3,399 
300 
(102)
 
 
 
Income Tax Expense (Benefit)
(3,189)
16 
18 
5 
(103)
8 
12 
7 
(3,150)
(76)
38 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(2,645)
(4)
(2)
 
(34)
(14)
7 
 
 
 
Recognized Income Tax Benefit
3,300 
 
 
 
100 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt Instrument, Face Amount
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1,000 
1,000 
 
 
 
900 
 
900 
 
500 
 
1,200 
 
300 
 
2,000 
 
1,000 
 
 
 
 
 
 
 
 
 
 
Debt instrument, stated interest rate (as a percent)
 
 
 
 
 
 
 
 
 
 
 
 
8.625% 
 
 
9.375% 
 
 
8.125% 
 
 
8.875% 
 
 
 
4.50% 
 
11.875% 
 
5.375% 
 
3.846% 
3.826% 
5.375% 
 
8.625% 
 
9.375% 
 
8.125% 
 
 
 
 
 
5.375% 
 
 
 
 
 
 
 
 
8.875% 
 
11.875% 
Foreign Currency Transaction Gain (Loss), before Tax
 
 
 
 
 
 
34 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign Currency Exchange Rate, Translation
 
13.5 
 
 
 
 
6.3 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign Currency Exchange Rate, Remeasurement
 
 
 
 
 
 
10.6 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Property, Plant and Equipment, Gross
20,243 
 
 
 
19,489 
 
 
 
20,243 
19,489 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term Debt, Gross
11,025 
 
 
 
11,366 
 
 
 
11,025 
11,366 
 
 
0 
900 
 
0 
500 
 
0 
1,200 
 
0 
300 
 
0 
2,000 
 
 
2,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2,000 
 
 
 
 
 
 
Asset Retirement Obligation, Revision of Estimate
 
 
 
 
 
 
 
 
$ 5 
$ 7