Ascendere Associates LLC

Contact: Steve Castellano steve@ascenderellc.com

Level 3 Communications
Segment
Communications
Information Services
Coal Mining
Other
Revenue 5

2002
1,101.0
1,896.0
84.0
30.0
-

2003
1,947.0
1,999.0
80.0
-

2004
1,685.0
1,936.0
91.0
-

2005E
1,649.6
1,923.2
89.6
-

2006E
1,533.5
1,884.8
94.0
-

2007E
1,572.0
1,847.1
98.7
-

2008E
1,650.6
1,810.1
103.7
-

2009E
1,766.1
1,773.9
108.8
-

2010E
1,872.1
1,738.4
114.3
-

2011E
1,965.7
1,703.7
120.0
-

2012E
2,044.3
1,669.6
126.0
-

2013E
2,105.6
1,636.2
132.3
-

2014E
2,168.8
1,603.5
138.9
-

2015E
2,233.9
1,571.4
145.9
-

2016E
2,278.6
1,540.0
153.2
-

Total revenue

3,111.0

4,026.0

3,712.0

3,662.4

3,512.3

3,517.8

3,564.4

3,648.9

3,724.8

3,789.4

3,839.9

3,874.2

3,911.2

3,951.2

3,971.7

Communications
Information Services
Coal Mining
Other
Revenue 5

209.0
1,742.0
57.0
-

370.0
1,836.0
58.0
-

436.0
1,758.0
67.0
-

446.0
1,834.0
55.0
-

440.0
1,856.0
56.0
-

440.0
1,856.0
56.0
-

412.6
1,665.3
82.9
-

441.5
1,632.0
87.1
-

468.0
1,599.4
91.4
-

491.4
1,567.4
96.0
-

511.1
1,536.0
100.8
-

526.4
1,505.3
105.8
-

542.2
1,475.2
111.1
-

558.5
1,445.7
116.7
-

569.6
1,416.8
122.5
-

Total cost of services

2,008.0

2,264.0

2,261.0

2,335.0

2,352.0

2,352.0

2,160.9

2,160.6

2,158.8

2,154.8

2,147.9

2,137.6

2,128.5

2,120.9

2,109.0

892.0
154.0
27.0
30.0
-

1,577.0
163.0
22.0
-

1,249.0
178.0
24.0
-

1,231.5
170.6
19.7
-

1,150.2
150.8
18.8
-

1,179.0
147.8
19.7
-

1,237.9
144.8
20.7
-

1,324.6
141.9
21.8
-

1,404.1
139.1
22.9
-

1,474.3
136.3
24.0
-

1,533.2
133.6
25.2
-

1,579.2
130.9
26.5
-

1,626.6
128.3
27.8
-

1,675.4
125.7
29.2
-

1,708.9
123.2
30.6
-

Gross profit

1,103.0

1,762.0

1,451.0

1,421.8

1,319.7

1,346.5

1,403.5

1,488.3

1,566.0

1,634.6

1,692.0

1,736.6

1,782.7

1,830.3

1,862.7

Communications
Information Services
Coal Mining
Other
Revenue 5

81.0%
8.1%
32.1%
100.0%
0.0%

Communications
Information Services
Coal Mining
Other
Revenue 5

Gross margin

74.1%
9.2%
26.4%
0.0%
0.0%

74.7%
8.9%
22.0%
0.0%
0.0%

75.0%
8.0%
20.0%
0.0%
0.0%

75.0%
8.0%
20.0%
0.0%
0.0%

75.0%
8.0%
20.0%
0.0%
0.0%

75.0%
8.0%
20.0%
0.0%
0.0%

75.0%
8.0%
20.0%
0.0%
0.0%

75.0%
8.0%
20.0%
0.0%
0.0%

75.0%
8.0%
20.0%
0.0%
0.0%

75.0%
8.0%
20.0%
0.0%
0.0%

75.0%
8.0%
20.0%
0.0%
0.0%

75.0%
8.0%
20.0%
0.0%
0.0%

75.0%
8.0%
20.0%
0.0%
0.0%

35.5%

43.8%

39.1%

38.8%

37.6%

38.3%

39.4%

40.8%

42.0%

43.1%

44.1%

44.8%

45.6%

46.3%

46.9%

0.0%
0.0%
0.0%
0.0%
0.0%

76.8%
5.4%
-4.8%
0.0%
0.0%

-13.5%
-3.2%
13.8%
0.0%
0.0%

-2.1%
-0.7%
-1.6%
0.0%
0.0%

-7.0%
-2.0%
5.0%
0.0%
0.0%

2.5%
-2.0%
5.0%
0.0%
0.0%

5.0%
-2.0%
5.0%
0.0%
0.0%

7.0%
-2.0%
5.0%
0.0%
0.0%

6.0%
-2.0%
5.0%
0.0%
0.0%

5.0%
-2.0%
5.0%
0.0%
0.0%

4.0%
-2.0%
5.0%
0.0%
0.0%

3.0%
-2.0%
5.0%
0.0%
0.0%

3.0%
-2.0%
5.0%
0.0%
0.0%

3.0%
-2.0%
5.0%
0.0%
0.0%

2.0%
-2.0%
5.0%
0.0%
0.0%

Y/Y Revenue growth

0.0%

29.4%

-7.8%

-1.3%

-4.1%

0.2%

8.0%

10.0%

9.0%

8.0%

7.0%

6.0%

6.0%

6.0%

5.0%

Communications
Information Services
Coal Mining
Other
Revenue 5

0.0%
0.0%
0.0%
0.0%
0.0%

0.0%
0.0%
0.0%
0.0%
0.0%

0.0%
0.0%
0.0%
0.0%
0.0%

0.0%
0.0%
0.0%
0.0%
0.0%

0.0%
0.0%
0.0%
0.0%
0.0%

0.0%
0.0%
0.0%
0.0%
0.0%

Sequential revenue growth

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

Communications
Information Services
Coal Mining
Other
Revenue 5

3/4/2015

81.0%
8.2%
27.5%
0.0%
0.0%

1:35 PM

Ascendere Associates
Contact: Steve Castellano stev

Level 3 Communications
Segment
Communications
Information Services
Coal Mining
Other
Revenue 5

1Q02
278.0
80.0
20.0
8.0
-

2Q02
276.0
447.0
20.0
7.0
-

Total revenue

386.0

750.0

66.0
67.0
13.0
-

62.0
407.0
15.0
-

Communications
Information Services
Coal Mining
Other
Revenue 5

3Q02
274.0
746.0
22.0
7.0
-

4Q02
273.0
623.0
22.0
8.0
-

2002
1,101.0
1,896.0
84.0
30.0
-

1,049.0

926.0

3,111.0

42.0
692.0
14.0
-

39.0
576.0
15.0
-

209.0
1,742.0
57.0
-

1Q03
705.0
506.0
16.0
-

2Q03
430.0
491.0
16.0
-

3Q03
413.0
437.0
24.0
-

4Q03
399.0
565.0
24.0
-

2003
1,947.0
1,999.0
80.0
-

1Q04
389.0
494.0
16.0
-

2Q04
391.0
503.0
24.0
-

3Q04
423.0
392.0
25.0
-

1,227.0

937.0

874.0

988.0

4,026.0

89.0
465.0
14.0
-

103.0
452.0
12.0
-

91.0
400.0
18.0
-

87.0
519.0
14.0
-

370.0
1,836.0
58.0
-

4Q04
482.0
547.0
26.0
-

2004
1,685.0
1,936.0
91.0
-

899.0

918.0

840.0

1,055.0

3,712.0

81.0
449.0
13.0
-

119.0
455.0
17.0
-

116.0
353.0
18.0
-

120.0
501.0
19.0
-

436.0
1,758.0
67.0
-

1Q05
510.0
483.0
17.0
-

2Q05
371.0
520.0
19.0
-

3Q05E
378.6
384.2
26.3
-

4Q05E
390.0
536.1
27.3
-

2005E
1,649.6
1,923.2
89.6
-

1Q06E
382.5
473.3
17.9
-

2Q06E
374.7
509.6
20.0
-

3Q06E
382.4
376.5
27.6
-

4Q06E
393.9
525.3
28.7
-

2006E
1,533.5
1,884.8
94.0
-

1Q07E
390.2
463.9
18.7
-

2Q07E
382.2
499.4
20.9
-

3Q07E
393.9
368.9
28.9
-

4Q07E
405.7
514.8
30.1
-

2007E
1,572.0
1,847.1
98.7
-

1,010.0

910.0

789.1

953.4

116.0
442.0
13.0
-

110.0
464.0
14.0
-

110.0
464.0
14.0
-

110.0
464.0
14.0
-

3,662.4

873.7

904.3

786.5

947.9

3,512.3

872.8

902.6

791.8

950.6

3,517.8

446.0
1,834.0
55.0
-

110.0
464.0
14.0
-

110.0
464.0
14.0
-

110.0
464.0
14.0
-

110.0
464.0
14.0
-

440.0
1,856.0
56.0
-

110.0
464.0
14.0
-

110.0
464.0
14.0
-

110.0
464.0
14.0
-

110.0
464.0
14.0
-

440.0
1,856.0
56.0
-

Total cost of services

146.0

484.0

748.0

630.0

2,008.0

568.0

567.0

509.0

620.0

2,264.0

543.0

591.0

487.0

640.0

2,261.0

571.0

588.0

588.0

588.0

2,335.0

588.0

588.0

588.0

588.0

2,352.0

588.0

588.0

588.0

588.0

2,352.0

Communications
Information Services
Coal Mining
Other
Revenue 5

212.0
13.0
7.0
8.0
-

214.0
40.0
5.0
7.0
-

232.0
54.0
8.0
7.0
-

234.0
47.0
7.0
8.0
-

892.0
154.0
27.0
30.0
-

616.0
41.0
2.0
-

327.0
39.0
4.0
-

322.0
37.0
6.0
-

312.0
46.0
10.0
-

1,577.0
163.0
22.0
-

308.0
45.0
3.0
-

272.0
48.0
7.0
-

307.0
39.0
7.0
-

362.0
46.0
7.0
-

1,249.0
178.0
24.0
-

394.0
41.0
4.0
-

261.0
56.0
5.0
-

284.0
30.7
5.3
-

292.5
42.9
5.5
-

1,231.5
170.6
19.7
-

286.9
37.9
3.6
-

281.0
40.8
4.0
-

286.8
30.1
5.5
-

295.4
42.0
5.7
-

1,150.2
150.8
18.8
-

292.6
37.1
3.7
-

286.7
40.0
4.2
-

295.4
29.5
5.8
-

304.3
41.2
6.0
-

1,179.0
147.8
19.7
-

1,762.0

1,451.0

439.0

322.0

320.0

340.8

1,421.8

328.3

325.8

322.5

343.2

1,319.7

333.5

330.8

330.7

351.5

1,346.5

77.3%
8.5%
23.5%
0.0%
0.0%

70.4%
10.8%
26.3%
0.0%
0.0%

75.0%
8.0%
20.0%
0.0%
0.0%

75.0%
8.0%
20.0%
0.0%
0.0%

74.7%
8.9%
22.0%
0.0%
0.0%

75.0%
8.0%
20.0%
0.0%
0.0%

75.0%
8.0%
20.0%
0.0%
0.0%

75.0%
8.0%
20.0%
0.0%
0.0%

75.0%
8.0%
20.0%
0.0%
0.0%

75.0%
8.0%
20.0%
0.0%
0.0%

75.0%
8.0%
20.0%
0.0%
0.0%

75.0%
8.0%
20.0%
0.0%
0.0%

75.0%
8.0%
20.0%
0.0%
0.0%

75.0%
8.0%
20.0%
0.0%
0.0%

75.0%
8.0%
20.0%
0.0%
0.0%

Gross profit
Communications
Information Services
Coal Mining
Other
Revenue 5
Gross margin

240.0

266.0

301.0

296.0

1,103.0

659.0

370.0

365.0

368.0

76.3%
16.3%
35.0%
100.0%
0.0%

77.5%
8.9%
25.0%
100.0%
0.0%

84.7%
7.2%
36.4%
100.0%
0.0%

85.7%
7.5%
31.8%
100.0%
0.0%

81.0%
8.1%
32.1%
100.0%
0.0%

87.4%
8.1%
12.5%
0.0%
0.0%

76.0%
7.9%
25.0%
0.0%
0.0%

78.0%
8.5%
25.0%
0.0%
0.0%

78.2%
8.1%
41.7%
0.0%
0.0%

62.2%

35.5%

28.7%

32.0%

35.5%

Communications
Information Services
Coal Mining
Other
Revenue 5
Y/Y Revenue growth
Communications
Information Services
Coal Mining
Other
Revenue 5
Sequential revenue growth

3/4/2015

81.0%
8.2%
27.5%
0.0%
0.0%

356.0

327.0

353.0

415.0

79.2%
9.1%
18.8%
0.0%
0.0%

69.6%
9.5%
29.2%
0.0%
0.0%

72.6%
9.9%
28.0%
0.0%
0.0%

75.1%
8.4%
26.9%
0.0%
0.0%

74.1%
9.2%
26.4%
0.0%
0.0%

53.7%

39.5%

41.8%

37.2%

43.8%

39.6%

35.6%

42.0%

39.3%

39.1%

43.5%

35.4%

40.6%

35.8%

38.8%

37.6%

36.0%

41.0%

36.2%

37.6%

38.2%

36.7%

41.8%

37.0%

38.3%

153.6%
532.5%
-20.0%
0.0%
0.0%

55.8%
9.8%
-20.0%
0.0%
0.0%

50.7%
-41.4%
9.1%
0.0%
0.0%

46.2%
-9.3%
9.1%
0.0%
0.0%

76.8%
5.4%
-4.8%
0.0%
0.0%

-44.8%
-2.4%
0.0%
0.0%
0.0%

-9.1%
2.4%
50.0%
0.0%
0.0%

2.4%
-10.3%
4.2%
0.0%
0.0%

20.8%
-3.2%
8.3%
0.0%
0.0%

-13.5%
-3.2%
13.8%
0.0%
0.0%

31.1%
-2.2%
6.3%
0.0%
0.0%

-5.1%
3.4%
-20.8%
0.0%
0.0%

-10.5%
-2.0%
5.0%
0.0%
0.0%

-19.1%
-2.0%
5.0%
0.0%
0.0%

-2.1%
-0.7%
-1.6%
0.0%
0.0%

-25.0%
-2.0%
5.0%
0.0%
0.0%

1.0%
-2.0%
5.0%
0.0%
0.0%

1.0%
-2.0%
5.0%
0.0%
0.0%

1.0%
-2.0%
5.0%
0.0%
0.0%

-7.0%
-2.0%
5.0%
0.0%
0.0%

2.0%
-2.0%
5.0%
0.0%
0.0%

2.0%
-2.0%
5.0%
0.0%
0.0%

3.0%
-2.0%
5.0%
0.0%
0.0%

3.0%
-2.0%
5.0%
0.0%
0.0%

2.5%
-2.0%
5.0%
0.0%
0.0%

29.4%

-7.8%

-1.3%

-4.1%

0.2%

217.9%

24.9%

-16.7%

6.7%

-26.7%

-2.0%

-3.9%

6.8%

12.3%

-0.9%

-7.5%

-16.1%

-22.0%

4.0%

4.0%

4.0%

5.0%

5.0%

6.0%

6.0%

-0.7%
458.8%
0.0%
-12.5%
0.0%

-0.7%
66.9%
10.0%
0.0%
0.0%

-0.4%
-16.5%
0.0%
14.3%
0.0%

158.2%
-18.8%
-27.3%
0.0%
0.0%

-39.0%
-3.0%
0.0%
0.0%
0.0%

-4.0%
-11.0%
50.0%
0.0%
0.0%

-3.4%
29.3%
0.0%
0.0%
0.0%

-2.5%
-12.6%
-33.3%
0.0%
0.0%

0.5%
1.8%
50.0%
0.0%
0.0%

8.2%
-22.1%
4.2%
0.0%
0.0%

13.9%
39.5%
4.0%
0.0%
0.0%

5.8%
-11.7%
-34.6%
0.0%
0.0%

-78.0%
-73.1%
-79.1%
0.0%
0.0%

2.1%
-26.1%
38.2%
0.0%
0.0%

3.0%
39.5%
4.0%
0.0%
0.0%

-1.9%
-11.7%
-34.6%
0.0%
0.0%

-2.0%
7.7%
11.8%
0.0%
0.0%

2.1%
-26.1%
38.2%
0.0%
0.0%

3.0%
39.5%
4.0%
0.0%
0.0%

-1.0%
-11.7%
-34.6%
0.0%
0.0%

-2.0%
7.7%
11.8%
0.0%
0.0%

3.1%
-26.1%
38.2%
0.0%
0.0%

3.0%
39.5%
4.0%
0.0%
0.0%

94.3%

39.9%

-11.7%

32.5%

-23.6%

-6.7%

13.0%

-9.0%

2.1%

-8.5%

25.6%

-4.3%

-75.5%

-13.3%

20.8%

-8.4%

3.5%

-13.0%

20.5%

-7.9%

3.4%

-12.3%

20.1%

1:35 PM

Ascendere Associates LLC

Contact: Steve Castellano steve@ascenderellc.com

Level 3 Communications
Income Statement
Revenue

2002
3,111.0

2003
4,026.0

2004
3,712.0

2005E
3,662.4

2006E
3,512.3

2007E
3,517.8

2008E
3,564.4

2009E
3,648.9

2010E
3,724.8

2011E
3,789.4

2012E
3,839.9

2013E
3,874.2

2014E
3,911.2

2015E
3,951.2

2016E
3,971.7

Cost of services
Gross profit (loss)
Gross margin

2,008.0
1,103.0
35.5%

2,264.0
1,762.0
43.8%

2,261.0
1,451.0
39.1%

2,240.6
1,421.8
38.8%

2,192.6
1,319.7
37.6%

2,171.3
1,346.5
38.3%

2,160.9
1,403.5
39.4%

2,160.6
1,488.3
40.8%

2,158.8
1,566.0
42.0%

2,154.8
1,634.6
43.1%

2,147.9
1,692.0
44.1%

2,137.6
1,736.6
44.8%

2,128.5
1,782.7
45.6%

2,120.9
1,830.3
46.3%

2,109.0
1,862.7
46.9%

Other expense
Restructuring and impairment charges
SG&A expense

181.0
934.0

45.0
1,046.0

16.0
956.0

19.0
878.6

878.1

879.4

891.1

912.2

931.2

947.3

960.0

968.5

977.8

987.8

992.9

EBITDA
EBITDA margin

(12.0)
-0.4%

479.0
12.9%

524.2
14.3%

441.7
12.6%

467.1
13.3%

512.4
14.4%

576.0
15.8%

634.8
17.0%

687.2
18.1%

732.0
19.1%

768.1
19.8%

804.9
20.6%

842.5
21.3%

869.8
21.9%

434.3

Depreciation & amortization

EBIT
Operating margin
Interest income
Interest (expense)
Gain on early extinguishment of debt
Other income (expense)

671.0
16.7%

801.0

827.0

695.0

693.1

703.4

532.0

440.7

453.3

470.5

488.7

500.2

518.8

537.5

556.4

(813.0)
nmf

(156.0)
nmf

(216.0)
nmf

(168.9)
nmf

(261.7)
nmf

(64.9)
nmf

78.1
2.2%

135.3
3.7%

181.5
4.9%

216.7
5.7%

243.3
6.3%

267.9
6.9%

286.1
7.3%

305.0
7.7%

313.4
7.9%

(560.0)

(567.0)

(485.0)

39.0
(530.4)

35.0
(554.6)

31.0
(556.8)

8.5
(479.8)
-

4.8
(426.1)
-

1.9
(302.1)
-

2.6
(201.8)
-

2.6
(37.0)
-

0.8
(30.7)
-

17.5

208.9

237.9

108.0

(107.0)

39.0

15.0

Pretax income

(981.0)

(771.0)

(452.0)

(646.6)

(775.4)

(582.0)

(393.2)

(285.9)

(118.7)

Tax rate
Tax credit (expense)

-12.3%
121.0

-6.5%
50.0

1.3%
(6.0)

0.5%
(3.0)

0.0%
-

0.0%
-

0.0%
-

0.0%
-

0.0%
-

Aftertax income

(860.0)

(721.0)

(458.0)

(649.6)

(775.4)

(582.0)

(393.2)

(285.9)

(118.7)

Extraordinary items
Discontinued operations
Cumulative effect of change in accounting principle
Income

2.0

5.0

(853.0)

(711.0)

(458.0)

(649.6)

(775.4)

(582.0)

407.3
617.3

565.9
700.9

683.8
903.8

701.7
925.2

726.7
951.7

751.7
976.7

781.7
1,006.7

811.7
1,036.7

EBITDA per share

Basic
Fully diluted

($0.03)
($0.02)

$1.19
$0.96

$0.70
$0.70

$0.75
$0.57

$0.61
$0.46

$0.62
$0.48

$0.66
$0.51

Earnings per share, after tax

Basic
Fully diluted

($2.11)
($2.09)

($1.27)
($1.26)

($0.67)
($0.67)

($0.93)
($0.93)

($1.07)
($1.07)

($0.77)
($0.77)

Earnings per share, after additional items

Basic
Fully diluted

($2.09)
($2.09)

($1.26)
($1.26)

($0.67)
($0.67)

($0.93)
($0.93)

($1.07)
($1.07)

35.5%
30.0%
25.7%
-0.4%

43.8%
26.0%
20.5%
16.7%

39.1%
25.8%
18.7%
12.9%

38.8%
24.0%
18.9%
14.3%

37.6%
25.0%
20.0%
12.6%

Weighted average shares

Basic
Fully diluted

Gross Margin
SG&A as % of sales
Depreciation as % of sales
EBITDA Margin

3/4/2015

(393.2)

(285.9)

(118.7)

0.0%
17.5
-

0.0%
208.9
-

0.0%
237.9
-

1.0
-

3.0
-

5.3
-

287.1

308.0

318.8

0.0%
287.1
-

0.0%
308.0
-

0.0%
318.8
-

17.5

208.9

237.9

287.1

308.0

318.8

841.7
1,066.7

871.7
1,096.7

901.7
1,126.7

931.7
1,156.7

961.7
1,186.7

991.7
1,216.7

1,021.7
1,246.7

$0.71
$0.56

$0.75
$0.60

$0.79
$0.63

$0.81
$0.65

$0.82
$0.66

$0.84
$0.68

$0.85
$0.69

$0.85
$0.70

($0.50)
($0.50)

($0.35)
($0.35)

($0.14)
($0.14)

$0.02
$0.02

$0.23
$0.19

$0.26
$0.21

$0.30
$0.24

$0.31
$0.25

$0.31
$0.26

($0.77)
($0.77)

($0.50)
($0.39)

($0.35)
($0.28)

($0.14)
($0.11)

$0.02
$0.02

$0.23
$0.19

$0.26
$0.21

$0.30
$0.24

$0.31
$0.25

$0.31
$0.26

38.3%
25.0%
15.1%
13.3%

39.4%
25.0%
12.2%
14.4%

40.8%
25.0%
12.1%
15.8%

42.0%
25.0%
12.2%
17.0%

43.1%
25.0%
12.4%
18.1%

44.1%
25.0%
12.7%
19.1%

44.8%
25.0%
12.9%
19.8%

45.6%
25.0%
13.3%
20.6%

46.3%
25.0%
13.6%
21.3%

46.9%
25.0%
14.0%
21.9%

1:35 PM

Ascendere Associates LLC

Contact: Steve Castellano steve@as

Level 3 Communications
Income Statement
Revenue

1Q02
386.0

2Q02
750.0

3Q02
1,049.0

4Q02
926.0

2002
3,111.0

1Q03
1,227.0

2Q03
937.0

3Q03
874.0

4Q03
988.0

2003
4,026.0

1Q04
899.0

2Q04
918.0

3Q04
840.0

4Q04
1,055.0

2004
3,712.0

Cost of services
Gross profit (loss)
Gross margin

146.0
240.0
62.2%

484.0
266.0
35.5%

748.0
301.0
28.7%

630.0
296.0
32.0%

2,008.0
1,103.0
35.5%

568.0
659.0
53.7%

567.0
370.0
39.5%

509.0
365.0
41.8%

620.0
368.0
37.2%

2,264.0
1,762.0
43.8%

543.0
356.0
39.6%

591.0
327.0
35.6%

487.0
353.0
42.0%

640.0
415.0
39.3%

2,261.0
1,451.0
39.1%

Other expense
Restructuring and impairment charges
SG&A expense

253.0

47.0
240.0

3.0
228.0

131.0
213.0

181.0
934.0

11.0
270.0

9.0
275.0

14.0
250.0

11.0
251.0

45.0
1,046.0

2.0
235.0

243.0

234.0

14.0
244.0

16.0
956.0

EBITDA
EBITDA margin

(13.0)
-3.4%

(21.0)
-2.8%

(48.0)
-5.2%

(12.0)
-0.4%

378.0
30.8%

101.0
11.6%

106.0
10.7%

119.0
14.2%

157.0
14.9%

479.0
12.9%

70.0
6.7%

86.0
9.2%

671.0
16.7%

119.0
13.2%

84.0
9.2%

210.0

190.0

200.0

201.0

801.0

207.0

228.0

210.0

182.0

827.0

179.0

177.0

170.0

169.0

695.0

EBIT
Operating margin

(223.0)
-57.8%

(211.0)
-28.1%

(130.0)
-12.4%

(249.0)
-26.9%

(813.0)
-26.1%

171.0
13.9%

(142.0)
-15.2%

(109.0)
-12.5%

(76.0)
-7.7%

(156.0)
-3.9%

(60.0)
-6.7%

(93.0)
-10.1%

(51.0)
-6.1%

(216.0)
-5.8%

Interest income
Interest (expense)
Gain on early extinguishment of debt
Other income (expense)

9.0
(129.0)
134.0

6.0
(131.0)
180.0

8.0
(154.0)
(24.0)

6.0
(146.0)
255.0
(182.0)

29.0
(560.0)
255.0
108.0

5.0
(140.0)
74.0

5.0
(143.0)
(176.0)

5.0
(156.0)
(2.0)

3.0
(128.0)
41.0
(3.0)

18.0
(567.0)
41.0
(107.0)

3.0
(127.0)
38.0

3.0
(118.0)
146.0

3.0
(120.0)
(3.0)

(12.0)
-1.1%
(61.0)
4.0
(120.0)
197.0
(142.0)

13.0
(485.0)
197.0
39.0

Pretax income

(209.0)

(156.0)

(300.0)

(316.0)

(981.0)

110.0

(456.0)

(262.0)

(163.0)

(771.0)

(146.0)

(62.0)

(171.0)

(73.0)

(452.0)

Tax rate
Tax credit (expense)

-56.9%
119.0

0.0%
-

0.0%
-

-0.6%
2.0

-12.3%
121.0

0.0%
-

-4.6%
12.0

-23.3%
38.0

-6.5%
50.0

0.7%
(1.0)

1.6%
(1.0)

0.0%
-

5.5%
(4.0)

1.3%
(6.0)

(90.0)

(156.0)

(300.0)

(314.0)

(860.0)

110.0

(456.0)

(250.0)

(125.0)

(721.0)

(147.0)

(63.0)

(171.0)

(77.0)

(458.0)

4.0
5.0

(6.0)
-

Depreciation & amortization

Aftertax income
Extraordinary items
Discontinued operations
Cumulative effect of change in accounting prin

1.0
-

1.0
5.0

2.0
5.0

0.0%
-

3.0
-

4.0
-

5.0
5.0

Income

(90.0)

(156.0)

(299.0)

(313.0)

(853.0)

119.0

(462.0)

(247.0)

(121.0)

(711.0)

(147.0)

(63.0)

(171.0)

(77.0)

(458.0)

Weighted average shares

Basic
Fully diluted

391.3
461.3

398.7
468.7

410.9
624.9

428.4
642.4

407.3
617.3

680.0
763.0

484.4
493.4

653.1
714.1

446.2
529.2

565.9
700.9

680.0
763.0

682.6
746.6

685.1
749.1

687.7
770.7

683.8
903.8

EBITDA per share

Basic
Fully diluted

($0.03)
($0.03)

($0.05)
($0.04)

$0.17
$0.11

($0.11)
($0.07)

($0.03)
($0.02)

$0.56
$0.50

$0.18
$0.17

$0.15
$0.14

$0.24
$0.20

$1.19
$0.96

$0.18
$0.16

$0.12
$0.11

$0.17
$0.16

$0.23
$0.20

$0.70
$0.53

Earnings per share, after tax

Basic
Fully diluted

($0.23)
($0.23)

($0.39)
($0.39)

($0.73)
($0.73)

($0.73)
($0.73)

($2.11)
($2.09)

$0.16
$0.14

($0.94)
($0.95)

($0.38)
($0.38)

($0.28)
($0.27)

($1.27)
($1.26)

($0.22)
($0.22)

($0.09)
($0.09)

($0.25)
($0.25)

($0.11)
($0.11)

($0.67)
($0.67)

Earnings per share, after additional items

Basic
Fully diluted

($0.23)
($0.23)

($0.39)
($0.39)

($0.73)
($0.73)

($0.73)
($0.73)

($2.09)
($2.09)

$0.18
$0.16

($0.95)
($0.95)

($0.38)
($0.38)

($0.27)
($0.27)

($1.26)
($1.26)

($0.22)
($0.22)

($0.09)
($0.09)

($0.25)
($0.25)

($0.11)
($0.11)

($0.67)
($0.67)

62.2%
65.5%
54.4%
-3.4%

35.5%
32.0%
25.3%
-2.8%

28.7%
21.7%
19.1%
6.7%

32.0%
23.0%
21.7%
-5.2%

35.5%
30.0%
25.7%
-0.4%

53.7%
22.0%
16.9%
30.8%

39.5%
29.3%
24.3%
9.2%

41.8%
28.6%
24.0%
11.6%

37.2%
25.4%
18.4%
10.7%

43.8%
26.0%
20.5%
16.7%

39.6%
26.1%
19.9%
13.2%

35.6%
26.5%
19.3%
9.2%

42.0%
27.9%
20.2%
14.2%

39.3%
23.1%
16.0%
14.9%

39.1%
25.8%
18.7%
12.9%

Gross Margin
SG&A as % of sales
Depreciation as % of sales
EBITDA Margin

3/4/2015

1:35 PM

Ascendere Associates LLC

Contact: Steve Castellano steve@as

Level 3 Communications
Income Statement

1Q05
1,010.0

2Q05
910.0

3Q05E
789.1

4Q05E
953.4

2005E
3,662.4

1Q06E
873.7

2Q06E
904.3

3Q06E
786.5

4Q06E
947.9

2006E
3,512.3

1Q07E
872.8

2Q07E
902.6

3Q07E
791.8

4Q07E
950.6

2007E
3,517.8

Cost of services
Gross profit (loss)
Gross margin

571.0
439.0
43.5%

588.0
322.0
35.4%

469.1
320.0
40.6%

612.5
340.8
35.8%

2,240.6
1,421.8
38.8%

545.4
328.3
37.6%

578.5
325.8
36.0%

464.0
322.5
41.0%

604.7
343.2
36.2%

2,192.6
1,319.7
37.6%

539.3
333.5
38.2%

571.8
330.8
36.7%

461.1
330.7
41.8%

599.2
351.5
37.0%

2,171.3
1,346.5
38.3%

Other expense
Restructuring and impairment charges
SG&A expense

15.0
226.0

4.0
217.0

197.3

238.3

19.0
878.6

218.4

226.1

196.6

237.0

878.1

218.2

225.6

197.9

237.7

879.4

EBITDA
EBITDA margin

198.0
19.6%

101.0
11.1%

122.7
15.6%

102.5
10.8%

524.2
14.3%

109.9
12.6%

99.7
11.0%

125.8
16.0%

106.2
11.2%

441.7
12.6%

115.3
13.2%

105.2
11.7%

132.8
16.8%

113.8
12.0%

467.1
13.3%

Depreciation & amortization

171.0

166.0

177.1

179.0

693.1

180.0

175.0

173.7

174.8

703.4

171.1

146.2

108.1

106.6

532.0

27.0
2.7%
(104.0)
4.0
(114.0)
6.0

(65.0)
-7.1%
(120.0)
10.0
(139.0)
9.0

(54.4)
-6.9%

(76.5)
-8.0%

(168.9)
-4.6%

(70.1)
-8.0%

(75.2)
-8.3%

(47.8)
-6.1%

(68.6)
-7.2%

(261.7)
-7.5%

(55.8)
-6.4%

(41.0)
-4.5%

24.7
3.1%

7.2
0.8%

(64.9)
-1.8%

12.1
(138.4)

11.6
(139.0)

35.5
(530.4)

10.9
(136.3)

10.4
(138.5)

9.9
(139.5)

9.8
(140.3)

41.0
(554.6)

9.9
(136.8)

10.0
(139.1)

9.9
(140.1)

9.8
(140.8)

39.6
(556.8)

(77.0)

(185.0)

(180.7)

(203.9)

(646.6)

(195.5)

(203.4)

(177.4)

(199.1)

(775.4)

(182.7)

(170.1)

(105.5)

(123.8)

(582.0)

0.0%
-

1.6%
(3.0)

0.0%
-

0.0%
-

0.5%
(3.0)

0.0%
-

0.0%
-

0.0%
-

0.0%
-

0.0%
-

0.0%
-

0.0%
-

0.0%
-

0.0%
-

0.0%
-

(77.0)

(188.0)

(180.7)

(203.9)

(649.6)

(195.5)

(203.4)

(177.4)

(199.1)

(775.4)

(182.7)

(170.1)

(105.5)

(123.8)

(582.0)

Revenue

EBIT
Operating margin
Interest income
Interest (expense)
Gain on early extinguishment of debt
Other income (expense)
Pretax income
Tax rate
Tax credit (expense)
Aftertax income
Extraordinary items
Discontinued operations
Cumulative effect of change in accounting prin

15.0

Income

(77.0)

(188.0)

(180.7)

(203.9)

(649.6)

(195.5)

(203.4)

(177.4)

(199.1)

(775.4)

(182.7)

(170.1)

(105.5)

(123.8)

(582.0)

Weighted average shares

Basic
Fully diluted

690.2
912.2

695.5
917.5

705.5
930.5

715.5
940.5

701.7
925.2

711.7
936.7

721.7
946.7

731.7
956.7

741.7
966.7

726.7
951.7

736.7
961.7

746.7
971.7

756.7
981.7

766.7
991.7

751.7
976.7

EBITDA per share

Basic
Fully diluted

$0.29
$0.22

$0.15
$0.11

$0.17
$0.13

$0.14
$0.11

$0.75
$0.57

$0.15
$0.12

$0.14
$0.11

$0.17
$0.13

$0.14
$0.11

$0.61
$0.46

$0.16
$0.12

$0.14
$0.11

$0.18
$0.14

$0.15
$0.11

$0.62
$0.48

Earnings per share, after tax

Basic
Fully diluted

($0.11)
($0.11)

($0.27)
($0.27)

($0.26)
($0.26)

($0.28)
($0.28)

($0.93)
($0.93)

($0.27)
($0.27)

($0.28)
($0.28)

($0.24)
($0.24)

($0.27)
($0.27)

($1.07)
($1.07)

($0.25)
($0.25)

($0.23)
($0.23)

($0.14)
($0.14)

($0.16)
($0.16)

($0.77)
($0.77)

Earnings per share, after additional items

Basic
Fully diluted

($0.11)
($0.11)

($0.27)
($0.27)

($0.26)
($0.26)

($0.28)
($0.28)

($0.93)
($0.93)

($0.27)
($0.27)

($0.28)
($0.28)

($0.24)
($0.24)

($0.27)
($0.27)

($1.07)
($1.07)

($0.25)
($0.25)

($0.23)
($0.23)

($0.14)
($0.14)

($0.16)
($0.16)

($0.77)
($0.77)

43.5%
22.4%
16.9%
19.6%

35.4%
23.8%
18.2%
11.1%

40.6%
25.0%
10.0%
15.6%

35.8%
25.0%
10.0%
10.8%

38.8%
24.0%
18.9%
14.3%

37.6%
25.0%
10.0%
12.6%

36.0%
25.0%
10.0%
11.0%

41.0%
25.0%
10.0%
16.0%

36.2%
25.0%
10.0%
11.2%

37.6%
25.0%
20.0%
12.6%

38.2%
25.0%
10.0%
13.2%

36.7%
25.0%
10.0%
11.7%

41.8%
25.0%
10.0%
16.8%

37.0%
25.0%
10.0%
12.0%

38.3%
25.0%
15.1%
13.3%

Gross Margin
SG&A as % of sales
Depreciation as % of sales
EBITDA Margin

3/4/2015

1:35 PM

Ascendere Associates LLC

Contact: Steve Castellano steve@ascenderellc.com

Level 3 Communications
Cash flow statement ($ millions)

2002

2003

2004

2005E

2006E

2007E

2008E

2009E

2010E

2011E

2012E

2013E

2014E

2015E

2016E

(853.0)
(255.0)
-

(711.0)
(5.0)
(5.0)

(458.0)
-

(649.6)
-

(775.4)
-

(582.0)
-

(393.2)
-

(285.9)

(118.7)

17.5

208.9

237.9

287.1

308.0

318.8

801.0
110.0
9.0
40.0
88.0
49.0
(189.0)
182.0
181.0
(17.0)

827.0
106.0
25.0
42.0
(41.0)
200.0
(57.0)
(267.0)
(74.0)
86.0
(11.0)

695.0
75.0
(27.0)
16.0
(197.0)
(65.0)
(39.0)
46.0
(7.0)

693.1
34.2
18.2
16.0
(186.4)
(2.0)
4.0
41.0
(17.0)

703.4
23.8
5.6
15.2
(35.1)
40.0
-

532.0
20.4
4.9
15.2
(35.2)
40.0
-

434.3
(20.0)
12.6
(35.6)
40.0
-

440.7
(5.5)
11.0
(36.5)
40.0
-

453.3
(24.0)
7.3
(37.2)
40.0
-

470.5
(14.1)
5.1
(37.9)
40.0
-

488.7
10.4
(38.4)
40.0
-

500.2
4.1
(38.7)
40.0
-

518.8
(39.1)
40.0
-

537.5
(39.5)
40.0
-

556.4
(39.7)
40.0
-

(26.0)
(77.0)
(340.0)
(116.0)
(423.0)

(26.0)
41.0
(55.0)
(48.0)
24.0

27.0
15.0
(37.0)
(108.0)
(64.0)

32.1
15.7
(34.5)
(28.3)
(63.6)

64.5
4.6
(10.1)
(2.4)
34.1

10.1
(0.2)
(4.5)
(1.1)
(0.5)

13.9
0.7
(2.2)
(2.7)
47.8

29.7
15.7
(0.1)
(0.0)
209.2

31.9
13.0
(0.4)
(0.1)
365.0

34.0
11.9
(0.8)
(0.2)
526.0

16.7
12.6
(1.4)
(0.3)
737.1

17.8
11.1
(2.2)
(0.5)
769.8

18.1
7.4
(1.9)
(0.5)
829.9

18.4
7.5
(1.6)
(0.4)
869.9

19.2
5.8
(2.5)
(0.6)
897.4

Cash flow from investing activities

Capital spending
Release of capital expenditure accruals
Decrease (increase) in restricted cash and securities, net
Proceed from sales and maturities of marketable securities
(Purchase) of marketable securities
Proceeds from sale of property, plant and equipment, and other
Investments and acquisitions
Net cash used for investing activities

(218.0)
215.0
(410.0)
200.0
130.0
(16.0)
(11.0)

(191.0)
28.0
9.0
58.0
(2.0)
(161.0)

(288.0)
8.0
21.0
70.0
(410.0)
30.0
(597.0)
(319.0)

(268.0)
(1.0)
150.0
(648.0)
4.0
(10.0)
(773.0)

(245.9)
(4.0)
(249.9)

(246.2)
(4.0)
(250.2)

(249.5)
(4.0)
(253.5)

(255.4)
(4.0)
(259.4)

(260.7)
(4.0)
(264.7)

(265.3)
(4.0)
(269.3)

(268.8)
(4.0)
(272.8)

(271.2)
(4.0)
(275.2)

(273.8)
(4.0)
(277.8)

(276.6)
(4.0)
(280.6)

(278.0)
(4.0)
(282.0)

Cash flow from financing activities

Long-term debt borrowings, net of issuance costs
Purchases of and payments on long-term debt, including current
Proceeds from stock options exercised
Cash provided (used) for financing activities

490.0
(159.0)
1.0
332.0

848.0
(772.0)
3.0
79.0

985.0
(1,027.0)
(42.0)

877.0
(130.0)
747.0

(1.0)
(1.0)

1,000.0
(1,143.6)
(143.6)

(506.0)

1,500.0
(1,624.0)

1,000.0
(880.0)

1,200.0
(1,575.0)

(296.4)

(506.0)

(124.0)

(375.0)

(296.4)

(49.0)
4.0

37.0
8.0

(16.0)

Cash flow from operating activities

Net earnings (loss)
Income from discontinued operations
Extraordinary gain on debt extinguishments, net
Cumulative effect of change in accounting principle
Adjustments to reconcile net income (loss):
Depreciation and amortization
Accreted interest on long-term discount debt
Accrued interest on long-term debt
Amortization of debt issuance costs
Gain on debt extinguishments, net
Induced conversion expense on convertible debt
Deferred income taxes
Deferred revenue
Gain on sale of property, plant and equipment and other assets
Non cash loss on impairments and asset sales
Non-cash compensation expense attributable to stock awards
Other
Changes in working capital
(Increase) Decrease in Receivables
Other (Increase) decrease in current assets
Increase (Decrease) in Payables
Increase (Decrease) in other current liabilities
Net cash provided (used) by operating activities

Net cash provided by discontinued operations

Effect of Exchange Rates on Cash and Cash Equivalents

Cash and cash equivalents, beginning of period

Increase (Decrease) in cash and cash equivalents
Ending cash balance

17.0

1,297.0
(147.0)
1,150.0

1,150.0
(13.0)
1,137.0

1,137.0
(686.0)
451.0

451.0
(105.6)
345.4

345.4
(215.8)
129.7

129.7
(251.7)
(122.0)

(122.0)
(349.3)
(471.4)

414.0
466.0
582.0
-

394.0
953.0
29.0
10.0
1,007.0
410.0
139.0
309.0
76.0
(2.0)

421.0
13.0
-

461.8
(3.0)
-

510.0
-

516.3
-

486.3
-

(471.4)
(556.2)
(1,027.6)

(1,027.6)
(23.7)
(1,051.3)

120.0
-

(1,051.3)
376.8
(674.5)

(674.5)
89.3
(585.2)

(585.2)
198.1
(387.1)

26.6
-

26.6
-

(387.1)
552.1
165.0

165.0
589.3
754.3

754.3
615.4
1,369.7

Total cash and marketable securities

Supplemental
Cash interest paid
Income taxes paid
Common stock issued in exchange for long-term debt
Common stock issued for Telverse acquisition
Accrued interest paid with common stock
Long-term debt principal retired by issuing common stock
Settlement of obligation with restricted securities
Long-term debt extinguished due to sale of toll road operations
Capital leases assumed in Genuity transaction
Decrease in deferred revenue related to Genuitytransaction
Warrants cancelled in exchange for construction services

3/4/2015

420.6
-

318.9
-

210.8
-

1:35 PM

Ascendere Associates LLC

Contact: Steve Castellano steve@ascenderellc.com

Level 3 Communications
Cash flow statement ($ millions)

1Q02

2Q02

3Q02

4Q02

2002

1Q03

2Q03

3Q03

4Q03

2003

1Q04

2Q04

3Q04

4Q04

2004

1Q05

2Q05

3Q05E

4Q05E

2005E

(90.0)
-

(156.0)
-

(299.0)
(1.0)

(313.0)
1.0
(255.0)
-

(853.0)
(255.0)
-

119.0
(4.0)

(462.0)
6.0

(247.0)
(3.0)

(121.0)
(4.0)

(711.0)
(5.0)

(147.0)
-

(63.0)
-

(171.0)
-

(77.0)
-

(458.0)
-

(77.0)
-

(188.0)
-

(180.7)
-

(203.9)
-

(649.6)
-

801.0
110.0
9.0
40.0
88.0
49.0
(189.0)
182.0
181.0
(17.0)

207.0
26.0
5.0
(348.0)
(69.0)
23.0
(3.0)

228.0
28.0
9.0
5.0
(2.0)
190.0
12.0
2.0
25.0
2.0

210.0
27.0
(8.0)
28.0
(2.0)
10.0
(13.0)
(3.0)
15.0
(1.0)

265.0
72.0
(424.0)
17.0
(220.0)

201.0
28.0
19.0
36.0
211.0
68.0
23.0
(89.0)
136.0
27.0
14.0
(132.0)
(32.0)
135.0
(57.0)
14.0

(26.0)
(77.0)
(340.0)
(116.0)
(423.0)

118.0
50.0
(199.0)
(30.0)
(111.0)

(97.0)
(3.0)
73.0
1.0
16.0

(89.0)
114.0
(9.0)
6.0
(2.0)
88.0

(31.0)
50.0
(396.0)
33.0
(345.0)

(45.0)
51.0
(23.0)
85.0
228.0

(218.0)
215.0
(410.0)
200.0
130.0
(16.0)
(11.0)

(25.0)
6.0
7.0
16.0
(1.0)
(94.0)

2.0
(90.0)
(88.0)

(1.0)
(1.0)

488.0
(7.0)
481.0

(61.0)
1.0
(60.0)

490.0
(159.0)
1.0
332.0

(47.0)
(5.0)

(1.0)
12.0

3.0
(4.0)

(4.0)
1.0

(49.0)
4.0

1,297.0
(187.0)

1,110.0
(59.0)
1,051.0

1,051.0
(85.0)
966.0

Cash flow from operating activities

Net earnings (loss)
Income from discontinued operations
Extraordinary gain on debt extinguishments, net
Cumulative effect of change in accounting principle
Adjustments to reconcile net income (loss):
Depreciation and amortization
Accreted interest on long-term discount debt
Accrued interest on long-term debt
Amortization of debt issuance costs
Gain on debt extinguishments, net
Induced conversion expense on convertible debt
Deferred income taxes
Deferred revenue
Gain on sale of property, plant and equipment and other assets
Non cash loss on impairments and asset sales
Non-cash compensation expense attributable to stock awards
Other
Changes in working capital
(Increase) Decrease in Receivables
Other (Increase) decrease in current assets
Increase (Decrease) in Payables
Increase (Decrease) in other current liabilities
Net cash provided (used) by operating activities

210.0
27.0
(21.0)
3.0
(130.0)
23.0
2.0
64.0
(7.0)

190.0
28.0
18.0
5.0
(76.0)
97.0
(102.0)
44.0
53.0
(2.0)

200.0
27.0
(7.0)
(4.0)
(5.0)
20.0
(94.0)
2.0
37.0
(22.0)

35.0
(15.0)
(165.0)
(4.0)
(65.0)

(194.0)
(102.0)
114.0
(72.0)
(157.0)

Cash flow from investing activities

Capital spending
Release of capital expenditure accruals
Decrease (increase) in restricted cash and securities, net
Proceed from sales and maturities of marketable securities
(Purchase) of marketable securities
Proceeds from sale of property, plant and equipment, and other
Investments and acquisitions
Net cash used for investing activities

(53.0)
18.0
200.0
6.0
(14.0)
18.0

Cash flow from financing activities

Long-term debt borrowings, net of issuance costs
Purchases of and payments on long-term debt, including current
Proceeds from stock options exercised
Cash provided (used) for financing activities
Net cash provided by discontinued operations
Effect of Exchange Rates on Cash and Cash Equivalents

Cash and cash equivalents, beginning of period

Increase (Decrease) in cash and cash equivalents
Ending cash balance

1,110.0

966.0
179.0
1,145.0

1,297.0
(147.0)
1,150.0

(5.0)

(5.0)

827.0
106.0
25.0
42.0
(41.0)
200.0
(57.0)
(267.0)
(74.0)
86.0
(11.0)

179.0
18.0
18.0
4.0
(16.0)
(32.0)
9.0
(5.0)

177.0
19.0
(31.0)
4.0
(147.0)
1.0
(2.0)
10.0
(3.0)

170.0
18.0
9.0
3.0
15.0
2.0
10.0
6.0

151.0
3.0
(70.0)
(5.0)
91.0

182.0
25.0
24.0
4.0
(37.0)
(57.0)
82.0
(4.0)
23.0
(9.0)
(198.0)
(9.0)
141.0
(14.0)
28.0

(26.0)
41.0
(55.0)
(48.0)
24.0

121.0
30.0
(136.0)
(35.0)
8.0

(46.0)
(8.0)
52.0
(8.0)
(45.0)

(65.0)
15.0
(5.0)
(10.0)
5.0
(61.0)

(52.0)
2.0
(11.0)
30.0
(1.0)
(32.0)

(49.0)
5.0
18.0
10.0
7.0
26.0

(191.0)
28.0
9.0
58.0
(2.0)
(161.0)

(48.0)
25.0
41.0
9.0
27.0

(1.0)
(1.0)

(13.0)
3.0
(10.0)

361.0
(15.0)
346.0

487.0
(743.0)
(256.0)

848.0
(772.0)
3.0
79.0

6.0
2.0

15.0
1.0

20.0
3.0

37.0
8.0

1,150.0
(198.0)
952.0

952.0
(39.0)
913.0

(4.0)
2.0

913.0
403.0
1,316.0

1,316.0
(179.0)
1,137.0

1,150.0
(13.0)
1,137.0

3/4/2015

116.0
32.0
-

79.0
39.0
313.0
-

130.0
90.0
(14.0)
-

89.0
305.0
283.0
-

414.0
466.0
582.0
-

109.0
20.0
139.0
-

101.0
754.0
9.0
600.0
10.0
-

109.0
64.0
29.0
1.0
57.0
-

75.0
115.0
350.0
400.0
309.0
76.0
(2.0)

394.0
953.0
29.0
10.0
1,007.0
410.0
139.0
309.0
76.0
(2.0)

695.0
75.0
(27.0)
16.0
(197.0)
(65.0)
(39.0)
46.0
(7.0)

171.0
17.0
15.0
4.0
(174.0)
(1.0)
11.0
(3.0)

166.0
6.0
20.0
4.0
5.0
(1.0)
4.0
10.0
(12.0)

177.1
5.5
23.7
4.1
(7.9)
10.0
(1.0)

179.0
5.7
(40.5)
4.0
(9.5)
10.0
(1.0)

101.0
10.0
(120.0)
(69.0)
(16.0)

27.0
15.0
(37.0)
(108.0)
(64.0)

100.0
22.0
(127.0)
(24.0)
(66.0)

(114.0)
(11.0)
102.0
(2.0)
(11.0)

24.4
1.6
(3.8)
(0.9)
52.1

21.7
3.1
(5.8)
(1.4)
(38.7)

693.1
34.2
18.2
16.0
(186.4)
(2.0)
4.0
41.0
(17.0)
32.1
15.7
(34.5)
(28.3)
(63.6)

(70.0)
6.0
(4.0)
(410.0)
7.0
(471.0)

(84.0)
2.0
(1.0)
20.0
3.0
(90.0)

(86.0)
1.0
9.0
11.0
(63.0)

(288.0)
8.0
21.0
70.0
(410.0)
30.0
(597.0)
(319.0)

(61.0)
(1.0)
50.0
1.0
(11.0)

(85.0)
2.0
100.0
(648.0)
3.0
(10.0)
(638.0)

(55.2)
(1.0)
(56.2)

(66.7)
(1.0)
(67.7)

(268.0)
(1.0)
150.0
(648.0)
4.0
(10.0)
(773.0)

(1.0)
(1.0)

(75.0)
(75.0)

(1.0)

985.0
(1,027.0)
(42.0)

(25.0)

877.0
(105.0)

(1.0)

985.0
(950.0)
35.0

(25.0)

772.0

877.0
(130.0)
747.0

(2.0)

2.0

2.0

15.0

(5.0)

(11.0)

(16.0)

1,137.0
32.0
1,169.0

1,169.0
(589.0)
580.0

580.0
(105.0)
475.0

475.0
(24.0)
451.0

17.0

1,137.0
(686.0)
451.0

Total cash and marketable securities

Supplemental
Cash interest paid
Income taxes paid
Common stock issued in exchange for long-term debt
Common stock issued for Telverse acquisition
Accrued interest paid with common stock
Long-term debt principal retired by issuing common stock
Settlement of obligation with restricted securities
Long-term debt extinguished due to sale of toll road operations
Capital leases assumed in Genuity transaction
Decrease in deferred revenue related to Genuitytransaction
Warrants cancelled in exchange for construction services

169.0
20.0
(23.0)
5.0
(50.0)
(65.0)
(7.0)
17.0
(5.0)
(149.0)
(17.0)
167.0
4.0
(11.0)

87.0
-

127.0
-

86.0
-

121.0
13.0
-

421.0
13.0
-

443.0
(107.0)
336.0

336.0
112.0
448.0

626.0

1,283.0

78.0
-

109.0
3.0
-

448.0
(4.1)
443.9

443.9
(106.5)
337.4

451.0
(105.6)
345.4

105.1
-

169.7
-

461.8
(3.0)
-

1:35 PM

Ascendere Associates LLC

Contact: Steve Castellano steve@ascenderellc.com

Level 3 Communications
Cash flow statement ($ millions)
Cash flow from operating activities
Net earnings (loss)
Income from discontinued operations
Extraordinary gain on debt extinguishments, net
Cumulative effect of change in accounting principle
Adjustments to reconcile net income (loss):
Depreciation and amortization
Accreted interest on long-term discount debt
Accrued interest on long-term debt
Amortization of debt issuance costs
Gain on debt extinguishments, net
Induced conversion expense on convertible debt
Deferred income taxes
Deferred revenue
Gain on sale of property, plant and equipment and other assets
Non cash loss on impairments and asset sales
Non-cash compensation expense attributable to stock awards
Other
Changes in working capital
(Increase) Decrease in Receivables
Other (Increase) decrease in current assets
Increase (Decrease) in Payables
Increase (Decrease) in other current liabilities
Net cash provided (used) by operating activities
Cash flow from investing activities
Capital spending
Release of capital expenditure accruals
Decrease (increase) in restricted cash and securities, net
Proceed from sales and maturities of marketable securities
(Purchase) of marketable securities
Proceeds from sale of property, plant and equipment, and other
Investments and acquisitions
Net cash used for investing activities
Cash flow from financing activities
Long-term debt borrowings, net of issuance costs
Purchases of and payments on long-term debt, including current
Proceeds from stock options exercised
Cash provided (used) for financing activities
Net cash provided by discontinued operations
Effect of Exchange Rates on Cash and Cash Equivalents

Cash and cash equivalents, beginning of period

Increase (Decrease) in cash and cash equivalents
Ending cash balance

1Q06E

2Q06E

3Q06E

4Q06E

2006E

1Q07E

2Q07E

3Q07E

4Q07E

2007E

(195.5)
-

(203.4)
-

(177.4)
-

(199.1)
-

(775.4)
-

(182.7)
-

(170.1)
-

(105.5)
-

(123.8)
-

(582.0)
-

180.0
5.7
22.3
3.8
(8.7)
10.0
-

175.0
5.9
(17.4)
3.8
(9.0)
10.0
-

173.7
6.1
18.3
3.8
(7.9)
10.0
-

174.8
6.2
(17.6)
3.8
(9.5)
10.0
-

28.0
4.2
(5.4)
(1.3)
43.1

11.1
0.2
(2.0)
(0.5)
(26.3)

17.8
0.1
(1.1)
(0.3)
43.1

(61.2)
(1.0)
(62.2)

(63.3)
(1.0)
(64.3)

171.1
6.2
16.7
3.8
(8.7)
10.0
-

146.2
6.4
(18.1)
3.8
(9.0)
10.0
-

108.1
6.6
18.3
3.8
(7.9)
10.0
-

106.6
1.1
(12.1)
3.8
(9.5)
10.0
-

7.5
0.2
(1.6)
(0.4)
(25.8)

703.4
23.8
5.6
15.2
(35.1)
40.0
64.5
4.6
(10.1)
(2.4)
34.1

10.6
0.0
(1.3)
(0.3)
25.4

0.1
0.1
(1.4)
(0.3)
(32.4)

(0.5)
(0.2)
(0.6)
(0.2)
32.1

(0.2)
(0.1)
(1.2)
(0.3)
(25.5)

532.0
20.4
4.9
15.2
(35.2)
40.0
10.1
(0.2)
(4.5)
(1.1)
(0.5)

(55.1)
(1.0)
(56.1)

(66.4)
(1.0)
(67.4)

(245.9)
(4.0)
(249.9)

(61.1)
(1.0)
(62.1)

(63.2)
(1.0)
(64.2)

(55.4)
(1.0)
(56.4)

(66.5)
(1.0)
(67.5)

(246.2)
(4.0)
(250.2)

(1.0)

(1.0)

(1.0)
(1.0)

345.4
(19.1)
326.3

326.3
(90.6)
235.7

235.7
(12.9)
222.8

222.8
(93.1)
129.7

345.4
(215.8)
129.7

129.7
(36.7)
93.0

93.0
(96.6)
(3.6)

(3.6)
(24.3)
(28.0)

(28.0)
(94.1)
(122.0)

129.7
(251.7)
(122.0)

104.0
-

146.9
-

110.9
-

148.2
-

510.0
-

109.6
-

147.6
-

110.9
-

148.2
-

516.3
-

Total cash and marketable securities

Supplemental
Cash interest paid
Income taxes paid
Common stock issued in exchange for long-term debt
Common stock issued for Telverse acquisition
Accrued interest paid with common stock
Long-term debt principal retired by issuing common stock
Settlement of obligation with restricted securities
Long-term debt extinguished due to sale of toll road operations
Capital leases assumed in Genuity transaction
Decrease in deferred revenue related to Genuitytransaction
Warrants cancelled in exchange for construction services

3/4/2015

1:35 PM

Ascendere Associates LLC

Contact: Steve Castellano steve@ascenderellc.com

Level 3 Communications
Balance sheet ($ millions)
Current assets
Cash and cash equivalents
Marketable securities
Restricted cash and securities
Receivables
Current assets of discontinued operations
Other
Total current assets
Property, plant and equipment
Less accumulated depreciation
Property, plant and equipment, net
Marketable securities
Restricted cash
Goodwill and Intangibles, net
Other assets, net
TOTAL ASSETS

LIABILITIES AND SHAREHOLDER'S EQUITY

Current liabilities:
Accounts payable
Current portion of long term debt
Accrued payroll and employee benefits
Accrued interest
Deferred revenue
Current liabilities of discontinued operations
Other, calculated
Total current liabilties
Long-term debt, less current portion
Deferred revenue
Other liabilities
TOTAL LIABILITIES
Preferred stock, $.01 par value, authorized 10,000,00
Common stock
Class R, $0.01par value authorized 8,500,000 shares
Additional paid-in capital
Accumulated other comprehensive income (deficit)
Accumulated income (deficit)
TOTAL SHAREHOLDERS EQUITY (DEFICIT)
TOTAL LIABILITIES, PREFERRED AND STOCKHO

Supplemental
Allowances for receivables

3/4/2015

2002

2003

2004

2005E

2006E

2007E

2008E

2009E

2010E

2011E

2012E

2013E

(471.4)
835.0
21.0
409.5
122.2
916.3

(1,027.6)
835.0
25.0
379.8
106.5
318.6

(1,051.3)
835.0
29.0
347.8
93.5
254.0

(674.5)
835.0
33.0
313.8
81.6
588.9

(585.2)
835.0
37.0
297.1
69.0
652.9

(387.1)
835.0
41.0
279.3
57.9
826.1

2014E

2015E

2016E

1,142.0
99.0
527.0
17.0
154.0
1,939.0
7,477.0
(1,472.0)

1,129.0
42.0
74.0
561.0
140.0
1,946.0
8,026.0
(2,299.0)

443.0
225.0
48.0
545.0
141.0
1,402.0
8,314.0
(2,994.0)

337.4
835.0
25.0
497.9
127.3
1,822.7
8,582.0
(3,654.0)

129.7
835.0
21.0
433.4
122.7
1,541.8
8,827.8
(4,305.2)

(122.0)
835.0
17.0
423.4
122.9
1,276.2
9,074.1
(4,811.1)

9,323.6
(5,230.7)

9,579.0
(5,664.6)

9,839.7
(6,111.0)

10,105.0
(6,574.6)

10,373.8
(7,056.4)

6,005.0
467.0
380.0
172.0
8,963.0

5,727.0
61.0
459.0
100.0
8,293.0

5,408.0
114.0
67.0
457.0
96.0
7,544.0

4,927.9
74.0
354.9
102.7
7,282.1

4,522.6
82.0
250.4
107.3
6,504.1

4,263.0
90.0
198.3
107.1
5,934.6

4,092.8

3,914.4

3,728.7

3,530.4

3,317.4

90.0
183.6
107.8
5,390.6

90.0
178.7
123.5
4,625.3

90.0
171.8
136.5
4,381.1

90.0
165.0
148.4
4,522.6

90.0
158.1
161.0
4,379.3

691.0
4.0
147.0
92.0
199.0
2.0
218.0
1,353.0
6,102.0
1,264.0
484.0
9,203.0
4.0
6,273.0
(132.0)
(6,385.0)
(240.0)
8,963.0

651.0
125.0
135.0
100.0
189.0
231.0
1,431.0
5,250.0
954.0
477.0
8,112.0
7.0
7,360.0
(90.0)
(7,096.0)
181.0
8,293.0

614.0
144.0
82.0
73.0
255.0
134.0
1,302.0
5,067.0
840.0
492.0
7,701.0
7.0
7,371.0
19.0
(7,554.0)
(157.0)
7,544.0

568.5
1.0
67.0
90.2
164.6
112.7
1,003.9
6,216.1
713.6
177.1
8,110.8
7.0
7,393.0
(6.0)
(8,222.6)
(828.6)
7,282.1

558.4
67.0
95.8
129.5
110.2
960.9
6,240.7
678.5
228.0
8,108.1
7.0
7,393.0
(6.0)
(8,998.0)
(1,604.0)
6,504.1

553.9
67.0
100.7
94.3
109.1
925.0
6,260.0
643.3
292.4
8,120.7
7.0
7,393.0
(6.0)
(9,580.1)
(2,186.1)
5,934.6

551.7
362.0
67.0
80.7
58.6
106.5
1,226.5

551.7
1,624.0
67.0
75.2
22.1
106.4
2,446.4

551.3
2,455.0
67.0
51.2
(15.1)
106.4
3,215.7

4,753.4
607.6
1,375.3
7,962.9

2,985.4
571.1
1,480.5
7,483.5

530.4
533.9
3,078.0
7,358.0

2,105.4
496.0
4,172.9
7,482.0

2.0
457.6
5,463.9
7,129.8

2.0
418.9
5,785.8
6,847.2

2.0
379.7
5,872.3
6,853.1

2.0
340.2
5,959.3
6,859.2

2.0
300.5
6,044.9
6,862.2

7.0
7,400.0
(6.0)
(9,973.3)
(2,572.3)

7.0
7,400.0
(6.0)
(10,259.2)
(2,858.2)

7.0
7,400.0
(6.0)
(10,377.9)
(2,976.9)

7.0
7,400.0
(6.0)
(10,360.4)
(2,959.4)

7.0
7,400.0
(6.0)
(10,151.5)
(2,750.5)

7.0
7,400.0
(6.0)
(9,913.5)
(2,512.5)

7.0
7,400.0
(6.0)
(9,626.5)
(2,225.5)

7.0
7,400.0
(6.0)
(9,318.5)
(1,917.5)

7.0
7,400.0
(6.0)
(8,999.7)
(1,598.7)

5,390.6

4,625.3

4,381.1

4,522.6

4,379.3

4,334.6

4,627.7

4,941.7

5,263.5

29.0

28.0

23.0

19.6

16.2

15.7

15

13

12

550.4
67.0
37.0
(53.0)
106.2
707.6

10

549.0
528.4
67.0
47.5
(91.4)
105.8
1,206.3

165.0
835.0
45.0
261.2
50.4
1,356.7

754.3
835.0
49.0
242.9
42.9
1,924.1

1,369.7
835.0
53.0
223.6
37.1
2,518.4

10,645.0
(7,556.6)

10,918.8
(8,075.4)

11,195.3
(8,612.9)

11,473.4
(9,169.3)

3,088.3

2,843.4

2,582.4

2,304.1

90.0
158.1
172.1
4,334.6

90.0
158.1
179.6
4,627.7

90.0
158.1
187.1
4,941.7

90.0
158.1
192.9
5,263.5

546.8
67.0
51.6
(130.1)
105.3
640.5

544.9
67.0
51.6
(169.3)
104.8
599.1

543.3
67.0
51.6
(208.8)
104.5
557.6

540.8
67.0
51.6
(248.5)
103.9
514.8

1:35 PM

Ascendere Associates LLC

Contact: Steve Castellano steve@ascenderellc.com
1,380.0
Level 3 Communications
Balance sheet ($ millions)

1Q02

2Q02

3Q02

4Q02

2002

1Q03

2Q03

3Q03

4Q03

2003

1Q04

2Q04

3Q04

4Q04

2004

1Q05

2Q05

3Q05E

4Q05E

2005E

Current assets
Cash and cash equivalents
Marketable securities
Restricted cash and securities
Receivables
Current assets of discontinued operations
Other
Total current assets

1,110.0
136.0
351.0
86.0
1,683.0

1,051.0
146.0
696.0
190.0
2,083.0

963.0
541.0
443.0
121.0
2,068.0

1,142.0
99.0
527.0
17.0
154.0
1,939.0

1,142.0
99.0
527.0
17.0
154.0
1,939.0

944.0
79.0
420.0
117.0
1,560.0

915.0
69.0
507.0
139.0
1,630.0

1,317.0
495.0
355.0
17.0
102.0
2,286.0

1,129.0
42.0
74.0
561.0
140.0
1,946.0

1,129.0
42.0
74.0
561.0
140.0
1,946.0

1,161.0
47.0
429.0
110.0
1,747.0

547.0
221.0
52.0
476.0
122.0
1,418.0

467.0
225.0
50.0
375.0
115.0
1,232.0

443.0
225.0
48.0
545.0
141.0
1,402.0

443.0
225.0
48.0
545.0
141.0
1,402.0

336.0
290.0
42.0
437.0
117.0
1,222.0

448.0
329.0
27.0
544.0
132.0
1,480.0

443.9
835.0
26.0
519.6
130.4
1,954.9

337.4
835.0
25.0
497.9
127.3
1,822.7

337.4
835.0
25.0
497.9
127.3
1,822.7

Property, plant and equipment

Less accumulated depreciation
Property, plant and equipment, net

7,627.0
(881.0)

7,663.0
(1,071.0)

7,631.0
(1,271.0)

7,477.0
(1,472.0)

7,477.0
(1,472.0)

7,502.0
(1,679.0)

7,848.0
(1,907.0)

7,902.0
(2,117.0)

8,026.0
(2,299.0)

8,026.0
(2,299.0)

8,074.0
(2,478.0)

8,144.0
(2,655.0)

8,228.0
(2,825.0)

8,314.0
(2,994.0)

8,314.0
(2,994.0)

8,375.0
(3,165.0)

8,460.0
(3,331.0)

8,515.2
(3,491.6)

8,582.0
(3,654.0)

8,582.0
(3,654.0)

6,746.0

6,592.0

6,360.0

6,005.0

6,005.0

6,043.0

5,941.0

5,785.0

5,727.0

5,727.0

5,598.0

5,466.0

5,402.0

5,408.0

5,408.0

5,277.0

5,158.0

5,023.7

4,927.9

4,927.9

Marketable securities
Restricted cash
Goodwill and Intangibles, net
Other assets, net
TOTAL ASSETS

252.0
370.0
9,051.0

377.0
292.0
9,344.0

375.0
291.0
9,094.0

467.0
380.0
172.0
8,963.0

467.0
380.0
172.0
8,963.0

469.0
505.0
186.0
8,763.0

474.0
481.0
142.0
8,668.0

58.0
495.0
124.0
8,748.0

61.0
459.0
100.0
8,293.0

61.0
459.0
100.0
8,293.0

63.0
445.0
99.0
7,952.0

189.0
62.0
463.0
90.0
7,688.0

164.0
65.0
448.0
84.0
7,395.0

114.0
67.0
457.0
96.0
7,544.0

114.0
67.0
457.0
96.0
7,544.0

70.0
438.0
92.0
7,099.0

506.0
70.0
421.0
98.0
7,733.0

72.0
387.9
99.6
7,538.1

74.0
354.9
102.7
7,282.1

74.0
354.9
102.7
7,282.1

LIABILITIES AND SHAREHOLDER'S EQUITY

Current liabilities:
Accounts payable
Current portion of long term debt
Accrued payroll and employee benefits
Accrued interest
Deferred revenue
Current liabilities of discontinued operations
Other, calculated
Total current liabilties

690.0
30.0
143.0
65.0
127.0
277.0
1,332.0

975.0
10.0
152.0
83.0
240.0
231.0
1,691.0

560.0
12.0
173.0
74.0
158.0
234.0
1,211.0

691.0
4.0
147.0
92.0
199.0
2.0
218.0
1,353.0

691.0
4.0
147.0
92.0
199.0
2.0
218.0
1,353.0

492.0
124.0
126.0
88.0
117.0
236.0
1,183.0

567.0
125.0
146.0
88.0
126.0
6.0
208.0
1,266.0

497.0
750.0
148.0
78.0
132.0
205.0
1,810.0

651.0
125.0
135.0
100.0
189.0
231.0
1,431.0

651.0
125.0
135.0
100.0
189.0
231.0
1,431.0

510.0
103.0
94.0
118.0
154.0
220.0
1,199.0

549.0
141.0
90.0
87.0
164.0
231.0
1,262.0

431.0
144.0
89.0
97.0
158.0
156.0
1,075.0

614.0
144.0
82.0
73.0
255.0
134.0
1,302.0

614.0
144.0
82.0
73.0
255.0
134.0
1,302.0

481.0
119.0
67.0
88.0
187.0
116.0
1,058.0

578.0
1.0
57.0
107.0
182.0
115.0
1,040.0

574.2
1.0
67.0
130.7
174.1
114.1
1,061.2

568.5
1.0
67.0
90.2
164.6
112.7
1,003.9

568.5
1.0
67.0
90.2
164.6
112.7
1,003.9

Long-term debt, less current portion

Deferred revenue
Other liabilities
TOTAL LIABILITIES

5,981.0
1,353.0
450.0
9,116.0

5,939.0
1,349.0
443.0
9,422.0

6,384.0
1,291.0
461.0
9,347.0

6,102.0
1,264.0
484.0
9,203.0

6,102.0
1,264.0
484.0
9,203.0

6,167.0
925.0
546.0
8,821.0

5,634.0
938.0
548.0
8,386.0

5,340.0
919.0
529.0
8,598.0

5,250.0
954.0
477.0
8,112.0

5,250.0
954.0
477.0
8,112.0

5,276.0
970.0
476.0
7,921.0

5,008.0
963.0
469.0
7,702.0

5,032.0
984.0
463.0
7,554.0

5,067.0
840.0
492.0
7,701.0

5,067.0
840.0
492.0
7,701.0

5,073.0
728.0
477.0
7,336.0

5,945.0
731.0
461.0
8,177.0

6,094.6
723.1
283.9
8,162.8

6,216.1
713.6
177.1
8,110.8

6,216.1
713.6
177.1
8,110.8

Preferred stock, $.01 par value, authorized 10,000,00

Common stock
Class R, $0.01par value authorized 8,500,000 shares
Additional paid-in capital
Accumulated other comprehensive income (deficit)
Accumulated income (deficit)
TOTAL SHAREHOLDERS EQUITY (DEFICIT)

4.0
5,711.0
(163.0)
(5,617.0)
(65.0)

4.0
5,808.0
(117.0)
(5,773.0)
(78.0)

4.0
5,939.0
(125.0)
(6,072.0)
(254.0)

4.0
6,273.0
(132.0)
(6,385.0)
(240.0)

4.0
6,273.0
(132.0)
(6,385.0)
(240.0)

5.0
6,332.0
(129.0)
(6,266.0)
(58.0)

6.0
7,124.0
(120.0)
(6,728.0)
282.0

7.0
7,238.0
(120.0)
(6,975.0)
150.0

7.0
7,360.0
(90.0)
(7,096.0)
181.0

7.0
7,360.0
(90.0)
(7,096.0)
181.0

7.0
7,386.0
(119.0)
(7,243.0)
31.0

7.0
7,401.0
(116.0)
(7,306.0)
(14.0)

7.0
7,417.0
(106.0)
(7,477.0)
(159.0)

7.0
7,371.0
19.0
(7,554.0)
(157.0)

7.0
7,371.0
19.0
(7,554.0)
(157.0)

7.0
7,393.0
(6.0)
(7,631.0)
(237.0)

7.0
7,393.0
(6.0)
(7,838.0)
(444.0)

7.0
7,393.0
(6.0)
(8,018.7)
(624.7)

7.0
7,393.0
(6.0)
(8,222.6)
(828.6)

7.0
7,393.0
(6.0)
(8,222.6)
(828.6)

TOTAL LIABILITIES, PREFERRED AND STOCKHO

9,051.0

9,344.0

9,093.0

8,963.0

8,963.0

8,763.0

8,668.0

8,748.0

8,293.0

8,293.0

7,952.0

7,688.0

7,395.0

7,544.0

7,544.0

7,099.0

7,733.0

7,538.1

7,282.1

7,282.1

Supplemental
Allowances for receivables

3/4/2015

45

50

37

29

29.0

31

30

34

28

28.0

26

26

27

23

23

23

23

21

20

20

1:35 PM

Ascendere Associates LLC

Contact: Steve Castellano steve@ascenderellc.com

Level 3 Communications
Balance sheet ($ millions)
Current assets
Cash and cash equivalents
Marketable securities
Restricted cash and securities
Receivables
Current assets of discontinued operations
Other
Total current assets

2Q06E

3Q06E

4Q06E

2006E

1Q07E

2Q07E

3Q07E

4Q07E

2007E

326.3
835.0
24.0
469.9
123.2
1,778.4

235.7
835.0
23.0
458.8
123.0
1,675.5

222.8
835.0
22.0
441.0
122.9
1,643.6

129.7
835.0
21.0
433.4
122.7
1,541.8

129.7
835.0
21.0
433.4
122.7
1,541.8

93.0
835.0
20.0
422.8
122.7
1,493.5

(3.6)
835.0
19.0
422.7
122.7
1,395.7

(28.0)
835.0
18.0
423.1
122.8
1,371.0

(122.0)
835.0
17.0
423.4
122.9
1,276.2

(122.0)
835.0
17.0
423.4
122.9
1,276.2

8,643.1
(3,817.5)

8,706.4
(3,980.6)

8,761.5
(4,142.3)

8,827.8
(4,305.2)

8,827.8
(4,305.2)

8,888.9
(4,469.1)

8,952.1
(4,608.1)

9,007.5
(4,709.1)

9,074.1
(4,811.1)

9,074.1
(4,811.1)

4,825.6

4,725.9

4,619.2

4,522.6

4,522.6

4,419.8

4,344.0

4,298.5

4,263.0

4,263.0

Marketable securities
Restricted cash
Goodwill and Intangibles, net
Other assets, net
TOTAL ASSETS

76.0
321.8
106.8
7,108.7

78.0
298.0
107.0
6,884.4

80.0
274.2
107.1
6,724.1

82.0
250.4
107.3
6,504.1

82.0
250.4
107.3
6,504.1

84.0
236.1
107.3
6,340.7

86.0
221.8
107.3
6,154.8

88.0
207.5
107.2
6,072.1

90.0
198.3
107.1
5,934.6

90.0
198.3
107.1
5,934.6

LIABILITIES AND SHAREHOLDER'S EQUITY

Current liabilities:
Accounts payable
Current portion of long term debt
Accrued payroll and employee benefits
Accrued interest
Deferred revenue
Current liabilities of discontinued operations
Other, calculated
Total current liabilties

563.1
67.0
112.5
155.8
111.4
1,009.8

561.1
67.0
95.2
146.8
110.9
980.9

560.0
67.0
113.5
138.9
110.6
990.1

558.4
67.0
95.8
129.5
110.2
960.9

558.4
67.0
95.8
129.5
110.2
960.9

557.1
67.0
112.5
120.7
109.9
967.3

555.7
67.0
94.5
111.7
109.6
938.4

555.1
67.0
112.8
103.8
109.4
948.1

553.9
67.0
100.7
94.3
109.1
925.0

553.9
67.0
100.7
94.3
109.1
925.0

Long-term debt, less current portion

Deferred revenue
Other liabilities
TOTAL LIABILITIES

6,222.8
704.8
195.4
8,132.8

6,228.6
695.8
206.5
8,111.9

6,234.7
687.9
216.4
8,129.0

6,240.7
678.5
228.0
8,108.1

6,240.7
678.5
228.0
8,108.1

6,246.9
669.7
243.5
8,127.4

6,253.3
660.7
259.2
8,111.7

6,259.9
652.8
273.7
8,134.4

6,260.0
643.3
292.4
8,120.7

6,260.0
643.3
292.4
8,120.7

Preferred stock, $.01 par value, authorized 10,000,00

Common stock
Class R, $0.01par value authorized 8,500,000 shares
Additional paid-in capital
Accumulated other comprehensive income (deficit)
Accumulated income (deficit)
TOTAL SHAREHOLDERS EQUITY (DEFICIT)

7.0
7,393.0
(6.0)
(8,418.1)
(1,024.1)

7.0
7,393.0
(6.0)
(8,621.5)
(1,227.5)

7.0
7,393.0
(6.0)
(8,798.9)
(1,404.9)

7.0
7,393.0
(6.0)
(8,998.0)
(1,604.0)

7.0
7,393.0
(6.0)
(8,998.0)
(1,604.0)

7.0
7,393.0
(6.0)
(9,180.7)
(1,786.7)

7.0
7,393.0
(6.0)
(9,350.9)
(1,956.9)

7.0
7,393.0
(6.0)
(9,456.3)
(2,062.3)

7.0
7,393.0
(6.0)
(9,580.1)
(2,186.1)

7.0
7,393.0
(6.0)
(9,580.1)
(2,186.1)

TOTAL LIABILITIES, PREFERRED AND STOCKHO

7,108.7

6,884.4

6,724.1

6,504.1

6,504.1

6,340.7

6,154.8

6,072.1

5,934.6

5,934.6

Property, plant and equipment

Less accumulated depreciation
Property, plant and equipment, net

Supplemental
Allowances for receivables

3/4/2015

1Q06E

18

18

17

16

16

16

16

16

16

16

1:35 PM