Subsequent Event

6 Months Ended

Jul. 01, 2011


24.	Subsequent Event

On July 28, 2011, the Company announced that its Board of Directors approved a plan to spin-off a new, independent, publicly traded government services company. The transaction, which is intended to be tax-free to L-3 and its shareholders, is expected to be completed in the first half of 2012 and L-3 shareholders will own 100% of the shares of both L-3 and the new government services company at its completion.

Under the plan, the new, public company will be named Engility and will include the systems engineering and technical assistance (SETA), training and operational support services businesses that are currently part of L-3’s Government Services segment. L-3 will retain the cyber, intelligence and security solutions businesses that are also part of the Government Services segment. The Government Services segment will be renamed National Security Solutions upon completion of the transaction.

Due to the planned spin-off of Engility, the Company performed long-lived asset and goodwill impairment assessments related to the Government Services businesses that resulted in no impairment.