Condensed Combining Financial Information of L-3 Communications and Its Subsidiaries (Tables)

6 Months Ended

Jul. 01, 2011

Condensed Combining Financial Information of L-3 Communications and Its Subsidiaries (Tables) [Abstract]

Condensed Combining Balance Sheets

	L-3						Non-
	Holdings		L-3		Guarantor		Guarantor					Consolidated
	(Parent)		Communications		Subsidiaries		Subsidiaries		Eliminations			L-3
	(in millions)
Condensed Combining Balance Sheets:
At July 1, 2011:
Current assets:
Cash and cash equivalents	$	—	$	129	$	10	$	464	$	(55	)	$	548
Billed receivables, net		—		341		666		233		—			1,240
Contracts in process		—		872		1,567		295		—			2,734
Other current assets		—		297		157		208		—			662
Total current assets		—		1,639		2,400		1,200		(55	)		5,184
Goodwill		—		1,867		5,595		1,333		—			8,795
Other assets		—		685		727		186		—			1,598
Investment in and amounts due from consolidated subsidiaries		7,613		9,110		2,555		—		(19,278	)		—
Total assets	$	7,613	$	13,301	$	11,277	$	2,719	$	(19,333	)	$	15,577
Current liabilities	$	—	$	826	$	1,305	$	595	$	(55	)	$	2,671
Amounts due to consolidated subsidiaries		—		—		—		420		(420	)		—
Other long-term liabilities		—		1,425		235		105		—			1,765
Long-term debt		689		4,126		—		—		(689	)		4,126
Total liabilities		689		6,377		1,540		1,120		(1,164	)		8,562
L-3 shareholders’ equity		6,924		6,924		9,737		1,599		(18,260	)		6,924
Noncontrolling interests		—		—		—		—		91			91
Total equity		6,924		6,924		9,737		1,599		(18,169	)		7,015
Total liabilities and equity	$	7,613	$	13,301	$	11,277	$	2,719	$	(19,333	)	$	15,577
At December 31, 2010:
Current assets:
Cash and cash equivalents	$	—	$	257	$	3	$	482	$	(135	)	$	607
Billed receivables, net		—		387		680		232		—			1,299
Contracts in process		—		801		1,525		222		—			2,548
Other current assets		—		295		161		168		—			624
Total current assets		—		1,740		2,369		1,104		(135	)		5,078
Goodwill		—		1,857		5,592		1,281		—			8,730
Other assets		—		693		763		187		—			1,643
Investment in and amounts due from consolidated subsidiaries		7,462		8,912		2,417		—		(18,791	)		—
Total assets	$	7,462	$	13,202	$	11,141	$	2,572	$	(18,926	)	$	15,451
Current portion of long-term debt	$	11	$	11	$	—	$	—	$	(11	)	$	11
Other current liabilities		—		898		1,388		571		(135	)		2,722
Amounts due to consolidated subsidiaries		—		—		—		439		(439	)		—
Other long-term liabilities		—		1,403		235		99		—			1,737
Long-term debt		687		4,126		—		—		(687	)		4,126
Total liabilities		698		6,438		1,623		1,109		(1,272	)		8,596
L-3 shareholders’ equity		6,764		6,764		9,518		1,463		(17,745	)		6,764
Noncontrolling interests		—		—		—		—		91			91
Total equity		6,764		6,764		9,518		1,463		(17,654	)		6,855
Total liabilities and equity	$	7,462	$	13,202	$	11,141	$	2,572	$	(18,926	)	$	15,451

Condensed Combining Statements of Operations

	L-3							Non-
	Holdings			L-3		Guarantor		Guarantor					Consolidated
	(Parent)			Communications		Subsidiaries		Subsidiaries		Eliminations			L-3
	(in millions)
Condensed Combining Statements of Operations:
For the quarter ended July 1, 2011:
Net sales	$	—		$	945	$	2,272	$	639	$	(90	)	$	3,766
Cost of sales		19			836		2,069		547		(109	)		3,362
Operating (loss) income		(19	)		109		203		92		19			404
Interest and other income, net		—			33		—		1		(29	)		5
Interest expense		6			55		28		2		(35	)		56
(Loss) income before income taxes		(25	)		87		175		91		25			353
(Benefit) provision for income taxes		(8	)		26		53		28		8			107
Equity in net income of consolidated subsidiaries		260			182		—		—		(442	)		—
Net income		243			243		122		63		(425	)		246
Net income attributable to noncontrolling interests		—			—		—		—		3			3
Net income attributable to L-3	$	243		$	243	$	122	$	63	$	(428	)	$	243
For the quarter ended June 25, 2010:
Net sales	$	—		$	842	$	2,622	$	587	$	(85	)	$	3,966
Cost of sales		23			721		2,382		507		(109	)		3,524
Operating (loss) income		(23	)		121		240		80		24			442
Interest and other income, net		—			31		5		1		(29	)		8
Interest expense		12			70		28		2		(40	)		72
Debt retirement charge		—			13		—		—		—			13
(Loss) income before income taxes		(35	)		69		217		79		35			365
(Benefit) provision for income taxes		(13	)		26		79		29		13			134
Equity in net income of consolidated subsidiaries		250			185		—		—		(435	)		—
Net income		228			228		138		50		(413	)		231
Net income attributable to noncontrolling interests		—			—		—		—		3			3
Net income attributable to L-3	$	228		$	228	$	138	$	50	$	(416	)	$	228

	L-3								Non-
	Holdings			L-3		Guarantor			Guarantor					Consolidated
	(Parent)			Communications		Subsidiaries			Subsidiaries		Eliminations			L-3
	(in millions)
Condensed Combining Statements of Operations:
For the first half ended July 1, 2011:
Net sales	$	—		$	1,797	$	4,507		$	1,239	$	(176	)	$	7,367
Cost of sales		34			1,582		4,093			1,075		(211	)		6,573
Operating (loss) income		(34	)		215		414			164		35			794
Interest and other income (expense), net		—			64		(2	)		2		(57	)		7
Interest expense		13			117		55			3		(69	)		119
Debt retirement charge		—			18		—			—		—			18
(Loss) income before income taxes		(47	)		144		357			163		47			664
(Benefit) provision for income taxes		(15	)		45		114			52		15			211
Equity in net income of consolidated subsidiaries		479			348		—			—		(827	)		—
Net income		447			447		243			111		(795	)		453
Net income attributable to noncontrolling interests		—			—		—			—		6			6
Net income attributable to L-3	$	447		$	447	$	243		$	111	$	(801	)	$	447
For the first half ended June 25, 2010:
Net sales	$	—		$	1,639	$	5,012		$	1,079	$	(140	)	$	7,590
Cost of sales		42			1,390		4,546			942		(182	)		6,738
Operating (loss) income		(42	)		249		466			137		42			852
Interest and other income, net		—			63		5			1		(57	)		12
Interest expense		23			134		56			3		(80	)		136
Debt retirement charge		—			13		—			—		—			13
(Loss) income before income taxes		(65	)		165		415			135		65			715
(Benefit) provision for income taxes		(24	)		61		152			49		24			262
Equity in net income of consolidated subsidiaries		490			345		—			—		(835	)		—
Net income		449			449		263			86		(794	)		453
Net income attributable to noncontrolling interests		—			—		—			—		4			4
Net income attributable to L-3	$	449		$	449	$	263		$	86	$	(798	)	$	449

Condensed Combining Statements of Cash Flows

	L-3									Non-
	Holdings			L-3			Guarantor			Guarantor						Consolidated
	(Parent)			Communications			Subsidiaries			Subsidiaries			Eliminations			L-3
	(in millions)
Condensed Combining Statements of Cash Flows:
For the first half ended July 1, 2011:
Operating activities:
Net cash from operating activities	$	537		$	113		$	369		$	79		$	(579	)	$	519
Investing activities:
Business acquisitions, net of cash acquired		—			(15	)		—			—			—			(15	)
Investments in L-3 Communications		(38	)		—			—			—			38			—
Other investing activities		—			(39	)		(26	)		(9	)		—			(74	)
Net cash used in investing activities		(38	)		(54	)		(26	)		(9	)		38			(89	)
Financing activities:
Proceeds from sale of senior notes		—			646			—			—			—			646
Redemption of senior subordinated notes and CODES		(11	)		(650	)		—			—			—			(661	)
Common stock repurchased		(429	)		—			—			—			—			(429	)
Dividends paid on L-3 Holdings common stock		(97	)		—			—			—			—			(97	)
Dividends paid to L-3 Holdings		—			(537	)		—			—			537			—
Investments from L-3 Holdings		—			38			—			—			(38	)		—
Other financing activities		38			316			(336	)		(103	)		122			37
Net cash used in financing activities		(499	)		(187	)		(336	)		(103	)		621			(504	)
Effect of foreign currency exchange rate changes on cash		—			—			—			15			—			15
Net (decrease) increase in cash		—			(128	)		7			(18	)		80			(59	)
Cash and cash equivalents, beginning of the period		—			257			3			482			(135	)		607
Cash and cash equivalents, end of the period	$	—		$	129		$	10		$	464		$	(55	)	$	548
For the first half ended June 25, 2010:
Operating activities:
Net cash from operating activities	$	347		$	53		$	431		$	105		$	(347	)	$	589
Investing activities:
Business acquisitions, net of cash acquired		—			(616	)		—			—			—			(616	)
Investments in L-3 Communications		(83	)		—			—			—			83			—
Other investing activities		—			(23	)		(43	)		(6	)		—			(72	)
Net cash used in investing activities		(83	)		(639	)		(43	)		(6	)		83			(688	)
Financing activities:
Proceeds from sale of senior notes		—			797			—			—			—			797
Redemption of senior subordinated notes		—			(400	)		—			—			—			(400	)
Common stock repurchased		(254	)		—			—			—			—			(254	)
Dividends paid on L-3 Holdings common stock		(93	)		—			—			—			—			(93	)
Dividends paid to L-3 Holdings		—			(347	)		—			—			347			—
Investments from L-3 Holdings		—			83			—			—			(83	)		—
Other financing activities		83			323			(389	)		2			63			82
Net cash (used in) from financing activities		(264	)		456			(389	)		2			327			132
Effect of foreign currency exchange rate changes on cash		—			—			—			(26	)		—			(26	)
Net (decrease) increase in cash		—			(130	)		(1	)		75			63			7
Cash and cash equivalents, beginning of the period		—			797			4			364			(149	)		1,016
Cash and cash equivalents, end of the period	$	—		$	667		$	3		$	439		$	(86	)	$	1,023