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

9 Months Ended

Sep. 30, 2011

Condensed Combining Financial Information of L Three 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 September 30, 2011:
Current assets:
Cash and cash equivalents	$	—	$	113	$	3	$	484	$	(62	)	$	538
Billed receivables, net		—		330		632		226		—			1,188
Contracts in process		—		917		1,559		307		—			2,783
Other current assets		—		303		135		198		—			636
Total current assets		—		1,663		2,329		1,215		(62	)		5,145
Goodwill		—		1,806		5,654		1,275		—			8,735
Other assets		—		676		709		188		—			1,573
Investment in and amounts due from consolidated subsidiaries		7,385		9,000		2,772		—		(19,157	)		—
Total assets	$	7,385	$	13,145	$	11,464	$	2,678	$	(19,219	)	$	15,453
Current liabilities	$	—	$	856	$	1,358	$	588	$	(62	)	$	2,740
Amounts due to consolidated subsidiaries		—		—		—		433		(433	)		—
Other long-term liabilities		—		1,467		233		100		—			1,800
Long-term debt		689		4,126		—		—		(689	)		4,126
Total liabilities		689		6,449		1,591		1,121		(1,184	)		8,666
L-3 shareholders’ equity		6,696		6,696		9,873		1,557		(18,126	)		6,696
Noncontrolling interests		—		—		—		—		91			91
Total equity		6,696		6,696		9,873		1,557		(18,035	)		6,787
Total liabilities and equity	$	7,385	$	13,145	$	11,464	$	2,678	$	(19,219	)	$	15,453
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		—		1,796		5,653		1,281		—			8,730
Other assets		—		693		763		187		—			1,643
Investment in and amounts due from consolidated subsidiaries		7,462		8,973		2,356		—		(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 September 30, 2011:
Net sales	$	—		$	916	$	2,331		$	628	$	(88	)	$	3,787
Cost of sales		17			841		2,092			536		(105	)		3,381
Operating (loss) income		(17	)		75		239			92		17			406
Interest and other income (expense), net		—			31		(1	)		1		(28	)		3
Interest expense		5			57		27			1		(33	)		57
(Loss) income before income taxes		(22	)		49		211			92		22			352
(Benefit) provision for income taxes		(7	)		16		68			30		7			114
Equity in net income of consolidated subsidiaries		250			202		—			—		(452	)		—
Net income		235			235		143			62		(437	)		238
Net income attributable to noncontrolling interests		—			—		—			—		3			3
Net income attributable to L-3	$	235		$	235	$	143		$	62	$	(440	)	$	235
For the quarter ended September 24, 2010:
Net sales	$	—		$	806	$	2,530		$	567	$	(68	)	$	3,835
Cost of sales		20			700		2,283			483		(88	)		3,398
Operating (loss) income		(20	)		106		247			84		20			437
Interest and other income (expense), net		—			31		(1	)		1		(28	)		3
Interest expense		12			64		27			1		(40	)		64
Debt retirement charge		—			5		—			—		—			5
(Loss) income before income taxes		(32	)		68		219			84		32			371
(Benefit) provision for income taxes		(11	)		24		77			29		11			130
Equity in net income of consolidated subsidiaries		259			194		—			—		(453	)		—
Net income		238			238		142			55		(432	)		241
Net income attributable to noncontrolling interests		—			—		—			—		3			3
Net income attributable to L-3	$	238		$	238	$	142		$	55	$	(435	)	$	238

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 Operations:
For the year-to-date ended September 30, 2011:
Net sales	$	—		$	2,713	$	6,838		$	1,867	$	(264	)	$	11,154
Cost of sales		51			2,422		6,185			1,611		(315	)		9,954
Operating (loss) income		(51	)		291		653			256		51			1,200
Interest and other income (expense), net		—			94		(2	)		3		(85	)		10
Interest expense		18			175		82			4		(103	)		176
Debt retirement charge		—			18		—			—		—			18
(Loss) income before income taxes		(69	)		192		569			255		69			1,016
(Benefit) provision for income taxes		(22	)		61		182			82		22			325
Equity in net income of consolidated subsidiaries		729			551		—			—		(1,280	)		—
Net income		682			682		387			173		(1,233	)		691
Net income attributable to noncontrolling interests		—			—		—			—		9			9
Net income attributable to L-3	$	682		$	682	$	387		$	173	$	(1,242	)	$	682
For the year-to-date ended September 24, 2010:
Net sales	$	—		$	2,445	$	7,542		$	1,646	$	(208	)	$	11,425
Cost of sales		62			2,089		6,830			1,425		(270	)		10,136
Operating (loss) income		(62	)		356		712			221		62			1,289
Interest and other income, net		—			95		4			2		(86	)		15
Interest expense		34			200		82			4		(120	)		200
Debt retirement charge		—			18		—			—		—			18
(Loss) income before income taxes		(96	)		233		634			219		96			1,086
(Benefit) provision for income taxes		(35	)		84		229			79		35			392
Equity in net income of consolidated subsidiaries		748			538		—			—		(1,286	)		—
Net income		687			687		405			140		(1,225	)		694
Net income attributable to noncontrolling interests		—			—		—			—		7			7
Net income attributable to L-3	$	687		$	687	$	405		$	140	$	(1,232	)	$	687

	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 year-to-date ended September 30, 2011:
Operating activities:
Net cash from operating activities	$	954		$	184		$	716		$	141		$	(1,011	)	$	984
Investing activities:
Business acquisitions, net of cash acquired		—			(15	)		—			—			—			(15	)
Investments in L-3 Communications		(42	)		—			—			—			42			—
Other investing activities		—			(54	)		(53	)		(15	)		—			(122	)
Net cash used in investing activities		(42	)		(69	)		(53	)		(15	)		42			(137	)
Financing activities:
Proceeds from sale of senior notes		—			646			—			—			—			646
Redemption of senior subordinated notes and CODES		(11	)		(650	)		—			—			—			(661	)
Common stock repurchased		(800	)		—			—			—			—			(800	)
Dividends paid on L-3 Holdings common stock		(143	)		—			—			—			—			(143	)
Dividends paid to L-3 Holdings		—			(954	)		—			—			954			—
Investments from L-3 Holdings		—			42			—			—			(42	)		—
Other financing activities		42			657			(663	)		(124	)		130			42
Net cash used in financing activities		(912	)		(259	)		(663	)		(124	)		1,042			(916	)
Net (decrease) increase in cash		—			(144	)		—			2			73			(69	)
Cash and cash equivalents, beginning of the period		—			257			3			482			(135	)		607
Cash and cash equivalents, end of the period	$	—		$	113		$	3		$	484		$	(62	)	$	538
For the year-to-date ended September 24, 2010:
Operating activities:
Net cash from operating activities	$	608		$	119		$	692		$	196		$	(631	)	$	984
Investing activities:
Business acquisitions, net of cash acquired		—			(710	)		—			—			—			(710	)
Investment in consolidated subsidiaries		(93	)		—			—			—			93			—
Other investing activities		—			(42	)		(63	)		(4	)		—			(109	)
Net cash used in investing activities		(93	)		(752	)		(63	)		(4	)		93			(819	)
Financing activities:
Proceeds from sale of senior notes		—			797			—			—			—			797
Redemption of senior subordinated notes		—			(800	)		—			—			—			(800	)
Common stock repurchased		(469	)		—			—			—			—			(469	)
Dividends paid on L-3 Holdings common stock		(139	)		—			—			—			—			(139	)
Dividends paid to L-3 Holdings		—			(608	)		—			—			608			—
Investments from L-3 Holdings		—			93			—			—			(93	)		—
Other financing activities		93			601			(629	)		(79	)		103			89
Net cash (used in) from financing activities		(515	)		83			(629	)		(79	)		618			(522	)
Effect of foreign currency exchange rate changes on cash		—			—			—			(9	)		—			(9	)
Net (decrease) increase in cash		—			(550	)		—			104			80			(366	)
Cash and cash equivalents, beginning of the period		—			797			4			364			(149	)		1,016
Cash and cash equivalents, end of the period	$	—		$	247		$	4		$	468		$	(69	)	$	650