Acquisitions and Divestitures (Tables)

3 Months Ended

Mar. 30, 2018

Business Combinations [Abstract]

Unaudited Pro Forma Statements of Operations Data

The following unaudited pro forma Statement of Operations data presents the combined results of the Company and its business acquisitions completed during the year ended December 31, 2017, assuming that the business acquisitions completed during 2017 had occurred on January 1, 2016. The unaudited pro forma Statement of Operations data below includes adjustments for additional amortization expense related to acquired intangible assets and depreciation assuming the 2017 acquisitions had occurred on January 1, 2016.

	First Quarter Ended
	March 31, 2017
	(in millions, except per share data)
Pro forma net sales	$	2,345
Pro forma income from continuing operations attributable to L3	$	153
Pro forma net income attributable to L3	$	164
Pro forma diluted earnings per share from continuing operations	$	1.93
Pro forma diluted earnings per share	$	2.07

Components of Pre-tax (Loss) Gain Recognized, Proceeds Received and Net Sales Included in Continuing Operations from Business Divestitures Of Business Divestitures [Table Text Block]

he table below presents pre-tax (loss) gain recognized, the proceeds received and net sales included in continuing operations from these divestitures.

	First Quarter Ended March 31, 2017
	Pre-Tax (Loss) gain			Proceeds Received		Net Sales
	(in millions)
Aviation Jet Services divestiture	$	(5	)	$	1	$	1
Coleman divestiture	(3		)	17		9
Display Product Line divestiture	4			7		—
Total	$	(4	)	$	25	$	10

Schedule of Net Sales and Income Before Income Taxes from Business Divestitures Included in the Consolidated Statement of Operations

et sales and income before income taxes for Aviation Jet Services, Coleman and the Display Product Line, included in L3’s consolidated statements of operations, are presented in the table below on an aggregate basis and are included in income from continuing operations for all periods presented.

	First Quarter Ended
	March 31, 2017
	(in millions)
Net sales	$	10
Income before income taxes	$	2

Disposal Groups, Including Discontinued Operations

he table below presents the statements of operations data for Vertex Aerospace. The amounts presented in discontinued operations include allocated interest expenses for debt not directly attributable or related to L3’s other operations. Interest expense was allocated in accordance with the accounting standards for discontinued operations and were based on the ratio of Vertex Aerospace’s net assets to the sum of: (1) L3 consolidated total net assets and (2) L3 consolidated total debt.

	First Quarter Ended
	March 30, 2018			March 31, 2017
	(in millions)
Net sales	$	371		$	352
Operating costs and expenses	(349		)	(335		)
Operating income from discontinued operations	22			17
Interest expense allocated to discontinued operations	(1		)	—
Income from discontinued operations before income taxes	21			17
Income tax expense	(5		)	(6		)
Income from discontinued operations, net of income taxes	$	16		$	11

The major classes of assets and liabilities included in discontinued operations related to Vertex Aerospace are presented in the table below. These balances have been classified as current as the sale is expected to be completed within one year and the proceeds are not expected to be used to pay down long-term debt.

	March 30, 2018		December 31, 2017
	(in millions)
Assets
Current assets	$	265	$	284
Property, plant and equipment, net	14		13
Other intangible assets	7		7
Other assets	1		2
Total assets of discontinued operations	$	287	$	306
Liabilities
Accounts payable, trade	$	50	$	63
Other current liabilities	70		131
Current liabilities	120		194
Long-term liabilities	34		32
Total liabilities of discontinued operations	$	154	$	226

Assets Held for Sale

Aerostructures. The Aerostructures business is classified as held for sale. Aerostructures, which is within the Company’s Aerospace Segment, primarily provides aircraft fabrication and assembly of fixed and rotary wing aero structures as well as avionics hardware and software systems to address mission critical needs. The major classes of assets and liabilities included as held for sale related to Aerostructures are presented in the table below.

	March 30, 2018		December 31, 2017
	(in millions)
Assets
Billed receivables	$	13	$	14
Contract assets	33		—
Contracts in process	—		33
Prepaid expenses and other current assets	4		—
Total current assets	50		47
Property, plant and equipment, net	32		34
Goodwill	52		52
Identifiable intangible assets	2		2
Total assets classified as held for sale	$	136	$	135
Liabilities
Accounts payable, trade	$	7	$	3
Accrued employment costs	1		2
Accrued expenses	2		3
Other current liabilities	5		5
Total current liabilities	15		13
Deferred income taxes	4		4
Total liabilities classified as held for sale	$	19	$	17