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Debt (Tables)
 12 Months Ended
Dec. 31, 2018
Debt Disclosure [Abstract]  
Components of Debt and Reconciliation to Carrying Amount of Current and Long-Term Debt
The components of debt and a reconciliation to the carrying amount of long-term debt is presented in the table below.
 
December 31,
 
2018
 
2017
 
(in millions)
Borrowings under Revolving Credit Facility(1)
$
—

 
$
—

5.20% Senior Notes due 2019
—

 
1,000

4.75% Senior Notes due 2020
—

 
800

4.95% Senior Notes due 2021
650

 
650

3.85% Senior Notes due 2023
800

 
—

3.95% Senior Notes due 2024
350

 
350

3.85% Senior Notes due 2026
550

 
550

4.40% Senior Notes due 2028
1,000

 
—

Principal amount of long-term debt
3,350

 
3,350

Unamortized discounts
(7
)
 
(7
)
Deferred debt issue costs
(22
)
 
(13
)
Carrying amount of long-term debt
$
3,321

 
$
3,330

__________________
(1) 
During 2018, L3's aggregate borrowings and repayments under the Credit Facility were $501 million. L3 had the full availability of its $1 billion Credit Facility at December 31, 2018 and December 31, 2017
Information Regarding Outstanding Senior Subordinated Notes
The senior notes are unsecured senior obligations of L3. The terms of each outstanding senior note are presented in the table below.
Note
 
Date of Issuance
 
Amount Issued
 
Discount(1)
 
Net
Cash Proceeds
 
Effective Interest Rate
 
Redemption at Treasury
   Rate(2)(3)
 
 
 
 
(dollars in millions)
4.95% Senior Notes due February 15, 2021
 
February 7, 2011
 
$
650

 
$
4

 
$
639

 
5.02
%
 
25 bps
3.85% Senior Notes due June 15, 2023 (4)
 
June 6, 2018
 
$
800

 
$
2

 
$
792

 
3.89
%
 
20 bps
3.95% Senior Notes due May 28, 2024 (5)
 
May 28, 2014
 
$
650

 
$
3

 
$
641

 
4.02
%
 
20 bps
3.85% Senior Notes due December 15, 2026
 
December 5, 2016
 
$
550

 
$
3

 
$
542

 
3.91
%
 
25 bps
4.40% Senior Notes due June 15, 2028 (4)
 
June 6, 2018
 
$
1,000

 
$
1

 
$
990

 
4.41
%
 
25 bps
__________________
(1) 
Bond discounts are recorded as a reduction to the principal amount of the notes and are amortized as interest expense over the term of the notes.
(2) 
The senior notes maturing in 2023 may be redeemed at any time prior to May 15, 2023 (one month prior to maturity) and the senior notes maturing in 2021, 2024, 2026 and 2028 may be redeemed at any time prior to November 15, 2020, February 28, 2024, September 15, 2026 and March 15, 2028, respectively, (three months prior to their maturity) at the option of L3, in whole or in part, at a redemption price equal to the greater of: (i) 100% of the principal amount, or (ii) the present value of the remaining principal and interest payments discounted to the date of redemption, on a semi-annual basis, at the Treasury Rate (as defined in the indentures governing the senior notes), plus the spread indicated in the table above. In addition, if the senior notes maturing in 2021, 2023, 2024, 2026 and 2028 are redeemed at any time on or after November 15, 2020, May 15, 2023, February 28, 2024, September 15, 2026 and March 15, 2028, respectively, the redemption price would be equal to 100% of the principal amount.
(3) 
Upon the occurrence of a change in control (as defined in the indentures governing the senior notes) along with a “change of control triggering event” (generally described as the applicable series of senior notes ceasing to be rated investment grade, as defined in the indentures governing the senior notes), each holder of the notes will have the right to require L3 to repurchase all or any part of such holder’s notes at an offer price in cash equal to 101% of the aggregate principal amount plus accrued and unpaid interest, if any, to the date of purchase.
(4) 
The net cash proceeds of $1,782 million (after deduction of the discount, underwriting expenses and commissions and other related expenses) plus cash on hand were used to fund the concurrent cash tender offers (the Tender Offers) for any and all of $1 billion aggregate principal amount of 5.20% Senior Notes due October 15, 2019 (the 2019 Notes) and $800 million aggregate principal amount of 4.75% Senior Notes due July 15, 2020 (the 2020 Notes) and any related redemption of notes not tendered in the Tender Offers.
(5) 
On December 22, 2015, the Company repurchased $300 million of the 3.95% Senior Notes
Repurchases, Redemptions and Maturities of Senior Notes
of Senior Notes
The repurchases, redemptions and maturities of senior notes are presented in the table below.
Note
 
Settlement Type
 
Date Settled
 
Aggregate
Amount
 
Premium
 
Cash
Payments
 
Interest
 
Total Cash
Payments
 
Debt
Retirement
Charge
 
 
 
 
 
 
(dollars in millions)
5.20% Senior Notes due 2019 (1)
 
Redemption
 
July 6, 2018
 
$
317

 
103.048
%
 
$
327

 
$
4

 
$
331

 
$
10

4.75% Senior Notes due 2020 (1)
 
Redemption
 
July 6, 2018
 
$
265

 
103.818
%
 
$
275

 
$
6

 
$
281

 
$
11

5.20% Senior Notes due 2019 (2)
 
Tender Offer
 
June 6, 2018
 
$
683

 
103.282
%
 
$
705

 
$
5

 
$
710

 
$
24

4.75% Senior Notes due 2020 (2)
 
Tender Offer
 
June 6, 2018
 
$
535

 
104.092
%
 
$
557

 
$
10

 
$
567

 
$
24

1.50% Senior Notes due 2017
 
Redemption
 
December 30, 2016
 
$
350

 
100.323
%
 
$
351

 
$
1

 
$
352

 
$
2

3.95% Senior Notes due 2016
 
Maturity
 
November 15, 2016
 
$
200

 
100.000
%
 
$
200

 
$
—

 
$
200

 
$
—

3.95% Senior Notes due 2016
 
Redemption
 
May 20, 2016
 
$
300

 
101.475
%
 
$
305

 
$
—

 
$
305

 
$
5

__________________
(1) 
The debt retirement charge includes $1 million which represents the non-cash retirement of associated unamortized debt issue costs and discounts.
(2) 
Cash payments exclude $1 million of tender offer fees. The debt retirement charge includes $1 million of tender offer fees and $3 million which represents the non-cash retirement of associated unamortized debt issue co