Acquisitions, Divestitures and Discontinued Operations (Tables)

3 Months Ended

Mar. 29, 2019

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, 2018, assuming that the business acquisitions completed during 2018 had occurred on January 1, 2017. The unaudited pro forma Statement of Operations data below includes adjustments for additional amortization expense related to acquired intangible assets and depreciation assuming the 2018 acquisitions had occurred on January 1, 2017.

	First Quarter Ended
	March 30, 2018
	(in millions, except per share data)
Pro forma net sales	$	2,404
Pro forma income from continuing operations attributable to L3	$	191
Pro forma net income attributable to L3	$	207
Pro forma diluted earnings per share from continuing operations	$	2.39
Pro forma diluted earnings per share	$	2.59

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

The table below presents Crestview & TCS Businesses’ results of operations and is included in continuing operations.

	First Quarter Ended
	March 30, 2018
	(in millions)
Net sales	$	33
Income from continuing operations before income taxes	$	1

Disposal Groups, Including Discontinued Operations

As discussed in Note 1, on June 29, 2018, the Company completed the sale of its Vertex Aerospace businesses. The 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) total L3 consolidated net assets and (2) L3 consolidated total debt.

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