Unaudited Quarterly Financial Data

12 Months Ended

Dec. 31, 2017

Unaudited Quarterly Financial Data [Abstract]

Unaudited Quarterly Financial Data

23. Unaudited Quarterly Financial Data

Unaudited summarized financial data by quarter for the years ended December 31, 2017 and 2016 is presented in the table below. The Company’s unaudited quarterly results of operations are affected, significantly in some periods, by the Company’s business acquisitions and divestitures. See Note 3 for additional information.

	First Quarter		Second Quarter		Third Quarter(1)		Fourth Quarter(2)
	(in millions, except per share data)
2017
Sales	$	2,321	$	2,385	$	2,293	$	2,574
Operating income		236		292		229		263
Income from continuing operations		157		195		146		271
Net income		168		207		25		293
Net income attributable to L3		164		202		22		289
Basic EPS from continuing operations(3)		1.97		2.44		1.83		3.42
Basic EPS(3)		2.11		2.59		0.28		3.70
Diluted EPS from continuing operations(3)		1.93		2.39		1.79		3.34
Diluted EPS(3)		2.07		2.54		0.28		3.62
2016
Sales	$	2,065	$	2,318	$	2,184	$	2,643
Operating income		244		220		211		282
Income from continuing operations		163		134		149		187
Net income		230		151		151		192
Net income attributable to L3		227		147		148		188
Basic EPS from continuing operations(3)		2.06		1.68		1.89		2.37
Basic EPS(3)		2.92		1.90		1.91		2.43
Diluted EPS from continuing operations(3)		2.02		1.66		1.85		2.32
Diluted EPS(3)		2.87		1.88		1.88		2.38

⁽¹⁾ The Company recorded a goodwill impairment charge of $187 million or $1.67 per diluted share for the Vertex Aerospace reporting unit in 2017, which is reported in discontinued operations.

⁽²⁾ Provision for income taxes for the fourth quarter of 2017, includes estimated tax benefits of $79 million or $0.99 per diluted share, related to the enactment of the U.S. Tax Cuts and Jobs Act (U.S. Tax Reform) in December 2017.

⁽³⁾ EPS in each quarter is computed using the weighted-average number of shares outstanding during that quarter, while EPS for the full year is computed using the weighted-average number of shares outstanding during the year. Therefore, the sum of the four quarters’ EPS may not equal the full year computed EPS.