Pensions and Other Employee Benefits (Tables)

12 Months Ended

Dec. 31, 2011

Pensions and Other Employee Benefits [Abstract]

Changes in benefit obligations, plan assets and funded status and aggregate balance sheet impact

	Pension Plans						Postretirement     Benefit Plans
	2011			2010			2011			2010
	(in millions)
Change in benefit obligation:
Benefit obligation at the beginning of the year	$	2,365		$	1,964		$	203		$	188
Service cost		106			99			5			4
Interest cost		128			122			10			11
Plan participants’ contributions		3			3			3			4
Amendments		—			(33	)		—			—
Actuarial loss		174			284			9			9
Foreign currency exchange rate changes		(8	)		9			(1	)		2
Curtailments, settlements and special termination benefits		(1	)		—			—			(1	)
Benefits paid		(88	)		(83	)		(13	)		(14	)
Benefit obligation at the end of the year	$	2,679		$	2,365		$	216		$	203
Change in plan assets:
Fair value of plan assets at the beginning of the year	$	1,585		$	1,304		$	39		$	33
Actual return on plan assets		41			163			1			3
Employer contributions		176			186			12			13
Plan participants’ contributions		3			3			3			4
Foreign currency exchange rate changes		(5	)		12			—			—
Benefits paid		(88	)		(83	)		(13	)		(14	)
Fair value of plan assets at the end of the year	$	1,712		$	1,585		$	42		$	39
Funded status at the end of the year	$	(967	)	$	(780	)	$	(174	)	$	(164	)
Amounts recognized in the consolidated balance sheets consist of:
Non-current assets	$	7		$	9		$	—		$	—
Current liabilities		(3	)		(2	)		(8	)		(8	)
Non-current liabilities		(971	)		(787	)		(166	)		(156	)
	$	(967	)	$	(780	)	$	(174	)	$	(164	)

Net loss and prior service cost balances in accumulated other comprehensive loss account

	Pension Plans						Postretirement     Benefit Plans
	2011			2010			2011			2010
	(in millions)
Net loss	$	929		$	712		$	25		$	16
Prior service (credit) cost		(11	)		(12	)		(8	)		(11	)
Total amount recognized	$	918		$	700		$	17		$	5

Pension plans with an ABO in excess of fair value of plan assets

	Pension Plans
	2011		2010
	(in millions)
Projected benefit obligation	$	2,656	$	2,216
Accumulated benefit obligation		2,280		1,875
Fair value of plan assets		1,686		1,441

Weighted average assumptions used to determine benefit obligations

	Pension Plans						Postretirement Benefit Plans
	2011			2010			2011			2010
Benefit obligations:
Discount rate		5.02	%(1)		5.57	%(1)		4.71	%(2)		5.40	%(2)
Rate of compensation increase		4.06	%(3 )		4.50	%		4.09	%(3)		4.50	%

⁽¹⁾  The weighted average discount rate assumptions used at December 31, 2011 and 2010 were comprised of separate assumptions determined by country of 5.1% and 5.6% for the U.S. based plans, 4.4% and 5.4% for the Canadian based plans and 5.1% and 5.4% for the German based plans.

⁽²⁾  The weighted average discount rate assumption used at December 31, 2011 and 2010 were comprised of separate assumptions determined by country of 4.8% and 5.4% for the U.S. based plans and 4.3% and 5.4% for the Canadian based plans.

⁽³⁾  The weighted average rate of compensation increase assumptions used at December 31, 2011 were comprised of separate assumptions determined by country of 4.0% for the U.S. based plans and 4.5% for the Canadian based plans.

Components of net periodic benefit cost

	Pension Plans									Postretirement Benefit Plans
	2011			2010			2009			2011			2010			2009
	(in millions)
Components of net periodic benefit cost:
Service cost	$	106		$	99		$	93		$	5		$	4		$	4
Interest cost		128			122			112			10			11			11
Expected return on plan assets		(139	)		(112	)		(91	)		(2	)		(2	)		(2	)
Amortization of prior service costs (credits)		1			3			4			(3	)		(3	)		(2	)
Amortization of net loss (gain)		49			40			53			1			1			(3	)
Curtailment or settlement loss (gain)		—			2			2			—			(2	)		—
Net periodic benefit cost	$	145		$	154		$	173		$	11		$	9		$	8

Other changes in plan assets and benefit obligations recognized in other comprehensive income

	Pension Plans									Postretirement Benefit Plans
	2011			2010			2009			2011			2010			2009
	(in millions)
Other changes in plan assets and benefit obligations recognized in other comprehensive income:
Net loss	$	266		$	234		$	(50	)	$	10		$	8		$	18
Prior service (credit) cost		2			(33	)		7			—			2			(5	)
Amortization of net loss		(49	)		(40	)		(53	)		(1	)		(1	)		3
Amortization of prior service (cost) credit		(1	)		(3	)		(4	)		3			3			2
Total recognized in other comprehensive income		218			158			(100	)		12			12			18
Total recognized in net periodic benefit cost and other comprehensive income	$	363		$	312		$	73		$	23		$	21		$	26

Amounts expected to be amortized from accumulated other comprehensive (loss) income and recognized as components of net periodic benefit costs

	Pension Plans		Postretirement Benefit Plans			Total
	(in millions)
Net loss	$	69	$	2		$	71
Prior service cost (credit)		1		(2	)		(1	)
	$	70	$	—		$	70

Weighted average assumptions used to determine net periodic benefit cost

	Pension Plans									Postretirement Benefit Plans
	2011			2010			2009			2011			2010			2009
	(in millions)
Net periodic benefit cost:
Discount rate		5.57	%(1)		6.26	%(1)		6.49	%(1)		5.40	%(3)		5.94	%(3)		6.74	%(3)
Expected long-term return on plan assets		8.57	%(2)		8.55	%(2)		8.54	%(2)		6.20	%		6.20	%		6.18	%
Rate of compensation increase		4.50	%		4.50	%		4.50	%		4.50	%		4.50	%		4.50	%

⁽¹⁾  The weighted average discount rate assumptions used for the years ended December 31, 2011, 2010 and 2009 were comprised of separate assumptions determined by country of 5.6%, 6.3% and 6.4% for the U.S. based plans, 5.4%, 6.1% and 7.4% for the Canadian based plans and 5.4%, 5.8%, and 6.2% for the German based plans, respectively.

⁽²⁾  The weighted average expected long-term return on plan assets assumptions used for the years ended December 31, 2011, 2010 and 2009 were comprised of separate assumptions determined by country of 8.75% for the U.S. based plans and 7.5% for the Canadian based plans.

⁽³⁾  The weighted average discount rate assumptions used for the years ended December 31, 2011, 2010 and 2009 were comprised of separate assumptions determined by country of 5.4%, 5.9% and 6.6% for the U.S. based plans and 5.4%, 6.1% and 7.4% for the Canadian based plans, respectively.

Effect of one percentage point change in assumed health care cost trend rates

	1 percentage point
	Increase		Decrease
	(in millions)
Effect on total service and interest cost	$	1	$	(1	)
Effect on postretirement benefit obligations		10		(10	)

Allowable range for each major category of the plans' assets and weighted-average asset allocations by asset category

	U.S.							Canada
Asset Category	Range	2011			2010			Range	2011			2010
Domestic equity (1)	30%-60%		49	%		48	%	15%-30%		17	%		21	%
International equity (2)	10%-20%		11			12		20%-50%		42			38
Fixed income securities	20%-40%		31			29		25%-55%		37			36
Real estate securities	0%-15%		7			6		—		—			—
Other, primarily cash and cash equivalents	0%-15%		2			5		0%-15%		4			5
Total			100	%		100	%			100	%		100	%

⁽¹⁾  Domestic equities for Canadian plans refers to equities of Canadian companies.

⁽²⁾  International equities for Canadian plans includes equities of U.S. companies.

Fair value of the Company's pension plans' and postretirement benefit plans' assets

	U.S. Pension Plans’ Assets										Canadian Pension Plans’ Assets
	Fair Value Measured at December 31, 2011										Fair Value Measured at December 31, 2011
Asset Category	Level 1			Level 2			Level 3		Total		Level 1		Level 2			Level 3		Total
	(in millions)
Equity securities (1):
U.S. Equity		712			—			—		712		29		11			—		40
International Equity		65			100			—		165		90		19			—		109
Fixed Income —
Investment Grade		188	(2)		186	(3)		—		374		—		93	(3)		—		93
Fixed Income —
High Yield (4)		—			86			—		86		—		—			—		—
Real Estate Investment Trusts (5)		100			—			—		100		—		—			—		—
Other(6)		—			23			—		23		5		5			—		10
Total	$	1,065		$	395		$	—	$	1,460	$	124	$	128		$	—	$	252
	U.S. Plans’ Assets										Canadian Plans’ Assets
	Fair Value Measured at December 31, 2010										Fair Value Measured at December 31, 2010
Asset Category	Level 1			Level 2			Level 3		Total		Level 1		Level 2			Level 3		Total
	(in millions)
Equity securities (1):
U.S. Equity		642			—			—		642		32		11			—		43
International Equity		50			113			—		163		35		71			—		106
Fixed Income —
Investment Grade		154	(2)		153	(3)		—		307		—		92	(3)		—		92
Fixed Income —
High Yield (4)		—			82			—		82		—		—			—		—
Real Estate Investment Trusts (5)		78			—			—		78		—		—			—		—
Other(6)		—			61			—		61		4		7			—		11
Total	$	924		$	409		$	—	$	1,333	$	71	$	181		$	—	$	252

⁽¹⁾  Equity securities consist of investments in common stock of U.S. and foreign companies. The fair value of equity securities is based on quoted market prices available in active markets at the close of a trading day, primarily the New York Stock Exchange (NYSE), National Association of Securities Dealers Automated Quotations (NASDAQ), and various foreign exchanges. The Level 2 investment balance is derived from pooled equity funds offered by registered investment companies.

⁽²⁾  Approximately 50% in both 2011 and in 2010 of U.S. plan assets invested in fixed income — investment grade securities consist of a mutual fund offered by a registered investment company. The mutual fund invests in investment grade fixed income securities, mortgaged-backed securities, U.S. treasury and agency bonds and corporate bonds. This fund is classified by the Company as a Level 1 measurement within the fair value hierarchy as the mutual fund trades on an active market and daily, quoted prices are available.

⁽³⁾  The remaining 50% in both 2011 and 2010 of U.S. plan assets invested in fixed income — investment grade securities, as well as the Canadian plan assets invested in fixed income — investment grade securities is derived from pooled bond funds offered by registered investment companies. As these funds do not trade in an active market, the fair value is based on net asset values (NAVs) calculated by fund managers based on yields currently available on comparable bonds of issuers with similar credit ratings, quoted prices of similar bonds in an active market, or cash flows based on observable inputs.

⁽⁴⁾  Fixed income — high yield consists of investments in corporate high-yield bonds from various industries. The fair values of these investments are based on yields currently available on comparable bonds of issuers with similar credit ratings, quoted prices of similar bonds in an active market, or cash flows based on observable inputs.

⁽⁵⁾  Real Estate Investment Trusts (REITs) consist of securities that trade on the major exchanges and invest directly in real estate, either through properties or mortgages.

⁽⁶⁾  Other consists primarily of (i) short term investments maintained in a commingled trust or pooled fund, which primarily invests in short term, high quality money market securities such as government obligations, commercial paper, time deposits and certificates of deposit, which are classified as Level 2, and (ii) cash, which is classified as Level 1.

	Postretirement Benefit Plans’ Assets
	Fair Value Measured at December 31, 2011										Fair Value Measured at December 31, 2010
Asset Category	Level 1			Level 2			Level 3		Total		Level 1			Level 2			Level 3		Total
	(in millions)
Equity securities (1):
U.S. Equity		24			—			—		24		22			—			—		22
International Equity		1			1			—		2		1			1			—		2
Fixed Income —
Investment Grade		11	(2)		2	(3)		—		13		10	(2)		2	(3)		—		12
Fixed Income —
High Yield (4)		—			1			—		1		—			1			—		1
Real Estate Investment
Trusts (5)		1			—			—		1		1			—			—		1
Other(6)		—			1			—		1		—			1			—		1
Total	$	37		$	5		$	—	$	42	$	34		$	5		$	—	$	39

⁽¹⁾  Equity securities consist of investments in common stock of U.S. and foreign companies. The fair value of equity securities is based on quoted market prices available in active markets at the close of a trading day, primarily the NYSE, NASDAQ, and various foreign exchanges. The Level 2 investment balance is derived from a pooled equity fund offered by a registered investment company.

⁽²⁾  Approximately 85% in 2011 and 83% in 2010 of the postretirement benefit plan assets invested in fixed income — investment grade securities consist of a mutual fund offered by a registered investment company. The mutual fund invests in investment grade fixed income securities, mortgaged-backed securities, U.S. treasury and agency bonds and corporate bonds. This fund is classified by the Company as a Level 1 measurement within the fair value hierarchy as the mutual fund trades on an active market and daily, quoted prices are available.

⁽³⁾  The remaining 15% in 2011 and 17% in 2010 of the postretirement benefit plan assets invested in fixed income — investment grade securities is derived from a pooled bond fund offered by a registered investment company, which does not trade in an active market. The fair value is based on NAV’s calculated by the fund manager based on yields currently available on comparable bonds of issuers with similar credit ratings, quoted prices of similar bonds in an active market, or cash flows based on observable inputs.

⁽⁴⁾  Fixed income — high yield consists of investments in corporate high-yield bonds from various industries. The fair values of these investments are based on yields currently available on comparable bonds of issuers with similar credit ratings, quoted prices of similar bonds in an active market, or cash flows based on observable inputs.

⁽⁵⁾  Real Estate Investment Trusts (REITs) consist of securities that trade on the major exchanges and invest directly in real estate, either through properties or mortgages.

⁽⁶⁾  Other consists primarily of short term investments maintained in a commingled trust or pooled fund, which primarily invests in short term, high quality money market securities such as government obligations, commercial paper, time deposits and certificates of deposit.

Cash contributions and expenses under multi-employer benefit plans

Pension Fund	EIN/Pension Plan Number		Pension Protection Act Zone Status (1)				FIP/RP( 2) Status  Pending/ Implemented		Contributions by L-3 Communications								Surcharge Imposed		Expiration Date of Collective-Bargaining Agreement
			2011		2010				2011			2010			2009
IAM National Pension Fund		51-6031295/002		Green		Green		No	$	19	(3 )	$	17	(4 )	$	15		No		1/30/2012 to 12/1/2014	(5 )
Other Pension Funds( 6)										—			—			—
						Total contributions			$	19		$	17		$	15

^{(1 )} A zone status rating of green indicates the plan is at least 80% funded. The funding status of the IAM National Pension Fund was impacted by a market value investment loss for the plan year ended December 31, 2008, which amortization was extended over five years.

⁽²⁾ Funding improvement plan or rehabilitation plan.

^{(3 )} At the date the audited financial statements for the Company were issued, Form 5500 for the plan year ending December 31, 2011 was not available.

^{(4 )} Represents 5% of total plan contributions, based on Form 5500.

^{(5 )} The Company is a party to multiple bargaining agreements for multiple projects that require contributions into the IAM National Pension Fund. The most significant of these agreements expires April 27, 2014 covering multiple programs in the Company’s AM&M reportable segment and represents 80% of 2011 contributions.

^{(6 )} Consists of three pension funds in which the Company’s contributions are individually and in the aggregate insignificant.

Estimated Future Benefit Payments

			Postretirement Benefits
	Pension Benefits		Benefit Payments		Subsidy Receipts
	(in millions)
2012	$	102		12		1
2013		99		13		1
2014		110		13		1
2015		119		14		1
2016		128		14		1
Years 2017-2021		809		83		5