Financial Information of L-3 Communications and Its Subsidiaries (Tables)

12 Months Ended

Dec. 31, 2011

Financial Information of L-3 Communications and Its Subsidiaries [Abstract]

Condensed Combining Statements of Equity

	L-3 Communications Common Stock				Additional Paid-in Capital							Accumulated Other Comprehensive (Loss) Income
	Shares Issued		Par Value				Treasury Stock		Retained Earnings						Total
			(in millions)
Balance at December 31, 2008	$	100	$	—	$	4,136	$	—	$	2,054		$	(332	)	$	5,858
Net income attributable to L-3		—		—		—		—		901			—			901
Contributions from L-3 Holdings		—		—		313		—		—			—			313
Dividends to L-3 Holdings		—		—		—		—		(670	)		—			(670	)
Comprehensive income		—		—		—		—		—			166			166
Other		—		—		—		—		(1	)		—			(1	)
Balance at December 31, 2009		100		—		4,449		—		2,284			(166	)		6,567
Net income attributable to L-3		—		—		—		—		955			—			955
Contributions from L-3 Holdings		—		—		352		—		—			—			352
Dividends to L-3 Holdings		—		—		—		—		(1,018	)		—			(1,018	)
Comprehensive loss		—		—		—		—		—			(90	)		(90	)
Other		—		—		—		—		(2	)		—			(2	)
Balance at December 31, 2010		100		—		4,801		—		2,219			(256	)		6,764
Net income attributable to L-3		—		—		—		—		956			—			956
Contributions from L-3 Holdings		—		—		263		—		—			—			263
Dividends to L-3 Holdings		—		—		—		—		(1,157	)		—			(1,157	)
Comprehensive loss		—		—		—		—		—			(198	)		(198	)
Other		—		—		—		—		7			—			7
Balance at December 31, 2011	$	100	$	—	$	5,064	$	—	$	2,025		$	(454	)	$	6,635

Condensed Combining Balance Sheets

	L-3 Holdings (Parent)		L-3 Communications		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations			Consolidated L-3
	(in millions)
Condensed Combining Balance Sheets:
At December 31, 2011:
Current assets:
Cash and cash equivalents	$	—	$	644	$	2	$	229	$	(111	)	$	764
Billed receivables, net		—		377		639		224		—			1,240
Contracts in process		—		866		1,463		300		—			2,629
Other current assets		—		281		135		195		—			611
Total current assets		—		2,168		2,239		948		(111	)		5,244
Goodwill		—		1,850		5,575		1,272		—			8,697
Other assets		—		678		685		193		—			1,556
Investment in and amounts due from consolidated subsidiaries		7,324		8,552		3,037		—		(18,913	)		—
Total assets	$	7,324	$	13,248	$	11,536	$	2,413	$	(19,024	)	$	15,497
Current liabilities	$	—	$	865	$	1,352	$	584	$	(111	)	$	2,690
Amounts due to consolidated subsidiaries		—		—		—		294		(294	)		—
Other long-term liabilities		—		1,623		234		101		—			1,958
Long-term debt		689		4,125		—		—		(689	)		4,125
Total liabilities		689		6,613		1,586		979		(1,094	)		8,773
L-3 shareholders’ equity		6,635		6,635		9,950		1,434		(18,019	)		6,635
Noncontrolling interests		—		—		—		—		89			89
Total equity		6,635		6,635		9,950		1,434		(17,930	)		6,724
Total liabilities and equity	$	7,324	$	13,248	$	11,536	$	2,413	$	(19,024	)	$	15,497
At December 31, 2010:
Current assets:
Cash and cash equivalents	$	—	$	257	$	3	$	482	$	(135	)	$	607
Billed receivables, net		—		387		680		232		—			1,299
Contracts in process		—		801		1,525		222		—			2,548
Other current assets		—		295		161		168		—			624
Total current assets		—		1,740		2,369		1,104		(135	)		5,078
Goodwill		—		1,796		5,653		1,281		—			8,730
Other assets		—		693		763		187		—			1,643
Investment in and amounts due from consolidated subsidiaries		7,462		8,973		2,356		—		(18,791	)		—
Total assets	$	7,462	$	13,202	$	11,141	$	2,572	$	(18,926	)	$	15,451
Current portion of long-term debt	$	11	$	11	$	—	$	—	$	(11	)	$	11
Other current liabilities		—		898		1,388		571		(135	)		2,722
Amounts due to consolidated subsidiaries		—		—		—		439		(439	)		—
Other long-term liabilities		—		1,403		235		99		—			1,737
Long-term debt		687		4,126		—		—		(687	)		4,126
Total liabilities		698		6,438		1,623		1,109		(1,272	)		8,596
L-3 shareholders’ equity		6,764		6,764		9,518		1,463		(17,745	)		6,764
Noncontrolling interests		—		—		—		—		91			91
Total equity		6,764		6,764		9,518		1,463		(17,654	)		6,855
Total liabilities and equity	$	7,462	$	13,202	$	11,141	$	2,572	$	(18,926	)	$	15,451

Condensed Combining Statements of Operations

	L-3 Holdings (Parent)			L-3 Communications		Guarantor Subsidiaries			Non- Guarantor Subsidiaries		Eliminations			Consolidated L-3
	(in millions)
Condensed Combining Statements of Operations:
For the year ended December 31, 2011:
Net sales	$	—		$	3,812	$	9,179		$	2,538	$	(360	)	$	15,169
Cost of sales		64			3,383		8,315			2,190		(424	)		13,528
Impairment charge		—			43		—			—		—			43
Operating (loss) income		(64	)		386		864			348		64			1,598
Interest and other income (expense), net		—			123		(15	)		4		(112	)		—
Interest expense		23			233		109			5		(135	)		235
Debt retirement charge		—			35		—			—		—			35
(Loss) income before income taxes		(87	)		241		740			347		87			1,328
(Benefit) provision for income taxes		(24	)		66		200			94		24			360
Equity in net income of consolidated subsidiaries		1,019			781		—			—		(1,800	)		—
Net income		956			956		540			253		(1,737	)		968
Net income attributable to noncontrolling interests		—			—		—			—		12			12
Net income attributable to L-3	$	956		$	956	$	540		$	253	$	(1,749	)	$	956
For the year ended December 31, 2010:
Net sales	$	—		$	3,831	$	10,013		$	2,130	$	(294	)	$	15,680
Cost of sales		82			3,309		9,077			1,837		(375	)		13,930
Operating (loss) income		(82	)		522		936			293		81			1,750
Interest and other income, net		—			132		—			3		(114	)		21
Interest expense		46			268		110			6		(161	)		269
Debt retirement charge		—			18		—			—		—			18
(Loss) income before income taxes		(128	)		368		826			290		128			1,484
(Benefit) provision for income taxes		(45	)		129		288			101		45			518
Equity in net income of consolidated subsidiaries		1,038			716		—			—		(1,754	)		—
Net income		955			955		538			189		(1,671	)		966
Net income attributable to noncontrolling interests		—			—		—			—		11			11
Net income attributable to L-3	$	955		$	955	$	538		$	189	$	(1,682	)	$	955
For the year ended December 31, 2009:
Net sales	$	—		$	3,419	$	10,397		$	1,929	$	(130	)	$	15,615
Cost of sales		74			2,987		9,413			1,689		(204	)		13,959
Operating (loss) income		(74	)		432		984			240		74			1,656
Interest and other income, net		—			128		3			2		(114	)		19
Interest expense		45			277		110			6		(159	)		279
Debt retirement charge		—			10		—			—		—			10
(Loss) income before income taxes		(119	)		273		877			236		119			1,386
(Benefit) provision for income taxes		(37	)		119		275			81		37			475
Equity in net income of consolidated subsidiaries		983			747		—			—		(1,730	)		—
Net income		901			901		602			155		(1,648	)		911
Net income attributable to noncontrolling interests		—			—		—			—		10			10
Net income attributable to L-3	$	901		$	901	$	602		$	155	$	(1,658	)	$	901

Condensed Combining Statements of Cash Flows

	L-3 Holdings (Parent)			L-3 Communications			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated L-3
	(in millions)
Condensed Combining Statements of Cash Flows:
For the year ended December 31, 2011
Operating activities:
Net cash from operating activities	$	1,157		$	501		$	988		$	252		$	(1,414	)	$	1,484
Investing activities:
Business acquisitions, net of cash acquired		—			(20	)		—			—			—			(20	)
Investments in L-3 Communications		(55	)		—			—			—			55			—
Other investing activities		—			(84	)		(77	)		(22	)		—			(183	)
Net cash used in investing activities		(55	)		(104	)		(77	)		(22	)		55			(203	)
Financing activities:
Proceeds from sale of senior notes		—			1,143			—			—			—			1,143
Redemption of senior subordinated notes and CODES		(11	)		(1,150	)		—			—			—			(1,161	)
Common stock repurchased		(958	)		—			—			—			—			(958	)
Dividends paid on L-3 Holdings common stock		(188	)		—			—			—			—			(188	)
Dividends paid to L-3 Holdings		—			(1,157	)		—			—			1,157			—
Investments from L-3 Holdings		—			55			—			—			(55	)		—
Other financing activities		55			1,099			(912	)		(479	)		281			44
Net cash used in from financing activities		(1,102	)		(10	)		(912	)		(479	)		1,383			(1,120	)
Effect of foreign currency exchange rate changes on cash		—			—			—			(4	)		—			(4	)
Net (decrease) increase in cash		—			387			(1	)		(253	)		24			157
Cash and cash equivalents, beginning of the year		—			257			3			482			(135	)		607
Cash and cash equivalents, end of the year	$	—		$	644		$	2		$	229		$	(111	)	$	764
For the year ended December 31, 2010:
Operating activities:
Net cash from operating activities	$	1,018		$	288		$	953		$	243		$	(1,041	)	$	1,461
Investing activities:
Business acquisitions, net of cash acquired		—			(756	)		—			—			—			(756	)
Investments in L-3 Communications		(116	)		—			—			—			116			—
Other investing activities		—			(79	)		(102	)		(8	)		—			(189	)
Net cash used in investing activities		(116	)		(835	)		(102	)		(8	)		116			(945	)
Financing activities:
Proceeds from sale of senior notes		—			797			—			—			—			797
Redemption of senior subordinated notes		—			(800	)		—			—			—			(800	)
Common stock repurchased		(834	)		—			—			—			—			(834	)
Dividends paid on L-3 Holdings common stock		(184	)		—			—			—			—			(184	)
Dividends paid to L-3 Holdings		—			(1,018	)		—			—			1,018			—
Investments from L-3 Holdings		—			116			—			—			(116	)		—
Other financing activities		116			912			(852	)		(110	)		37			103
Net cash (used in) from financing activities		(902	)		7			(852	)		(110	)		939			(918	)
Effect of foreign currency exchange rate changes on cash		—			—			—			(7	)		—			(7	)
Net (decrease) increase in cash		—			(540	)		(1	)		118			14			(409	)
Cash and cash equivalents, beginning of the year		—			797			4			364			(149	)		1,016
Cash and cash equivalents, end of the year	$	—		$	257		$	3		$	482		$	(135	)	$	607
For the year ended December 31, 2009:
Operating activities:
Net cash from operating activities	$	670		$	132		$	1,093		$	248		$	(736	)	$	1,407
Investing activities:
Business acquisitions, net of cash acquired		—			(90	)		—			—			—			(90	)
Investments in L-3 Communications		(87	)		—			—			—			87			—
Other investing activities		—			(64	)		(103	)		(15	)		—			(182	)
Net cash used in investing activities		(87	)		(154	)		(103	)		(15	)		87			(272	)
Financing activities:
Proceeds from sale of senior notes		—			996			—			—			—			996
Repayment of borrowings under term loan facility		—			(650	)		—			—			—			(650	)
Redemption of senior subordinated notes		—			(750	)		—			—			—			(750	)
Common stock repurchased		(505	)		—			—			—			—			(505	)
Dividends paid on L-3 Holdings common stock		(165	)		—			—			—			—			(165	)
Dividends paid to L-3 Holdings		—			(670	)		—			—			670			—
Investments from L-3 Holdings		—			87			—			—			(87	)		—
Other financing activities		87			1,086			(988	)		(116	)		—			69
Net cash (used in) from financing activities		(583	)		99			(988	)		(116	)		583			(1,005	)
Effect of foreign currency exchange rate changes on cash		—			—			—			19			—			19
Net increase (decrease) in cash		—			77			2			136			(66	)		149
Cash and cash equivalents, beginning of the year		—			720			2			228			(83	)		867
Cash and cash equivalents, end of the year	$	—		$	797		$	4		$	364		$	(149	)	$	1,016