XML 95 R38.htm IDEA: XBRL DOCUMENT

Debt (Tables)

3 Months Ended

Mar. 30, 2012

Components of debt and reconciliation to carrying amount


	March 30, 2012			December 31, 2011
	(in millions)
L-3 Communications:
Borrowings under Amended and Restated Revolving Credit Facility⁽¹⁾	$	—		$	—
3.95% Senior Notes due 2016		500			500
5.20% Senior Notes due 2019		1,000			1,000
4.75% Senior Notes due 2020		800			800
4.95% Senior Notes due 2021		650			650
6³/ 8% Senior Subordinated Notes due 2015		500			500

Subtotal		3,450			3,450

L-3 Holdings:
3% Convertible Contingent Debt Securities due 2035⁽²⁾		689			689

Principal amount of long-term debt		4,139			4,139
Less: Unamortized discounts		(13	)		(14	)

Carrying amount of long-term debt	$	4,126		$	4,125

⁽¹⁾

The Company’s three-year revolving credit facility, which was amended and restated on February 3, 2012 and matures on February 3, 2017, provides for total aggregate borrowings of up to $1 billion. At March 30, 2012, available borrowings under the Amended and Restated Revolving Credit facility were $996 million after reductions for outstanding letters of credit of $4 million.

⁽²⁾

Under select conditions, including if L-3 Holdings common stock price is more than 120% (currently $115.78) of the then current conversion price (currently $96.48) for a specified period, the conversion feature of the CODES will require L-3 Holdings, upon conversion, to pay the holders of the CODES the principal amount in cash, and if the settlement amount exceeds the principal amount, the excess will be settled in cash or stock or a combination thereof, at the Company’s option. At the current conversion price of $96.48, the aggregate consideration to be delivered upon conversion would be determined based on 7.0 million shares of L-3 Holdings’ common stock. See Note 10 to the audited consolidated financial statements for the year ended December 31, 2011, included in the Company’s Annual Report on Form 10-K for additional information regarding the CODES, including conditions for conversion. L-3 Holdings’ closing stock price on May 7, 2012 was $71.41 per share. Through February 1, 2011, the effective interest rate on the CODES was 6.33% and interest expense related to both the contractual coupon interest and amortization of the discount on the liability components. The Company amortized the discount on the liability component of the CODES through February 1, 2011 which was the first date that the holders of the CODES had a contractual right to require L-3 Holdings to repurchase the CODES. Interest expense for the CODES after February 1, 2011 relates only to the contractual coupon interest. Interest expense recognized was $5 million and $7 million for the first quarter periods ended March 30, 2012 and April 1, 2011. The carrying amount of the equity component (conversion feature) of the CODES was $64 million at March 30, 2012 and December 31, 2011.