Dispositions and Acquisitions (Tables)

9 Months Ended

Sep. 28, 2012

Earnings Classified within Discontinued Operations

Statement of operations data classified as discontinued operations related to Engility is provided in the table below:

	Third Quarter Ended					Year-to-Date Ended
	September 28, 2012			September 30, 2011		September 28, 2012		September 30, 2011
	(in millions)
Product and service revenues	$	68		$	486	$	911	$	1,539
Operating income from discontinued operations before income taxes		2			47		68		155
Interest expense allocated to discontinued operations		1			7		14		24
Income from discontinued operations before income taxes	$	1		$	40	$	54	$	131
Income tax expense		2			16		22		50
Income (loss) from discontinued operations, net of income tax	$	(1	)	$	24	$	32	$	81
Net income from discontinued operations attributable to noncontrolling interests		—			1		4		3
Net income (loss) from discontinued operations attributable to L-3	$	(1	)	$	23	$	28	$	78

Major Classes of Assets and Liabilities Included in Discontinued Operations

The major classes of assets and liabilities included in discontinued operations for Engility are presented in the table below:

	December 31, 2011
	(in millions)
Assets
Current assets	$	386
Property, plant and equipment, net		13
Goodwill		1,225
Other assets		105
Total assets of discontinued operations	$	1,729
Liabilities
Accounts payable, trade	$	37
Other current liabilities		187
Current liabilities		224
Long-term liabilities		127
Total liabilities of discontinued operations	$	351

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-to-date period ended September 28, 2012 and the year ended December 31, 2011, in each case assuming that the business acquisitions completed during the year-to-date period ended September 28, 2012 and the year ended December 31, 2011 had occurred on January 1, 2011.

	Third Quarter Ended				Year-to-Date Ended
	September 28, 2012		September 30, 2011		September 28, 2012		September 30, 2011
Pro forma net sales	$	3,295	$	3,377	$	9,688	$	9,824
Pro forma income from continuing operations		195		218		574		620
Pro forma net income attributable to L-3		192		239		599		692
Pro forma diluted earnings per share from continuing operations		1.98		2.06		5.79		5.71
Pro forma diluted earnings per share		1.97		2.28		6.07		6.44