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

6 Months Ended

Jun. 28, 2013

Text Block [Abstract]

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 June 28, 2013:
Current assets:
Cash and cash equivalents	$	—		$	120		$	—		$	236		$	(28	)	$	328
Billed receivables, net		—			358			464			216			—			1,038
Contracts in process		—			994			1,288			382			—			2,664
Other current assets		—			278			137			184			—			599
Total current assets		—			1,750			1,889			1,018			(28	)		4,629
Goodwill		—			2,290			4,285			1,127			—			7,702
Other assets		—			805			517			209			—			1,531
Investment in and amounts due from consolidated subsidiaries		6,289			7,059			3,383			—			(16,731	)		—
Total assets	$	6,289		$	11,904		$	10,074		$	2,354		$	(16,759	)	$	13,862
Current liabilities	$	—		$	892		$	974		$	629		$	(28	)	$	2,467
Amounts due to consolidated subsidiaries		—			—			—			290			(290	)		—
Other long-term liabilities		—			1,782			203			106			—			2,091
Long-term debt		689			3,630			—			—			(689	)		3,630
Total liabilities		689			6,304			1,177			1,025			(1,007	)		8,188
L-3 shareholders’ equity		5,600			5,600			8,897			1,329			(15,826	)		5,600
Noncontrolling interests		—			—			—			—			74			74
Total equity		5,600			5,600			8,897			1,329			(15,752	)		5,674
Total liabilities and equity	$	6,289		$	11,904		$	10,074		$	2,354		$	(16,759	)	$	13,862
At December 31, 2012:
Current assets:
Cash and cash equivalents	$	—		$	246		$	—		$	242		$	(139	)	$	349
Billed receivables, net		—			290			441			237			—			968
Contracts in process		—			945			1,351			356			—			2,652
Other current assets		—			248			163			191			—			602
Total current assets		—			1,729			1,955			1,026			(139	)		4,571
Goodwill		—			1,993			4,586			1,165			—			7,744
Other assets		—			734			565			212			—			1,511
Investment in and amounts due from consolidated subsidiaries		6,152			7,204			3,326			43			(16,725	)		—
Total assets	$	6,152		$	11,660		$	10,432		$	2,446		$	(16,864	)	$	13,826
Current liabilities	$	—		$	823		$	1,255		$	658		$	(139	)	$	2,597
Other long-term liabilities		—			1,745			210			106			—			2,061
Long-term debt		689			3,629			—			—			(689	)		3,629
Total liabilities		689			6,197			1,465			764			(828	)		8,287
L-3 shareholders’ equity		5,463			5,463			8,967			1,682			(16,112	)		5,463
Noncontrolling interests		—			—			—			—			76			76
Total equity		5,463			5,463			8,967			1,682			(16,036	)		5,539
Total liabilities and equity	$	6,152		$	11,660		$	10,432		$	2,446		$	(16,864	)	$	13,826

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 quarter ended June 28, 2013:
Total net sales	$	—		$	993		$	1,721		$	574		$	(96	)	$	3,192
Total cost of sales		14			912			1,555			514			(110	)		2,885
Operating (loss) income		(14	)		81			166			60			14			307
Interest expense		(5	)		(44	)		—			—			5			(44	)
Interest and other income, net		—			2			—			3			—			5
(Loss) income before income taxes		(19	)		39			166			63			19			268
(Benefit) provision for income taxes		(6	)		15			48			19			6			82
Equity in net income of consolidated subsidiaries		198			161			—			—			(359	)		—
Net income		185			185			118			44			(346	)		186
Less: Net income attributable to noncontrolling interests		—			—			—			—			1			1
Net income attributable to L-3	$	185		$	185		$	118		$	44		$	(347	)	$	185
Comprehensive income attributable to L-3	$	180		$	180		$	117		$	27		$	(324	)	$	180
For the quarter ended June 29, 2012:
Total net sales	$	—		$	921		$	1,777		$	535		$	(90	)	$	3,143
Total cost of sales		16			837			1,593			472			(106	)		2,812
Operating (loss) income		(16	)		84			184			63			16			331
Interest expense		(5	)		(45	)		—			—			5			(45	)
Interest and other income, net		—			2			—			1			—			3
(Loss) income from continuing operations before income taxes		(21	)		41			184			64			21			289
(Benefit) provision for income taxes		(7	)		13			63			22			7			98
Equity in net income of consolidated subsidiaries from continuing operations		219			160			—			—			(379	)		—
Income from continuing operations		205			188			121			42			(365	)		191
Income from discontinued operations, net of income taxes		—			17			—			—			—			17
Net income		205			205			121			42			(365	)		208
Less: Net income attributable to noncontrolling interests		—			—			—			—			3			3
Net income attributable to L-3	$	205		$	205		$	121		$	42		$	(368	)	$	205
Comprehensive income attributable to L-3	$	168		$	168		$	121		$	(7	)	$	(282	)	$	168

	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 first half ended June 28, 2013:
Total net sales	$	—		$	1,928		$	3,453	$	1,165	$	(169	)	$	6,377
Total cost of sales		28			1,775			3,107		1,044		(197	)		5,757
Operating (loss) income		(28	)		153			346		121		28			620
Interest expense		(10	)		(87	)		—		—		10			(87	)
Interest and other income, net		—			4			—		4		—			8
(Loss) income before income taxes		(38	)		70			346		125		38			541
(Benefit) provision for income taxes		(11	)		21			103		37		11			161
Equity in net income of consolidated subsidiaries		405			329			—		—		(734	)		—
Net income		378			378			243		88		(707	)		380
Less: Net income attributable to noncontrolling interests		—			—			—		—		2			2
Net income attributable to L-3	$	378		$	378		$	243	$	88	$	(709	)	$	378
Comprehensive income attributable to L-3	$	349		$	349		$	243	$	33	$	(625	)	$	349
For the first half ended June 29, 2012:
Total net sales	$	—		$	1,825		$	3,547	$	1,101	$	(170	)	$	6,303
Total cost of sales		29			1,667			3,194		956		(199	)		5,647
Operating (loss) income		(29	)		158			353		145		29			656
Interest expense		(10	)		(90	)		—		—		10			(90	)
Interest and other income, net		—			5			—		1		—			6
(Loss) income from continuing operations before income taxes		(39	)		73			353		146		39			572
(Benefit) provision for income taxes		(13	)		24			120		50		13			194
Equity in net income of consolidated subsidiaries from continuing operations		432			324			—		—		(756	)		—
Income from continuing operations		406			373			233		96		(730	)		378
Income from discontinued operations, net of income tax		—			33			—		—		—			33
Net income		406			406			233		96		(730	)		411
Less: Net income attributable to noncontrolling interests		—			—			—		—		5			5
Net income attributable to L-3	$	406		$	406		$	233	$	96	$	(735	)	$	406
Comprehensive income attributable to L-3	$	412		$	412		$	236	$	77	$	(725	)	$	412

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 first half ended June 28, 2013:
Operating activities:
Net cash from operating activities	$	349		$	146		$	254		$	64		$	(417	)	$	396
Investing activities:
Business acquisitions, net of cash acquired		—			(1	)		—			—			—			(1	)
Investments in L-3 Communications		(37	)		—			—			—			37			—
Other investing activities		—			(53	)		(39	)		(11	)		—			(103	)
Net cash used in investing activities		(37	)		(54	)		(39	)		(11	)		37			(104	)
Financing activities:
Common stock repurchased		(248	)		—			—			—			—			(248	)
Dividends paid on L-3 Holdings’ common stock		(101	)		—			—			—			—			(101	)
Dividends paid to L-3 Holdings		—			(349	)		—			—			349			—
Investments from L-3 Holdings		—			37			—			—			(37	)		—
Other financing activities		37			94			(215	)		(50	)		179			45
Net cash used in financing activities		(312	)		(218	)		(215	)		(50	)		491			(304	)
Effect of foreign currency exchange rate changes on cash		—			—			—			(9	)		—			(9	)
Net (decrease) increase in cash		—			(126	)		—			(6	)		111			(21	)
Cash and cash equivalents, beginning of the period		—			246			—			242			(139	)		349
Cash and cash equivalents, end of the period	$	—		$	120		$	—		$	236		$	(28	)	$	328
For the first half ended June 29, 2012:
Operating activities:
Net cash from operating activities from continuing operations	$	413		$	80		$	236		$	91		$	(483	)	$	337
Investing activities:
Business acquisitions, net of cash acquired		—			(216	)		—			—			—			(216	)
Investments in L-3 Communications		(25	)		—			—			—			25			—
Other investing activities		—			(45	)		(29	)		(5	)		—			(79	)
Net cash used in investing activities from continuing operations		(25	)		(261	)		(29	)		(5	)		25			(295	)
Financing activities:
Common stock repurchased		(315	)		—			—			—			—			(315	)
Dividends paid on L-3 Holdings’ common stock		(98	)		—			—			—			—			(98	)
Dividends paid to L-3 Holdings		—			(413	)		—			—			413			—
Investments from L-3 Holdings		—			25			—			—			(25	)		—
Other financing activities		25			109			(201	)		(72	)		160			21
Net cash used in financing activities from continuing operations		(388	)		(279	)		(201	)		(72	)		548			(392	)
Effect of foreign currency exchange rate changes on cash		—			—			—			(3	)		—			(3	)
Net increase in cash and cash equivalents of discontinued operations		—			70			—			—			—			70
Net (decrease) increase in cash		—			(390	)		6			11			90			(283	)
Cash and cash equivalents, beginning of the period		—			644			—			222			(102	)		764
Cash and cash equivalents, end of the period	$	—		$	254		$	6		$	233		$	(12	)	$	481