Employee Severance and Termination Costs

9 Months Ended

Sep. 27, 2013

Restructuring And Related Activities [Abstract]

Employee Severance and Termination Costs

23. Employee Severance and Termination Costs

Consistent with the Company’s strategy to continuously improve its cost structure and right-size its businesses, especially in view of sequestration and other DoD budget reductions, L-3 is completing employment reduction actions across several of its businesses to reduce both direct and indirect costs, including overhead and general and administrative costs. As a result of these initiatives and due to the impact of sequestration at certain affected business units, the Company recorded $19 million in employee severance and other termination costs with respect to approximately 1,400 employees during the year-to-date period ended September 27, 2013. During the year ended December 31, 2012, the Company recorded a total of $23 million in employee severance and other termination costs with respect to approximately 1,600 employees. Employee severance and other termination costs are reported within cost of sales on the unaudited condensed consolidated statement of operations. The remaining balance to be paid in connection with these initiatives was $8 million at September 27, 2013 and $9 million at December 31, 2012. Employee severance and other termination costs incurred by reportable segment for the year-to-date periods ended September 27, 2013 and September 28, 2012 are presented in the table below.


	Year-to-Date Ended
	September 27, 2013		September 28, 2012
	(in millions)
Reportable Segment
C³ISR	$	5	$	4
Electronic Systems		13		14
P&LS		—		1
NSS		1		—

Consolidated	$	19	$	19

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

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