Employee Severance and Termination Costs

6 Months Ended

Jun. 27, 2014

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 $20 million in employee severance and other termination costs with respect to approximately 1,300 employees during the first half period ended June 27, 2014. During the year ended December 31, 2013, the Company recorded a total of $29 million in employee severance and other termination costs with respect to approximately 2,000 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 $16 million at June 27, 2014 and $11 million at December 31, 2013. Employee severance and other termination costs incurred by reportable segment for the first half periods ended June 27, 2014 and June 28, 2013 are presented in the table below.

	First Half Ended
	June 27, 2014		June 28, 2013
	(in millions)
Reportable Segment
Aerospace Systems	$	2	$	—
Electronic Systems		14		9
Communication Systems		3		4
NSS		1		1
Consolidated	$	20	$	14