Debt (Tables)

12 Months Ended

Dec. 31, 2014

Debt Disclosure [Abstract]

Components of Long-Term Debt and Reconciliation to Carrying Amount of Long-Term Debt

The components of long-term debt and a reconciliation to the carrying amount of long-term debt are presented in the table below.

	December 31,
	2014		2013
	(in millions)
L-3 Communications:
Borrowings under Amended and Restated Revolving Credit Facility(1)	$	—	$	—
3.95% Senior Notes due 2016		500		500
1.50% Senior Notes due 2017		350		—
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
3.95% Senior Notes due 2024		650		—
Subtotal		3,950		2,950
L-3 Holdings:
3% Convertible Contingent Debt Securities due 2035		—		689
Principal amount of long-term debt		3,950		3,639
Unamortized discounts		(11)		(9)
Carrying amount of long-term debt	$	3,939	$	3,630

⁽¹⁾  During 2014, L-3 Communications’ aggregate borrowings and repayments under the Credit Facility were $1,367 million. L-3 Communications had the full availability of its $1 billion Credit Facility at December 31, 2014 and had the availability of substantially all of its $1 billion Credit Facility at December 31, 2013.

Information Regarding Outstanding Senior Subordinated Notes

The terms of each outstanding Senior Note are presented in the table below.

Note	Date of Issuance		Amount     Issued		Discount(1)		Net Cash     Proceeds			Effective Interest       Rate			Redemption at Treasury     Rate(2)(3)
			(in millions)
3.95% Senior Notes due   November 15, 2016		November 22, 2011	$	500	$	4	$	491			4.11	%		50 bps
1.50% Senior Notes due   May 28, 2017		May 28, 2014	$	350	$	1	$	347	(4)		1.55	%		10 bps
5.20% Senior Notes due   October 15, 2019		October 2, 2009	$	1,000	$	4	$	987			5.25	%		30 bps
4.75% Senior Notes due   July 15, 2020		May 21, 2010	$	800	$	3	$	790			4.79	%		25 bps
4.95% Senior Notes due   February 15, 2021		February 7, 2011	$	650	$	4	$	639			5.02	%		25 bps
3.95% Senior Notes due   May 28, 2024		May 28, 2014	$	650	$	3	$	641	(4)		4.02	%		20 bps

⁽¹⁾  Bond discounts are recorded as a reduction to the principal amount of the notes and are amortized as interest expense over the term of the notes.

⁽²⁾  The Senior Notes maturing in 2016, 2017, 2019, 2020 and 2021 may be redeemed at any time prior to their maturity and the Senior Notes maturing in 2024 may be redeemed at any time prior to February 28, 2024 (three months prior to their maturity) at the option of L-3 Communications, in whole or in part, at a redemption price equal to the greater of (1) 100% of the principal amount, or (2) the present value of the remaining principal and interest payments discounted to the date of redemption, on a semi-annual basis, at the Treasury Rate (as defined in the indentures governing the Senior Notes), plus the spread indicated in the table above. In addition, if the Senior Notes maturing in 2024 are redeemed at any time on or after February 28, 2024, the redemption price would be equal to 100% of the principal amount.

⁽³⁾  Upon the occurrence of a change in control (as defined in the indentures governing the Senior Notes), each holder of the notes will have the right to require L-3 Communications to repurchase all or any part of such holder’s notes at an offer price in cash equal to 101% of the aggregate principal amount plus accrued and unpaid interest, if any, to the date of purchase.

⁽⁴⁾  The net cash proceeds of $988 million (after deduction of the bond discount, underwriting expenses and commissions and other related expenses) were used primarily to fund the CODES retirement as discussed below. The remaining net proceeds were used for general corporate purposes.

Redemptions of Senior Subordinated Notes

Information on the Senior Subordinated Notes redeemed by the Company during the year ended December 31, 2012 is presented in the table below. There were no redemptions of L-3 Communications Senior Subordinated Notes during the years ended December 31, 2014 and 2013.

Note	Redemption Date		Principal Amount   Redeemed		Debt Retirement     Charge		Redemption Price    % of Principal
			(in millions)
6 3⁄8% Senior Subordinated Notes due October 15, 2015		October 15, 2012	$	250	$	5		101.063%
6 3⁄8% Senior Subordinated Notes due October 15, 2015(1)		July 26, 2012	$	250	$	8		102.125%

⁽¹⁾  In connection with the spin-off, Engility made a cash distribution of $335 million to L-3, a portion of which was used to redeem $250 million of the 6  ³⁄₈% 2015 Notes.