Employee Severance and Termination Costs

3 Months Ended

Mar. 27, 2015

Restructuring and Related Activities [Abstract]

Employee Severance and Termination Costs

22.  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 $2 million in employee severance and other termination costs with respect to approximately 320 employees during the quarterly period ended March 27, 2015. During the year ended December 31, 2014, the Company recorded a total of $30 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 statements of operations. The remaining balance to be paid in connection with these initiatives was $8 million at March 27, 2015 and $11 million at December 31, 2014, which is expected to be paid primarily by the end of 2015. Employee severance and other termination costs incurred by reportable segment are presented in the table below.

	First Quarter Ended
	March 27, 2015		March 28, 2014
	(in millions)
Reportable Segment
Electronic Systems	$	—	$	4
Aerospace Systems		1		—
Communication Systems		1		3
NSS		—		1
Consolidated	$	2	$	8