Acquisitions and Divestitures (Tables)

9 Months Ended

Sep. 25, 2015

Business Combinations [Abstract]

Unaudited Pro Forma Statements of Operations Data

The following unaudited pro forma Statements of Operations data present the combined results of the Company and its business acquisitions completed during the year-to-date period ended September 25, 2015 and the year ended December 31, 2014, in each case assuming that the business acquisitions completed during these periods had occurred on January 1, 2014.

	Third Quarter Ended					Year-to-Date Ended
	September 25, 2015			September 26, 2014		September 25, 2015			September 26, 2014
	(in millions, except per share data)
Pro forma net sales	$	2,817		$	2,973	$	8,357		$	9,021
Pro forma net (loss) income attributable to L-3	$	(299	)	$	156	$	(71	)	$	466
Pro forma diluted (loss) earnings per share	$	(3.74	)	$	1.80	$	(0.87	)	$	5.27

Components of Loss of Business Divestitures Included in Statements of Operations

The adjustments recorded by the Company related to the business divestitures are included in the loss related to business divestitures caption on the unaudited condensed consolidated statements of operations and are summarized and further discussed below.

	Third Quarter Ended			Year-to-Date Ended
	September 25, 2015			September 25, 2015
	(in millions)
Loss on Tinsley Product Line divestiture	$	(8	)	$	(8	)
Loss on BSI divestiture		(1	)		(4	)
Gain on MSI divestiture		—			4
Non-cash impairment charge related to MSI assets held for sale		—			(17	)
Loss on a forward contract to sell Euro proceeds from MSI divestiture		—			(4	)
Total loss related to the business divestitures	$	(9	)	$	(29	)

Schedule of Major Classes of Assets and Liabilities Included as Held for Sale

The major classes of assets and liabilities included as held for sale related to MSI are presented in the table below.

	December 31, 2014
	(in millions)
Assets
Cash and cash equivalents	$	61
Billed receivables, net of allowances of $6		77
Contracts in process		70
Inventories		70
Other current assets		10
Total current assets		288
Goodwill		231
Other assets		28
Total assets classified as held for sale	$	547
Liabilities
Accounts payable, trade	$	31
Accrued employment costs		22
Accrued expenses		33
Advance payments and billings in excess of costs incurred		55
Other current liabilities		21
Total current liabilities		162
Pension and postretirement benefits		56
Other liabilities		19
Total liabilities classified as held for sale	$	237

Schedule of Net Sales and Income Before Income Taxes for MSI, BSI and Tinsley Product Line

Net sales and income before income taxes for MSI, BSI and the Tinsley Product Line, included in L-3’s unaudited condensed consolidated statements of operations, are presented in the table below on an aggregate basis, and are included in income from continuing operations for all periods presented.

	Third Quarter Ended				Year-to-Date Ended
	September 25, 2015		September 26, 2014		September 25, 2015		September 26, 2014
	(in millions)
Net sales	$	1	$	126	$	201	$	420
Income before income taxes	$	1	$	3	$	2	$	13