Pensions and Other Employee Benefits (Tables)

12 Months Ended

Dec. 31, 2015

Compensation and Retirement Disclosure [Abstract]

Changes in Benefit Obligations, Plan Assets and Funded Status and Aggregate Balance Sheet Impact

The following table summarizes changes in the benefit obligations, the plan assets and funded status for all of the Company’s pension and postretirement benefit plans, as well as the aggregate balance sheet impact.

	Pension Plans						Postretirement         Benefit Plans
	2015			2014			2015			2014
	(in millions)
Change in benefit obligation:
Benefit obligation at the beginning of the year	$	3,663		$	2,973		$	199		$	194
Service cost		123			106			3			3
Interest cost		149			147			7			8
Plan participants’ contributions		2			2			4			4
Amendments		—			1			—			(1	)
Actuarial (gain) loss		(261	)		579			(12	)		5
Foreign currency exchange rate changes		(53	)		(34	)		(4	)		(2	)
Curtailments, settlements and special termination benefits		3			1			—			—
Business divestiture		(59	)		—			—			—
Benefits paid		(119	)		(112	)		(13	)		(12	)
Benefit obligation at the end of the year	$	3,448		$	3,663		$	184		$	199
Change in plan assets:
Fair value of plan assets at the beginning of the year	$	2,570		$	2,403		$	60		$	55
Actual return on plan assets		54			205			—			6
Employer contributions		97			97			6			7
Plan participants’ contributions		2			2			4			4
Foreign currency exchange rate changes		(52	)		(25	)		—			—
Benefits paid		(119	)		(112	)		(13	)		(12	)
Fair value of plan assets at the end of the year	$	2,552		$	2,570		$	57		$	60
Unfunded status at the end of the year	$	(896	)	$	(1,093	)	$	(127	)	$	(139	)
Assets and (liabilities) recognized in the consolidated balance sheets consist of:
Non-current assets	$	37		$	26		$	—		$	—
Current liabilities		(5	)		(4	)		(8	)		(8	)
Non-current liabilities		(928	)		(1,056	)		(119	)		(131	)
Liabilities held for sale(1)		—			(59	)		—			—
	$	(896	)	$	(1,093	)	$	(127	)	$	(139	)

⁽¹⁾  Liabilities held for sale consists of $3 million of current liabilities and $56 million of non-current liabilities relating to L-3 MSI.

Net Loss and Prior Service Cost Balances in Accumulated Other Comprehensive Loss Account

The table below summarizes the net loss and prior service cost balances at December 31, in the accumulated other comprehensive loss account, before related tax effects, for all of the Company’s pension and postretirement benefit plans.

	Pension Plans				Postretirement Benefit Plans
	2015		2014		2015		2014
	(in millions)
Net loss (gain)	$	768	$	968	$	(10)	$	(6)
Prior service credit		—		—		(3)		(3)
Total amount recognized	$	768	$	968	$	(13)	$	(9)

Pension Plans with an Accumulated Benefit Obligation in Excess of Fair Value of Plan Assets

The aggregate accumulated benefit obligation (ABO) for all of the Company’s pension plans was $3,120 million at December 31, 2015 and $3,272 million at December 31, 2014. The table below presents information for the pension plans with an ABO in excess of the fair value of plan assets at December 31. 2015 and 2014.

	Pension Plans
	2015	2014
	(in millions)
Projected benefit obligation	$  3,232	$	3,467
Accumulated benefit obligation	2,913		3,083
Fair value of plan assets	2,302		2,349

Weighted Average Assumptions Used to Determine Benefit Obligations

The table below summarizes the weighted average assumptions used to determine the benefit obligations for the Company’s pension and postretirement plans disclosed at December 31, 2015 and 2014.

	Pension Plans						Postretirement Benefit Plans
	2015			2014			2015			2014
Benefit obligations:
Discount rate		4.63%	(1)		4.14%	(1)		4.23%	(2)		3.70%	(2)
Rate of compensation increase		3.50%	(3)		3.50%	(3)

⁽¹⁾  The weighted average discount rate assumptions used at December 31, 2015 and 2014 were comprised of separate assumptions determined by country of 4.7% and 4.2% for the U.S. based plans, respectively, 3.9% for the Canadian based plans and 2.2% for the German based plans at December 31, 2014.

⁽²⁾  The weighted average discount rate assumptions used at December 31, 2015 and 2014 were comprised of separate assumptions determined by country of 4.3% and 3.7% for the U.S. based plans, respectively, and 3.7% for the Canadian based plans.

⁽³⁾  The weighted average rate of compensation increase assumptions were comprised of separate assumptions determined by country of 3.5% for both the U.S. based plans and Canadian based plans at December 31, 2015 and 2014.

Components of Net Periodic Benefit Cost

The following table summarizes the components of net periodic benefit cost for the Company’s pension and postretirement benefit plans for the years ended December 31, 2015, 2014 and 2013.

	Pension Plans			Postretirement Benefit Plans
	2015	2014	2013	2015	2014	2013
	(in millions)
Components of net periodic benefit cost:
Service cost	$    123	$    106	$    126	$        3	$        3	$        4
Interest cost	149	147	132	7	8	7
Expected return on plan assets	(205)	(193)	(164)	(5)	(4)	(4)
Amortization of prior service cost (credits)	1	2	1	(2)	(2)	(3)
Amortization of net loss (gain)	68	17	83	—	(2)	2
Curtailment or settlement loss (gain)	3	1	3	—	(1)	—
Net periodic benefit cost	$    139	$      80	$    181	$        3	$        2	$        6

Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income

The following table summarizes the other changes in plan assets and benefit obligations recognized in other comprehensive income for the Company’s pension and postretirement benefit plans for the years ended December 31, 2015, 2014 and 2013.

	Pension Plans			Postretirement Benefit Plans
	2015	2014	2013	2015	2014	2013
	(in millions)
Other changes in plan assets and benefit obligations recognized in other comprehensive income:
Net (gain) loss	$    (132)	$    560	$    (637)	$    (7)	$      5	$    (29)
Prior service cost (credit)	—	1	14	—	(1)	—
Amortization of net (loss) gain	(68)	(17)	(83)	—	2	(2)
Amortization of prior service (cost) credit	(1)	(2)	(1)	2	2	3
Total recognized in other comprehensive income	(201)	542	(707)	(5)	8	(28)
Total recognized in net periodic benefit cost and other comprehensive income	$      (62)	$    622	$    (526)	$    (2)	$    10	$    (22)

Amounts Expected to be Amortized from Accumulated Other Comprehensive Income (Loss) and Recognized as Components of Net Periodic Benefit Costs

The following table summarizes the amounts expected to be amortized from accumulated other comprehensive income (loss) and recognized as components of net periodic benefit costs during 2016.

	Pension Plans	Postretirement Benefit Plans	Total
		(in millions)
Net loss (gain)	$        53	$        (1)	$        52
Prior service credit	(1)	(1)	(2)
	$        52	$        (2)	$        50

Weighted Average Assumptions Used to Determine Net Periodic Benefit Cost

The table below summarizes the weighted average assumptions used to determine the net periodic benefit cost for the years ended December 31, 2015, 2014 and 2013.

	Pension Plans									Postretirement Benefit Plans
	2015			2014			2013			2015			2014			2013
Discount rate		4.14%	(1)		5.03%	(1)		4.15%	(1)		3.70%	(4)		4.43%	(4)		3.37%	(4)
Expected long-term return on plan assets		8.14%	(2)		8.13%	(2)		8.13%	(2)		7.65%			7.64%			7.64%
Rate of compensation increase		3.50%	(3)		3.50%	(3)		3.50%	(3)

⁽¹⁾  The weighted average discount rate assumptions used for the years ended December 31, 2015, 2014, and 2013 were comprised of separate assumptions determined by country of 4.2%, 5.1% and 4.2% for the U.S. based plans, 3.9%, 4.7% and 3.9% for the Canadian based plans and 2.2%, 3.5%, and 3.4% for the German based plans, respectively.

⁽²⁾  The weighted average expected long-term return on plan assets assumptions used were comprised of separate assumptions determined by country of 8.25% for the U.S. based plans and 7.25% for the Canadian based plans for the years ended December 31, 2015, 2014 and 2013.

⁽³⁾  The weighted average rate of compensation increase assumptions used for the years ended December 31, 2015, 2014 and 2013 were comprised of separate assumptions determined by country of 3.5% for both the U.S and Canadian based plans.

⁽⁴⁾  The weighted average discount rate assumptions used for the years ended December 31, 2015, 2014 and 2013 were comprised of separate assumptions determined by country of 3.7%, 4.4% and 3.3% for the U.S. based plans and 3.7%, 4.6% and 3.7% for the Canadian based plans, respectively.

Effect of One Percentage Point Change in Assumed Health Care Cost Trend Rates

A one percentage point change in the assumed health care cost trend rates would have the following effects:

	1 percentage point
	Increase	Decrease
	(in millions)
Effect on total service and interest cost	$            —	$            —
Effect on postretirement benefit obligations	7	(5)

Allowable Range for Each Major Category of the Plans' Assets and Weighted-Average Asset Allocations by Asset Category

The table below presents the allowable range for each major category of the plans’ assets at December 31, 2015 as well as the Company’s pension plan and postretirement benefit plan weighted-average asset allocations at December 31, 2015 and 2014, by asset category.

	U.S.							Canada
Asset Category	Range	2015			2014			Range	2015			2014
Domestic equity(1)	30%-60%		52	%		52	%	—		13	%		15	%
International equity(2)	10%-20%		11			10		—		62			55
Total equities	45%-75%		63			62		40%-80%		75			70
Fixed income securities	20%-40%		22			22		—		16			20
Other, primarily cash and cash equivalents	0%-15%		8			9		—		9			10
Total fixed income securities and cash and cash equivalents	—		30			31		20%-60%		25			30
Real estate securities	0%-15%		7			7		—		—			—
Total			100	%		100	%			100	%		100	%

⁽¹⁾  Domestic equities for Canadian plans refers to equities of Canadian companies.

⁽²⁾  International equities for Canadian plans includes equities of U.S. companies.

Fair Value of the Company's Pension Plans' and Postretirement Benefit Plans' Assets

The table below presents the fair value of the Company’s pension plans’ assets by asset category segregated by level within the fair value hierarchy, as described below.

	U.S. Pension Plans’ Assets						Canadian Pension Plans’ Assets
	Fair Value Measured at December 31, 2015						Fair Value Measured at December 31, 2015
Asset Category	Level 1	Level 2	Level 3	Total			Level 1	Level 2	Level 3	Total
	(in millions)
Equity securities(1):
U.S. Equity	$1,200	$—	$—	$	1,200		$73	$—	$—	$73
International Equity	79	—	—		79		91	—	—	91
Fixed Income — Investment Grade(2)	237	163	—		400		—	—	—	—
Fixed Income — High Yield(3)	—	114	—		114		—	—	—	—
Real Estate Investment Trusts(4)	170	—	—		170		—	—	—	—
Other(5)	—	166	—		166		6	21	—	27
Total assets at fair value	$1,686	$443	$ —	$	2,129		$170	$21	$ —	$191
Liabilities for unsettled trades, net					(30	)				—
Other investments measured at net asset value(6)(7)					170					92
Total				$	2,269					$283
	Fair Value Measured at December 31, 2014						Fair Value Measured at December 31, 2014
Asset Category	Level 1	Level 2	Level 3	Total			Level 1	Level 2	Level 3	Total
	(in millions)
Equity securities(1):
U.S. Equity	$1,172	$—	$—	$	1,172		$58	$—	$—	$58
International Equity	87	—	—		87		107	—	—	107
Fixed Income — Investment Grade(2)	237	157	—		394		—	—	—	—
Fixed Income — High Yield(3)	—	120	—		120		—	—	—	—
Real Estate Investment Trusts(4)	159	—	—		159		—	—	—	—
Other(5)	—	208	—		208		4	26	—	30
Total assets at fair value	$1,655	$485	$ —	$	2,140		$169	$26	$ —	$195
Liabilities for unsettled trades, net					(13	)				—
Other investments measured at net asset value(6)(7)					140					108
Total				$	2,267					$303

⁽¹⁾  Equity securities consist of investments in common stock of U.S. and international companies. The fair value of equity securities is based on quoted market prices available in active markets at the close of a trading day, primarily the New York Stock Exchange (NYSE), National Association of Securities Dealers Automated Quotations (NASDAQ), and various international exchanges.

⁽²⁾  Approximately 59% at December 31, 2015 and 60% at December 31, 2014 of U.S. plan assets that are invested in the Fixed Income — Investment Grade asset category consist of a mutual fund offered by a registered investment company (the “Fund”) and fixed income securities. The Fund invests in investment grade fixed income securities, mortgaged-backed securities, U.S. treasury and agency bonds and corporate bonds. These investments are classified by the Company as a Level 1 measurement within the fair value hierarchy, as the mutual fund trades on an active market and daily, quoted prices are available. The remaining 41% at December 31, 2015 and 40% at December 31, 2014 of U.S. plan assets are fixed income securities, primarily investment grade corporate bonds from various industries held directly by the plan. The fair values of these investments are based on yields currently available on comparable bonds of issuers with similar credit ratings, quoted prices of similar bonds in an active market, or cash flows based on observable inputs and are classified as Level 2.

⁽³⁾  Fixed Income — High Yield consists of investments in corporate high-yield bonds from various industries. The fair values of these investments are based on yields currently available on comparable bonds of issuers with similar credit ratings, quoted prices of similar bonds in an active market, or cash flows based on observable inputs.

⁽⁴⁾  Real Estate Investment Trusts (REITs) consist of securities that trade on the major exchanges and invest directly in real estate, either through properties or mortgages.

⁽⁵⁾  Other consists primarily of: (1) money market accounts, which invest primarily in short term, high quality money market securities such as government obligations, commercial paper, time deposits and certificates of deposit, and are classified as Level 2, and (2) cash, which is classified as Level 1.

⁽⁶⁾  In accordance with ASU 2015-7, certain investments that are measured at fair value using the net asset value (NAV) per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the statements of financial position.

⁽⁷⁾  All of the U.S. plans other investments measured using NAV at December 31, 2015 and 2014 and approximately 52% and 43% at December 31, 2015 and 2014, respectively, of the Canadian plans other investments measured using NAV consist of a regulated commingled equity trust fund, for which fair value is based on the NAV at the end of each month. The NAV is calculated by the fund manager based on the fair value of the fund’s holdings, primarily equity securities traded in active markets, determined as of the end of each month as a practical expedient to estimating fair value. This practical expedient is not used when it is determined to be probable that the fund will sell the investment for an amount different than the reported NAV. Withdrawals are permitted, with notice by the 20th day of each month, based on NAV. Approximately 48% and 57% at December 31, 2015 and 2014, respectively, of the Canadian plans other investments measured using NAV are invested in regulated commingled bond funds (the “Bond Funds”). As these Bond Funds do not trade in an active market, the fair value is based on NAVs calculated by fund managers based on yields currently available on comparable bonds of issuers with similar credit ratings, quoted prices of similar bonds in an active market, or cash flows based on observable inputs as a practical expedient to estimating fair value and classified as Level 2. Withdrawals are permitted monthly, with notice between 0 and 3 days of the transaction date, based on NAV.

The table below presents the fair value of the Company’s postretirement benefit plans’ assets by asset category segregated by level within the fair value hierarchy, as described below.

	Postretirement Benefit Plans’ Assets
	Fair Value Measured at December 31, 2015								Fair Value Measured at December 31, 2014
Asset Category	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
	(in millions)
Equity securities(1):
U.S. Equity	$	35	$	—	$	—	$	35	$	36	$	—	$	—	$	36
International Equity		1		—		—		1		1		—		—		1
Fixed Income — Investment Grade(2)		8		3		—		11		10		2		—		12
Fixed Income — High Yield(3)		—		2		—		2		—		2		—		2
Real Estate Investment Trusts(4)		3		—		—		3		2		—		—		2
Other(5)		—		2		—		2		—		4		—		4
Total assets at fair value	$	47	$	7	$	—	$	54	$	49	$	8	$	—	$	57
Other investments measured at net asset value(6)(7)								3								3
Total							$	57							$	60

⁽¹⁾  Equity securities consist of investments in common stock of U.S. and international companies. The fair value of equity securities is based on quoted market prices available in active markets at the close of a trading day, primarily the NYSE, NASDAQ, and various international exchanges.

⁽²⁾  Approximately 73% at December 31, 2015 and 83% at December 31, 2014 of the postretirement benefit plan assets that are invested in the Fixed Income — Investment Grade asset category consist of the Fund and fixed income securities. The Fund invests in investment grade fixed income securities, mortgaged-backed securities, U.S. treasury and agency bonds and corporate bonds. These investments are classified by the Company as a Level 1 measurement within the fair value hierarchy as the mutual fund trades on an active market and daily, quoted prices are available. The remaining 27% at December 31, 2015 and 17% at December 31, 2014 of the postretirement benefit plan assets are fixed income securities, primarily investment grade corporate bonds from various industries held directly by the plan. The fair values of these investments are based on yields currently available on comparable bonds of issuers with similar credit ratings, quoted prices of similar bonds in an active market, or cash flows based on observable inputs and are classified as Level 2.

⁽³⁾  Fixed Income — High Yield consists of investments in corporate high-yield bonds from various industries. The fair values of these investments are based on yields currently available on comparable bonds of issuers with similar credit ratings, quoted prices of similar bonds in an active market, or cash flows based on observable inputs.

⁽⁴⁾  REITs consist of securities that trade on the major exchanges and invest directly in real estate, either through properties or mortgages.

⁽⁵⁾  Other consists primarily of money market accounts, which invest primarily in short term, high quality money market securities such as government obligations, commercial paper, time deposits and certificates of deposit.

⁽⁶⁾  In accordance with ASU 2015-7, certain investments that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the statements of financial position.

⁽⁷⁾ All of the postretirement benefit plans other investments measured using NAV at December 31, 2015 and 2014 consist of a regulated commingled equity trust fund, which fair value is based on NAV at the end of each month. The NAV is calculated by the fund manager based on the fair value of the fund’s holdings, primarily equity securities traded in active markets, determined as of the end of each month as a practical expedient to estimating fair value. This practical expedient is not used when it is determined to be probable that the fund will sell the investment for an amount different than the reported NAV. Withdrawals are permitted, with notice by the 20th day of each month, based on NAV.

Estimated Future Benefit Payments

Estimated Future Benefit Payments. The following table presents expected pension and postretirement benefit payments and expected postretirement subsidies due to the Medicare Prescription Drug Improvement and Modernization Act of 2003, which reflect expected future service, as appropriate.

			Postretirement Benefits
	Pension                      Benefits		Benefit         Payments	Subsidy         Receipts
	(in millions)
2016	$	151	13	—
2017		151	14	—
2018		155	14	—
2019		162	14	—
2020		167	15	—
Years 2021-2025		1,012	70	1

Cash Contributions and Expenses under Multi-Employer Benefit Plans

Under these plans, the Company contributed cash and recorded expenses for each of its individually significant plans and all of its other plans in aggregate as noted in the table below.

Pension Fund	EIN/Pension         Plan Number	Pension Protection Act Zone Status(1)		FIP/RP(2) Status Pending/ Implemented	Contributions by L-3 Communications			Surcharge Imposed	Expiration Date of Collective- Bargaining Agreement
		2015	2014		2015	2014	2013
					(in millions)
IAM National Pension Fund	51-6031295/002	Green	Green	No	$23(3)	$19(4)	$21(4)	No	1/29/2016 to 5/25/2019(5)
Other Pension Funds(6)					—	—	—
			Total contributions		$23	$19	$21

⁽¹⁾  A zone status rating of green indicates the plan is at least 80% funded.

⁽²⁾  Funding improvement plan or rehabilitation plan.

⁽³⁾  At the date the audited financial statements for the Company were issued, the Form 5500 for the plan year ended December 31, 2015 was not available.

⁽⁴⁾  Represents 5% and 6% of total plan contributions for the years ended December 31, 2014 and 2013, respectively, based on Form 5500.

⁽⁵⁾  The Company is a party to multiple bargaining agreements for multiple projects that require contributions into the IAM National Pension Fund. The most significant of these agreements, expiring April 28, 2019, covers multiple programs in the Company’s Aerospace Systems reportable segment and represents 58% of 2015 contributions.

⁽⁶⁾  Consists of three pension funds in which the Company’s contributions are individually, and in the aggregate, insignificant.