Employee Severance and Termination Costs

6 Months Ended

Jun. 24, 2016

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 U.S. defense budget constraints, 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 U.S. defense budget constraints at certain affected business units, the Company recorded a total of $4 million and $6 million of employee severance and other termination costs, with respect to approximately 300 employees, during the quarterly and first half periods ended June 24, 2016, respectively. During the year ended December 31, 2015, the Company recorded a total of $18 million of employee severance and other termination costs with respect to approximately 800 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 $6 million at June 24, 2016 and $9 million at December 31, 2015, which is expected to be paid primarily by the second quarter of 2017. Employee severance and other termination costs incurred by reportable segment are presented in the table below.

	Second Quarter Ended				First Half Ended
	June 24, 2016		June 26, 2015		June 24, 2016		June 26, 2015
	(in millions)
Reportable Segment
Electronic Systems	$	3	$	2	$	4	$	2
Aerospace Systems		—		1		—		2
Communication Systems		1		1		2		2
Consolidated	$	4	$	4	$	6	$	6