Segment Information

9 Months Ended

Sep. 23, 2016

Segment Reporting [Abstract]

Segment Information

22.  Segment Information

The Company has three reportable segments, which are described in Note 1. The Company evaluates the performance of its operating segments and reportable segments based on their sales, operating income and operating margin. Corporate expenses are allocated to the Company’s operating segments using an allocation methodology prescribed by U.S. Government regulations for government contractors. Accordingly, segment results include all costs and expenses, except for goodwill impairment charges, gains or losses related to business divestitures, and certain other items that are excluded by management for purposes of evaluating the operating performance of the Company’s business segments. Certain corporate expenses of $4 million and $11 million for the quarterly and year-to-date periods ended September 25, 2015, respectively, that had previously been allocated to the NSS business were retained by the Company and were allocated to L-3’s three reportable segments.

The tables below present net sales, operating income (loss), depreciation and amortization and total assets by reportable segment.

	Third Quarter Ended						Year-to-Date Ended
	September 23, 2016			September 25, 2015			September 23, 2016			September 25, 2015
	(in millions)
Net Sales:
Electronic Systems	$	1,024		$	1,023		$	2,970		$	3,138
Aerospace Systems		1,012			1,068			3,167			3,092
Communication Systems		509			518			1,485			1,490
Elimination of intercompany sales		(40	)		(45	)		(100	)		(125	)
Consolidated total	$	2,505		$	2,564		$	7,522		$	7,595
Operating Income:
Electronic Systems	$	119		$	121		$	339		$	352
Aerospace Systems		56			102			232			144
Communication Systems		40			52			143			139
Segment total		215			275			714			635
Loss related to business divestitures(1)		—			(9	)		—			(29	)
Goodwill impairment charges(2)		—			(35	)		—			(35	)
Consolidated total	$	215		$	231		$	714		$	571
Depreciation and amortization:
Electronic Systems	$	26		$	26		$	78		$	81
Aerospace Systems		13			13			40			37
Communication Systems		12			12			35			37
Consolidated total	$	51		$	51		$	153		$	155

⁽¹⁾ See Note 5 for information regarding the Company’s business divestitures.

⁽²⁾ Represents non-cash goodwill impairment charges recorded during 2015 related to a business retained by L-3 in connection with the sale of the NSS business. See Note 6 to the audited consolidated financial statements for the year ended December 31, 2015, included in the Company’s Annual Report on Form 10-K for additional information.

	September 23, 2016		December 31, 2015
	(in millions)
Total Assets:
Electronic Systems	$	6,636	$	6,426
Aerospace Systems		2,704		2,630
Communication Systems		2,113		1,984
Corporate		358		363
Assets of discontinued operations		—		664
Consolidated total	$	11,811	$	12,067