Divestitures and Acquisitions (Tables)

9 Months Ended

Sep. 23, 2016

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 23, 2016 and the year ended December 31, 2015, assuming that the business acquisitions completed during these periods had occurred on January 1, 2015.

	Third Quarter Ended					Year-to-Date Ended
	September 23, 2016		September 25, 2015			September 23, 2016		September 25, 2015
	(in millions, except per share data)
Pro forma net sales	$	2,505	$	2,577		$	7,522	$	7,661
Pro forma income from continuing operations attributable to L-3		148		127			458		350
Pro forma net income (loss) attributable to L-3		148		(297	)		521		(66	)
Pro forma diluted earnings per share from continuing operations		1.88		1.56			5.82		4.23
Pro forma diluted earnings (loss) per share		1.88		(3.66	)		6.62		(0.80	)

NSS [Member]

Statement of Operations Data Classified as Discontinued Operations

The table below presents statements of operations data for NSS, which was previously a reportable segment and has been classified as a discontinued operation and includes allocated interest expense for debt not directly attributable or related to L-3’s other operations. Interest expense was allocated in accordance with the accounting standards for discontinued operations and was based on the ratio of NSS’s net assets to the sum of: (1) total L-3 consolidated net assets and (2) L-3 consolidated total debt.

	Third Quarter Ended					Year-to-Date Ended
	September 23, 2016		September 25, 2015			September 23, 2016			September 25, 2015
	(in millions)
Net sales	$	—	$	271		$	86		$	773
Cost of sales		—		(260	)		(92	)		(736	)
Gain related to business divestiture(1)		—		—			64			—
Goodwill impairment charges		—		(456	)		—			(456	)
Operating (loss) income from discontinued operations		—		(445	)		58			(419	)
Interest expense allocated to discontinued operations		—		(4	)		—			(15	)
(Loss) income from discontinued operations before income taxes		—		(449	)		58			(434	)
Income tax benefit		—		25			5			18
(Loss) income from discontinued operations, net of income taxes	$	—	$	(424	)	$	63		$	(416	)

⁽¹⁾ The year-to-date period ended September 23, 2016 includes a gain of $64 million (before and after income taxes) on the sale of the NSS business.

Schedule of Major Classes of Assets and Liabilities Included in Discontinued Operations

The major classes of assets and liabilities included in discontinued operations related to NSS are presented in the table below.

	December 31, 2015
	(in millions)
Assets
Current assets	$	201
Property, plant and equipment, net		25
Goodwill(1)		390
Other assets		48
Total assets of discontinued operations	$	664
Liabilities
Accounts payable, trade	$	48
Other current liabilities		78
Current liabilities		126
Long-term liabilities		94
Total liabilities of discontinued operations	$	220

⁽¹⁾ The goodwill balance at December 31, 2015 is based on an allocation of the goodwill attributable to the NSS reporting unit to discontinued operations based on the relative fair value of the NSS business retained by L-3 and NSS business sold.