Employee Severance and Termination Costs

12 Months Ended

Dec. 31, 2016

Employee Severance and Termination Costs [Abstract]

Employee Severance and Termination Costs

22. 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, L3 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 employee severance and other termination costs of $17 million with respect to approximately 700 employees during the year ended December 31, 2016, $18 million with respect to approximately 800 employees during the year ended December 31, 2015 and $29 million with respect to approximately 1,800 employees during the year ended December 31, 2014. Employee severance and other termination costs are reported within cost of sales on the consolidated statements of operations. The remaining balance to be paid in connection with these initiatives was $9 million at December 31, 2016, which is expected to be paid in 2017, and $9 million at December 31, 2015, which was paid during 2016. Employee severance and other termination costs incurred by reportable segment are presented in the table below.

	Year Ended December 31,
	2016		2015		2014
	(in millions)
Electronic Systems	$	8	$	8	$	16
Aerospace Systems		2		4		5
Communication Systems		7		6		8
Consolidated	$	17	$	18	$	29