Severance and Restructuring Costs

3 Months Ended

Mar. 31, 2017

Severance and Restructuring Costs [Abstract]

Severance and Restructuring Costs

23. Severance and Restructuring 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 a total of $14 million of severance and restructuring costs, with respect to approximately 200 employees during the quarterly period ended March 31, 2017. During the year ended December 31, 2016, the Company recorded a total of $17 million of severance and restructuring costs with respect to approximately 700 employees. Severance and restructuring 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 $19 million at March 31, 2017 and $9 million at December 31, 2016, which is expected to be paid primarily by the end of 2017. Severance and restructuring costs incurred by reportable segment are presented in the table below.

	First Quarter Ended
	March 31, 2017		March 25, 2016
	(in millions)
Reportable Segment
Electronic Systems	$	3	$	—
Aerospace Systems		—		—
Communication Systems		9		1
Sensor Systems		2		1
Consolidated	$	14	$	2