L-3 Communications Essco S-4 26 Mar 10 2009 FY Registration of securities issued in business combination transactions Financial data

Document and Company Informatio

Document and Company Information (USD $)
In Billions, except Share data	12 Months Ended Dec. 31, 2009	Feb. 22, 2010	Jun. 26, 2009
Document and Company Information [Abstract]
Entity Registrant Name	L 3 COMMUNICATIONS CORP
Entity Central Index Key	0001039101
Document Type	S-4
Document Period End Date	2009-12-31
Amendment Flag	false
Document Fiscal Year Focus	2,009
Document Fiscal Period Focus	FY
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$8
Entity Common Stock, Shares Outstanding		115,586,276

Consolidated Balance Sheets

Consolidated Balance Sheets (USD $)
In Millions	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008
Current assets:
Cash and cash equivalents	$1,016	$867
Billed receivables, net of allowances of $32 in 2009 and $26 in 2008	1,149	1,226
Contracts in process	2,377	2,267
Inventories	239	259
Deferred income taxes	247	211
Other current assets	123	131
Total current assets	5,151	4,961
Property, plant and equipment, net	854	821
Goodwill	8,190	8,029
Identifiable intangible assets	377	417
Deferred debt issue costs	47	44
Other assets	194	212
Total assets	14,813	14,484
Current liabilities:
Accounts payable, trade	464	602
Accrued employment costs	642	700
Accrued expenses	482	479
Advance payments and billings in excess of costs incurred	521	530
Income taxes	10	45
Other current liabilities	363	351
Total current liabilities	2,482	2,707
Pension and postretirement benefits	817	802
Deferred income taxes	272	127
Other liabilities	470	414
Long-term debt	4,112	4,493
Total liabilities	8,153	8,543
Commitments and contingencies (see Note 16)
L-3 shareholders' equity:
L-3 Communications Holdings, Inc's common stock: $.01 par value; 300,000,000 shares authorized, 115,353,546 shares outstanding at December 31, 2009 and 118,633,746 shares outstanding at December 31, 2008 (L-3 Communications Corporation's common stock: $.01 par value, 100 shares authorized, issued and outstanding)	4,449	4,136
L-3 Communications Holdings, Inc's treasury stock (at cost), 21,040,541 shares at December 31, 2009 and 13,995,450 shares at December 31, 2008	(1,824)	(1,319)
Retained earnings	4,108	3,373
Accumulated other comprehensive loss	(166)	(332)
Total L-3 shareholders' equity	6,567	5,858
Noncontrolling interests	93	83
Total equity	6,660	5,941
Total liabilities and equity	$14,813	$14,484

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) (USD $)
In Millions, except Share data	Dec. 31, 2009	Dec. 31, 2008
Current assets:
Allowances	$32	$26
L-3 Communications Holdings, Inc.
L-3 shareholders' equity:
Common stock, par value	0.01	0.01
Common stock, shares authorized	300,000,000	300,000,000
Common stock, shares outstanding	115,353,546	118,633,746
Treasury stock at cost, shares	21,040,541	13,995,450
Wholly Owned Subsidiaries Member
L-3 shareholders' equity:
Common stock, par value	0.01	0.01
Common stock, shares authorized	100	100
Common stock, shares issued	100	100
Common stock, shares outstanding	100	100

Consolidated Statements of Oper

Consolidated Statements of Operations (USD $)
In Millions, except Per Share data	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Net sales:
Products	$7,516	$7,130	$6,572
Services	8,099	7,771	7,389
Total net sales	15,615	14,901	13,961
Cost of sales:
Products	6,671	6,380	5,844
Services	7,288	6,962	6,669
Total cost of sales	13,959	13,342	12,513
Litigation gain	0	126	0
Operating income	1,656	1,685	1,448
Interest and other income, net	19	28	31
Interest expense	279	290	314
Debt retirement charge	10	0	0
Income from continuing operations before income taxes	1,386	1,423	1,165
Provision for income taxes	475	494	411
Income from continuing operations	911	929	754
Gain on sale of a business, net of income taxes of $13 million	0	20	0
Net income	911	949	754
Less: Net income attributable to noncontrolling interests	10	11	9
Net income attributable to L-3	901	938	745
Less: Net income allocable to participating securities	8	9	5
Net income allocable to L-3 Holdings' common shareholders	$893	$929	$740
Basic:
Income from continuing operations	7.65	7.5	5.92
Gain on sale of a business, net of income taxes	$0	0.17	$0
Net income	7.65	7.67	5.92
Diluted:
Income from continuing operations	7.61	7.43	5.86
Gain on sale of a business, net of income taxes	$0	0.16	$0
Net income	7.61	7.59	5.86
L-3 Holdings' weighted average common shares outstanding:
Basic	116.8	121.2	124.9
Diluted	117.4	122.4	126.2

1_Consolidated Statements of Op

Consolidated Statements of Operations (Parenthetical) (USD $)
In Millions	12 Months Ended Dec. 31, 2008
Statements of Operations [Abstract]
Income taxes effect on gain on sale of a business	$13

Consolidated Statements of Shar

Consolidated Statements of Shareholders Equity (USD $)
In Millions	L-3 Holdings' Common Stock	Additional Paid-in Capital	Treasury Stock	Retained Earnings	Accumulated Other Comprehensive (Loss) Income	Noncontrolling Interest	Total
Beginning Balance, Shares at Dec. 31, 2006	125.2
Beginning Balance at Dec. 31, 2006	$1	$3,465	($25)	$1,963	($49)	$84	$5,439
Measurement date change for retirement benefit plans				(4)	39		35
Cumulative effect adjustment for uncertain income tax positions				4			4
Comprehensive income:
Net income				745			745
Net Income Attributable to Noncontrolling Interest						9	9
Pension and postretirement benefit plans:
Net gain (loss) arising during the period, net of income taxes of $10, $174 and $13, in the year 2007, 2008 and 2009 respectively					18		18
Net prior service cost arising during the period, net of income taxes of $1, $1 and $1, in the year 2007, 2008 and 2009 respectively					(2)		(2)
Amortization of net loss previously recognized, net of income taxes of $5, $2 and $20, in the year 2007, 2008 and 2009 respectively					9		9
Amortization of prior service cost (credit) previously recognized, net of income taxes of $1 in 2007 and $1 in 2009					(1)		(1)
Foreign currency translation adjustment					135		135
Unrealized gains on hedging instruments, net of income taxes of $3 in 2007 and $4 in 2008					4		4
Total comprehensive income							917
Distributions to noncontrolling interests						(6)	(6)
Cash dividends paid on common stock $1.00, $1.20 and $1.40 per share, in the year 2007, 2008 and 2009 respectively				(126)			(126)
Shares issued:
Employee savings plans		125					125
Employee savings plans, Shares	1.3
Exercise of stock options		112					112
Exercise of stock options, Shares	1.6
Employee stock purchase plan		65					65
Employee stock purchase plan, Shares	0.8
Stock-based compensation expense		53					53
Treasury stock purchased			(500)				(500)
Treasury stock purchased, Shares	-5.2
Other		(4)					(4)
Other, Shares	0.5
Ending Balance at Dec. 31, 2007	1	3,816	(525)	2,582	153	87	6,114
Ending Balance, Shares at Dec. 31, 2007	124.2
Comprehensive income:
Net income				938			938
Net Income Attributable to Noncontrolling Interest						11	11
Pension and postretirement benefit plans:
Net gain (loss) arising during the period, net of income taxes of $10, $174 and $13, in the year 2007, 2008 and 2009 respectively					(271)		(271)
Net prior service cost arising during the period, net of income taxes of $1, $1 and $1, in the year 2007, 2008 and 2009 respectively					(1)		(1)
Amortization of net loss previously recognized, net of income taxes of $5, $2 and $20, in the year 2007, 2008 and 2009 respectively					3		3
Foreign currency translation adjustment					(222)		(222)
Unrealized gains on hedging instruments, net of income taxes of $3 in 2007 and $4 in 2008					6		6
Total comprehensive income							464
Distributions to noncontrolling interests						(12)	(12)
Derecognition of noncontrolling interest						(3)	(3)
Cash dividends paid on common stock $1.00, $1.20 and $1.40 per share, in the year 2007, 2008 and 2009 respectively				(147)			(147)
Shares issued:
Employee savings plans		141					141
Employee savings plans, Shares	1.5
Exercise of stock options		51					51
Exercise of stock options, Shares	0.7
Employee stock purchase plan		69					69
Employee stock purchase plan, Shares	0.8
Stock-based compensation expense		64					64
Treasury stock purchased			(794)				(794)
Treasury stock purchased, Shares	-8.5
Other		(6)					(6)
Other, Shares	-0.1
Ending Balance at Dec. 31, 2008	1	4,135	(1,319)	3,373	(332)	83	5,941
Ending Balance, Shares at Dec. 31, 2008	118.6
Comprehensive income:
Net income				901			901
Net Income Attributable to Noncontrolling Interest						10	10
Pension and postretirement benefit plans:
Net gain (loss) arising during the period, net of income taxes of $10, $174 and $13, in the year 2007, 2008 and 2009 respectively					19		19
Net prior service cost arising during the period, net of income taxes of $1, $1 and $1, in the year 2007, 2008 and 2009 respectively					(1)		(1)
Amortization of net loss previously recognized, net of income taxes of $5, $2 and $20, in the year 2007, 2008 and 2009 respectively					30		30
Amortization of prior service cost (credit) previously recognized, net of income taxes of $1 in 2007 and $1 in 2009					1		1
Foreign currency translation adjustment					117		117
Total comprehensive income							1,077
Distributions to noncontrolling interests						(8)	(8)
Recognition of noncontrolling interest in a consolidated subsidiary						8	8
Cash dividends paid on common stock $1.00, $1.20 and $1.40 per share, in the year 2007, 2008 and 2009 respectively				(165)			(165)
Shares issued:
Employee savings plans		139					139
Employee savings plans, Shares	2
Exercise of stock options		28					28
Exercise of stock options, Shares	0.5
Employee stock purchase plan		70					70
Employee stock purchase plan, Shares	1.1
Stock-based compensation expense		74					74
Treasury stock purchased			(505)				(505)
Treasury stock purchased, Shares	(7)
Other		2		(1)			1
Other, Shares	0.2
Ending Balance at Dec. 31, 2009	$1	$4,448	($1,824)	$4,108	($166)	$93	$6,660
Ending Balance, Shares at Dec. 31, 2009	115.4

2_Consolidated Statements of Sh

Consolidated Statements of Shareholders Equity (Parenthetical) (USD $)
In Millions, except Per Share data	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Pension and postretirement benefit plans:
Income tax effect on net gain (loss) arising during the period	$13	$174	$10
Income tax effect on net prior service cost arising during the period	1	1	1
Income tax effect on amortization of net loss	20	2	5
Income tax effect on amortization of prior service cost (credit)	1		1
Income tax effect on unrealized gains on hedging instruments		4	3
Cash dividends paid on common stock, per share	1.4	1.2	$1
Retained Earnings
Pension and postretirement benefit plans:
Cash dividends paid on common stock, per share	1.4	1.2	$1
Accumulated Other Comprehensive (Loss) Income
Pension and postretirement benefit plans:
Income tax effect on net gain (loss) arising during the period	13	174	10
Income tax effect on net prior service cost arising during the period	1	1	1
Income tax effect on amortization of net loss	20	2	5
Income tax effect on amortization of prior service cost (credit)	1		1
Income tax effect on unrealized gains on hedging instruments		$4	$3

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (USD $)
In Millions	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Operating activities:
Net income	$911	$949	$754
Depreciation of property, plant and equipment	158	152	150
Amortization of intangibles and other assets	60	54	57
Deferred income tax provision	74	153	106
Stock-based employee compensation expense	74	64	53
Contributions to employee savings plans in L-3 Holdings' common stock	139	141	125
Amortization of pension and postretirement benefit plans net loss and prior service cost	52	5	12
Amortization of bond discounts (included in interest expense)	23	21	20
Amortization of deferred debt issue costs (included in interest expense)	11	11	10
Gain on sale of a business	0	(20)	0
Impairment charge	0	28	0
Gain on sale of a product line	0	(12)	0
Other non-cash items	(3)	(6)	(4)
Subtotal	1,499	1,540	1,283
Changes in operating assets and liabilities, excluding acquired and divested amounts:
Billed receivables	107	49	(51)
Contracts in process	(79)	(162)	(188)
Inventories	14	(25)	4
Accounts payable, trade	(118)	31	90
Accrued employment costs	(59)	66	51
Accrued expenses	(39)	81	65
Advance payments and billings in excess of costs incurred	(15)	101	(2)
Income taxes	27	(2)	116
Excess income tax benefits related to share-based payment arrangements	(4)	(10)	(17)
Other current liabilities	9	(128)	(9)
Pension and postretirement benefits	43	(81)	(10)
All other operating activities	22	(73)	(62)
Subtotal	(92)	(153)	(13)
Net cash from operating activities	1,407	1,387	1,270
Investing activities:
Business acquisitions, net of cash acquired	(90)	(283)	(235)
Proceeds from sale of a business and product lines	0	63	0
Capital expenditures	(186)	(218)	(157)
Dispositions of property, plant and equipment	4	15	8
Other investing activities	0	(9)	(4)
Net cash used in investing activities	(272)	(432)	(388)
Financing activities:
Proceeds from sale of senior notes	996	0	0
Repayment of borrowings under term loan facility	(650)	0	0
Redemption of senior subordinated notes	(750)	0	0
Common stock repurchased	(505)	(794)	(500)
Cash dividends paid on L-3 Holdings' common stock	(165)	(147)	(126)
Proceeds from exercise of stock options	24	40	89
Proceeds from employee stock purchase plan	70	69	65
Debt issue costs	(22)	0	0
Excess income tax benefits related to share-based payment arrangements	4	10	17
Other financing activities	(7)	(18)	(9)
Net cash used in financing activities	(1,005)	(840)	(464)
Effect of foreign currency exchange rate changes on cash and cash equivalents	19	(28)	14
Net increase in cash and cash equivalents	149	87	432
Cash and cash equivalents, beginning of the year	867	780	348
Cash and cash equivalents, end of the year	$1,016	$867	$780

Description of Business

Description of Business
	12 Months Ended Dec. 31, 2009
Description of Business [Abstract]
Description of Business	1. Description of Business L-3 Communications Holdings, Inc. derives all of its operating income and cash flows from its wholly-owned subsidiary, L-3 Communications Corporation (L-3 Communications). L-3 Communications Holdings, Inc. (L-3Holdings and, together with its subsidiaries, referred to herein as L-3 or the Company) is a prime system contractor in aircraft modernization and maintenance, Command, Control, Communications, Intelligence, Surveillance and Reconnaissance (C3ISR) systems, and government services. L-3 is also a leading provider of high technology products, subsystems and systems. The Companys customers include the United States (U.S.) Department of Defense (DoD) and its prime contractors, U.S.Government intelligence agencies, the U.S.Department of Homeland Security (DHS), U.S.Department of State (DoS), U.S.Department of Justice (DoJ), allied foreign governments, domestic and foreign commercial customers and select other U.S.federal, state and local government agencies. The Company has the following four reportable segments: (1)C3ISR, (2)Government Services, (3)Aircraft Modernization and Maintenance (AMM), and (4)Electronic Systems (previously named Specialized Products). During the 2009 fourth quarter, the Company renamed the Specialized Products reportable segment Electronic Systems to better describe the nature of the segments businesses. Financial information with respect to each of the Companys reportable segments is included in Note22. C3ISR provides products and services for the global ISR market, C3 systems, networked communications systems and secure communications products. The Company believes that these products and services are critical elements for a substantial number of major command, control and communication, intelligence gathering and space systems. These products and services are used to connect a variety of airborne, space, ground and sea-based communication systems and are used in the transmission, processing, recording, monitoring, and dissemination functions of these communication systems. Government Services provides a full range of engineering, technical, analytical, information technology (IT), advisory, training, logistics and support services to the DoD, DoS, DoJ, and U.S.Government intelligence agencies and allied foreign governments. AMM provides modernization, upgrades and sustainment, maintenance and logistics support services for military and various government aircraft and other platforms. The Company sells these services primarily to the DoD, the Canadian Department of National Defense and other allied foreign governments. Electronic Systems provides a broad range of products and services, including components, products, subsystems, systems, and related services to military and commercial customers in several niche markets across several business areas, including power control systems, electro-optic/infrared (EO/IR), microwave, simulation training, precision engagement, aviation products, security detection, propulsion systems, displays, telemetry advanced technology, undersea warfare, and marine services.

Summary of Significant Accounti

Summary of Significant Accounting Policies
	12 Months Ended Dec. 31, 2009
Summary of Significant Accounting Policies [Abstract]
Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies Basis of Presentation: The accompanying financial statements comprise the consolidated financial statements of L-3 Holdings and L-3 Communications. L-3 Holdings only asset is its investment in the common stock of L-3 Communications, its wholly-owned subsidiary, and its only obligations are (1)the 3%Convertible Contingent Debt Securities (CODES) due 2035, which were issued by L-3 Holdings on July29, 2005, (2)its guarantee of borrowings under the Revolving Credit Facility of L-3 Communications and (3)its guarantee of other contractual obligations of L-3 Communications and its subsidiaries. L-3 Holdings obligations relating to the CODES have been jointly, severally, fully and unconditionally guaranteed by L-3 Communications and certain of its wholly-owned domestic subsidiaries. Accordingly, such debt has been reflected as debt of L-3 Communications in its consolidated financial statements in accordance with the accounting standards for pushdown accounting. All issuances of and conversions into L-3 Holdings equity securities, including grants of stock options, restricted stock, restricted stock units and performance units by L-3 Holdings to employees and directors of L-3 Communications and its subsidiaries, have been reflected in the consolidated financial statements of L-3 Communications. As a result, the consolidated financial positions, results of operations and cash flows of L-3 Holdings and L-3 Communications are substantially the same. See Note24 for additional information regarding the audited financial information of L-3 Communications and its subsidiaries. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (U.S.GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of sales and costs of sales during the reporting period. The most significant of these estimates and assumptions relate to contract revenue, profit and loss recognition, fair values of assets acquired and liabilities assumed in business combinations, market values for inventories reported at lower of cost or market, pension and post-retirement benefit obligations, stock-based employee compensation expense, income taxes, including the valuations of deferred tax assets, litigation reserves and environmental obligations, accrued product warranty costs, and the recoverability, useful lives and valuation of recorded amounts of long-lived assets, identifiable intangible assets and goodwill. Changes in estimates are reflected in the periods during which they become known. Actual amounts will differ from these estimates and could differ materially. During the quarter ended March27, 2009, the Company revised its reportable segment presentations to conform to certain re-alignments in the Companys management and organization structure. Consequently, the Company made certain reclassifications between its C3ISR, Government Services, and AMM reportable segments

New Accounting Standards Implem

New Accounting Standards Implemented
	12 Months Ended Dec. 31, 2009
New Accounting Standards Implemented [Abstract]
New Accounting Standards Implemented	3. New Accounting Standards Implemented In June 2009, the FASB issued the FASB Accounting Standards Codification (ASC or Codification). The Codification has become the single source for all authoritative U.S.GAAP recognized by the FASB, does not change U.S.GAAP and did not impact the Companys financial position, results of operations or cash flows. All references to U.S.GAAP in this report are in accordance with the Codification. The Company adopted nine newly issued accounting standards during the year ended December31, 2009. The following six standards were effective January1, 2009: Accounting for convertible debt instruments that may be settled in cash upon conversion (Convertible Debt). The new standard is contained in ASC 470, Debt; Determining whether instruments granted in share-based payment transactions are participating securities (Participating Securities). The new standard is contained in ASC 260, Earnings Per Share; Noncontrolling interests in consolidated financial statements (Noncontrolling Interests). The new standard is contained in ASC 810, Consolidation; Disclosures about derivative instruments and hedging activities (Derivative Disclosures). The new standard is contained in ASC 815, Derivatives and Hedging; Business combinations (Business Combinations). The new standard is contained in ASC 805, Business Combinations; and Fair value measurements and disclosures (Fair Value Measurements). The new standard is contained in ASC 820, Fair Value Measurements and Disclosures. For the impact of the adoption of the newly issued standards for Convertible Debt, Participating Securities and Noncontrolling Interests on the Companys: (1)Condensed Consolidated Balance Sheet, at December31, 2008, (2)Consolidated Equity Account Balances, at December31, 2007, and (3)Condensed Consolidated Statements of Operations for the years ended December31, 2008 and 2007, see pagesF-17-F-19. The adoption of the new accounting standards for Derivative Disclosures, Business Combinations and Fair Value Measurements did not have a material impact on the Companys prior period financial statements. Convertible Debt: In accordance with the provisions of the newly issued standard for convertible debt, the Company is separately accounting for the liability and equity (conversion option) components of the CODES in a manner that reflects the Companys non-convertible debt borrowing rate when interest expense is recognized. Previously, the CODES were recorded at maturity value. The Convertible Debt standard does not apply to the Companys other outstanding debt instruments because they are not convertible debt instruments within its scope. The Company has retrospectively applied the provisions of this standard and adjusted the prior period financial statements accordingly. The following table presents the impact of the provisions of the Convertible Debt standard on the Statement of Operations for the year ended December31, 2009. Year Ended December31, 2009 (in millions, except per share data) Interest ex

Acquisitions and Dispositions

Acquisitions and Dispositions
	12 Months Ended Dec. 31, 2009
Acquisitions and Dispositions [Abstract]
Acquisitions and Dispositions	4. Acquisitions and Dispositions All of the business acquisitions are included in the Companys results of operations from their respective dates of acquisition. 2009 Business Acquisitions On January30, 2009, the Company acquired all of the outstanding stock of CSC for a purchase price of $91million in cash, which includes a $7million net working capital adjustment, of which $6million was for cash acquired, and $4million related to certain tax benefits acquired. The acquisition was financed using cash on hand. CSC is a developer and manufacturer of anti-submarine warfare systems for use onboard submarines and surface ship combatants. Based on the final purchase price allocation, the amount of goodwill recognized was $56million, which was assigned to the Electronic Systems reportable segment, and is not expected to be deductible for income tax purposes. 2008 Business Acquisitions During the year ended December31, 2008, in separate transactions, the Company acquired four businesses and increased its ownership interest in a subsidiary for an aggregate purchase price of $264million in cash, plus acquisition costs. These acquisitions were all financed with cash on hand. Based on preliminary and final purchase price allocations, the aggregate goodwill recognized for these businesses and increase in ownership interest was $191million, of which $86million is expected to be deductible for income tax purposes. The goodwill was assigned to the reportable segments listed below: Segment December31, 2009 (in millions) Electronic Systems $ 150 Government Services 41 Total $ 191 In certain instances, the purchase price is subject to adjustment based on post-acquisition financial performance not to exceed an aggregate amount of $1million, as discussed below. Any such additional consideration will be accounted for as goodwill. A description of each business acquisition made by the Company during 2008 is listed below: All of the outstanding stock of International Resources Group Ltd. (IRG) on December3, 2008. IRG is an international professional services firm that provides specialized management, policy and training support in the areas of energy, environment and natural resource management, relief and reconstruction, and economic development to U.S.Government agencies and international development organizations; All of the outstanding stock of G.A. International Electronics and subsidiaries (GAI) on July25, 2008. Headquartered in Florida, GAI provides repair services and retrofit installation of navigation and communication systems for cruise vessels and cargo ships. The purchase price for GAI is subject to additional consideration not to exceed $1million that is contingent upon its post-acquisition financial performance through July25, 2011; All of the assets and liabilities of the Northrop Grumman Electro-Optical Systems (EOS) business on April21, 2008. The EOS business is a provider of night vision technology and electro-optical products for military, commercial and public safety custom

Contracts in Process

Contracts in Process
	12 Months Ended Dec. 31, 2009
Contracts in Process [Abstract]
Contracts in Process	5. Contracts in Process The components of contracts in process are presented in the table below. The unbilled contract receivables, inventoried contract costs and unliquidated progress payments are principally related to contracts with the U.S.Government and prime contractors or subcontractors of the U.S.Government. Identifiable intangible assets related to contracts in process assumed by the Company in its business acquisitions and the underlying contractual customer relationships are separately recognized at the date of acquisition, and are discussed and presented in Note7. December31, 2009 2008 (in millions) Unbilled contract receivables, gross $ 2,373 $ 2,026 Less: unliquidated progress payments (700 ) (409 ) Unbilled contract receivables, net 1,673 1,617 Inventoried contract costs, gross 819 754 Less: unliquidated progress payments (115 ) (104 ) Inventoried contract costs, net 704 650 Total contracts in process $ 2,377 $ 2,267 Unbilled Contract Receivables. Unbilled contract receivables represent accumulated incurred costs and earned profits on contracts (revenue arrangements), which have been recorded as sales, but have not yet been billed to customers. Unbilled contract receivables arise from the cost-to-cost method of revenue recognition that is used to record sales on certain fixed-price contracts. Unbilled contract receivables from fixed-price type contracts are converted to billed receivables when amounts are invoiced to customers according to contractual billing terms, which generally occur when deliveries or other performance milestones are completed. Unbilled contract receivables also arise from cost-plus type contracts and time-and-material type contracts, for revenue amounts that have not been billed by the end of the accounting period due to the timing of preparation of invoices to customers. The Company believes that approximately 95% of the unbilled contract receivables at December31, 2009 will be billed and collected within one year. Unliquidated Progress Payments. Unliquidated progress payments arise from fixed-price type contracts with the U.S.Government that contain progress payment clauses, and represent progress payments on invoices that have been collected in cash, but have not yet been liquidated. Progress payment invoices are billed to the customer as contract costs are incurred at an amount generally equal to 75% to 80% of incurred costs. Unliquidated progress payments are liquidated as deliveries or other contract performance milestones are completed, at an amount equal to a percentage of the contract sales price for the items delivered or work performed, based on a contractual liquidation rate. Therefore, unliquidated progress payments are a contra asset account, and are classified against unbilled contract receivables if revenue for the underlying c

Inventories

Inventories
	12 Months Ended Dec. 31, 2009
Inventories [Abstract]
Inventories	6. Inventories Inventories at Lower of Cost or Market. The table below presents the components of inventories at cost (first-in, first-out or average cost), but not in excess of realizable value. December31, 2009 2008 (in millions) Raw materials, components and sub-assemblies $ 85 $ 95 Work in process 118 121 Finished goods 36 43 Total $ 239 $ 259

Goodwill and Identifiable Intan

Goodwill and Identifiable Intangible Assets
	12 Months Ended Dec. 31, 2009
Goodwill and Identifiable Intangible Assets [Abstract]
Goodwill and Identifiable Intangible Assets	7. Goodwill and Identifiable Intangible Assets Goodwill. In accordance with the accounting standards for business combinations, the Company allocates the cost of business acquisitions to the assets acquired and liabilities assumed based on their estimated fair values at the date of acquisition (commonly referred to as the purchase price allocation). As part of the purchase price allocations for the Companys business acquisitions, identifiable intangible assets are recognized as assets apart from goodwill if they arise from contractual or other legal rights, or if they are capable of being separated or divided from the acquired business and sold, transferred, licensed, rented or exchanged. However, the Company does not recognize any intangible assets apart from goodwill for the assembled workforces of its business acquisitions. At December31, 2009, the Company had approximately 67,000employees, and the substantial majority of the sales generated by the Companys businesses are from the productive labor efforts of its employees, as compared to selling manufactured products or right-to-use technology. Generally, the largest intangible assets from the businesses that the Company acquires are the assembled workforces, which includes the human capital of the management, administrative, marketing and business development, scientific, engineering and technical employees of the acquired businesses. The success of the Companys businesses, including their ability to retain existing business (revenue arrangements) and to successfully compete for and win new business (revenue arrangements), is primarily dependent on the management, marketing and business development, contracting, engineering and technical skills and knowledge of its employees, rather than on productive capital (plant and equipment, and technology and intellectual property). Additionally, for a significant portion of its businesses, the Companys ability to attract and retain employees who have U.S.Government security clearances, particularly those of top-secret and above, is critical to its success, and is often a prerequisite for retaining existing revenue arrangements and pursuing new ones. Generally, patents, trademarks and licenses are not material for the Companys acquired businesses. Furthermore, the Companys U.S.Government contracts (revenue arrangements) generally permit other companies to use the Companys patents in most domestic work performed by such other companies for the U.S.Government. Therefore, because intangible assets for assembled workforces are part of goodwill in accordance with ASC 805, the substantial majority of the intangible assets for the Companys business acquisitions is recognized as goodwill. Additionally, the value assigned to goodwill for the Companys business acquisitions also includes the value that the Company expects to realize from cost reduction measures that it implements for its acquired businesses. The table below presents the changes in goodwill allocated to the Companys reportable segments. Government Electronic Consolidated C3ISR

Other Current Liabilities and O

Other Current Liabilities and Other Liabilities
	12 Months Ended Dec. 31, 2009
Other Current Liabilities and Other Liabilities [Abstract]
Other Current Liabilities and Other Liabilities	8. Other Current Liabilities and Other Liabilities The table below presents the components of other current liabilities. December31, 2009 2008 (in millions) Other Current Liabilities: Accruals for pending and threatened litigation (see Note19) $ 2 $ 4 Accrued product warranty costs 90 97 Accrued interest 76 66 Estimated costs in excess of estimated contract value to complete contracts in process in a loss position 74 58 Deferred revenues 28 25 Aggregate purchase price payable for acquired businesses 4 Other 89 101 Total other current liabilities $ 363 $ 351 The table below presents the components of other liabilities. December31, 2009 2008 (in millions) Other Liabilities: Non-current income taxes payable (see Note17) $ 232 $ 177 Deferred compensation 83 79 Accrued workers compensation 46 45 Notes payable and capital lease obligations 10 10 Accrued product warranty costs 9 5 Unfavorable lease obligations 6 8 Non-current portion of net deferred gains from terminated interest rate swap agreements 2 9 Other non-current liabilities 82 81 Total other liabilities $ 470 $ 414

Property, Plant and Equipment

Property, Plant and Equipment
	12 Months Ended Dec. 31, 2009
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment	9. Property, Plant and Equipment December31, 2009 2008 (in millions) Land $ 57 $ 55 Buildings and improvements 321 257 Machinery, equipment, furniture and fixtures 1,167 1,055 Leasehold improvements 253 272 Gross property, plant and equipment 1,798 1,639 Accumulated depreciation and amortization (944 ) (818 ) Property, plant and equipment, net $ 854 $ 821

Debt

Debt
	12 Months Ended Dec. 31, 2009
Debt [Abstract]
Debt	10. Debt The components of long-term debt and reconciliation to the carrying amount of long-term debt are presented in the table below. December31, 2009 2008 (in millions) L-3 Communications: Borrowings under Revolving Credit Facility(1) $ $ Borrowings under Term Loan Facility maturing 2010(2) 650 51/5%Senior Notes due 2019 1,000 75/8%Senior Subordinated Notes due 2012 750 61/8%Senior Subordinated Notes due 2013 400 400 61/8%Senior Subordinated Notes due 2014 400 400 57/8%Senior Subordinated Notes due 2015 650 650 63/8%Senior Subordinated Notes due 2015 1,000 1,000 Subtotal 3,450 3,850 L-3 Holdings: 3%Convertible Contingent Debt Securities due 2035 700 700 Principal amount of long-term debt 4,150 4,550 Unamortized discounts (38 ) (57 ) Carrying amount of long-term debt $ 4,112 $ 4,493 (1) At December31, 2009, available borrowings under the Revolving Credit Facility were $968million after reductions for outstanding letters of credit of $32million. (2) The interest rate at December31, 2008 was 2.70% and was based on the LIBOR rate (as defined in the credit agreement) plus a spread. L-3 Communications On October23, 2009, L-3 Communications replaced its $1billion Senior Credit Facility with a new $1billion three-year Revolving Credit Facility maturing on October23, 2012. Borrowings under the new Revolving Credit Facility bear interest, at L-3 Communications option, at either (i)a base rate equal to the higher of (a)0.50% per annum above the latest federal funds rate, (b)the Bank of America prime rate (as defined in the Revolving Credit Facility), and (c)1.00% per annum above a LIBOR rate (as defined in the Revolving Credit Facility), plus a spread ranging from 1.25% to 3.00% per annum, or (ii)a LIBOR rate (as defined in the Revolving Credit Facility) plus a spread ranging from 2.25% to 4.00% per annum. The spread, in both cases, depends on L-3 Communications debt rating at the time of determination. L-3 Communications pays: (1)commitment fees calculated on the daily amounts of the available unused commitments at a rate ranging from 0.375% to 0.75% per annum, (2)letter of credit fees ranging from 1.50% to 2.67% per annum for performance and commercial letters of credit and (3)letter of credit fees ranging from 2.25% to 4.00% for financial letters of credit. The fee rate, in all cases, depends on L-3 Communications debt rating at the time of determination. The debt rating is based on the credit ratings as determined by Standard Poors Rating Services, Moodys Investors Service, Inc. and Fitch Ratings of L-3 Communications non-credit enhanced senior, unsecured long-term debt.

Equity

Equity
	12 Months Ended Dec. 31, 2009
Equity [Abstract]
Equity	11. Equity In October 2008, L-3 Holdings completed its previously announced $750million share repurchase program, which was approved by its Board of Directors on December11, 2007. On November24, 2008, L-3 Holdings Board of Directors approved a new share repurchase program that authorizes L-3 Holdings to repurchase up to an additional $1billion of its outstanding shares of common stock through December31, 2010. Repurchases are made from time to time at managements discretion in accordance with applicable federal securities laws. All share repurchases of L-3 Holdings common stock have been recorded as treasury shares. At December31, 2009, the remaining dollar value under the share repurchase program was $426million. From January1, 2010 through February25, 2010, L-3 Holdings had repurchased 776,567shares of its common stock at an average price of $86.81 per share for an aggregate amount of approximately $67 million.

Fair Value Measurements

Fair Value Measurements
	12 Months Ended Dec. 31, 2009
Fair Value Measurements [Abstract]
Fair Value Measurements	12. Fair Value Measurements The Company applies the accounting standards for fair value measurements to all of the Companys assets and liabilities that are measured and recorded at fair value. Fair value is defined as the price that would be received for an asset or the exit price that would be paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants. The standards establish a fair value hierarchy that gives the highest priority to observable inputs and the lowest priority to unobservable inputs. The following table presents the fair value hierarchy level for each of the Companys assets and liabilities that are measured at fair value on a recurring basis. December31, 2009 2008 Description Level 1(1) Level 2(2) Level 3(3) Level 1(1) Level 2(2) Level 3(3) (in millions) Assets Cash equivalents $ 891 $ $ $ 794 $ $ Derivatives (Foreign Currency Forward Contracts) 16 22 Total Assets $ 891 $ 16 $ $ 794 $ 22 $ Liabilities Derivatives (Foreign Currency Forward Contracts) $ $ 10 $ $ $ 21 $ (1) Level1 is based on quoted market prices available in active markets for identical assets or liabilities as of the reporting date. (2) Level2 is based on pricing inputs other than quoted prices in active markets, which are either directly or indirectly observable. The fair value is determined using a valuation model based on observable market inputs, including quoted foreign currency forward exchange rates and consideration of non-performance risk. (3) Level3 is based on pricing inputs that are not observable and not corroborated by market data. The Company has no Level3 assets or liabilities.

Financial Instruments

Financial Instruments
	12 Months Ended Dec. 31, 2009
Financial Instruments [Abstract]
Financial Instruments	13. Financial Instruments At December31, 2009 and 2008, the Companys financial instruments consisted primarily of cash and cash equivalents, billed receivables, trade accounts payable, Senior Notes, Senior Subordinated Notes, CODES and foreign currency forward contracts. The carrying amounts of cash and cash equivalents, billed receivables and trade accounts payable are representative of their respective fair values because of the short-term maturities or expected settlement dates of these instruments. The fair value of the Senior Notes and CODES are based on quoted prices for the same or similar debt issues. The Senior Subordinated Notes are registered, unlisted public debt traded in the over-the-counter market and their fair values are based on quoted trading activity. The fair values of foreign currency forward contracts are based on forward exchange rates. The carrying amounts and estimated fair values of the Companys financial instruments are presented in the table below. December31, 2009 December31, 2008 Carrying Estimated Carrying Estimated Amount Fair Value Amount Fair Value (in millions) Borrowings under the Term Loan Facility $ $ $ 650 $ 608 Senior Notes 996 995 Senior Subordinated Notes 2,440 2,461 3,188 2,916 CODES 676 736 655 697 Foreign currency forward contracts(1) 6 6 1 1 (1) See Note14 for additional disclosures regarding the notional amounts and fair values of foreign currency forward contracts.

Derivative Financial Instrument

Derivative Financial Instruments
	12 Months Ended Dec. 31, 2009
Derivative Financial Instruments [Abstract]
Derivative Financial Instruments	14. Derivative Financial Instruments Notional amounts are used to measure the volume of foreign currency forward contracts and do not represent exposure to foreign currency losses. The table below presents the notional amounts of the Companys outstanding foreign currency forward contracts by currency as of December31, 2009: Currency Notional Amount (in millions) U.S. dollar $ 112 Canadian dollar 98 British pound 95 Euro 39 Other 8 Total $ 352 At December31, 2009, the Companys foreign currency forward contracts had maturities through 2016. The table below presents the fair values and the location of the Companys derivative instruments in the Consolidated Balance Sheet as of December31, 2009. Fair Values of Derivative Instruments(1) Other Other Current Other Current Other Assets Assets Liabilities Liabilities (in millions) Derivatives designated as hedging instruments: Foreign currency forward contracts $ 6 $ 7 $ 4 $ 2 Derivatives not designated as hedging instruments: Foreign currency forward contracts 2 1 3 1 Embedded derivative related to the CODES Total derivative instruments $ 8 $ 8 $ 7 $ 3 (1) See Note12 for a description of the fair value hierarchy related to the Companys foreign currency forward contracts. The effect of gains or losses from foreign currency forward contracts was not material to the Consolidated Statement of Operations for the year ended December31, 2009. The estimated net amount of existing gains at December31, 2009 that is expected to be reclassified into income within the next 12months is $2million.

Accumulated Other Comprehensive

Accumulated Other Comprehensive (Loss) Income
	12 Months Ended Dec. 31, 2009
Accumulated Other Comprehensive (Loss) Income [Abstract]
Accumulated Other Comprehensive (Loss) Income	15. Accumulated Other Comprehensive (Loss) Income The changes in the accumulated other comprehensive (loss) income balances, net of related tax effects are presented in the table below: Unrecognized Total Unrealized gains accumulated Foreign gains (losses) (losses) and other currency on hedging prior service comprehensive translation instruments cost, net (loss) income (in millions) Balance at December31, 2006 $ 125 $ (5 ) $ (169 ) $ (49 ) Measurement date change for retirement benefit plans 39 39 Period change 135 4 24 163 Balance at December31, 2007 260 (1 ) (106 ) 153 Period change (222 ) 6 (269 ) (485 ) Balance at December31, 2008 38 5 (375 ) (332 ) Period change 117 49 166 Balance at December31, 2009 $ 155 $ 5 $ (326 ) $ (166 )

L-3 Holdings' Earnings Per Shar

L-3 Holdings' Earnings Per Share
	12 Months Ended Dec. 31, 2009
L-3 Holdings' Earnings Per Share [Abstract]
L-3 Holdings' Earnings Per Share	16. L-3 Holdings Earnings Per Share A reconciliation of basic and diluted EPS is presented in the table below. Year Ended December31, 2009 2008 2007 (in millions, except per share data) Reconciliation of net income: Income from continuing operations $ 911 $ 929 $ 754 Net income attributable to noncontrolling interests (10 ) (11 ) (9 ) Net income allocable to participating securities (8 ) (9 ) (5 ) Income from continuing operations allocable to L-3 Holdings 893 909 740 Gain on sale of a business, net of income taxes 20 Net income allocable to L-3 Holdings $ 893 $ 929 $ 740 Earnings per share allocable to L-3 Holdings common shareholders: Basic: Weighted average common shares outstanding 116.8 121.2 124.9 Basic earnings per share: Income from continuing operations $ 7.65 $ 7.50 $ 5.92 Gain on sale of a business, net of income taxes 0.17 Net income $ 7.65 $ 7.67 $ 5.92 Diluted: Common and potential common shares: Weighted average common shares outstanding 116.8 121.2 124.9 Assumed exercise of stock options 3.5 4.1 5.0 Unvested restricted stock awards 0.4 Employee stock purchase plan contributions 0.4 0.4 0.4 Performance unit awards Assumed purchase of common shares for treasury (3.7 ) (3.5 ) (4.2 ) Assumed conversion of the CODES (1) 0.2 0.1 Common and potential common shares 117.4 122.4 126.2 Diluted earnings per share: Income from continuing operations $ 7.61 $ 7.43 $ 5.86 Gain on sale of a business, net of income taxes 0.16 Net income $ 7.61 $ 7.59 $ 5.86 (1) L-3 Holdings CODES had no impact on diluted EPS for the year ended December31, 2009 because the average market price of L-3 Holdings common stock during this period was less than the price at which the CODES would have been convertible into L-3 Holdings common stock. As of December31, 2009, the conversion price was $100.14.

Income Taxes

Income Taxes
	12 Months Ended Dec. 31, 2009
Income Taxes [Abstract]
Income Taxes	17. Income Taxes Income before income taxes is summarized in the table below. Year Ended December31, 2009 2008 2007 (in millions) Domestic $ 1,210 $ 1,272 $ 1,003 Foreign 176 151 162 Income from continuing operations before income taxes $ 1,386 $ 1,423 $ 1,165 The components of the Companys current and deferred portions of the provision for income taxes are presented in the table below. Year Ended December31, 2009 2008 2007 (in millions) Current income tax provision: Federal $ 304 $ 244 $ 228 State and local 58 47 43 Foreign 39 50 34 Subtotal 401 341 305 Deferred income tax provision (benefit): Federal 60 137 82 State and local 5 23 13 Foreign 9 (7 ) 11 Subtotal 74 153 106 Total provision for income taxes $ 475 $ 494 $ 411 A reconciliation of the statutory federal income tax rate to the effective income tax rate of the Company is presented in the table below. Year Ended December31, 2009 2008 2007 Statutory federal income tax rate 35.0 % 35.0 % 35.0 % State and local income taxes, net of federal income tax benefit 3.1 3.1 3.1 Foreign income taxes (0.5 ) (1.1 ) (1.3 ) Manufacturing benefits (0.8 ) (0.9 ) (0.7 ) Research and experimentation and other tax credits (1.3 ) (1.0 ) (0.9 ) Resolution of tax contingencies (1.9 ) (1.2 ) (1.0 ) Other, net 0.7 0.8 1.1 Effective income tax rate 34.3 % 34.7 % 35.3 % The significant components of the Companys net deferred tax assets and liabilities are presented in the table below. December31, 2009 2008 (in millions) Deferred tax assets: Inventoried costs $ 12 $ 3 Compensation and benefits 137 69 Pension and postretirement benefits 290 293 Income recognition on contracts in process 90 Loss carryforwards 21 15 Tax credit carryforwards 14

Stock-Based Compensation

Stock-Based Compensation
	12 Months Ended Dec. 31, 2009
Stock-Based Compensation [Abstract]
Stock-Based Compensation	18. Stock-Based Compensation Stock-based Compensation Plans. Effective April29, 2008, the Company adopted the 2008 Long Term Performance Plan (2008 LTPP) and the 2008Directors Stock Incentive Plan (2008 DSIP). As a result, no subsequent awards in respect of shares of L-3 Holdings common stock have been or will be issued under the Companys 1997 Stock Option Plan, the 1998Directors Stock Option Plan and the 1999 Long Term Performance Plan (Prior Plans). Awards under the 2008 LTPP may be granted to any officer or employee of the Company or any of its subsidiaries, or to any other individual who provides services to or on behalf of the Company or any of its subsidiaries. Awards under the 2008 LTPP may be in the form of stock options, stock appreciation rights, restricted stock and other stock-based awards (including restricted stock units and performance units). Awards under the 2008 DSIP may be granted only to non-employee directors of the Company. Awards under the 2008 DSIP may be in the form of stock options, restricted stock, restricted stock units and minimum ownership stock. The 2008 LTPP and the 2008 DSIP are collectively referred to as the 2008 Plans. Under the terms of the 2008 LTPP, (i)the maximum number of shares of L-3 Holdings common stock that may be issued pursuant to full value awards (i.e., all awards other than stock options and stock appreciation rights) is 2,500,000, (ii)the maximum number of shares of L-3 Holdings common stock that may be issued pursuant to incentive stock option awards (i.e., stock options granted in accordance with Section422 of the U.S.Internal Revenue Code of 1986, as amended) is 3,000,000, (iii)the maximum number of shares of L-3 Holdings common stock that may be issued (or paid in cash by reference to such shares) pursuant to all awards granted during a calendar year to any individual participant is 500,000 and (iv)the maximum number of shares of L-3 Holdings common stock that may be issued (or paid in cash by reference to such shares) to any participant over the life of the 2008 LTPP with respect to performance-based awards may not exceed 5% of L-3 Holdings total outstanding shares of common stock. At December31, 2009, the number of shares of L-3 Holdings common stock authorized for grant under the 2008 Plans was 5.3million, of which 2.5million shares were still available for awards. To date, awards under the 2008 Plans and Prior Plans (collectively, the Plans) have been in the form of L-3 Holdings restricted stock, restricted stock units, performance units and options to purchase L-3 Holdings common stock. The Company adopted the Plans in order to provide incentives to directors, officers, employees and other individuals providing services to or on behalf of the Company and its subsidiaries. The Company believes that its stock-based compensation awards encourage high levels of performance by individuals who contribute to the success of the Company and enable the Company to attract, retain and reward talented and experienced individuals. This is accomplished by providing eligible individuals with an opportunity to obtain or increase a proprietary interest in the Co

Commitments and Contingencies

Commitments and Contingencies
	12 Months Ended Dec. 31, 2009
Commitments and Contingencies [Abstract]
Commitments and Contingencies	19. Commitments and Contingencies Non-Cancelable Operating Leases The Company leases certain facilities and equipment under agreements expiring at various dates through 2028. Certain leases contain renewal options or escalation clauses providing for increased rental payments based upon maintenance, utility and tax increases. No lease agreement imposes a restriction on the Companys ability to pay dividends, engage in debt or equity financing transactions, or enter into further lease agreements. The following table presents future minimum payments under non-cancelable operating leases with initial or remaining terms in excess of one year at December31, 2009. Real Estate Equipment Total (in millions) 2010 $ 151 $ 23 $ 174 2011 147 16 163 2012 100 12 112 2013 77 7 84 2014 67 6 73 Thereafter 166 23 189 Total minimum payments required 708 87 795 Less: Sublease rentals under non-cancelable leases 25 25 Net minimum payments required $ 683 $ 87 $ 770 Rent expense, net of sublease income, was $170million for 2009, $166million for 2008 and $162million for 2007. Letters of Credit The Company enters into standby letters of credit with financial institutions covering performance and financial guarantees pursuant to contractual arrangements with certain customers. The Company had total outstanding letters of credit aggregating to $360million, of which, $32million reduces the amount available to the Company under the Revolving Credit Facility at December31, 2009, and $372million, of which, $60million reduced the amount of available borrowings under the revolving credit facility at December31, 2008. These letters of credit may be drawn upon in the event of the Companys nonperformance. Guarantees The Company, from time to time, enters into contractual guarantees that arise in connection with its business acquisitions, dispositions, and other contractual arrangements in the normal course of business. In connection with the Companys acquisition of MAPPS in 2005, the Company acquired a 47.5% interest in FAST Holdings Limited (FAST), a joint venture corporation. FAST has been contracted to provide and operate training facilities and equipment for the United Kingdoms Astute ClassSubmarine Training Service program. The Company has guaranteed 50% of certain bank debt borrowed by FAST to finance its activities on this program. At December31, 2009, the Companys guarantee amounted to $46million. The Company will be released from the guarantee upon customer acceptance of all contract deliverables, which is expected to occur no later than 2010. The Company has two existing real estate lease agreements, which include residual guarantee amounts, expiring on August31

Pensions and Other Employee Ben

Pensions and Other Employee Benefits
	12 Months Ended Dec. 31, 2009
Pensions and Other Employee Benefits [Abstract]
Pensions and Other Employee Benefits	20. Pensions and Other Employee Benefits The Company maintains multiple pension plans, both contributory and non-contributory, covering employees at certain locations. Eligibility for participation in these plans varies and benefits are generally based on the participants compensation and/or years of service. The Companys funding policy is generally to contribute in accordance with cost accounting standards that affect government contractors, subject to the Internal Revenue Code and regulations thereon. Plan assets are invested primarily in listed stocks, mutual funds, corporate bonds, U.S.Government obligations and U.S.Government agency obligations. The Company also provides postretirement medical and life insurance benefits for retired employees and dependents at certain locations. Participants are eligible for these benefits when they retire from active service and meet the eligibility requirements for the Companys pension plans. These benefits are funded primarily on a pay-as-you-go basis with the retiree generally paying a portion of the cost through contributions, deductibles and coinsurance provisions. In accordance with accounting standards for employee pension and postretirement benefits, the Company recognizes the unfunded status of its pension and postretirement benefit plans in the consolidated financial statements and measures its pension and postretirement benefit plan assets and benefit obligations as of December31. The following table summarizes changes in the benefit obligations, the plan assets and funded status for all of the Companys pension and postretirement benefit plans, as well as the aggregate balance sheet impact. Postretirement Pension Plans Benefit Plans 2009 2008 2009 2008 (in millions) Change in benefit obligation: Benefit obligation at the beginning of the year $ 1,722 $ 1,688 $ 162 $ 183 Service cost 93 89 4 6 Interest cost 112 104 11 10 Plan participants contributions 3 3 4 4 Amendments 7 (4 ) 3 Actuarial loss/(gain) 68 (45 ) 21 (24 ) Foreign currency exchange rate changes 31 (44 ) 5 (7 ) Curtailments, settlements and special termination benefits 1 1 Transfers for product line divestiture (8 ) (1 ) Benefits paid (72 ) (66 ) (15 ) (13 ) Benefit obligation at the end of the year $ 1,964 $ 1,722 $ 188 $ 162 Change in plan assets: Fair value of plan assets at the beginning of the year $ 1,064 $

Supplemental Cash Flow Informat

Supplemental Cash Flow Information
	12 Months Ended Dec. 31, 2009
Supplemental Cash Flow Information [Abstract]
Supplemental Cash Flow Information	21. Supplemental Cash Flow Information Year Ended December31, 2009 2008 2007 (in millions) Interest paid $ 237 $ 267 $ 280 Income tax payments 387 343 200 Income tax refunds 13 8 7

Segment Information

Segment Information
	12 Months Ended Dec. 31, 2009
Segment Information [Abstract]
Segment Information	22. Segment Information The Company has four reportable segments, which are described in Note1. The Company evaluates the performance of its operating segments and reportable segments based on their sales and operating income. All corporate expenses are allocated to the Companys operating segments using an allocation methodology prescribed by U.S.Government regulations for government contractors. Accordingly, all costs and expenses, except for the litigation gain in 2008 (which was not included in the Companys segment performance measures), are included in the Companys measure of segment profitability. The tables below present net sales, operating income, depreciation and amortization, capital expenditures and total assets by reportable segment. Year Ended December31, 2009 2008(1) 2007(1) (in millions) Net Sales Products C3ISR $ 2,082 $ 1,794 $ 1,742 Government Services 302 282 273 AMM 688 647 640 Electronic Systems 4,739 4,607 4,102 Elimination of intercompany sales (295 ) (200 ) (185 ) Total products sales 7,516 7,130 6,572 Services C3ISR 1,090 778 564 Government Services 3,942 4,121 4,172 AMM 2,255 2,031 1,913 Electronic Systems 1,035 972 853 Elimination of intercompany sales (223 ) (131 ) (113 ) Total services sales 8,099 7,771 7,389 Consolidated total $ 15,615 $ 14,901 $ 13,961 Operating Income C3ISR $ 344 $ 244 $ 225 Government Services 397 426 407 AMM 243 243 250 Electronic Systems 672 646 (2) 566 Segment Total $ 1,656 $ 1,559 $ 1,448 Litigation gain (charge) 126 (3) Consolidated total $ 1,656 $ 1,685 $ 1,448 Depreciation and amortization C3ISR $ 43 $ 40 $ 40 Government Services 40 35 33 AMM 19 24 28 Electronic Systems 116 107 106 Consolidated total $ 218 $ 206 $ 207 Capital Expenditures C

Unaudited Quarterly Financial D

Unaudited Quarterly Financial Data
	12 Months Ended Dec. 31, 2009
Unaudited Quarterly Financial Data [Abstract]
Unaudited Quarterly Financial Data	23. Unaudited Quarterly Financial Data Unaudited summarized financial data by quarter for the years ended December31, 2009 and 2008 is presented in the table below. The Companys unaudited quarterly results of operations are affected, significantly in some periods, by our business acquisitions. See Note4. First Second Third Fourth Quarter Quarter Quarter Quarter (in millions, except per share data) 2009 Sales $ 3,636 $ 3,929 $ 3,842 $ 4,208 Operating income 376 417 418 446 Net income attributable to L-3 199 225 250 227 Basic EPS(1) 1.66 1.91 2.13 1.94 Diluted EPS(1) 1.66 1.90 2.12 1.93 2008 Sales $ 3,506 $ 3,722 $ 3,662 $ 4,011 Operating income 368 501 400 416 Income from continuing operations attributable to L-3 189 275 210 244 Net income attributable to L-3 189 275 210 264 Basic EPS(1): Income from continuing operations $ 1.53 $ 2.24 $ 1.71 $ 2.02 Gain on sale of a business, net of income taxes 0.16 Net income $ 1.53 $ 2.24 $ 1.71 $ 2.18 Diluted EPS(1): Income from continuing operations $ 1.51 $ 2.21 $ 1.70 $ 2.01 Gain on sale of a business, net of income taxes 0.16 Net income $ 1.51 $ 2.21 $ 1.70 $ 2.17 (1) Basic and diluted EPS amounts in each quarter are computed using the weighted-average number of shares outstanding during that quarter, while basic and diluted EPS for the full year is computed using the weighted-average number of shares outstanding during the year. Therefore, the sum of the four quarters basic or diluted EPS may not equal the full year basic or diluted EPS.

Financial Information of L-3 Co

Financial Information of L-3 Communications and Its Subsidiaries
	12 Months Ended Dec. 31, 2009
Financial Information of Parent Company and Its Subsidiaries [Abstract]
Financial Information of L-3 Communications and Its Subsidiaries	24. Financial Information of L-3 Communications and Its Subsidiaries Total shareholders equity for L-3 Communications equals that of L-3 Holdings, but the components, common stock, additional paid-in capital, treasury stock and retained earnings, are different. The table below presents information regarding the balances and changes in common stock, additional paid-in capital, treasury stock and retained earnings of L-3 Communications for each of the three years ended December31, 2009. L-3 Communications Common Stock Additional Shares Par Paid-in Treasury Retained Issued Value Capital Stock Earnings Total (in millions) Balance at December31, 2006 100 $ 3,466 $ $ 1,938 $ 5,404 Net income attributable to L-3 745 745 Contributions from L-3Holdings 351 351 Dividends to L-3 Holdings (626 ) (626 ) Balance at December31, 2007 100 3,817 2,057 5,874 Net income attributable to L-3 938 938 Contributions from L-3 Holdings 319 319 Dividends to L-3 Holdings (941 ) (941 ) Balance at December31, 2008 100 4,136 2,054 6,190 Net income attributable to L-3 901 901 Contributions from L-3 Holdings 313 313 Dividends to L-3 Holdings (671 ) (671 ) Balance at December31, 2009 100 $ 4,449 $ $ 2,284 $ 6,733 The net proceeds received by L-3 Holdings from (i)the sale of its common stock, (ii)exercise of L-3 Holdings employee and director stock options, and related tax benefits, and (iii)L-3 Holdings common stock contributed to the Companys savings plans are contributed to L-3 Communications. The amounts paid by L-3 Holdings for dividends and share repurchases are generated from dividends received from L-3 Communications. L-3 Communications is a wholly-owned subsidiary of L-3 Holdings. The debt of L-3 Communications, including the Senior Notes, Senior Subordinated Notes and borrowings under amounts drawn against th