Severance and Restructuring Related Costs

3 Months Ended

Mar. 30, 2018

Restructuring and Related Activities [Abstract]

Severance and Restructuring Related Costs

. Severance and Restructuring Related Costs

Consistent with the Company’s strategy to continuously improve its cost structure and right-size its businesses, 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, the Company recorded a total of $8 million of severance and restructuring related costs, with respect to approximately 200 employees during the quarterly period ended March 30, 2018. During the year ended December 31, 2017, the Company recorded a total of $101 million of severance and restructuring related costs with respect to approximately 1,500 employees. Severance and restructuring related costs are reported within operating costs and expenses on the unaudited condensed consolidated statements of operations. Severance and restructuring related costs incurred by reportable segment are presented in the table below.

	First Quarter Ended
	March 30, 2018		March 31, 2017
	(in millions)
Reportable Segment
Electronic Systems	$	2	$	3
Aerospace Systems	1		—
Communication Systems	5		9
Sensor Systems	—		2
Consolidated	$	8	$	14

The Company had severance and restructuring related liabilities of $14 million and $23 million included in other current liabilities on the Company’s balance sheets at March 30, 2018 and December 31, 2017, respectively. The remaining liability balance at March 30, 2018 is expected to be paid primarily by the end of 2018. The table below presents the change to the Company’s severance and restructuring related liability during the quarterly period ended March 30, 2018.

	March 30, 2018
	(in millions)
Balance at beginning of period	$	23
Additional provisions	8
Cash payments	(17		)
Balance at end of period	$	14