XML 45 R32.htm IDEA: XBRL DOCUMENT v3.7.0.1
Severance and Restructuring Costs
 6 Months Ended
Jun. 30, 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 $12 million and $26 million of severance and restructuring costs, with respect to approximately 400 employees, during the quarterly and first half periods ended June 30, 2017, respectively. 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 $16 million at June 30, 2017 and $9 million at December 31, 2016, which is expected to be paid primarily by the second quarter of 2018. Severance and restructuring costs incurred by reportable segment are presented in the table below.

Second Quarter Ended
First Half Ended
June 30,
2017
June 24,
2016
June 30,
2017
June 24,
2016
(in millions)
Reportable Segment
 
 
 
 
 
 
 
 
 
Electronic Systems
$
2
 
$
2
 
$
5
 
$
2
 
Aerospace Systems
 
1
 
 
—
 
 
1
 
 
—
 
Communication Systems
 
9
 
 
1
 
 
18
 
 
2
 
Sensor Systems
 
—
 
 
1
 
 
2
 
 
2
 
Consolidated
$
12
 
$
4
 
$
26
 
$
6