Acquisitions and Divestitures (Tables)

6 Months Ended

Jun. 30, 2017

Net Sales and Income Before Income Taxes for OceanServer and ETD

Net sales and income before income taxes for Open Water Power, OceanServer and the ETD business, included in L3’s unaudited condensed consolidated statement of operations for the quarterly and first half periods ended June 30, 2017, are presented in the table below.

	Second Quarter Ended June 30, 2017		First Half Ended June 30, 2017
	(in millions)
Net sales	$	17	$	36
Income before income taxes	$	2	$	3

Unaudited Pro Forma Statements of Operations Data

The following unaudited pro forma Statements of Operations data present the combined results of the Company and its business acquisitions completed during the first half period ended June 30, 2017 and the year ended December 31, 2016, assuming that the business acquisitions completed during 2017 and 2016 had occurred on January 1, 2016 and January 1, 2015, respectively. The unaudited pro forma Statements of Operations data below include adjustments for additional amortization expense related to acquired intangible assets depreciation assuming the 2017 and 2016 acquisitions had occurred on January 1, 2016 and January 1, 2015, respectively.

	Second Quarter Ended				First Half Ended
	June 30, 2017		June 24, 2016		June 30, 2017		June 24, 2016
	(in millions, except per share data)
Pro forma net sales	$	2,732	$	2,730	$	5,405	$	5,130
Pro forma income from continuing operations attributable to L3	$	202	$	149	$	366	$	313
Pro forma net income attributable to L3	$	202	$	149	$	366	$	376
Pro forma diluted earnings per share from continuing operations	$	2.54	$	1.90	$	4.61	$	3.98
Pro forma diluted earnings per share	$	2.54	$	1.90	$	4.61	$	4.78

NSS [Member]

Statement of Operations Data Classified as Discontinued Operations

The table below presents the statement of operations data for NSS, which was previously a reportable segment and has been classified as a discontinued operation, and includes allocated interest expense for debt not directly attributable or related to L3’s other operations. Interest expense was allocated in accordance with the accounting standards for discontinued operations and was based on the ratio of NSS’s net assets to the sum of: (1) total L3 consolidated net assets and (2) L3 consolidated total debt.

	First Half Ended
	June 24, 2016
	(in millions)
Net sales	$	86
Cost of sales		(92	)
Gain related to business divestiture		64
Operating income from discontinued operations		58
Interest expense allocated to discontinued operations		―
Income from discontinued operations before income taxes		58
Income tax benefit		5
Income from discontinued operations, net of income taxes	$	63