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       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-3 Holdings 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
       (C&lt;sup style="font-size: 85%; vertical-align: top"&gt;3&lt;/sup&gt;ISR)
       systems, and government services. L-3 is also a leading provider
       of high technology products, subsystems and systems. The
       Company&amp;#8217;s customers include the U.S.&amp;#160;Department of
       Defense (DoD) and its prime contractors, U.S.&amp;#160;Government
       intelligence agencies, the U.S.&amp;#160;Department of Homeland
       Security (DHS), U.S.&amp;#160;Department of State (DoS),
       U.S.&amp;#160;Department of Justice (DoJ), allied foreign
       governments, domestic and international commercial customers and
       select other U.S.&amp;#160;federal, state and local government
       agencies.
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       The Company has the following four reportable segments,
       comprised of:
       (1)&amp;#160;C&lt;sup style="font-size: 85%; vertical-align: top"&gt;3&lt;/sup&gt;ISR,
       (2)&amp;#160;Government Services, (3)&amp;#160;Aircraft Modernization
       and Maintenance (AM&amp;#038;M), and (4)&amp;#160;Specialized Products.
       Financial information relating to the Company&amp;#8217;s reportable
       segments is included in Note&amp;#160;20.
       C&lt;sup style="font-size: 85%; vertical-align: top"&gt;3&lt;/sup&gt;ISR
       provides products and services for the global ISR market,
       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, 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 training and operational
       support services, enterprise information technology solutions,
       intelligence solutions and support, command&amp;#160;&amp;#038; control
       systems and software services and global security&amp;#160;&amp;#038;
       engineering solutions services. AM&amp;#038;M provides
       modernization, upgrades and sustainment, maintenance and
       logistics support services for military and various government
       aircraft and other platforms. Specialized Products provides a
       broad range of products, including components, products,
       subsystems, systems, and related services to military and
       commercial customers in several niche markets across several
       business areas, including power&amp;#160;&amp;#038; control systems,
       electro-optic/infrared (EO/IR), microwave, avionics&amp;#160;&amp;#038;
       displays, simulation&amp;#160;&amp;#038; training, precision engagement,
       security&amp;#160;&amp;#038; detection, propulsion systems,
       telemetry&amp;#160;&amp;#038; advanced technology, undersea warfare and
       marine services.
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