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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 foreign 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:
       (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 with respect to each of 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,
       C&lt;sup style="font-size: 85%; vertical-align: top"&gt;3&lt;/sup&gt;
       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, information technology (IT), advisory, training and
       support services to the DoD, DoS, DoJ, and U.S.&amp;#160;Government
       intelligence agencies and allied foreign governments. AM&amp;#038;M
       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
       Defense (DND) and other allied foreign governments. 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,
       simulation&amp;#160;&amp;#038; training, precision engagement, aviation
       products, security&amp;#160;&amp;#038; detection, propulsion systems,
       displays, telemetry&amp;#160;&amp;#038; advanced technology, undersea
       warfare, and marine services.
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