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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.
       &lt;font style="white-space: nowrap"&gt;(L-3&amp;#160;Holdings&lt;/font&gt;
       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 United States (U.S.)
       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;Electronic Systems
       (previously named Specialized Products). During the 2009 fourth
       quarter, the Company renamed the Specialized Products reportable
       segment Electronic Systems to better describe the nature of the
       segment&amp;#8217;s businesses. Financial information with respect to
       each of the Company&amp;#8217;s reportable segments is included in
       Note&amp;#160;22.
       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, analytical, information technology (IT), advisory,
       training, logistics 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 National Defense and other allied foreign
       governments. Electronic Systems provides a broad range of
       products and services, 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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