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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).&amp;#160;&amp;#160;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 contractor in Command, Control, Communications,
    Intelligence, Surveillance and Reconnaissance
    (C&lt;sup style="font-size: 85%; vertical-align: top"&gt;3&lt;/sup&gt;ISR)
    systems, aircraft modernization and maintenance, and government
    services. L-3 is also a leading provider of a broad range of
    electronic systems used on military and commercial platforms.
    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
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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.
    Financial information with respect to each of the Company&amp;#8217;s
    reportable segments is included in Note&amp;#160;21.
    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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