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Avon ProtectionA N N U A L R E P O R T 2 0 1 0 1 Select Financial Highlights In millions, except per share amounts For the year ended December 31, Net sales Operating income 2008 and 2006 Items 2010 2009 2008 (a) 2007 2006 (b) $15,680 $15,615 $14,901 $13,961 $12,477 1,750 1,656 1,685 1,448 — — (110) — 1,111 168 Operating income before Items 1,750 1,656 1,575 1,448 1,279 Income from continuing operations attributable to L-3 Net income attributable to L-3 (c) Diluted earnings per share from continuing operations 2008 and 2006 Items Diluted earnings per share from continuing operations before Items Diluted earnings per share (c) Net cash from operating activities Capital expenditures, net of dispositions Free cash flow(d) Equity 955 955 8.25 — 8.25 8.25 901 901 7.61 918 938 7.43 — (0.58) 7.61 7.61 6.85 7.59 745 745 5.86 — 5.86 5.86 516 516 4.13 0.83 4.96 4.13 1,461 1,407 1,387 1,270 1,074 171 1,290 6,855 182 1,225 6,660 203 1,184 5,941 149 1,121 6,114 154 920 5,439 (a) The year ended December 31, 2008, includes: (1) a pre-tax gain of $133 million ($81 million after income taxes, or $0.66 per diluted share) related to the reversal of a $126 million liability as a result of a June 27, 2008 decision by the U.S. Court of Appeals which vacated an adverse 2006 jury verdict and $7 million of related accrued interest, (2) a gain of $12 million ($7 million after income taxes, or $0.06 per diluted share) related to the sale of a product line, and (3) a non-cash impairment charge of $28 million ($17 million after income taxes, or $0.14 per diluted share) related to a write-down of capitalized software development costs for a general aviation product, which were recorded during the 2008 second quarter (collectively the “2008 Items”). (b) The year ended December 31, 2006, includes: (1) a pre-tax charge of $129 million ($78 million after income taxes, or $0.63 per diluted share) related to an adverse jury verdict, and (2) a pre-tax charge of $39 million ($25 million after income taxes, or $0.20 per diluted share) related to our voluntary review of past stock option granting practices, which were recorded during the 2006 second quarter (collectively the “2006 Items”). (c) Net income attributable to L-3 and diluted earnings per share for the year ended December 31, 2008 include an after-tax gain of $20 million, or $0.16 per diluted share related to the divestiture of our 85% ownership interest in Medical Education Technologies, Inc. (d) We define “free cash flow” as net cash from operating activities, less capital expenditures, net of dispositions. Sales (In millions) Operating Income Excluding items* (In millions) Diluted EPS from continuing operations Excluding items* Free Cash Flow (In millions) $ 1 4 , 9 0 1 $ 1 3 , 9 6 1 $ 1 5 , 6 1 5 $ 1 5 , 6 8 0 $ 1 2 , 4 7 7 $ 1 , 4 4 8 $ 1 , 2 7 9 $ 1 , 5 7 5 $ 1 , 6 5 6 $ 1 , 7 5 0 $ 5 . 8 6 $ 4 . 9 6 $ 8 . 2 5 $ 7 . 6 1 $ 6 . 8 5 $ 1 , 1 2 1 $ 1 , 1 8 4 $ 9 2 0 $ 1 , 2 9 0 $ 1 , 2 2 5 06 07 08 09 10 06 07 08 09 10 06 07 08 09 10 06 07 08 09 10 CAGR 6% CAGR 8% CAGR 14% CAGR 9% *Operating income and diluted EPS for 2008 and 2006 exclude the 2008 and 2006 Items, respectively, described above. This Summary Annual Report should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2010, included in this book. Efficiency is key. Innovation Opportunity Performance Pressing global needs create new markets. L-3 is structured for success. 2 L-3 2010 Annual Report 1 1 Dear Fellow Shareholders: I am pleased to report that 2010 was another year of record financial performance thanks to the successful efforts of our hard-working employees. Company-wide sales in 2010 were a record $15.7 billion, up from $15.6 billion in 2009, and we achieved a book-to-bill ratio of 1.04 to 1, despite several program and funding delays. Operating income was $1.8 billion, up 6 percent, and we reported record earnings per share for the year of $8.25 on a diluted basis, compared with 2009’s $7.61, an 8 percent increase. We generated strong cash flow in 2010. Net cash from operating activities was $1.46 billion, and free cash flow grew by 5 percent to $1.29 billion compared to last year. We used a disciplined approach to cash deployment with a focus on shareholder value. Over $1 billion was returned to our shareholders through the repurchase of $834 million of stock and $184 million in dividends. In 2010, our dividend increased to $.40 per share, the sixth consecutive increase, representing a compound annual growth rate of 26 percent since we initiated a dividend in 2004. We anticipate repur- chasing at least $500 million in company stock in 2011, as well as continuing to invest in our operations to accelerate growth, enhance our capabilities and expand our address- able markets both organically and through acquisitions. The company strengthened its balance sheet in 2010 by improving the maturity profile and reducing interest costs on our outstanding debt. Specifically, we issued $800 million of 4.75% senior notes maturing in 2020 and used the net proceeds, along with cash on hand, to redeem $800 million in 6 1/8% senior subordinated notes due in 2013 and 2014. L-3 also executed four important acquisitions in 2010 that align with our business model and contribute to our long-term vision. These negotiated transactions were immediately accretive to L-3’s earnings. We completed our acquisition of Insight Technology, a leader in mission-critical night vision and electro-optical equipment. By aligning Insight with our existing integrated soldier systems business to create the Warrior Systems sector, we increased our ever-expanding market share in this area. The addition of Airborne Technologies, Inc. complements L-3’s Unmanned Aircraft Systems (UAS) business by adding key platforms and components in the small expendable UAS area; and 3Di Technologies, a leading innovator in secure satellite and VoIP communica- tions, strengthens our position as a complete end-to-end SATCOM solutions provider. Finally, our acquisition of FUNA International, a supplier of control, safety, communications and entertainment systems for the marine industry, provides cross-marketing opportunities. One of L-3’s greatest assets is our ability to leverage our businesses to achieve our customers’ goals in ways that many of our competitors find challenging. We have successfully combined our systems integration capabilities with our state- of-the-art technologies, as well as logistics, training and other services, to provide complete solutions for major programs, such as the Rivet Joint and Expeditionary Unmanned Air- craft System (EUAS). Our integrated, collaborative approach has also resulted in newly developed solutions offered to our customers at a lower cost, including the Mobius™ UAS and ground station, and our Ruggedized Command and Control Network land vehicle system. We will continue to collaborate on other significant programs in 2011. Project Liberty is a perfect example of our integration strategy in action. L-3 performed at the highest quality level, under budget and significantly ahead of schedule. The C3ISR integration capabilities demonstrated on Project Liberty, coupled with our exemplary cost and schedule performance, make us a leader in the field and position us for more key contract awards. In recognition of L-3’s Project Liberty efforts, we were nominated for the Robert J. Collier Trophy for the most significant aeronautical achievement of 2010. L-3 was also recently honored with the John W. Dixon Award for its outstanding contributions to national defense by a member of the industrial community. I accepted the award on behalf of L-3’s employees who made this happen. Their dedication and commitment give me confidence that we will maintain our outstanding program performance. C3ISR continues as one of the company’s core growth drivers. As an innovator in this field, we work closely with our customers to constantly improve and expand our capa- bilities. During the year, we were selected as the lead inte- grator on the U.K.’s AIRSEEKER ISR aircraft program as part of a Foreign Military Sales agreement between the U.S. One of L-3’s greatest assets is our ability to leverage our businesses to achieve our customers’ goals. and U.K. governments. AIRSEEKER, the U.K.’s Nimrod R-1 replacement, is a complete capability and support solu- tion that includes aircraft modification, training systems, equipment maintenance and future system upgrades. We have already begun modification work on the first of three aircraft for this program at our facilities in Texas. The AIR- SEEKER program represents a new level of collaboration between the U.K. and U.S. in intelligence gathering. Opportunities also continue for our AM&M business. Our state-of-the-art solutions can be used on new platforms, or to retrofit and upgrade existing ones, which gives us limited exposure to major platform cancellations. We recently were awarded the Army C-12 logistics support contract, an important competitive win for L-3. We also continue to see new activity in our aircraft modification business, with the award of a major 747-8 upgrade contract for a foreign head of state. Despite a tougher business environment, our Gov- ernment Services segment continues to focus on building customer relationships, and has made important gains in the cybersecurity and information technology (IT) areas. L-3 was recently awarded a significant classified intelligence IT support contract, and we are investing in a new Network Operations and Security Center to support further growth in this arena. 2 L-3 2010 Annual Report 33 Our Electronic Systems segment includes market-lead- ing technologies, such as airborne and soldier-based EO/IR products, avionics, simulators and airport security systems. We expanded our industry-leading simulation and training expertise into the widebody aircraft market with the award of a C-17 training systems and services contract. In addi- Our lean and efficient operations align with the DoD’s goals. tion, L-3’s unique combination of SATCOM technology and responsiveness resulted in the award of the Panther™ VSAT manpack contract for the U.S. Special Operations Command’s (USSOCOM) SDN-Lite program. On the security front, our ProVision® system is deployed in 40 airports across the country and effectively and safely screens passengers under the TSA’s direction. We are making solid progress on the next generation of screening systems, which utilizes software-driven Auto- matic Target Detection (ATD) technology with image-free analysis that eliminates privacy concerns. ProVision ATD has been in use for more than a year internationally and is currently undergoing testing at airports across the coun- try. We anticipate TSA certification and contract awards throughout 2011. L-3 embraces the Department of Defense’s (DoD) five-year spending plan and corresponding efficiency and cost-reduction initiatives. We are constantly working to deliver greater value to our customers, and our lean and efficient operations align with the DoD’s goals. Most of the major program cuts that have been announced will have little or no impact on L-3’s business. Moreover, the government’s announced savings will likely be utilized to invest in areas of L-3’s core strengths—C3ISR, intelligence support, EO/IR sensors, logistics support, platform upgrades and counter-terrorism initiatives. Accordingly, we are confident that our business model and approach support long-term growth. Our business strategy includes expansion of L-3’s presence in key international markets. We see additional opportunities across our business segments in C3ISR, mari- time systems, training, simulators, aircraft modification, EO/IR products, and security and detection systems. L-3’s reputation is built on our innovative technologies, strong customer focus and ethical culture. Our status as both a prime and subcontractor affords us the flexibility to pursue a wide array of opportunities. This ability, com- bined with strong program performance, demonstrates the effectiveness of our long-term strategic initiatives and vision. We will also continue to evaluate and reshape our portfolio of businesses to most effectively address customer priorities and promote growth. Our business course is clear. While the environment is challenging, L-3 will remain efficient and competitive, continuing to support our customers’ requirements and building long-term shareholder value. I look forward to a successful 2011. Sincerely, Michael T. Strianese Chairman, President and Chief Executive Officer Special Note: On behalf of the entire corporation, I would like to thank General (Ret.) John M. Shalikashvili for his more than 12 years of distinguished service as a member of our Board of Directors. John will retire in April 2011 to become Director Emeritus, where he will continue to advise L-3 in a consulting role. The strengths and structure Agile Collaborative Focused efficiently, competitively and effectively. to meet our customers’ critical needs 4 L-3 2010 Annual Report 5 We live in a world where customers need solutions right now. Agility is the new differentiator. Threats are evolving quickly. The time for large, far-horizon programs has passed, and there is no tolerance for budget overruns and missed deadlines. The expectation is value through quick, agile response and consistent on-budget and on-schedule completion. From the very beginning, L-3’s quick response has made Project Liberty an example of agility and cooperation between industry and customer. The first aircraft went from contract to combat in just eight months. By the end of 2010, L-3 had delivered its 37th Project Liberty aircraft, ahead of schedule, and received orders for five more. To date, the Project Liberty fleet has achieved superior mission availability— nearly 99 percent over more than 14,000 sorties. Agility realized on every front. L-3’s track record stands out. L-3’s reputation for strong contract performance and quick customer response is a key business driver. Its SATCOM terminals are used throughout the U.S. military, providing the information needed for mission-critical decisions. In 2010, L-3 celebrated a milestone with the delivery of its 3,000th CSS SATCOM U.S. Army VSAT, a staple of the Army’s data technology arsenal. When L-3 used its expertise to reduce the size of its VSAT to fit in a rucksack, USSOCOM ordered its lightweight and rugged Panther™ manpack SATCOM system, enabling high-speed communica- tions for any mission. L-3’s forward thinking and quick turnaround lead to more effective solutions. VSAT units Panther™ VSAT manpack SIR MR-TCDL Global threats are not diminishing. They’re growing. Investment is critical. All over the world, for nations and businesses alike, current threats to security are not going away. In fact, many are growing, and new dangers are emerging every day. This is a time for vigilance and strength. Since 2004, L-3 has continued developing its ROVER product line, a powerful tool for the warfighter in the field. ROVER enables real-time communication and collaboration between ground forces, ships, aircraft and UASs for enhanced situational aware- ness and effectiveness. In 2010, L-3 developed the next-generation ROVER 6 for the U.S. Army, transforming sensor-to-shooter networking by providing increased levels of collaboration and interoperability in the field. Connecting warfighters in real time. Timely, secure communications are critical to operational success. L-3 is a leader in wideband data links and tactical receivers that enhance ground ISR missions. Based on ROVER technology, L-3 developed the Soldier ISR Receiver (SIR), the smallest, most versatile tactical ISR video receiver available. In 2010, L-3 intro- duced its Multi-Role Tactical Common Data Link (MR-TCDL), an advanced mobile Air and Ground Terminal Equipment solution. For the first time, warfighters in disparate subnets can transmit and receive high data rate video communications over ground, airborne and satellite networks. By providing better information faster, L-3 is giving the edge to the warfighter. 6 L-3 2010 Annual Report 7 National security is not an option. It is an imperative. An established provider of full-spectrum IT services, L-3 is building a new Cyber Solutions Center to support national security missions. In collabora- tion with applied research institutions, emerging technology partners and government sponsors, the new center will offer innovative cyber solu- tions that enhance our customers’ ability to secure their critical networks against exploitation and attack. As a valued partner to the military, intelligence, law enforcement, homeland security and public safety communities, L-3 applies best practices and integrated cybersecurity technologies to enable mission resilience. Using an advanced analytics risk management platform, L-3 will develop real-time active defense capabilities for both its network and customer networks to protect against cyber threats at home and abroad. Mission-critical L-3 solutions. In a dangerous world, L-3 invests in state-of-the-art solutions to meet rapidly evolving security requirements. L-3’s latest generation of MX™-15Di and MX™-20D imaging turrets features the industry’s most powerful high- definition EO/IR sensors for airborne ISR, providing laser targeting for critical warfighter operational needs. L-3 meets the most vital security demands of its customers. Using proven and safe active millimeter wave technol ogy, L-3 also develops advanced screening solutions to protect airports, courthouses, embassies and border crossings from a variety of threats. Innovation is crucial. Disruptive ideas win. The types of innovation that take billions and decades to develop no longer work. Often the most valuable innovation is disruptive thinking— solutions that apply existing technologies to save money, improve performance, or both. A simple idea meets advanced technology in wide-field night vision for the warfighter. L-3’s panoramic night vision goggles represent an evolutionary milestone in improved situational awareness by more than doubling the user’s field of view. With the creation of Warrior Systems, L-3 has an unmatched capability to provide a broad range of night vision and electro-optical products, leading in the development of disruptive technology in this area. Leveraging L-3’s diverse strengths. L-3’s unique business diversity means more ways to use its vast knowledge and technical expertise to deliver market-disruptive solu- tions. The cutting-edge Cutlass UAS provides portable air- or tube- launched capability that changes the way intelligence is gathered in the most challenging environments. L-3’s lightweight Bandit data link gives small unmanned aircraft systems the ability to digitally encrypt and transmit data and full-motion video—a game-changing capability. The result: high-performance, cost-competitive innovation. 8 L-3 2010 Annual Report 9 EO/IR imaging turret ProVision® Checkpoint Cutlass UAS Bandit data link L- 3 BUS I N ES S S EG M EN TS C3ISR Command, Control, Communications, Intelligence, Surveillance and Reconnaissance Warfare and threats to global security have changed. Current emphasis is on small aircraft capabilities that support real-time situational awareness and rapid response to constantly evolving threats. This plays directly into L-3’s industry-leading strength in C3ISR, an increasingly mission-critical need in today’s military operating environment. For more than a decade, L-3 has been an innova- tor in the development and integration of airborne ISR, data links, encryption technologies, network communications and tactical battlefield sensors. The ability to rapidly configure innovative, fully integrated solutions from a broad array of high-performance products and technologies has made L-3 a critical resource for a growing number of global customers. • EP-3E Spiral 3-Configured ISR Aircraft—L-3 is equipping this U.S. Navy aircraft with state-of-the-art technology from L-3 and key subcontractors that increases its ISR and networking capabilities. • SAFEGARD—L-3 will supply its Gen4 software-defined modem technology, enabling the industry’s first gigabit class air-to-ground RF communications system for the U.S. Air Force. • Battlefield Anti-Intrusion System (BAIS)—L-3 received a multi-year ID/IQ U.S. Army contract for its compact, sensor-based early warning system for small tactical units. • Tactical Remote Sensor Systems (TRSS)—The U.S. Marine Corps selected L-3 to provide equipment, upgrades and repairs, and program management related to this unattended ground sensor system. Providing ISR capability to the U.K. For the AIRSEEKER program, L-3 will lead the conver- sion of KC-135 tankers into advanced RC-135 ISR aircraft for a system that will be supported, maintained and upgraded as part of a larger U.S./U.K. fleet. Collaborating to deliver Coast Guard capability Using best-in-class technology from multiple divisions, L-3 efficiently and cost-effectively equipped the most capable patrol boat in the U.S. Coast Guard, the Fast Response Cutter, with leading-edge navigation, voice communications, and alarm and announcement systems. Government Services Developed countries are rediscovering the fact that contracting specialized expertise is an economical and effective way to meet challenges in intelligence, homeland security and other critical areas of responsibility. Meanwhile, nations in transition, such as Iraq and Afghanistan, can benefit from the support of outside experts as they seek to develop the infrastructure needed to achieve peace, stability and prosperity. In an increasingly competitive environment, L-3 is leveraging its unique strengths—highly experienced people, broad global presence, established customer relationships, and a solid reputa- tion for skilled, ethical, cost-effective contract management. • U.S. Intel Support—L-3 is providing tailored solutions and support personnel for all U.S. government organizations, using global, quick-reaction capabilities to anticipate future requirements. • Cybersecurity—L-3 delivers solutions for all missions within the cyber domain, developing and maintaining secure networks and telecommunications systems for the U.S. government and other customers. In 2010, the U.S. Air Force awarded L-3 a large cybersecurity contract. Continued ACCOLADE growth L-3’s ACCOLADE Wireless Mesh mine communications system is a sophisticated and survivable voice and data network designed to reliably connect miners underground with personnel above ground. Currently operating in 40 mines across eight states, ACCOLADE is scheduled to be installed at 22 additional locations in 2011. 24x7x365 Support for Homeland Security L-3 service personnel support the daily operations and maintenance of the Air and Marine Operations Surveillance System (AMOSS) for the Department of Homeland Security at the Air and Marine Opera- tions Center (AMOC) in Puerto Rico. The AMOSS mission: help U.S. Customs agents stem the flow of narcotics into the United States. 10 L-3 2010 Annual Report 11 11 L- 3 BUS I N ES S S EG M EN TS AM&M Aircraft Modernization and Maintenance A decade of conflict and elevated threat levels is taxing existing military air fleets as never before. In this environment, the continuous repair, maintenance, upgrading, retrofitting and resetting of fleets have become crucial requirements that align precisely with L-3’s expertise and experience. L-3’s extensive AM&M capabilities and performance are lead- ing the way in sustaining the long-term viability of today’s high- demand, aging fleets of specialty aircraft and mission systems. L-3 has also been meeting the growing need for special mission and head-of-state aircraft modification, helicopter maintenance and training, and aerostructures and subassemblies. • Life-Cycle Contractor Support (LCCS) for U.S. Army C-12, RC-12, UC-35 Aircraft—L-3 is providing total system maintenance, repair, modification, service, logistical support and management processes for the U.S. Army’s worldwide fleet of 189 aircraft. • USSOCOM MC-130W Dragon Spear Precision Strike Package— Partnering with USSOCOM and the Joint Acquisition Task Force, L-3 is performing rapid systems integration to install a technology package that includes integrated precision strike, ISR and battle management systems for armed overwatch missions, in a matter of months. • EC-130H Compass Call Center Wing Boxes—L-3 is executing structurally extensive and complex center wing box replacement for C-130s as part of life-extending modification and maintenance for the U.S. Air Force Compass Call fleet. Award-winning helicopter fleet MRO L-3 provides world-class aviation maintenance and logistics support to the U.S Army. In 2010, L-3 received the prestigious Robert E. Fox Public Organization Award for process and productivity improvement as a maintenance, repair and overhaul (MRO) contractor to the fleet of training helicopters based at Fort Rucker, Alabama. Electronic Systems Cutting-edge technology is critical to success in every military, government and commercial sector today. Keeping pace with the blinding speed of technology’s advancement is a huge challenge, and L-3 is uniquely equipped to help customers address it. L-3’s diverse business mix also creates the strategic versatility to contribute to its success as a prime contractor or to compete as part of teams formed by other primes. In addition to market-leading, innovative offerings, L-3 has created strong, cohesive capabilities in highly relevant areas. • U.S. Navy Submarine Programs—L-3 is supplying essential products and systems for performance and cost reduction on the Virginia Class Submarine Program, as well as concept designs for propulsion and power distribution systems for the Ohio Replacement Program, the Navy’s next-generation subsurface vessel. • T-AGM 25 Program—L-3 designed, supplied, integrated and commissioned the power, propulsion and automation plant onboard the USNS Howard O. Lorenzen, having successfully completed builder’s sea trials. • SATCOM On-The-Move for Warfighter Information-Tactical (WIN-T)—L-3 has successfully tested both its Communications- On-The-Move (COTM) terminal and the Network Centric Modem, enabling high-speed IP connectivity for the U.S. Army on the move. • Towed Array Systems—L-3 received follow-on contracts from the U.S. Navy to continue development through 2013 of its next- generation Thinline Towed Array Sonar System. L-3 is also execut- ing production options for its TB-34 Fatline System for improved anti-submarine warfare and contact avoidance capabilities. • T3CAS™ Traffic Management Computer—The T3CAS from ACSS, an L-3 Communications and Thales company, was certified in 2010 for use on the Airbus A320 family of jets. • Integrated Starter Generator (ISG) for Bradley Fighting Vehicle—L-3’s ISG module has been integrated into its HMPT steering transmissions to generate power required for vehicle onboard and exportable needs. • F-35 Joint Strike Fighter (JSF) Panoramic Cockpit Display— L-3’s lightweight, high-performance Panoramic Cockpit Display (PCD) subsystem provides the F-35 with the most advanced com- puting processing and display technology available. • Enhanced Night Vision Goggles (ENVG)—As an industry-lead- ing supplier of specialized imaging products for the U.S. military, L-3 was one of four companies selected by the U.S. Army to provide 880 ENVGs for testing. C-17 aircrew and maintenance training L-3 was awarded a service contract for the C-17 Globemaster III aircraft training system, which includes instruction, contractor logistics support and ongoing updates to ensure that aircrew and maintenance training systems keep up with aircraft modifications. Canadian CF-18 sustainment The Canadian government extended L-3’s contract to maintain its fleet of 78 CF-18 Hornet fighter jets from 2010 through 2017, with an option of three additional years. L-3 technology on the new E-2D Advanced Hawkeye L-3 developed new rotodome and UHF array antenna technology for the U.S. Navy’s first E-2D Advanced Hawkeye, a carrier-based airborne early warning and battle management command and control system. NACOS advanced ship automation In 2010, L-3 launched its NACOS Platinum Vessel Control System and developed VALMATIC Platinum™, a fourth-generation technology platform for advanced ship automation. NACOS features a suite of modular components to support a complete portfolio of navigation and automation applications for ships. 12 L-3 2010 Annual Report 13 13 m A N Ag Em EN T CO RP O R AT E INf O Rm AT ION b O A R d O f d I R E C T O R s Michael T. Strianese Chairman, President and Chief Executive Officer Claude R. Canizares General (Ret.) John M. Shalikashvili Alan H. Washkowitz Member of the Audit Committee Member of the Compensation Committee Chairman of the Nominating/ Member of the Nominating/ Corporate Governance Committee Member of the Executive Committee Thomas A. Corcoran Corporate Governance Committee Member of the Compensation Committee Robert B. Millard Lead Independent Director Chairman of the Audit Committee Member of the Executive Committee Arthur L. Simon John P. White Member of the Audit Committee Member of the Compensation Committee Chairman of the Compensation Committee Lewis Kramer Member of the Nominating/Corporate Member of the Nominating/ Chairman of the Executive Committee Member of the Audit Committee Governance Committee Corporate Governance Committee Member of the Compensation Committee E x E C U T I v E m A N Ag E m E N T Curtis Brunson Executive Vice President of Corporate Strategy and Development Ralph G. D’Ambrosio Senior Vice President and Chief Financial Officer Steven M. Post Senior Vice President, General Counsel and Corporate Secretary Richard A. Cody Vice President of Washington Operations g R O U P P R E s I d E N T s James W. Dunn Steve Kantor John C. McNellis Charles J. Schafer Senior Vice President and President Senior Vice President and President Senior Vice President and President Senior Vice President and President of Sensors & Simulation Group of L-3 Services Group of Integrated Systems Group of Products Group Robert E. Leskow John S. Mega Susan D. Opp Vice President and President Vice President and President Vice President and President of Marine & Power Systems Group of Microwave Group of Communication Systems Group CORPORATE HEAdqUARTERs EqUAL OPPORTUNITy EmPLOyER You can contact the corporate headquarters by writing to: L-3 Communications is an equal opportunity employer and does not discriminate L-3 Communications 600 Third Avenue New York, NY 10016 on the basis of age, race, sex, sexual orientation, creed, color, national origin, ancestry, marital status, disability or any other characteristic protected by law. All employment-related decisions are based solely on business needs and or by calling 212-697-1111. To send a fax, dial 212-867-5249. relevant competencies related to the position. CORPORATE INfORmATION sAfE HARbOR sTATEmENT UNdER THE PRIvATE sECURITIEs News media, analysts, shareholders and others seeking corporate LITIgATION REfORm ACT Of 1995 information about L-3 Communications should contact corporate Except for historical information contained herein, the matters set forth in this communications at 212-697-1111. PRINTEd mATERIALs Annual Report are forward-looking statements. Statements that are predictive in nature, that depend upon or refer to events or conditions or that include words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “estimates” and Printed financial and governance materials may be obtained without similar expressions are forward-looking statements. The forward-looking state- charge by calling (866) INFO-LLL (866-463-6555). ments set forth herein involve a number of risks and uncertainties that could cause INTERNET actual results to differ materially from any such statement, including the risks and uncertainties discussed in the Company’s Safe Harbor Compliance Statement for You can access quarterly and annual financial information, news Forward-looking Statements included in the Company’s recent filings, including releases and an overview of the company’s products and services Forms 10-K and 10-Q, with the Securities and Exchange Commission. The forward- through the L-3 Communications website at www.L-3com.com. ”looking statements speak only as of the date made, and the Company undertakes sTOCk ExCHANgE LIsTINg no obligation to update these forward-looking statements. For a discussion of other risks and uncertainties that could impair our results of operations or financial The common stock of L-3 Communications Holdings, Inc. is traded on the condition, see Part I - Item 1A -“Risk Factors” and Note 19 to our audited consoli- New York Stock Exchange (NYSE) under the symbol LLL. dated financial statements, included in our Annual Report on Form 10-K for the year ANNUAL mEETINg The annual meeting of shareholders will be held at 2:30 p.m. on Tuesday, CREdITs April 26, 2011, at The Ritz-Carlton New York, Battery Park, Two West Street, Design: Froeter Design Company, Chicago. ended December 31, 2010. New York, NY. sHAREHOLdER AssIsTANCE tute DoD endorsement of this organization, its products or services. If you have questions concerning your shareholder account, please contact Use of U.S. DoD images featured throughout this report does not imply or consti- © 2011 L-3 Communications Holdings, Inc. Printed in the U.S.A. the stock transfer agent: REgULAR mAIL Computershare Trust Company, N.A. P.O. Box 43078 Providence, RI 02940-3078 OvERNIgHT dELIvERIEs 250 Royall Street Canton, MA 02021 or call 877-282-1168 (781-575-2879 from outside the United States). For the hearing impaired, the phone number is TDD: 800-952-9245. You can also contact the stock transfer agent at its website at: www.computershare.com. 14 L-3 2010 Annual Report 15 L - 3 CO m m U N I C A T I O N s 6 0 0 T H I R d A v E N U E N E w y O R k , N y 1 0 0 1 6 16 L-3 2010 Annual Report
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