L-3 Communications Holdings Inc. Annual Report 2010

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FY2010 Annual Report · L-3 Communications Holdings Inc.

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A N N U A L R E P O R T 2 0 1 0

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

8.25

—

8.25

901

7.61

918

938

7.43

—

(0.58)

7.61

6.85

7.59

745

5.86

—

5.86

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

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.

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.

L-3 2010 Annual Report

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

L-3 2010 Annual Report

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.

L-3 2010 Annual Report

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.

L-3 2010 Annual Report

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.

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.

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

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

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-

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.

L-3 2010 Annual Report

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

L-3 2010 Annual Report