Full Description

L-3 Communications Holdings, Inc. (L-3 Holdings), through its wholly owned subsidiary, L-3 Communications Corporation(L-3), is a prime system contractor in aircraft modernization and maintenance (AM&M), command, control, communications, intelligence, surveillance and reconnaissance (C3ISR) systems, and government services. L-3 is also a provider of technology products, subsystems and systems. The Company’s customers include the United States Department of Defense (DoD) and its prime contractors, United States Government intelligence agencies, the Unites States Department of Homeland Security (DHS), Unites States Department of State (DoS), United States Department of Justice (DoJ), allied foreign governments, commercial customers and select other United States federal, state and local government agencies. The Company operates in four segments: C3ISR, Government Services, Aircraft Modernization and Maintenance (AM&M), and Specialized Products. On January 30, 2009, the Company completed the acquisition of Chesapeake Sciences Corporation.

On October 8, 2008, the Company divested its 85% ownership interest in Medical Education Technologies, Inc. (METI). On March 14, 2008, the Company completed the acquisition of HSA Systems Pty Limited. On April 21, 2008, it acquired Electro-Optical Systems. On July 25, 2008, it acquired G.A. International Electronics and subsidiaries and on December 3, 2008, it acquired International Resources Group Ltd.

Command, Control, Communications, Intelligence, Surveillance and Reconnaissance Systems

During the year ended December 31, 2008, C3ISR represented 17% of the Company’s total net sales. The businesses in this segment provide products and services for the global intelligence, surveillance and reconnaissance (ISR) market, specializing in signals intelligence (SIGINT) and communications intelligence (COMINT) systems. These products and services provide to the warfighter in real-time ability to collect and analyze unknown electronic signals from command centers, communication nodes and air defense systems for real-time situational awareness and response. The businesses in this reportable segment also provide command, control and communications (C3) systems, networked communications systems and secure communications products for military, and other United States Government and foreign government ISR applications. 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

During 2008, Government Services represented 29% of the Company’s total net sales. The businesses in this segment provide a range of engineering, technical, information technology (IT), advisory, training and support services to the DoD, DoS, DoJ and United States Government intelligence agencies and allied foreign governments. Major services for this segment include communication software support, information technology services, and a range of engineering development services and integration support; engineering and information systems support services used for C3 and ISR architectures, as well as for air warfare modeling and simulation tools for applications used by the DoD, DHS and United States Government intelligence agencies; developing and managing extensive programs in the United States and internationally; human intelligence support and other services, command and control systems and software services in support of maritime and expeditionary warfare; intelligence solutions support to the DoD, including the Unites States Armed Services combatant commands and the Unites States Government intelligence agencies; technical and management services, which provide support of intelligence, logistics, C3 and combatant commands, and conventional enterprise information technology (IT) support, systems and other services to the DoD and other United States federal agencies.

Aircraft Modernization and Maintenance

During 2008, AM&M represented 18% of the Company’s total net sales. The businesses in this segment provide modernization, upgrades and sustainment, maintenance and logistics support services for military and various government aircraft and other platforms. It sells these services primarily to the DoD, the Canadian Department of National Defense (DND) and other allied foreign governments. Major products and services for this segment include engineering, modification, maintenance, logistics and upgrades for aircraft, vehicles and personnel equipment; turnkey aviation life cycle management services that integrate custom developed and commercial off-the-shelf products, and aerospace and other technical services related to large fleet support, such as aircraft and vehicle modernization, maintenance, repair and overhaul, logistics, support and supply chain management.

Specialized Products

During 2008, Specialized Products represented 36 % of the Company’s total net sales. The businesses in this segment provide a range of products, including components, products, subsystems, systems and related services to military and commercial customers in several niche markets.