L3 Technologies layoffs, on the record
Every job cut, severance charge and restructuring L3 Technologies reported in its annual reports, 2016 to 2018, quoted from the filings. Headcount went from approximately 38,000 to approximately 31,000.
Headcount, as reported
| Annual report | Employees | As of |
|---|---|---|
| 10-K for 2016 | approximately 38,000 | December 31, 2016 |
| 10-K for 2017 | approximately 31,000 | December 31, 2017 |
| 10-K for 2018 | approximately 31,000 | At December 31, 2018 |
Job cuts, severance and restructuring
Our summaryCompleted employment reduction actions across several businesses to cut direct and indirect costs, recording severance and termination costs for about 700 employees.
Word for word“As a result of these initiatives and due to the impact of U.S. defense budget constraints at certain affected business units, the Company recorded employee severance and other termination costs of $17 million with respect to approximately 700 employees during the year ended December 31, 2016, $18 million with respect to approximately 800 employees during the year ended December 31, 2015 and $29 million with respect to approximately 1,800 employees during the year ended December 31, 2014.” 10-K for 2016
Our summaryCarried a remaining severance balance from the initiatives into 2017, after the balance at December 31, 2015 was paid during 2016.
Word for word“The remaining balance to be paid in connection with these initiatives was $9 million at December 31, 2016, which is expected to be paid in 2017, and $9 million at December 31, 2015, which was paid during 2016.” 10-K for 2016
Our summaryL3 completed employment reduction actions across several businesses to cut direct and indirect costs, recording severance and restructuring costs for about 1,500 employees.
Word for word“As a result of these initiatives, the Company recorded employee severance and restructuring related costs of $101 million with respect to approximately 1,500 employees during the year ended December 31, 2017, $17 million with respect to approximately 700 employees during the year ended December 31, 2016 and $18 million with respect to approximately 800 employees during the year ended December 31, 2015.” 10-K for 2017
Our summarySeverance and restructuring costs at the Company's segments in 2017 included a $12 million loss on the sale of a building in Garland, Texas, and pension curtailment losses.
Word for word“(3) The severance and restructuring related costs incurred during the year ended December 31, 2017 include a $12 million loss on the sale of a building in Garland, Texas in the fourth quarter of 2017.” 10-K for 2017
Our summaryIn 2017 L3 reported severance and restructuring costs of $59 million at the consolidated level within operating margin discussion, including a pension curtailment charge tied to ending future salaried pension accruals.
Word for word“These increases were partially offset by 60 basis points due to severance and restructuring costs of $59 million, including a $12 million non-cash loss on the sale of a building in Sensor Systems and a $4 million pension curtailment charge in connection with the decision to discontinue future service accruals for substantially all salaried employee defined benefit plans effective January 1, 2019 (Pension Curtailment).” 10-K for 2017
Our summaryAerospace Systems recorded severance and restructuring costs of $21 million in 2016, lowering operating margin.
Word for word“Operating margin decreased by 110 basis points to 7.6%. Operating margin decreased by: (1) 70 basis points due to severance and restructuring costs of $21 million, (2) 30 basis points primarily due to unfavorable contract performance adjustments on international aircraft modification contracts at Mission Integration and (3) 10 basis points primarily due to the Pension Curtailment.” 10-K for 2017
Our summaryL3 reported higher severance costs of $13 million in a segment's operating margin discussion.
Word for word“Higher sales volume and mix changes, primarily for Total Training Solutions and Power & Propulsion, increased operating margin by 110 basis points.” 10-K for 2017
Our summaryAccrued employment costs rose due to increased severance from headcount reductions.
Word for word“Accrued employment costs increased primarily due to increased severance as a result of headcount reductions and $7 million from business acquisitions.” 10-K for 2017
Our summaryL3 recorded severance and restructuring costs for employment reduction actions across several businesses in 2018, 2017 and 2016, to cut direct and indirect costs.
Word for word“As a result of these initiatives, the Company recorded severance and restructuring related costs of $26 million with respect to approximately 800 employees during the year ended December 31, 2018 , $101 million with respect to approximately 1,500 employees during the year ended December 31, 2017 and $17 million with respect to approximately 700 employees during the year ended December 31, 2016 .” 10-K for 2018
Our summaryL3 reported severance and restructuring liabilities on its balance sheet, with the remaining balance expected to be paid in 2019.
Word for word“The remaining liability balance at December 31, 2018 is expected to be paid in 2019 .” 10-K for 2018
| Fiscal year ended | Severance costs | Restructuring charges | Cash paid for restructuring |
|---|---|---|---|
| 2016-12-31 | $13 million | $17 million | — |
| 2017-12-31 | $91 million | $26 million | $87 million |
| 2018-12-31 | — | $26 million | $35 million |
L3 Technologies has filed no restructuring notice (Form 8-K, Item 2.05) since 2016. Companies file one only for a cut they judge material, so many announced layoffs never appear as one. This page shows what the company reported to the SEC, not news reports or state layoff notices.
Read from L3 Technologies’s annual reports (10-K for 2018, 10-K for 2017, 10-K for 2016) and the financial data it files with the SEC, as of 2019-02-21. Every quotation is word for word from the filing linked beside it; how these pages are built and checked. The full record is in its company data sheet.