Boston, MA 10/13/2014 (wallstreetpr) – L-3 Communications Holdings, Inc. (NYSE:LLL) disclosed that it recorded pre-tax income charges of approximately $169 million relating to the internal review of its Aerospace System division. The company stated that it has completed the process of its interview that was announced on July 31.
Amendments To Earlier Form 10-Q
As part of its earlier announcement, the company indicated that it filed its Form 10-Q for the second quarter, its statement indicated. This apart, it has also filed amendments to change its earlier financial statements meant for the first quarter, as well as, its annual report for the year ended December 2013.
L-3 Communications Holdings, Inc. (NYSE:LLL) said that the charges included $58 million net sales reduction. It pointed out that $55 million for the second quarter, which included $7 million drop in net sales. The charges included another $20 million in relation to the first quarter, including a drop in sales of $8 million. This apart, $98 million, including $43 million sales, for the periods before the commencement of the current year was included in the total charges.
Division’s Adjustments
The company said that all the adjustments were associated with its internal review of its Logistics Solutions and Platform Systems Sectors of the company’s Aerospace Systems division. It said that adjustments attributable were about $117 million to the Logistics Solution division. This included $37 million as overstated net sales.
Similarly, L-3 Communications Holdings, Inc. (NYSE:LLL) said that the Platform Systems Sector’s attributable adjustments amounted to about $52 million. It included $21 million towards overstated net sales.
The company also pointed out an increase in pre-tax income by $28 million essentially for interest income for the periods before 2014 after it corrected sales-type lease deal in its Electronic Systems division. The transaction was for flight simulators started in 2004 and would close in 2023.
Management Comments
L-3 Communications Holdings, Inc. (NYSE:LLL)’ Chairman, President and CEO, Michael Strianese, said that the company was committed to the reliability of its financial statements, as well as, maintaining the superior ethical standards. He said that all through the review process, its employees demonstrated a solid commitment to its contract and customer performance.
