SlideShare ist ein Scribd-Unternehmen logo
1 von 40
Downloaden Sie, um offline zu lesen
National
Security




    Summary Annual Report 2004




Homeland
 Defense
Strategic View
           Today's Landscape




       The Ongoing Threat of Terrorism




                                         Restructured
                                         Defense
                                         Budget




Bush Reelection




                         Campaign in
                         Afghanistan
                         and Iraq
Iraqi
           Elections


                                                     Military
                                                     Transformation
                                                     Continues




                                                    Fewer
                                                    Platforms,
Homeland                                            More
Security                                            Capabilities




                       Focus on Readiness, Modernization
                       and Joint Operations


                                                                      1
Frank C. Lanza
    Chairman and Chief Executive Officer




2
Dear Shareholders:
                                                                             L-3 had a record year in orders, receiving $7,563.7 million in funded
The year 2004 was a time of extraordinary heroism, challenge and
                                                                             orders from all of the company’s major business areas. Backlog was
sacrifice for US and coalition forces. In Iraq, the coalition continued
                                                                             $4,757.9 million at December 31, 2004.
its efforts to build peaceful conditions and defeat pockets of terrorists
and insurgents. The coalition battled successfully in difficult urban
                                                                             At the close of the year 2004, L-3 had a very strong balance sheet.
environments and continued to build the infrastructure of Iraq needed
                                                                             The company’s debt to book capitalization decreased to 36.1% at
to ensure the country’s future. A most remarkable achievement was
                                                                             December 31, 2004, compared to 48.1% at December 31, 2003.
the first free election in Iraq’s history in January 2005 and the birth
                                                                             Additionally, in January 2005, Standard and Poor’s upgraded L-3’s
of democracy within the nation.
                                                                             senior debt rating to BBB-, an investment grade rating.
At the same time, the Department of Defense (DoD) is moving to
                                                                             In 2004, L-3 was also selected by Standard & Poor’s for inclusion in
transform its capabilities and strategies to face today’s world order.
                                                                             its flagship stock market index – the S&P 500 Global Industry
This landscape differs significantly from the traditional Cold War chal-
                                                                             Classification Standard (GICS) Aerospace & Defense Sub-Industry
lenges wherein the US national strategy was characterized by a con-
                                                                             Index. This was a signature honor for L-3, a milestone that demon-
cern about the bipolar nature of the world and its attendant demands.
                                                                             strates the company’s vital role in the defense industry.
With recognition of asymmetrical threats facing the US and its allies,
the DoD has identified four broad threats that the US will continue to
                                                                             Acquisitions
face in the future. Known as the “four-way matrix,” these threats
                                                                             The acquisition of niche companies to augment L-3’s expanding portfo-
include irregular, catastrophic, disruptive and traditional challenges.
                                                                             lio of businesses continued to be a key company strategy. In total, the
                                                                             acquisitions had an aggregate purchase price of $434.7 million.
A transformational strategy to cope with these threats has been initiat-
ed and will be developed and resourced by the DoD in its planning doc-
                                                                             In L-3’s Secure Communications and Intelligence, Surveillance and
umentation – the Quadrennial Defense Review (QDR) due in the begin-
                                                                             Reconnaissance (SC & ISR) segment, L-3 acquired key companies
ning of 2006. This review will shape the defense capabilities in the
                                                                             that increase its capabilities in important product areas. L-3 added
years to come.
                                                                             Cincinnati Electronics, a leading producer of infrared (IR) detectors,
                                                                             imaging sensors, missile warning sensors and products. L-3 also
In 2004, the Bush administration initiated a national strategy for
                                                                             acquired BAI Aerosystems, Inc., a leading designer, manufacturer and
homeland security focusing on a number of key areas, including nation-
                                                                             integrator of unmanned aerial vehicles (UAV). BAI also offers a com-
al joint intelligence and warning, border and transportation security,
                                                                             plete set of UAV subsystems, such as avionics and auto pilots, imaging
maritime security, domestic counterterrorism, crisis management,
                                                                             and sensor payloads, ground control stations and support equipment,
emergency preparedness and response, protection of critical infrastruc-
                                                                             which are incorporated into its proprietary designs, as well as sold to
ture and national assets and defending against catastrophic threats.
                                                                             other UAV manufacturers.
Any disruption in commerce, transportation, power and maritime
activities can cause a major economic impact to the US and its inter-
                                                                             Training continues to be a high priority for the DoD to improve the
national partners. It is anticipated that the Bush administration will
                                                                             skills of its military forces. The use of computer-based training (CBT)
ensure the implementation of this strategy to safeguard the nation and
                                                                             systems has proven to be an effective method in reducing the increas-
resource the Department of Homeland Security (DHS) to an increased
                                                                             ing costs of maintaining readiness and developing greater skill levels.
level of funding.
                                                                             In L-3’s Training, Simulation and Government Services (TS & GS)
                                                                             segment, the company added BEAMHIT, LLC., one of the top laser
L-3’s employees, systems, products and services play a significant role
                                                                             marksmanship training systems providers for military and law enforce-
in assisting the US military and its civilian protectors in their efforts.
                                                                             ment agencies in the world. D.P. Associates, which produces rapidly
There is no greater honor than to help those who put their lives on the
                                                                             deployable CBT systems, brought L-3 important leading-edge course-
line for others and L-3 employees take great pride in the work they do
                                                                             ware analysis, design and development capabilities that expand its
to support the safety and security of the nation’s protectors with the
                                                                             leadership in the training marketplace.
best available products and systems.
                                                                             In the Aircraft Modernization, Operations and Maintenance and
Strong Results
                                                                             Products (AM, O&M & P) segment, L-3 acquired Northrop
This also was a year in which L-3 continued exceeding its business and
                                                                             Grumman’s Canadian Navigation Systems and Aircraft Modernization
financial goals. Sales grew to $6,897.0 million from $5,061.6 million
                                                                             business, a leader in electronic products and systems for aviation and
in 2003, a 36.3% increase. Organic sales growth for L-3’s defense
                                                                             ground vehicles and AVISYS, a major international supplier of elec-
businesses increased by 16.3% versus 2003 and 15.1% for all of L-3.
                                                                             tronic warfare and electro-optical (E/O) systems, as well as products
                                                                             developed to counter the threat of manportable, shoulder-launched
In 2004, operating income rose 28.8% to $748.6 million, increasing
                                                                             surface-to-air missiles. L-3 is now the leading provider of operations,
from $581.0 million in 2003. Diluted earnings per share for 2004
                                                                             maintenance and modernization of platforms in the world and also the
rose 27.1% to $3.33, from $2.62 in 2003.
                                                                             largest provider of operations support for Special Operations Forces
L-3 recorded $552.1 million in free cash flow, compared to $377.0
                                                                             and aircrew training. Major facilities are located in Canada, Texas
million in 2003, an increase of 46.4%. L-3 concluded the year with
                                                                             and Kentucky and include several thousand personnel at the Army’s
$653.4 million of cash on hand. On March 9, 2005, L-3 entered into a
                                                                             Fort Rucker Air School in Alabama, where L-3 provides operational
new five-year senior credit facility that allows for total aggregate bor-
                                                                             support. Also, L-3 is teamed with Computer Sciences Corporation to
rowings of up to $1.0 billion.
                                                                             provide the training and simulation for Fort Rucker.




                                                                                                                                                       3
In Specialized Products (SP), L-3 made a number of acquisitions that       communications, real-time intelligence and command, control and intel-
                                                                               ligence (C2I). This will make it possible for the military to modernize
    add significant products to the company’s catalog of offerings. L-3
    acquired General Dynamics’ Propulsion Systems business, renamed            present platforms as part of military transformation with increased
    L-3 Combat Propulsion Systems, which provides engines, transmission        firepower, survivability, precision and mobility in joint operations and to
    suspension and turret drive systems for combat vehicles and CAE’s          stretch and contain development of expensive new platforms.
    Marine Controls division, now known as L-3 MAPPS, which offers             Containment, reprioritizing and a reduction in many social programs
    integrated marine controls and products for warships, submarines and       will also be necessary to reduce the federal deficit.
    high-end ocean-going commercial vessels. L-3 MAPPS is also a leader
                                                                               We believe that defense spending will continue to moderately grow,
    in deploying simulation technology for operator training at power gen-
                                                                               while the DoD will be forced to refocus its spending priorities.
    eration utilities around the world.
                                                                               Response to the need for readiness and modernization of present
    In addition, L-3 added to its microwave device catalog by acquiring        cardinal platforms with new advanced combat capability has started
    Boeing’s Electron Dynamic Devices business, now known as L-3               and will be accelerated within this decade. By 2007, the DoD budget
    Electron Technologies, Inc., a provider of high-technology components      will implement the roadmap for the transformation of the military. The
    and subsystems, including space-qualified Traveling Wave Tubes (TWT),      new military will be robust and fight as a joint force, capable of meet-
    Traveling Wave Tube Amplifiers (TWTA), passive microwave devices           ing the new world order and the threats imposed by asymmetrical ter-
    and electric propulsion systems for commercial, DoD, classified and        rorists and rogue nations, as well as traditional regional conflicts.
    NASA satellites and spacecraft. Electron Technologies also provides        Power projection against traditional confrontation will be swift, precise
    TWTs for terrestrial and airborne defense systems. This operation is       and with short timelines.
    synergistic in technology and customers with L-3’s microwave devices
                                                                               There will be continued growth for companies that have advanced
    company, which provides similar products to missiles, aircraft and ships
                                                                               products and services that fulfill the needs of the DoD’s transforma-
    for radars, sensors and communications. L-3 increased its E/O product
                                                                               tional force structure and priorities. We believe that L-3 is well posi-
    group marketplace with the acquisition of Brashear, which is synergis-
                                                                               tioned for future growth by the company’s continued participation in
    tic with L-3’s sensor products and provides complex E/O systems, tele-
                                                                               these vital capabilities that the DoD has initiated in transforming the
    scopes and optical platforms for military and international customers.
                                                                               military to meet both traditional and irregular threats and in homeland
    In addition, L-3 added Raytheon’s Commercial Infrared business, now
                                                                               security responsibilities. Those areas include shared intelligence, UAVs,
    L-3 Infrared Products, a well-respected producer of uncooled thermal
                                                                               precision weaponry, sensors, broadband digital communications and
    imaging products for military and commercial use, which complements
                                                                               upgrading and modifying existing platforms. In addition, as the mili-
    Cincinnati Electronics, a provider of cooled IR sensors used in military
                                                                               tary continues its support of rebuilding Iraq, we expect that the DoD
    night vision systems and electronic warfare sensors.
                                                                               will expand its use of outsourcing to assist in the reconstruction. These
                                                                               are all areas where there is solid budget growth and where L-3 has a
    Prospects for 2005 and Beyond
                                                                               significant presence.
    There has been much debate about the future of US defense spending
    and how it will impact the industry, and in particular, L-3. With the      We also believe that homeland security will receive greater focus and
    2005 top-line defense budget set at about $400 billion, the focus is       increased spending in the years ahead. There is general recognition in
    now on 2006 and beyond. The President has submitted a 2006 defense         Congress and in the Administration that there are areas that need
    budget ($419.3 billion) that is 4.8 percent higher than in 2005 and it     greater protection and support. These areas include cargo, maritime
    is unlikely that the US Congress will make material changes to his         and transportation security and passenger entry at airport checkpoints.
    request. This continues the strong growth that began in fiscal year
                                                                               L-3 will continue, via Independent Research and Development (IR&D)
    2001. There is considerable support in the Congress as well as from
                                                                               and acquisitions, to add more capabilities to its existing portfolio of
    the American people for the military’s effort. There will be a supple-
                                                                               products and government services in 2005. As we survey the acquisi-
    mental budget request to pay for war operations and the procurement
                                                                               tion landscape, there are non-core businesses of larger platform com-
    of critical technologies for urban warfare, as well as to recapitalize
                                                                               panies coming onto the market as well as independent defense compa-
    and reconstitute equipment being used to prosecute US efforts in Iraq
                                                                               nies in the range of $50 million to $300 million in size. We continue to
    and Afghanistan.
                                                                               review companies that expand our offerings in key areas of each of our
    In the 2006 budget, the President’s priorities include further emphasis    major business segments.
    on transforming the military to meet the challenges of the 21st century.
                                                                               As a result, we know that we have the people, the products and a
    That means expanding the Army and Marine Corps and putting greater
                                                                               roadmap for L-3 to continue to achieve its 20 percent growth target in
    emphasis on mobility, modernization, joint operations and a force struc-
                                                                               2005 and to maintain continued organic growth. Our products are
    ture with rapid global reach – all with fewer platforms.
                                                                               leading edge, our backlog is strong, our follow-on programs are well
    In 2007 with the QDR in place, it is expected that defense spending        funded and our employees are world class in their abilities, their
    may rise at a slower rate of growth. Defense will not be the billpayer     dedication to L-3 and their achievements.
    for the federal budget as it was in 1995. The DoD will now be faced
    with the challenge of cost containment. How can the DoD continue its
    transformation, pay for new platforms and maintain readiness, while
    supporting the demands of war operations in Iraq and Afghanistan?
                                                                               Frank C. Lanza
    The solution involves new initiatives to insert quantum leaps in
    technology into developing precision weapons, UAVs, GPS, secure            Chairman and Chief Executive Officer




4
FINANCIAL HIGHLIGHTS

For the years ended December 31,                          2004                                 2002(a)            2001(a)               2000 (a)
                                                                               2003

(In thousands, except per share amounts)

                                                     $6,896,997
Sales                                                                  $5,061,594        $4,011,229           $2,347,422       $1,910,061
                                                       748,619
Operating income                                                            581,021        453,979              275,330            222,718
Income before cumulative effect of a change
                                                       381,880(e)           277,640(e)      202,467(e) (f)
 in accounting principle                                                                                        115,458             82,727
Diluted earnings per share before
 cumulative effect of a change
                                                           3.33(e)
 in accounting principle (b) (c)                                               2.62(e)          2.13(e) (f)           1.47              1.18
                                                       620,671
Cash flow from operating activities                                         456,063        318,460              172,968            113,805
Capital expenditures, net of dispositions
                                                        68,539
 of property, plant and equipment                                            79,020          58,510              46,884             15,520
                                                       552,132
                (d)
Free cash flow                                                              377,043        259,950              126,084             98,285
                                                      3,799,761
Shareholders’ equity                                                    2,574,496         2,202,202            1,213,892           692,569



(a) In accordance with Financial Accounting Standards Board (FASB) Statement of Financial Accounting Standards No. 142,
    Goodwill and Other Intangible Assets, effective January 1, 2002, we ceased amortizing goodwill.
(b) Diluted earnings per share (EPS) for all periods reflects our two-for-one stock split that became effective May 20, 2002.
(c) In the fourth quarter of 2004, we adopted the FASB Emerging Issues Task Force Issue No. 04-8 (EITF 04-8), The Effect of
    Contingently Convertible Debt on Diluted Earnings Per Share, and restated diluted EPS for 2004, 2003 and 2002 to
    retroactively apply the provisions of EITF 04-8.
(d) We define free cash flow as net cash from operating activities, less net capital expenditures (capital expenditures less cash
    proceeds from dispositions of property, plant and equipment).
(e) Includes debt retirement charge of $3.2 million after taxes, or $0.03 per diluted share in 2004, $7.2 million after taxes, or
    $0.06 per diluted share in 2003 and $9.9 million after taxes, or $0.09 per diluted share in 2002.
(f) The year ended December 31, 2002 excludes the cumulative effect of a change in accounting principle for a goodwill impairment
    of $24.4 million or $0.23 per diluted share.


 Sales in millions                             Operating Income in millions                       Free Cash Flow in millions

$8,000                                        $800                                                $600
                      %




                                                                   %




                                                                                                                          %




 6,000                                         600                                                 450
                    .8




                                                                 .4




                                                                                                                        .0
                  37




                                                               35




                                                                                                                      54
            GR




                                                         GR




                                                                                                                GR
          CA




                                                       CA




                                                                                                              CA




 4,000                                         400                                                 300




 2,000                                         200                                                 150




             00       01   02      03   04                00     01    02    03    04                            00     01    02   03    04




                                                                                                                                                   5
Secure Communications and ISR
                                                             SATELLITE COMMUNICATIONS
                                                             L-3 delivers comprehensive ground-to-satellite,
                                                             real-time global communications capability through
    NETWORK COMMUNICATIONS                                   a family of transportable field terminals used to com-
                                                             municate with commercial, military and international
    L-3 remains committed to US efforts to fully
                                                             satellites. These terminals, including the Tri-band
    realize the promise of network-centric warfare,
                                                             Transportable Medium Earth Terminal (TMET) and
    providing solutions that deliver real-time, executable
                                                             the Tri-band SATCOM Subsystem (TSS), provide
    battlefield information from multiple platforms and
                                                             remote personnel with constant and effective commu-
    sources to the warfighter. L-3 ComCept is the prime
                                                             nications links to distant forces, while minimizing
    contractor for the Network-Centric Collaborative
                                                             long-term satellite lease costs. In addition, L-3 pro-
    Targeting (NCCT) Advanced Concept Technology
                                                             vides the design, engineering development, fabrication
    Demonstration (ACTD). NCCT provides machine-to-
                                                             and test of upgraded Data Distribution Systems
    machine communications across multiple platforms
                                                             (DDS) for the United States Marine Corps Tactical
    for automatic threat identification, characterization
                                                             Data Network (TDN). This network provides its sub-
    and location purposes. At the Joint Expeditionary
                                                             scribers with basic data transfer, switching services
    Force Experiment 2004 (JEFX-04), NCCT success-
                                                             and access to joint strategic tactical data networks.
    fully correlated data from an RC-135 aircraft, a U-2
    aircraft, an E-8 aircraft, a surrogate unmanned aerial
    vehicle with a signals intelligence payload and other
    national assets. This demonstration was the first
    time multiple sensors on multiple platforms were
    networked in real time and it resulted in NCCT’s
    selection as the Secretary of Defense’s 2004 ACTD
    Team of the Year.

    L-3 also completed a successful Critical Design
    Review for its third-generation Multi-Role Tactical
    Common Data Link (MR-TCDL) product from
    Communication Systems-West, which forms the foun-
    dation for communications on the Army’s Aerial
    Common Sensor (ACS). Additionally, four L-3 busi-
    nesses – Communication Systems-
    West and -East, Integrated
    Systems and PacOrd – will pro-
    vide secure, networked communi-
    cations solutions for the Airborne,
    Maritime Fixed/Station (AMF)
    Joint Tactical Radio System
    (JTRS), which will enable inter-
    operable communication in the
    joint battlespace environment.




6
ISR
                                                    PLATFORMS              INTEGRATED MARITIME
                                                    L-3 offers highly      COMMUNICATIONS
                                                    specialized fleet
                                                                           L-3 Communications is a leading US Navy communi-
                                                    management and
                                                                           cation systems integration contractor. For over 25
                                                    support for signals
                                                                           years, Communication Systems-East has provided
                intelligence and ISR special mission aircraft and air-
                                                                           state-of-the-art communications technology for a
                borne surveillance systems. In 2004, L-3 Integrated
                                                                           wide range of platforms supporting the US Navy and
                Systems was selected to begin developing the US
                                                                           other maritime customers.
                Army’s ACS, a next-generation airborne ISR and tar-
                                                                           Over this 25-year period, L-3 has seen an increasing
                get identification system that will replace current air-
                                                                           emphasis on integration of communication functional-
                craft systems, including the US Army’s Guardrail
                                                                           ity. This change, which is consistent with key DoD ini-
                Common Sensor, the Airborne Reconnaissance Low
                                                                           tiatives, including Maritime Domain Awareness, net-
                aircraft and the US Navy’s fleet of EP-3 aircraft.
                                                                           work-centric warfare and ForceNet, is fully enabled
                L-3 IS was also selected for several key international
                                                                           by L-3’s MarComTM digital switching system. The
                ISR programs, including P-3 surveillance system
                                                                           MarCom system, which was developed using L-3
                upgrades for the Republic of Korea and New
                                                                           research and development funding, is an integral part
                Zealand and the UK Ministry of Defence’s (MOD)
                                                                           of the communication systems for key programs,
                Nimrod R Mk 1 aircraft.
                                                                           including AEGIS, Deepwater, LPD-17, JTRS and a
                                                                           number of international pursuits.

                                                                           To handle the increased volume of shipboard and
                                                                           shore-based radio room integration work from these
UNMANNED                                                                   programs, L-3 has facilitated a 7,000-square-foot
                                                                           radio room assembly, integration and test facility
AERIAL
                                                                           capable of handling 72 racks of equipment at one
VEHICLES                                                                   time. This L-3 Integration and Test Facility (LITF)
                                                                           will lower the cost of building systems and extends
(UAV)
                                                                           L-3’s competitiveness into new markets.
As the world’s pre-
dominant military
data communications company, L-3 provides wideband,
network-centric interoperability theater-wide with air-
borne data links that have been selected for every major
UAV platform, including Global Hawk, Shadow, Predator,
Fire Scout and Deepwater Eagle Eye.

In 2004, L-3 acquired BAI Aerosystems, Inc., a develop-
er of a family of UAVs for military remote surveillance
missions. BAI brings to L-3 a new capability to test,
demonstrate and market a broad array of imaging, sensor
and detection systems in the fast-growing UAV sector of
the defense market, with aircraft deployed in support of
US operations in both Iraq and Afghanistan.




                                                                                                                                     7
Secure Communications and ISR (cont’d)




                         SECURE COMMUNICATIONS
                         DATA LINKS
                         L-3 is an unmatched supplier of secure data links for
                         real-time information collection and dissemination to
                         users on a variety of mission-critical platforms, including
                         the RC-135 Rivet Joint, EP-3, E-6B, Guardrail, Cobra
                         Ball, Sea Sentinel and Joint Surveillance Target Attack
                         Radar System (JSTARS). In addition, L-3 has extended
                         its data links expertise to precision weaponry as the ISR
                         data link supplier for the Joint Air-to-Surface Standoff
                         Missile (JASSM) program. This technological break-
                         through from L-3 Communication Systems-West allows
                         bidirectional post-launch communications from ISR
                         networks to strike weapons.




8
COMMUNICATION PRODUCTS
                                                            L-3 Communication Systems-West is on the team to
                                                            develop wideband satellite communications terminals
                                                            for a transformational DoD initiative known as the
                                                            Family of Advanced Beyond Line-of-Sight Terminals
                                                            (FAB-T). FAB-T is intended to provide strategic
                                                            forces with multi-mission capable terminals, or radio
                                                            systems with special-purpose antennas, that talk to
                                                            different satellites and allow information exchange
                                                            between ground, air and space platforms. FAB-T
                                                            will provide critical, protected beyond line-of-sight
                                                            communications capability for warfighters via the
                                                            new Advanced Extremely High Frequency system, a
                                                            new class of secure satellites that supports military
                                                            forces. The FAB-T program will eventually encom-
                                                            pass up to 46 airborne platforms with participation
                                                            from all branches of the armed services.

INFORMATION SECURITY                                        L-3 specializes in communication systems for ground
                                                            command centers, surface and undersea vessels and
L-3’s RedEagleTM network encryptor allows tunneling of
                                                            manned space flights. In 2004, L-3 Communication
classified Internet Protocol (IP) traffic through an
                                                            Systems-West launched the new Rover III Multi-band
unclassified IP network, tunneling of compartmented
                                                            Manpack Receiver, which is designed to provide mili-
data through a lower-security level network or tunneling
                                                            tary, special operations and homeland defense person-
of unclassified traffic through a classified network.
                                                            nel with connectivity to most aerial surveillance plat-
The RedEagleTM KG-240 is a High Assurance Internet
                                                            forms, including Shadow, Predator and Global Hawk.
Protocol Interoperability Specification (HAIPIS)
interoperable 100 Mbps network encryptor supporting
security levels of TS/SCI and below. During 2004,
L-3 Communication Systems-East added Voice Over
Internet Protocol (VoIP) capability to its Secure
Terminal Equipment (STE) product line. Adding secure
VoIP to the STE supports convergence of voice and data
onto a single network and enables classified network
users connected to the Global Information Grid (GIG) to
make secure voice calls across the IP backbone.

In addition, L-3’s TS & GS business, SYColeman, is
developing and supplying an advanced Work-Centered
Interface Computer Network Defense (WCI-CND) system
that enables network security managers and their com-
manders to rapidly and effectively assess, defend and
respond to cyber attacks. The use of intelligent agents
gives the system advanced capability for rapid adaptation
and accomplishing automated correlation and decision
support.




                                                                                                                      9
Training, Simulation and Government Services

                                                              LASER MARKSMANSHIP
                                                              L-3 MPRI-BEAMHIT develops laser marksmanship
                                                              training systems that are in regular use today by the US
                                                                                            military, federal law enforce-
                                                                                            ment agencies and state,
                                                                                            local and international policy
                                                                                            and security organizations.
                                                                                            These systems include
                                                                                            weapons from handguns
                                                                                            through machine guns and
     COMPUTER-BASED TRAINING
                                                                                            enable users to practice
     AND DISTANCE LEARNING                                                                  shooting skills with their own
                                                                                            service weapons – without
     L-3 GSI is providing advanced operational and tacti-
                                                                                            live fire, having to go to a
     cal-level air and space command and control educa-
                                                              range or depleting their ammunition.
     tion and training and mentorship to the US Air Force
     for the 705th Training Squadron at Hurlburt Field,       The BEAMHITTM Laser Marksmanship Training System
     Florida; Nellis Air Force Base (AFB), Nevada; South      (LMTS) is a projectile-less modular system allowing
     Korea; Southwest Asia and other locations.               soldiers to use their own service weapons and train in
                                                              any classroom, maintenance bay or other suitable open
     L-3 D.P. Associates will support the development of
                                                              space. The LMTS is designed to be an integral part of
     naval aviation technical training products for every
                                                              a well-rounded small arms marksmanship program.
     Navy and Marine Corps aircraft currently in the
                                                              Military units that use the LMTS have shown significant
     inventory. L-3 also provides training for operator and
                                                              improvements in qualification and readiness levels.
     aircraft maintenance procedures on the Navy’s new
     MH-60R/S aircraft and develops courseware for            L-3 MPRI Ship Analytics’ driver training products and
     organizational-level maintenance of F/A-18C/D            services offer a unique combination of state-of-the-art
     aircraft.                                                simulation, computer-based training and classroom
                                                              instruction. Drivers receive cost-effective, realistic
     In addition, L-3 SYColeman developed and maintains
                                                              training in a risk-free environment with the Mark IIITM,
     the US Army’s official public web site, www.army.mil.
                                                              TranSim VSTM III and PatrolSimTM III Driver Training
     The site has grown from 300,000 to 6,000,000 visi-
                                                              Simulators for commercial trucking, automobile opera-
     tors per month and is the sec-
                                                                          tions, emergency vehicle and advanced law
     ond largest federal government
                                                                          enforcement training. L-3 MPRI Ship
     site in the country.
                                                                          Analytics also offers a Virtual Combat Convoy
                                                                          Trainer (VCCT), which gives battle crews the
                                                                          opportunity to train in a humvee simulator
                                                                          that is linked to a live-fire simulator and an
                                                                          AVCATT Apache helicopter simulator.




10
ROTARY-WING AIRCRAFT
TRAINING & SUPPORT
L-3 Link Simulation and Training’s Aviation
Combined Arms Tactical Trainer (AVCATT) provides
a realistic, high-intensity virtual combat training envi-
ronment for helicopter pilots, crews and teams. The
US Army’s AVCATT program continued to under-
score the value that combined arms training can bring
to military operations. During the year, Link received
an order to build an eighth AVCATT suite and gained
funding from Congress for additional AVCATT suites
and engineering change proposal requirements.

Link is also a key partner in the development and
support of the US Army’s Flight School XXI                  INTELLIGENCE SUPPORT
program – which is designed to enhance the opera-
                                                            L-3 GSI, L-3 MPRI and L-3 ILEX were awarded a
tional readiness and tactical proficiency of the
                                                            competitive omnibus contract to support the Army
Army’s active, reserve and National Guard aviation
                                                            Intelligence and Security Command (INSCOM). The
units. Link will deliver suites of Advanced Aircraft
                                                            GSI team will provide critical worldwide support to
Virtual Simulators (AAVS) and Reconfigurable
                                                            INSCOM focused on intelligence, force management
Collective Training Devices (RCTD), network all of
                                                            and information technology services.
the program’s training devices and provide contractor
logistics support for all AAVS devices and RCTDs.

Additionally, L-3 SYColeman supports the Office of
the Secretary of Defense
(OSD)-led Joint Vertical
Aircraft Task Force (JVATF) by
providing analytical, technical
and programmatic support.




                                                                                                                  11
Training, Simulation and Government Services (cont’d)




     MILITARY FIXED-WING
     AIRCRAFT TRAINING
                                                                  Aircrew Coordination Trainers. This win continues Link’s
     Link will deliver and support state-of-the-art F/A-18 air-
                                                                  position as a supplier of choice for weapons systems
     craft training systems for the Canadian Air Force’s
                                                                  trainers.
     Advanced Distributed Combat Training System program,
     the Royal Australian Air Force (RAAF) F/A-18 Hornet
                                                                  Link is also responsible for the majority of E-3 Airborne
     Aircrew Training System and the Swiss F/A-18 Flight
                                                                  Warning and Control System (AWACS) ground-based
     Simulator Upgrade program. Link’s F-16 Aircrew
                                                                  flight crew training, including ownership of the training
     Training Systems have been selected for use by the Polish
                                                                  devices and training facility. The program provides a full
     and Royal Omani Air Forces. With its teammates, L-3
                                                                  spectrum of US Air Force-directed E-3 flight crew train-
     GSI is creating a reconfigurable E-6B Weapon System
                                                                  ing. An efficient approach to the training program mini-
     Trainer for the US Navy that will train mission crews.
                                                                  mizes involvement of E-3 Air Force instructors and pro-
                                                                  vides Air Force E-3 flight crew training to a guaranteed
     In 2004, Link was awarded a contract to deliver five P-3
                                                                  level of proficiency.
     Tactical Operational Readiness Trainers to the US Navy,
     including upgrades to four previously built P-3 Tactical




12
LEADERSHIP & SECURITY
       L-3 MPRI develops leadership programs to
       help public and private sector customers in
                                                                                RECRUITMENT TRAINING
       the training, education and development of
       confident, competent leaders at multiple                                 L-3 MPRI provides support to the US
       levels who are capable of responding to the                              Army Recruiting Command (USAREC),
       challenges of transformation and change in                               which includes recruiters and guidance
       business, government and international                                                    counselors as well as secu-
       institutions.                                                                             rity interviewers and
                                                                                                 administrative assistants.
       L-3 MPRI and SYColeman are supporting US troops
                                                                                                 The division also provides
       with the Program Executive Office (PEO) Soldier Rapid
                                                                                                 systems administration to
       Fielding Initiative (RFI). PEO Soldier is responsible for
                                                                                                 the GoArmy.com web site,
       virtually everything a soldier wears or carries in a tacti-
                                                                                                 which resulted in the most
       cal environment. This support includes warehousing,
                                                                                                 successful “lead-genera-
       transporting and issuing the RFI equipment to soldiers,
                                                                                                 tion” operation in the
       both in the US and overseas.
                                                                                                 USAREC.




                                                                     BALLISTIC MISSILE
INTERNATIONAL
                                                                     DEFENSE SYSTEM
L-3 MPRI provides inter-
                                                                     MPRI supports the US Army Space and Missile Defense
national clients with pro-
                                                                     Command by assessing its command organization, func-
fessional services, products
                                                                     tions and responsibilities. MPRI also provides project
and integrated solutions to
                                                                     management services to the US Army Field Artillery
meet their national security sector reform and private sector
                                                                     School, Depth and Simultaneous Attack Battle Lab in its
challenges. In 2004, MPRI conducted a seminar that
                                                                     roles as the Advanced Concept Technology Demonstration
focused on recommendations for developing a national mili-
                                                                     (ACTD) Transition Manager, Assistant Operational
tary strategy with representatives of the Afghan Ministry of
                                                                     Manager and lead of the Requirements Working Group.
Defence and the US Office of Military Cooperation-
                                                                     The objectives of the ACTD are to develop, integrate and
Afghanistan (OMC-A).
                                                                     test an earth-penetrating warhead on an Army Tactical
In related work, SYColeman’s Iraqi Advisor Task Force
                                                                     Missile System (ATACMS) boost vehicle.
(IQATF) provides former US Army Special Forces operators,
                                                                                         In addition, L-3 SYColeman provides
Iraqi expatriates and local nationals as advisors to military
                                                                                         business management, systems engi-
commanders dealing with political, cultural, social, econom-
                                                                                         neering and integration, independent
ic, media, tribal and security-related issues throughout
                                                                                         assessment panel support and pro-
greater Baghdad.
                                                                                         gram protection support to assist in
In other international work, L-3 MPRI Ship Analytics, an
                                                                                         the development, acquisition and
international market leader in maritime products and servic-
                                                                                         protection of the Ground-based
es, is providing the Indonesian Ministry of Communications
                                                                                         Midcourse Defense (GMD) System.
with a turnkey solution called the Indonesian Seafarers
                                                                                         L-3 SYColeman also supports the
Program that is inclusive of six schools, simulation equip-
                                                                     Missile Defense Agency (MDA) in the GMD Test and
ment, dozens of laboratories and on-site training. MPRI Ship
                                                                     Evaluation Directorate with the production of Integrated
Analytics is also completing its third phase of execution in
                                                                     Data Packages for both flight and ground tests and
delivering and supporting an integrated simulators complex
                                                                     provides extensive logistics support to the MDA GMD
for the Arab Academy for Science and Technology and
                                                                     Logistics Directorate for sites in Alaska and Vandenberg
Maritime Transport in Alexandria, Egypt.
                                                                     AFB, California.



                                                                                                                                13
Aircraft Modernization, Operations
     & Maintenance and Products



                                                                                  LOGISTICS SUPPORT
                                                                                  L-3 provides labor augmentation
                                                                                  to government customers through
                                                                                  several Indefinite Delivery /
                                                              Indefinite Quantity (ID/IQ) contracts, including the
                                                              Contract Field Teams (CFT) program, which provides
     MILITARY TRAINING AIRCRAFT
                                                              comprehensive maintenance and depot services for
     L-3 is a leading provider of contractor logistics sup-
                                                              aircraft and other equipment deployed around the
     port, life-cycle maintenance and supply for more than
                                                              world. By the close of 2004, several hundred L-3
     3,500 government aircraft, including 1,600 military
                                                              Vertex CFT personnel were deployed in Iraq, Kuwait
     training aircraft. Fixed-wing training platforms
                                                              and Afghanistan, maintaining front-line US Army
     include the US Navy T-34, T-44, T-45, T-39, T-6 and
                                                              tactical and logistics aircraft.
     T-2, as well as the US Air Force T-38, T-6 and F-16.
                                                              In 2004, L-3 Vertex continued its expansion into
     L-3 Vertex Aerospace continues to provide contractor
                                                              ID/IQ technical services by providing maintenance for
     logistics support for the US Navy Undergraduate
                                                              multiple fixed- and rotary-wing aircraft and weapons
     Military Flight Officer Training System (UMFOTS)
                                                              systems under the US Army Aviation Joint
     and operation of the Aircraft Intermediate
                                                              Administrative Management Support Services
     Maintenance Department (AIMD) at Naval Air
                                                              (AVJAMSS) program.
     Stations in Pensacola, Florida and Corpus Christi,
     Texas. Vertex has served as the incumbent contractor
                                                              L-3’s TS & GS division, Link Simulation and Training,
     for UMFOTS since 1994.
                                                              won a new US Navy contract to provide contractor
                                                              maintenance and logistics support for USN C-40
                                                              (Boeing 737) aircraft over a five-year period. The
                                                              services provided under this contract are expected to
                                                              grow as additional C-40 aircraft become part of
                                                              the fleet.

                                                              Additionally, L-3 IS is providing logistics support for
                                                              the C-20, which provides worldwide airlift support for
                                                              the Vice President, Secretaries of State and Defense,
                                                              Chairman and members of the Joint Chiefs of Staff,
                                                              members of Congress and other government officials.




14
INTERNATIONAL
TACTICAL & MARITIME AIRCRAFT
                                                                            AIRCRAFT
L-3 provides aircraft modernization, systems integra-
                                                                            L-3 has a strong global presence
tion and life-cycle support services to tactical and
                                                                            in maintaining and modifying
maritime aircraft manufacturers around the world.
                                                                            hundreds of fixed- and rotary-
In 2004, L-3 Spar completed a number of depot-level
                                                                            wing aircraft for commercial,
maintenance inspections for the US Navy and Coast
                                                                            military and government cus-
Guard. Additionally, L-3 IS delivered the first of 16
                                                                            tomers. L-3 Spar completed the
refurbished P-3 maritime patrol aircraft and was
                                                                            design and prototyping of a num-
subsequently awarded a follow-on contract for anoth-
                                                                            ber of C-130 system improve-
er 16 aircraft as part of the US Navy’s Enhanced
                                                        ments, including cockpit avionics modernization, elec-
Special Structural Inspection (ESSI) program. L-3
                                                        trical power upgrade, rewiring, wing upgrade and
IS will also provide mission systems upgrades to the
                                                        structural refurbishment. Recent C-130 avionics
Navy’s E-6B fleet as part of the E-6 Block I
                                                        modernization programs in Greece and Malaysia
Modification program.
                                                        positioned L-3 Spar to be selected by the Royal New
L-3 IS continues to provide systems integration,        Zealand Air Force for the single most comprehensive
modification and fleet maintenance on EC-130H           C-130 Life Extension Program to date. This program
Compass Call aircraft. The EC-130H performs tacti-      covers avionics modernization and structural/electri-
cal command, control and communications counter-        cal overhaul together with comprehensive publication
measures and recently completed missions in support     updates and training.
of Operation Iraqi Freedom. Additionally, L-3 IS is
                                                        Under Canada’s 20-year Maritime Helicopter Project
providing aircraft avionics/system upgrades for the
                                                        (MHP), L-3 MAS will provide In-Service Support for
EP-3 ARIES I/II reconnaissance aircraft.
                                                        the 28 CH-148 (Sikorsky H-92) medium-lift helicop-
                                                        ters that will replace the Canadian Forces’ aging fleet
                                                        of Sea Kings. In addition, L-3 MAS has renewed its
                                                        contract with the Canadian Department of National
                                                        Defence to provide engineering, maintenance, compo-
                                                        nent repair/overhaul and integrated logistics support
                                                        on Canada’s CF-18s. MAS is also involved in the
                                                        structural upgrade of all the RAAF’s F/A-18s.

                                                        In further work, L-3 IS will provide structural modifi-
                                                        cations, modernized systems design and integration
                                                        and ground support systems for eight P-3 Orion
                                                        aircraft for the Republic of Korea’s Navy, and will
                                                        upgrade mission and communication-navigation sys-
                                                        tems for New Zealand’s P-3K maritime patrol air-
                                                        craft. The upgrade will include T2CAS, the combined
                                                        traffic and terrain collision avoidance system designed
                                                        and developed by L-3 Aviation Communication &
                                                        Surveillance Systems (ACSS).




                                                                                                                  15
Aircraft Modernization, Operations & Maintenance and Products (cont’d)




     SPECIAL OPERATIONS AVIATION
     L-3’s Joint Operations Group (JOG) has continued an        The JOG has increasingly been involved with the modern-
     increased operational tempo in supporting the global war   ization of Army Special Operations Aviation (SOA)
     on terrorism and homeland security initiatives with the    rotary-wing platforms and performs as the prime integra-
     deployment of 135 personnel for Operation Enduring         tor for many “lead the fleet” modifications and system
     Freedom and Operation Iraqi Freedom. Four of these         enhancements. For the Air Force Special Operations
     deployments included shipboard operations for installa-    Command (AFSOC), JOG supports MH-53M/J opera-
     tion of aircraft survivability equipment (ASE) on Marine   tions through Collocated Depot Teams (CDT) and is cur-
     Corps helicopters en route to Iraq.                        rently performing reconstitution activities on designated
                                                                A/MC-130 aircraft. In addition, JOG provides rapid
                                                                response logistical support and services to customers
                                                                deployed worldwide.




16
AVIATION PRODUCTS
                                                            L-3 offers expansive product capability for the avia-
  SCIENCE
                                                            tion marketplace, with offerings that include cockpit
  & HEAD-                                                   displays, collision avoidance and proximity warning
  OF-STATE                                                  systems, flight management systems and solid state
                                                            flight data and cockpit voice recorders and data
  AIRCRAFT
                                                            transfer units. In 2004, L-3 celebrated several mile-
  L-3’s aircraft                                            stones, including a multi-year order for Avionics
  modernization expertise extends to specialized            Systems’ SmartDeck® Integrated Flight Controls &
  markets, including science-related platforms and VIP      Display System and the 45,000th delivery of the
  aircraft interiors. L-3 IS provides design engineering,   Stormscope® Lightning Detection System. Also,
  airframe structural modifications, telescope design       L-3’s T2CAS traffic and terrain warning system
  integration and flight test services for the FAA-certi-   manufactured by ACSS was submitted to Airbus for
  fied Stratospheric Observatory for Infrared               certification.
  Astronomy (SOFIA). SOFIA is NASA's and the
                                                            Other 2004 highlights included significant contracts
  German Space Agency DLR’s premier observatory
                                                            for Display Systems to provide cockpit displays for
  for infrared astronomy into this century. In addition,
                                                            several key programs, such as the US Air Force
  L-3 Display Systems will provide cockpit displays
                                                            C-130J, and for Avionics Systems to replace aging
  for the NASA T-38N astronaut trainer/proficiency
                                                            electro-mechanical systems with its Vertical
  aircraft.
                                                            Reference System (VRS) model 3010 on the Air
  L-3 IS has performed modifications on head-of-state       Force’s entire fleet of KC-135 aircraft. In addition,
  and custom interiors on the world’s most popular          demand for the Modular Airborne Data Recorder and
  wide-body aircraft, including the Airbus A310 and         Acquisition System (MADRAS) from Aviation
  A340, and the Boeing 737, 747, 767 and 777. These         Recorders grew with a contract for AgustaWestland’s
  finely crafted interiors feature the sophisticated        A109 Light Twin Helicopter.
  communications and self-defense systems that VIP
                                                            Also in 2004,Targa Systems received contracts to
  customers require in today’s political climate.
                                                            provide its Data Transfer Systems for the BAE
                                                            Tornado and NATO Airborne Warning and Control
                                                            System upgrade programs, while Electrodynamics
                                                            was awarded a contract from Lockheed Martin for
ROTARY AIRCRAFT
                                                            the Crash Survivable Memory Unit (CSMU) for the
L-3 maintains and supplies fleets of                        F-35 Joint Strike Fighter.
rotary-wing training aircraft, includ-
ing the US Navy TH-57, as well
as the US Army AH-64, UH-60,
CH-47, UH-1, TH-67 and OH-58
fleets at Fort Rucker, Alabama.
At Fort Rucker, L-3 Vertex serves
as managing partner for the Army
Fleet Support (AFS) LLC Joint
Venture (JV). Fort Rucker is a
10-year contract, providing contractor logistics sup-
port to the US Army aviator training and test activity
fleets of more than 500 helicopters.




                                                                                                                    17
Specialized Products

                                                              ELECTRO-OPTICAL/INFRARED
                                                              (EO/IR) LASER SENSORS
                                                              L-3 is the market leader in producing uncooled ther-
                                                              mal infrared detectors and imaging sensors and sys-
                                                              tems for a broad spectrum of military and commer-
     ANTENNAS & RADOMES                                       cial applications. During 2004, L-3 significantly
                                                              expanded its infrared capability with Thermal-Eye™
     L-3 leads the industry with a full complement of inte-
                                                              thermal imaging technology from L-3 Infrared
     grated ground-based and airborne antenna systems
                                                              Products. Thermal-Eye is used for search and rescue,
     for surveillance and radar applications, as well as
                                                              perimeter surveillance, investigation, industrial
     ground and shipboard radomes used for air traffic
                                                              process monitoring, preventive maintenance and
     control and radio astronomy. L-3 Randtron Antenna
                                                              automotive and truck night vision for public safety
     Systems will provide the next-generation Airborne
                                                              and law enforcement, government agencies, industrial
     Early Warning (AEW) radar antenna system for the
                                                              companies and utilities. In support of rapid deploy-
     US Navy’s E-2 Advanced Hawkeye (AHE) surveil-
                                                              ment battlespace requirements, L-3 now offers a
     lance aircraft and will be a member of the team sup-
                                                              diversity of high-performance IR imaging modules
     plying low radar cross section GPS antennas for the
                                                              based on the patented Indium Antimonide (InSb)
     Joint Standoff Weapon (JSOW), Block II.
                                                              IR focal plane array architecture developed by L-3
     Also, L-3 ESSCO was awarded a contract to upgrade        Cincinnati Electronics. L-3 Aeromet, an SC & ISR
     the existing Haystack 37-meter-diameter high-per-        subsidiary of L-3 Integrated Systems, is a leader in
     formance millimeter wave antenna system. When            pointing, acquisition and tracking technology for bal-
     completed in 2006, Haystack will be the highest per-     listic targets. The business offers EO/IR programs
     formance radar antenna system in the US operating        supporting ISR missions and specialized meteorologi-
     in the 90-100 GHz band.                                  cal applications for such customers as the MDA.
                                                              Additionally, L-3 WESCAM extended its robust line
                                                              of imaging turrets with the MX-15D, which is engi-
                                                              neered to achieve the industry’s longest EO/IR target
                                                              identification range in its class.




                      US Navy photo.




18
SATCOM
                                                            NAVAL POWER & CONTROL
L-3 is a predominant provider
                                                            AND SONARS
of ground-to-satellite, real-time
                                                            A pioneer in a broad range of naval technologies,
global communications through
                                                            L-3 provides acoustic undersea warfare systems and
high-performance products used
                                                            side scan sonars for such platforms as helicopters,
to communicate with commer-
                                                            submarines and surface ships, and supports every
cial, military and international satellites. On behalf of
                                                            major US Navy shipbuilding program with shock-
the US Air Force, the Space and Naval Warfare
                                                            hardened circuit breakers and switchgear, military
System Center (SPAWAR) in Tampa, Florida has
                                                            power propulsion equipment and ship control and
asked L-3 Narda Satellite Networks to provide
                                                            interior communications equipment.
deployable satellite communications systems and sub-
systems/components as well as maintenance support
                                                            L-3 Ocean Systems’ Helicopter Long Range Active
to reduce acquisition and operating costs. L-3 Narda
                                                            Sonar (HELRAS) has long been the preferred solu-
Satellite Networks will also manufacture, integrate,
                                                            tion for a full range of international programs, includ-
test, commission and provide maintenance for current
                                                            ing Italy’s EH-101 and NH-90, The Netherlands’
SATCOM products, including the AN/USC-60A
                                                            NH-90, Turkey’s S-70B and Greece’s S-70B, and was
FlyAway Tri-Band Satellite Terminals (FTSAT), the
                                                            selected as a preferred supplier in 2004 for both the
AN/TSC-161 mobile Quad-Band Dual Hub Terminals
                                                            Canadian MHP and Singapore government programs.
(QDHT) and most significantly, the new AN/TSC-168
                                                            A special configuration of HELRAS is currently being
transportable Quad-Band Dual Hub SATCOM
                                                            tested to allow Anti-Submarine Warfare (ASW) mis-
Terminal (QHSAT), which will be the standard dual
                                                            sions to be executed via a remote location from a
hub system for future Air Force deployments.
                                                            Littoral Combat Ship (LCS). Also for the new high-
                                                            speed LCS, L-3 Henschel developed a Multi-Function
Additionally, L-3’s SC & ISR division,
                                                            Console (MFC) that supports the Total Ship
Communication Systems-West, is building new
                                                            Computing Environment (TSCE) – the backbone of a
humvee-mounted ground terminals designed to access
                                                            new computing infrastructure for future systems and
commercial satellites as part of the US Army’s
                                                            platforms. Additionally, L-3 Westwood’s participa-
Phoenix program. As Phoenix is integrated into the
                                                            tion in the DDG-51 Class Destroyer continued to
Army, the systems will be migrated to selected
                                                            grow with the award for Repair Station Consoles,
National Guard and reserve units, bringing those units
                                                            consisting of large screen visual displays, which will
satellite capability for the first time.
                                                            be placed throughout the ship to enhance crew moni-
                                                            toring awareness of onboard operating systems.




                                                                                                                       19
Specialized Products (cont’d)


     NAVIGATION & GUIDANCE
                                                                         SPACE PRODUCTS
     L-3 is a world premier provider of inertial instru-
     ments and integrated fire control systems for pro-                  L-3’s thrust into the space market surged in 2004
     grams such as the Multiple Launch Rocket System                     with the addition of Boeing Electron Dynamic
     (MLRS) and Army Tactical Missile System                             Devices, now known as L-3 Electron Technologies,
     (ATACMS). L-3 is also a major supplier of pointing,                 Inc. (ETI), a recognized leader in the design, manu-
     guidance, control and positioning equipment as well                 facture and sale of space-qualified high technology
     as GPS products for satellites, artillery and launch                components and subsystems used in communications
     vehicles serving the military, commercial and govern-               satellites, manned space programs and key commer-
     ment markets. In 2004, L-3 Space & Navigation was                   cial and defense systems worldwide. ETI designs and
     awarded a hardware contract for the Delta launch                    produces space-qualified passive microwave devices,
     vehicle program to supply everything from complex                   amplifiers and electric propulsion products utilized
     assemblies that provide inertial sensing, power switch-             for deep-space exploration spacecraft. Its broad
     ing and actuator control functions to simple modules                commercial and military customer base includes the
     used for transient suppression of the launch vehicle.                                                 US Army, US Navy
     In addition, L-3 Henschel provided the Automated                                                      and US Air Force,
     Bridge System to the US Navy’s newest large                                                           as well as prime
     deck amphibious ship                                                                                  contractors and
     (LHD-8) as well as hard-                                                                              Original Equipment
     ware and software for                                                                                 Manufacturers
     navigation data distribu-                                                                             (OEM).
     tion and display onboard
     US Navy aircraft
     carriers.



                                                                    ELECTRONIC FUZES, SAFETY
                                                                    & ARMING DEVICES
                                                                    L-3 has a distinguished track record in delivering an
                                                                    array of premium fuzing products, including proximity
                                                                    fuzes, electronic and electro-mechanical safety and arm-
                                                                    ing devices (ESAD) and self-destruct/submunition
                                                                    grenade fuzes. Early in 2004, L-3 KDI began production
                                                                          deliveries of ESADs for the Army's precision
                                                                          Guided Multiple Launch Rocket System (GMLRS).
                                                                          New electronic fuze programs awarded in 2004
                                                                          include the Tomahawk cruise missile and the
                                                                          Precision Attack Missile used in the Non Line-of-
                                                                          Sight Launch System (NLOS-LS). Also in 2004,
                                                                          L-3 BT Fuze Products received US Army contracts
                                                                          to provide electronic timed artillery fuzing as well
                                                                          as 105mm tactical and training ammunition for
                                                                          the Stryker Mobile Gun System.



20
STABILIZED OPTICAL PLATFORMS
Recognized for world-class optics technology, L-3
Brashear designs and produces complex electro-opti-
cal and electro-mechanical systems and instrumenta-
tion for the commercial and defense markets with
products that include telescope systems, optical
components, stabilized tracking systems, test range
instrumentation, small arms fire control systems and
high-energy laser beam directors. L-3 Brashear
produces the Block 1B upgrade pedestal unit for the
                                                                        PROPULSION
Raytheon MK-15 Phalanx Close-In Weapon System
(CIWS), extending the capability of the CIWS to                         L-3 expanded its operations and maintenance
identify, track and address threats in a full naval                     capability into the land systems market with the
environment.                                                            acquisition of General Dynamics Propulsion
                                                                        Systems, now known as L-3 Combat Propulsion
                                                                        Systems. The company is a recognized market
                                                                        leader in the engineering, design and manufac-
                                                                        ture of engines, transmissions, suspension and
                                                                        turret drive systems for combat vehicles, includ-
                                                                        ing both tracked and wheeled vehicles, and has a
               MICROWAVE
                                                                        continued presence on core programs, such as
               Under the well-rec-                                      the Bradley, the Abrams and the Expeditionary
               ognized Narda                                            Fighting Vehicle (EFV). Combat Propulsion
               brand name, L-3                                          Systems’ advanced gun and turret drive system
               has developed and                                        components are used on programs, including the
               manufactured                                             Stryker Mobile Gun System, the Opposing Force
               state-of-the-art                                         Surrogate Vehicle and the Avenger Air Defense
               microwave components for over 50 years and has           System. Additionally, the business is developing
               been a leader in the development of oscillators,         upgrades as part of the spiral performance
               frequency synthesizers and broadband amplifiers for      improvements for the transformation of the US
               such platforms as the International Space Station        Army.
               and the B-2, F-14, F-15, F-16, F-18 and F-22
               military fighter aircraft.

               L-3 Electron Devices is a well-established supplier of
               vacuum electronics products that uniquely provide
               the high power microwave energy and high operating
               efficiency required in a variety of strategic military
               systems. Systems such as AWACS, the AEGIS long-
               range search radar used on destroyers and cruisers,
               the AIM-120 Advanced Medium Range Air-to-Air
               Missile (AMRAAM) and the Patriot missile all utilize
               the performance features available only with vacuum
               electronics technology.




                                                                                                                            21
Specialized Products (cont’d)




22
TELEMETRY AND SATELLITE
                                                        COMMAND & CONTROL
                                                        L-3 leads the industry in the development of compo-
                                                        nents and systems used for a wide array of ground,
                                                        airborne and space telemetry applications and broad-
                                                        ened its reach with the acquisition of Cincinnati
                                                        Electronics, a producer of high-reliability electronic
                                                        communications equipment for use on missiles, launch
                                                        vehicles and spacecraft.
SPECIALIZED VEHICLES
                                                        L-3 Telemetry-East and -West airborne telemetry
L-3 is a leader in mobile communications vehicles for
                                                        hardware is currently being provided for many
homeland security, military and law enforcement uses,
                                                        weapons programs, including Joint Direct Attack
broadcast newsgathering and telecommunications.
                                                        Munition (JDAM), Small Diameter Bomb (SDB),
The range of scalable vehicle solutions from L-3 Wolf
                                                        Joint Air-to-Surface Standoff Missile (JASSM),
Coach provides “on-the-move” communications,
                                                        Joint Standoff Weapon (JSOW), Exoatmospheric
multi-frequency radio interoperability and command
                                                        Kill Vehicle (EKV), AIM-9X Sidewinder, Tactical
capability. L-3 Wolf Coach has over a decade of
                                                        Tomahawk and the Patriot Advanced Capability
experience in this area, with hundreds of units
                                                        (PAC-3) missile. L-3 also provides telemetry
deployed around the country for organizations like
                                                        hardware for various launch vehicles and targets,
the New York Police Department (NYPD), the
                                                        including the Strategic Target System (STARS),
Centers for Disease Control (CDC), the National
                                                        Taurus and Pegasus. Additionally, L-3 Southern
Guard, FEMA and many other federal, state, county
                                                        California Microwave was selected to provide air-
and municipal agencies.
                                                        borne video transmitters and ground receivers for
                                                        various models of miniature UAVs, including the
                                                        US Marine Corps’ Dragon Eye and the US Army’s
                                                        Raven manportable UAVs.




                                                                                                                 23
Homeland Security
     Our business segments provide products and services for the Homeland Security market in the following areas:



                                                                                       CARGO
     DEEPWATER                                                                         L-3 Security & Detection Systems (S&DS) was
                                                                                       selected by the Transportation Security Administration
     As part of the
                                                                                       (TSA) to participate in a break-bulk air cargo screen-
     sweeping renovation
                                                                                       ing pilot program using the eXaminer 3DX® 6000 in
     of US Coast Guard
                                                                                       air carrier cargo facilities at Miami International
     (USCG) platforms,
                                                                                       Airport (MIA), Chicago O’Hare International Airport
     the L-3 team will
                                                                                       (ORD), Los Angeles International Airport (LAX) and
     design and develop
                                                                                       Ted Stevens International Airport (ANC) in
     the communications
                                                                                       Anchorage, Alaska. The objective of the pilot program
     suite for the
                                                                                       is to evaluate the use of Explosives Detection Systems
     Command, Control,
                                                                                       (EDS) to inspect break-bulk air cargo to determine if
     Communications and Computers, ISR (C4ISR) system
                                                                                       it is feasible and practicable to clear cargo that is
     that will apply across numerous assets. Key features
                                                                                       flown on commercial aircraft using the technology.
     of this system include the MarCom Integrated Voice
     Communication System (IVCS), the RF Distribution
                                                                                       The Australian Customs Service also selected L-3
     System and the Automated Communications
                                                                                       S&DS to supply pallet cargo X-ray screening equip-
     Resource Manager. In addition, a MarCom IVCS was
                                                                                       ment for use at its cargo examination facilities. L-3’s
     successfully integrated as part of a major communi-
                                                                                       equipment is being integrated into existing security
     cations upgrade for the District 7 Command Center
                                                                                       protocols to manage and ensure the integrity and safe-
     in Miami, Florida – the USCG’s most active com-
                                                                                       ty of Australia’s borders at Brisbane and Fremantle.
     mand. L-3 Henschel will also provide Amplified
     Announcing and Global Maritime Distress & Safety
     Systems for USCG Deepwater communications.




         NAVAL PORTS &
         OIL PLATFORM SECURITY
         L-3 Klein is supplying its Harborguard® Small Target
         Detection Radar to naval and commercial customers,
         including SPAWAR San Diego Systems Center; Naval
         Station – Guantanamo Bay; Port of Galveston,Texas;
         Greater New Orleans Expressway Commission –
         Lake Pontchartrain and several others. The L-3
         Klein system sensors are optimized for critical
         detection and tracking for surface and subsurface
         surveillance for port and harbor environments.
         Harborguard will also be used by various customers
         for oil platform security. In addition, L-3 Aviation
         Recorders is providing its PROTECTM Automatic
         Identification System (AIS) to monitor vessel
         movements for customers in Corpus Christi, Texas,
         Guantanamo Bay and Malaysia.



24
L3-2004-ar
L3-2004-ar
L3-2004-ar
L3-2004-ar
L3-2004-ar
L3-2004-ar
L3-2004-ar
L3-2004-ar
L3-2004-ar
L3-2004-ar
L3-2004-ar
L3-2004-ar
L3-2004-ar
L3-2004-ar

Weitere ähnliche Inhalte

Andere mochten auch

qwest communications 4q 03 earnings
qwest communications 4q 03 earningsqwest communications 4q 03 earnings
qwest communications 4q 03 earningsfinance19
 
sun proxy statement 08
sun proxy statement 08sun proxy statement 08
sun proxy statement 08finance19
 
AES 2Q 2005 Form10QA
AES 2Q 2005 Form10QAAES 2Q 2005 Form10QA
AES 2Q 2005 Form10QAfinance19
 
AES Proxy 06
AES Proxy 06AES Proxy 06
AES Proxy 06finance19
 
qwest communications Q_3Q07_ER
qwest communications Q_3Q07_ERqwest communications Q_3Q07_ER
qwest communications Q_3Q07_ERfinance19
 
qwest communications Historical Quarterly Results1Q 06_2Q08
qwest communications Historical Quarterly Results1Q 06_2Q08qwest communications Historical Quarterly Results1Q 06_2Q08
qwest communications Historical Quarterly Results1Q 06_2Q08finance19
 
qwest communications q_q4 04er
qwest communications q_q4 04erqwest communications q_q4 04er
qwest communications q_q4 04erfinance19
 
l3 compensationc harter
l3 compensationc harterl3 compensationc harter
l3 compensationc harterfinance19
 
pepsi bottling AR_2006
pepsi bottling AR_2006pepsi bottling AR_2006
pepsi bottling AR_2006finance19
 
AES Q4 05Results
AES Q4 05ResultsAES Q4 05Results
AES Q4 05Resultsfinance19
 
qwest communications Q_3Q07_ER_attach
qwest communications Q_3Q07_ER_attachqwest communications Q_3Q07_ER_attach
qwest communications Q_3Q07_ER_attachfinance19
 
qwest communications Q_3Q07_Historical_v2
qwest communications Q_3Q07_Historical_v2qwest communications Q_3Q07_Historical_v2
qwest communications Q_3Q07_Historical_v2finance19
 
cbs Form 2008 10-K Filed February 25, 2009
cbs Form 2008 10-K Filed February 25, 2009cbs Form 2008 10-K Filed February 25, 2009
cbs Form 2008 10-K Filed February 25, 2009finance19
 
AES 2004 Proxy statement
AES 2004 Proxy statementAES 2004 Proxy statement
AES 2004 Proxy statementfinance19
 

Andere mochten auch (20)

qwest communications 4q 03 earnings
qwest communications 4q 03 earningsqwest communications 4q 03 earnings
qwest communications 4q 03 earnings
 
sun proxy statement 08
sun proxy statement 08sun proxy statement 08
sun proxy statement 08
 
AES 2Q 2005 Form10QA
AES 2Q 2005 Form10QAAES 2Q 2005 Form10QA
AES 2Q 2005 Form10QA
 
AES Proxy 06
AES Proxy 06AES Proxy 06
AES Proxy 06
 
qwest communications Q_3Q07_ER
qwest communications Q_3Q07_ERqwest communications Q_3Q07_ER
qwest communications Q_3Q07_ER
 
qwest communications Historical Quarterly Results1Q 06_2Q08
qwest communications Historical Quarterly Results1Q 06_2Q08qwest communications Historical Quarterly Results1Q 06_2Q08
qwest communications Historical Quarterly Results1Q 06_2Q08
 
CBS qr3q 03
CBS qr3q 03CBS qr3q 03
CBS qr3q 03
 
qwest communications q_q4 04er
qwest communications q_q4 04erqwest communications q_q4 04er
qwest communications q_q4 04er
 
l3 compensationc harter
l3 compensationc harterl3 compensationc harter
l3 compensationc harter
 
AES 4Q 06
AES  4Q 06AES  4Q 06
AES 4Q 06
 
pepsi bottling AR_2006
pepsi bottling AR_2006pepsi bottling AR_2006
pepsi bottling AR_2006
 
AES Q4 05Results
AES Q4 05ResultsAES Q4 05Results
AES Q4 05Results
 
sun 10k 08
sun 10k 08sun 10k 08
sun 10k 08
 
qwest communications Q_3Q07_ER_attach
qwest communications Q_3Q07_ER_attachqwest communications Q_3Q07_ER_attach
qwest communications Q_3Q07_ER_attach
 
qwest communications Q_3Q07_Historical_v2
qwest communications Q_3Q07_Historical_v2qwest communications Q_3Q07_Historical_v2
qwest communications Q_3Q07_Historical_v2
 
cbs Form 2008 10-K Filed February 25, 2009
cbs Form 2008 10-K Filed February 25, 2009cbs Form 2008 10-K Filed February 25, 2009
cbs Form 2008 10-K Filed February 25, 2009
 
AES 2004 Proxy statement
AES 2004 Proxy statementAES 2004 Proxy statement
AES 2004 Proxy statement
 
CBS qr3q 01
CBS qr3q 01CBS qr3q 01
CBS qr3q 01
 
L3 2005 ar
L3 2005 arL3 2005 ar
L3 2005 ar
 
CBS Q2 07
CBS Q2 07CBS Q2 07
CBS Q2 07
 

Ähnlich wie L3-2004-ar

Eye On Defense July 2012
Eye On Defense  July 2012Eye On Defense  July 2012
Eye On Defense July 2012Ankur Gupta
 
Dod Unmanned Systems Roadmap 2007-2032
Dod Unmanned Systems Roadmap 2007-2032Dod Unmanned Systems Roadmap 2007-2032
Dod Unmanned Systems Roadmap 2007-2032528Hz TRUTH
 
Usdod road map_2007-2032
Usdod road map_2007-2032Usdod road map_2007-2032
Usdod road map_2007-2032Agie Abdissalam
 
Resourcing the US 2030 Cyber Strategy
Resourcing the US 2030 Cyber StrategyResourcing the US 2030 Cyber Strategy
Resourcing the US 2030 Cyber StrategyScott Dickson
 
jfec0606_ay07sae
jfec0606_ay07saejfec0606_ay07sae
jfec0606_ay07saeguest66dc5f
 
Quadrennial Defense Review February 2010
Quadrennial Defense Review February 2010Quadrennial Defense Review February 2010
Quadrennial Defense Review February 2010Department of Defense
 
Ballistic Missile Defense Review February 2010
Ballistic Missile Defense Review February 2010Ballistic Missile Defense Review February 2010
Ballistic Missile Defense Review February 2010Department of Defense
 
Defence Logistics Information Systems
Defence Logistics Information SystemsDefence Logistics Information Systems
Defence Logistics Information SystemsAman Pannu
 
The cbrn defense market 2013 2023 - Reports Corner
The cbrn defense market 2013 2023 - Reports CornerThe cbrn defense market 2013 2023 - Reports Corner
The cbrn defense market 2013 2023 - Reports CornerReports Corner
 
Army Futures Command Concept for Intelligence 2028
Army Futures Command Concept for Intelligence 2028Army Futures Command Concept for Intelligence 2028
Army Futures Command Concept for Intelligence 2028Neil McDonnell
 
Project Management and Defense Acquisition
Project Management and Defense AcquisitionProject Management and Defense Acquisition
Project Management and Defense AcquisitionSpace Foundation
 
The global military rotorcraft market 2013 2023 - Reports Corner
The global military rotorcraft market  2013 2023 - Reports CornerThe global military rotorcraft market  2013 2023 - Reports Corner
The global military rotorcraft market 2013 2023 - Reports CornerReports Corner
 
UV1090 Jan. 21, 2009 This case was prepared by T.docx
UV1090 Jan. 21, 2009   This case was prepared by T.docxUV1090 Jan. 21, 2009   This case was prepared by T.docx
UV1090 Jan. 21, 2009 This case was prepared by T.docxjolleybendicty
 
Future of the Greek Defense Industry to 2018:Industry Trends, Size and Share...
 Future of the Greek Defense Industry to 2018:Industry Trends, Size and Share... Future of the Greek Defense Industry to 2018:Industry Trends, Size and Share...
Future of the Greek Defense Industry to 2018:Industry Trends, Size and Share...michalgilly
 
The Building Blocks of a Strong National Defense
The Building Blocks of a Strong National DefenseThe Building Blocks of a Strong National Defense
The Building Blocks of a Strong National DefenseThe Heritage Foundation
 
Force 2025 and Beyond Torchbearer Article January 2015
Force 2025 and Beyond Torchbearer Article January 2015Force 2025 and Beyond Torchbearer Article January 2015
Force 2025 and Beyond Torchbearer Article January 2015Scott Sadler
 
IHS Analysis - Pacific Operational S&t conference 2013
IHS Analysis - Pacific Operational S&t conference 2013IHS Analysis - Pacific Operational S&t conference 2013
IHS Analysis - Pacific Operational S&t conference 2013IHS
 

Ähnlich wie L3-2004-ar (20)

Eye On Defense July 2012
Eye On Defense  July 2012Eye On Defense  July 2012
Eye On Defense July 2012
 
Dod Unmanned Systems Roadmap 2007-2032
Dod Unmanned Systems Roadmap 2007-2032Dod Unmanned Systems Roadmap 2007-2032
Dod Unmanned Systems Roadmap 2007-2032
 
Usdod road map_2007-2032
Usdod road map_2007-2032Usdod road map_2007-2032
Usdod road map_2007-2032
 
Resourcing the US 2030 Cyber Strategy
Resourcing the US 2030 Cyber StrategyResourcing the US 2030 Cyber Strategy
Resourcing the US 2030 Cyber Strategy
 
IntegratedAirMissileDefense18[593665]
IntegratedAirMissileDefense18[593665]IntegratedAirMissileDefense18[593665]
IntegratedAirMissileDefense18[593665]
 
jfec0606_ay07sae
jfec0606_ay07saejfec0606_ay07sae
jfec0606_ay07sae
 
Quadrennial Defense Review February 2010
Quadrennial Defense Review February 2010Quadrennial Defense Review February 2010
Quadrennial Defense Review February 2010
 
Ballistic Missile Defense Review February 2010
Ballistic Missile Defense Review February 2010Ballistic Missile Defense Review February 2010
Ballistic Missile Defense Review February 2010
 
Defence Logistics Information Systems
Defence Logistics Information SystemsDefence Logistics Information Systems
Defence Logistics Information Systems
 
The cbrn defense market 2013 2023 - Reports Corner
The cbrn defense market 2013 2023 - Reports CornerThe cbrn defense market 2013 2023 - Reports Corner
The cbrn defense market 2013 2023 - Reports Corner
 
Army Futures Command Concept for Intelligence 2028
Army Futures Command Concept for Intelligence 2028Army Futures Command Concept for Intelligence 2028
Army Futures Command Concept for Intelligence 2028
 
Project Management and Defense Acquisition
Project Management and Defense AcquisitionProject Management and Defense Acquisition
Project Management and Defense Acquisition
 
The global military rotorcraft market 2013 2023 - Reports Corner
The global military rotorcraft market  2013 2023 - Reports CornerThe global military rotorcraft market  2013 2023 - Reports Corner
The global military rotorcraft market 2013 2023 - Reports Corner
 
UV1090 Jan. 21, 2009 This case was prepared by T.docx
UV1090 Jan. 21, 2009   This case was prepared by T.docxUV1090 Jan. 21, 2009   This case was prepared by T.docx
UV1090 Jan. 21, 2009 This case was prepared by T.docx
 
Future of the Greek Defense Industry to 2018:Industry Trends, Size and Share...
 Future of the Greek Defense Industry to 2018:Industry Trends, Size and Share... Future of the Greek Defense Industry to 2018:Industry Trends, Size and Share...
Future of the Greek Defense Industry to 2018:Industry Trends, Size and Share...
 
Roadmap Aerospace Mexico 2013 - PROMEXICO
Roadmap Aerospace Mexico 2013 - PROMEXICORoadmap Aerospace Mexico 2013 - PROMEXICO
Roadmap Aerospace Mexico 2013 - PROMEXICO
 
The Building Blocks of a Strong National Defense
The Building Blocks of a Strong National DefenseThe Building Blocks of a Strong National Defense
The Building Blocks of a Strong National Defense
 
Force 2025 and Beyond Torchbearer Article January 2015
Force 2025 and Beyond Torchbearer Article January 2015Force 2025 and Beyond Torchbearer Article January 2015
Force 2025 and Beyond Torchbearer Article January 2015
 
IHS Analysis - Pacific Operational S&t conference 2013
IHS Analysis - Pacific Operational S&t conference 2013IHS Analysis - Pacific Operational S&t conference 2013
IHS Analysis - Pacific Operational S&t conference 2013
 
Defense Economics.ppt
Defense Economics.pptDefense Economics.ppt
Defense Economics.ppt
 

Mehr von finance19

pepsi bottling Q1 Non-Gaap
  	 pepsi bottling  Q1 Non-Gaap  	 pepsi bottling  Q1 Non-Gaap
pepsi bottling Q1 Non-Gaapfinance19
 
pepsi bottling 071007nong
  	 pepsi bottling  071007nong  	 pepsi bottling  071007nong
pepsi bottling 071007nongfinance19
 
pepsi bottling pbg Non Gaap
  	 pepsi bottling  pbg Non Gaap  	 pepsi bottling  pbg Non Gaap
pepsi bottling pbg Non Gaapfinance19
 
pepsi bottling Non Gaap Investor Day121307
  	 pepsi bottling  Non Gaap Investor Day121307  	 pepsi bottling  Non Gaap Investor Day121307
pepsi bottling Non Gaap Investor Day121307finance19
 
pepsi bottling 4Q Non Gaap
  	 pepsi bottling  4Q Non Gaap  	 pepsi bottling  4Q Non Gaap
pepsi bottling 4Q Non Gaapfinance19
 
pepsi bottling Q108_NonGAAPReconciliation
  	 pepsi bottling  Q108_NonGAAPReconciliation  	 pepsi bottling  Q108_NonGAAPReconciliation
pepsi bottling Q108_NonGAAPReconciliationfinance19
 
pepsi bottling 2Q 08 Non GAAP
  	 pepsi bottling  2Q 08 Non GAAP  	 pepsi bottling  2Q 08 Non GAAP
pepsi bottling 2Q 08 Non GAAPfinance19
 
pepsi bottling Non GAA P0908
  	 pepsi bottling  Non GAA P0908  	 pepsi bottling  Non GAA P0908
pepsi bottling Non GAA P0908finance19
 
pepsi bottling library.corporate
  	 pepsi bottling library.corporate  	 pepsi bottling library.corporate
pepsi bottling library.corporatefinance19
 
pepsi bottling library.corporate
  	 pepsi bottling library.corporate  	 pepsi bottling library.corporate
pepsi bottling library.corporatefinance19
 
pepsi bottling library.corporate
  	 pepsi bottling library.corporate  	 pepsi bottling library.corporate
pepsi bottling library.corporatefinance19
 
pepsi bottling ar2000
pepsi bottling ar2000pepsi bottling ar2000
pepsi bottling ar2000finance19
 
pepsi bottlingar 01
pepsi bottlingar 01pepsi bottlingar 01
pepsi bottlingar 01finance19
 
pepsi bottling 2002
pepsi bottling 2002pepsi bottling 2002
pepsi bottling 2002finance19
 
pepsi bottling 03AR
pepsi bottling 03ARpepsi bottling 03AR
pepsi bottling 03ARfinance19
 
pepsi bottling AR 04
pepsi bottling AR 04pepsi bottling AR 04
pepsi bottling AR 04finance19
 
pepsi bottling AR_2005
pepsi bottling AR_2005pepsi bottling AR_2005
pepsi bottling AR_2005finance19
 
WorldFuel 2002 Transition AnnualReport
WorldFuel 2002 Transition AnnualReportWorldFuel 2002 Transition AnnualReport
WorldFuel 2002 Transition AnnualReportfinance19
 
WorldFuel 2003AnnualReport
WorldFuel 2003AnnualReportWorldFuel 2003AnnualReport
WorldFuel 2003AnnualReportfinance19
 
WorldFuel 2003AnnualReport
WorldFuel 2003AnnualReportWorldFuel 2003AnnualReport
WorldFuel 2003AnnualReportfinance19
 

Mehr von finance19 (20)

pepsi bottling Q1 Non-Gaap
  	 pepsi bottling  Q1 Non-Gaap  	 pepsi bottling  Q1 Non-Gaap
pepsi bottling Q1 Non-Gaap
 
pepsi bottling 071007nong
  	 pepsi bottling  071007nong  	 pepsi bottling  071007nong
pepsi bottling 071007nong
 
pepsi bottling pbg Non Gaap
  	 pepsi bottling  pbg Non Gaap  	 pepsi bottling  pbg Non Gaap
pepsi bottling pbg Non Gaap
 
pepsi bottling Non Gaap Investor Day121307
  	 pepsi bottling  Non Gaap Investor Day121307  	 pepsi bottling  Non Gaap Investor Day121307
pepsi bottling Non Gaap Investor Day121307
 
pepsi bottling 4Q Non Gaap
  	 pepsi bottling  4Q Non Gaap  	 pepsi bottling  4Q Non Gaap
pepsi bottling 4Q Non Gaap
 
pepsi bottling Q108_NonGAAPReconciliation
  	 pepsi bottling  Q108_NonGAAPReconciliation  	 pepsi bottling  Q108_NonGAAPReconciliation
pepsi bottling Q108_NonGAAPReconciliation
 
pepsi bottling 2Q 08 Non GAAP
  	 pepsi bottling  2Q 08 Non GAAP  	 pepsi bottling  2Q 08 Non GAAP
pepsi bottling 2Q 08 Non GAAP
 
pepsi bottling Non GAA P0908
  	 pepsi bottling  Non GAA P0908  	 pepsi bottling  Non GAA P0908
pepsi bottling Non GAA P0908
 
pepsi bottling library.corporate
  	 pepsi bottling library.corporate  	 pepsi bottling library.corporate
pepsi bottling library.corporate
 
pepsi bottling library.corporate
  	 pepsi bottling library.corporate  	 pepsi bottling library.corporate
pepsi bottling library.corporate
 
pepsi bottling library.corporate
  	 pepsi bottling library.corporate  	 pepsi bottling library.corporate
pepsi bottling library.corporate
 
pepsi bottling ar2000
pepsi bottling ar2000pepsi bottling ar2000
pepsi bottling ar2000
 
pepsi bottlingar 01
pepsi bottlingar 01pepsi bottlingar 01
pepsi bottlingar 01
 
pepsi bottling 2002
pepsi bottling 2002pepsi bottling 2002
pepsi bottling 2002
 
pepsi bottling 03AR
pepsi bottling 03ARpepsi bottling 03AR
pepsi bottling 03AR
 
pepsi bottling AR 04
pepsi bottling AR 04pepsi bottling AR 04
pepsi bottling AR 04
 
pepsi bottling AR_2005
pepsi bottling AR_2005pepsi bottling AR_2005
pepsi bottling AR_2005
 
WorldFuel 2002 Transition AnnualReport
WorldFuel 2002 Transition AnnualReportWorldFuel 2002 Transition AnnualReport
WorldFuel 2002 Transition AnnualReport
 
WorldFuel 2003AnnualReport
WorldFuel 2003AnnualReportWorldFuel 2003AnnualReport
WorldFuel 2003AnnualReport
 
WorldFuel 2003AnnualReport
WorldFuel 2003AnnualReportWorldFuel 2003AnnualReport
WorldFuel 2003AnnualReport
 

Kürzlich hochgeladen

AnyConv.com__FSS Advance Retail & Distribution - 15.06.17.ppt
AnyConv.com__FSS Advance Retail & Distribution - 15.06.17.pptAnyConv.com__FSS Advance Retail & Distribution - 15.06.17.ppt
AnyConv.com__FSS Advance Retail & Distribution - 15.06.17.pptPriyankaSharma89719
 
Financial Preparation for Millennia.pptx
Financial Preparation for Millennia.pptxFinancial Preparation for Millennia.pptx
Financial Preparation for Millennia.pptxsimon978302
 
Liquidity Decisions in Financial management
Liquidity Decisions in Financial managementLiquidity Decisions in Financial management
Liquidity Decisions in Financial managementshrutisingh143670
 
『澳洲文凭』买科廷大学毕业证书成绩单办理澳洲Curtin文凭学位证书
『澳洲文凭』买科廷大学毕业证书成绩单办理澳洲Curtin文凭学位证书『澳洲文凭』买科廷大学毕业证书成绩单办理澳洲Curtin文凭学位证书
『澳洲文凭』买科廷大学毕业证书成绩单办理澳洲Curtin文凭学位证书rnrncn29
 
What is sip and What are its Benefits in 2024
What is sip and What are its Benefits in 2024What is sip and What are its Benefits in 2024
What is sip and What are its Benefits in 2024prajwalgopocket
 
NO1 Certified Black Magic Specialist Expert In Bahawalpur, Sargodha, Sialkot,...
NO1 Certified Black Magic Specialist Expert In Bahawalpur, Sargodha, Sialkot,...NO1 Certified Black Magic Specialist Expert In Bahawalpur, Sargodha, Sialkot,...
NO1 Certified Black Magic Specialist Expert In Bahawalpur, Sargodha, Sialkot,...Amil baba
 
Introduction to Health Economics Dr. R. Kurinji Malar.pptx
Introduction to Health Economics Dr. R. Kurinji Malar.pptxIntroduction to Health Economics Dr. R. Kurinji Malar.pptx
Introduction to Health Economics Dr. R. Kurinji Malar.pptxDrRkurinjiMalarkurin
 
Uae-NO1 Rohani Amil In Islamabad Amil Baba in Rawalpindi Kala Jadu Amil In Ra...
Uae-NO1 Rohani Amil In Islamabad Amil Baba in Rawalpindi Kala Jadu Amil In Ra...Uae-NO1 Rohani Amil In Islamabad Amil Baba in Rawalpindi Kala Jadu Amil In Ra...
Uae-NO1 Rohani Amil In Islamabad Amil Baba in Rawalpindi Kala Jadu Amil In Ra...Amil baba
 
Unveiling Poonawalla Fincorp’s Phenomenal Performance Under Abhay Bhutada’s L...
Unveiling Poonawalla Fincorp’s Phenomenal Performance Under Abhay Bhutada’s L...Unveiling Poonawalla Fincorp’s Phenomenal Performance Under Abhay Bhutada’s L...
Unveiling Poonawalla Fincorp’s Phenomenal Performance Under Abhay Bhutada’s L...beulahfernandes8
 
Banking: Commercial and Central Banking.pptx
Banking: Commercial and Central Banking.pptxBanking: Commercial and Central Banking.pptx
Banking: Commercial and Central Banking.pptxANTHONYAKINYOSOYE1
 
Market Morning Updates for 16th April 2024
Market Morning Updates for 16th April 2024Market Morning Updates for 16th April 2024
Market Morning Updates for 16th April 2024Devarsh Vakil
 
Financial analysis on Risk and Return.ppt
Financial analysis on Risk and Return.pptFinancial analysis on Risk and Return.ppt
Financial analysis on Risk and Return.ppttadegebreyesus
 
The Inspirational Story of Julio Herrera Velutini - Global Finance Leader
The Inspirational Story of Julio Herrera Velutini - Global Finance LeaderThe Inspirational Story of Julio Herrera Velutini - Global Finance Leader
The Inspirational Story of Julio Herrera Velutini - Global Finance LeaderArianna Varetto
 
2024 Q1 Crypto Industry Report | CoinGecko
2024 Q1 Crypto Industry Report | CoinGecko2024 Q1 Crypto Industry Report | CoinGecko
2024 Q1 Crypto Industry Report | CoinGeckoCoinGecko
 
Hello this ppt is about seminar final project
Hello this ppt is about seminar final projectHello this ppt is about seminar final project
Hello this ppt is about seminar final projectninnasirsi
 
Money Forward Integrated Report “Forward Map” 2024
Money Forward Integrated Report “Forward Map” 2024Money Forward Integrated Report “Forward Map” 2024
Money Forward Integrated Report “Forward Map” 2024Money Forward
 
Global Economic Outlook, 2024 - Scholaride Consulting
Global Economic Outlook, 2024 - Scholaride ConsultingGlobal Economic Outlook, 2024 - Scholaride Consulting
Global Economic Outlook, 2024 - Scholaride Consultingswastiknandyofficial
 
The top 4 AI cryptocurrencies to know in 2024 .pdf
The top 4 AI cryptocurrencies to know in 2024 .pdfThe top 4 AI cryptocurrencies to know in 2024 .pdf
The top 4 AI cryptocurrencies to know in 2024 .pdfJhon Thompson
 
Uae-NO1 Black Magic Specialist In Lahore Black magic In Pakistan Kala Ilam Ex...
Uae-NO1 Black Magic Specialist In Lahore Black magic In Pakistan Kala Ilam Ex...Uae-NO1 Black Magic Specialist In Lahore Black magic In Pakistan Kala Ilam Ex...
Uae-NO1 Black Magic Specialist In Lahore Black magic In Pakistan Kala Ilam Ex...Amil baba
 
Uae-NO1 Pakistani Amil Baba Real Amil baba In Pakistan Najoomi Baba in Pakist...
Uae-NO1 Pakistani Amil Baba Real Amil baba In Pakistan Najoomi Baba in Pakist...Uae-NO1 Pakistani Amil Baba Real Amil baba In Pakistan Najoomi Baba in Pakist...
Uae-NO1 Pakistani Amil Baba Real Amil baba In Pakistan Najoomi Baba in Pakist...Amil baba
 

Kürzlich hochgeladen (20)

AnyConv.com__FSS Advance Retail & Distribution - 15.06.17.ppt
AnyConv.com__FSS Advance Retail & Distribution - 15.06.17.pptAnyConv.com__FSS Advance Retail & Distribution - 15.06.17.ppt
AnyConv.com__FSS Advance Retail & Distribution - 15.06.17.ppt
 
Financial Preparation for Millennia.pptx
Financial Preparation for Millennia.pptxFinancial Preparation for Millennia.pptx
Financial Preparation for Millennia.pptx
 
Liquidity Decisions in Financial management
Liquidity Decisions in Financial managementLiquidity Decisions in Financial management
Liquidity Decisions in Financial management
 
『澳洲文凭』买科廷大学毕业证书成绩单办理澳洲Curtin文凭学位证书
『澳洲文凭』买科廷大学毕业证书成绩单办理澳洲Curtin文凭学位证书『澳洲文凭』买科廷大学毕业证书成绩单办理澳洲Curtin文凭学位证书
『澳洲文凭』买科廷大学毕业证书成绩单办理澳洲Curtin文凭学位证书
 
What is sip and What are its Benefits in 2024
What is sip and What are its Benefits in 2024What is sip and What are its Benefits in 2024
What is sip and What are its Benefits in 2024
 
NO1 Certified Black Magic Specialist Expert In Bahawalpur, Sargodha, Sialkot,...
NO1 Certified Black Magic Specialist Expert In Bahawalpur, Sargodha, Sialkot,...NO1 Certified Black Magic Specialist Expert In Bahawalpur, Sargodha, Sialkot,...
NO1 Certified Black Magic Specialist Expert In Bahawalpur, Sargodha, Sialkot,...
 
Introduction to Health Economics Dr. R. Kurinji Malar.pptx
Introduction to Health Economics Dr. R. Kurinji Malar.pptxIntroduction to Health Economics Dr. R. Kurinji Malar.pptx
Introduction to Health Economics Dr. R. Kurinji Malar.pptx
 
Uae-NO1 Rohani Amil In Islamabad Amil Baba in Rawalpindi Kala Jadu Amil In Ra...
Uae-NO1 Rohani Amil In Islamabad Amil Baba in Rawalpindi Kala Jadu Amil In Ra...Uae-NO1 Rohani Amil In Islamabad Amil Baba in Rawalpindi Kala Jadu Amil In Ra...
Uae-NO1 Rohani Amil In Islamabad Amil Baba in Rawalpindi Kala Jadu Amil In Ra...
 
Unveiling Poonawalla Fincorp’s Phenomenal Performance Under Abhay Bhutada’s L...
Unveiling Poonawalla Fincorp’s Phenomenal Performance Under Abhay Bhutada’s L...Unveiling Poonawalla Fincorp’s Phenomenal Performance Under Abhay Bhutada’s L...
Unveiling Poonawalla Fincorp’s Phenomenal Performance Under Abhay Bhutada’s L...
 
Banking: Commercial and Central Banking.pptx
Banking: Commercial and Central Banking.pptxBanking: Commercial and Central Banking.pptx
Banking: Commercial and Central Banking.pptx
 
Market Morning Updates for 16th April 2024
Market Morning Updates for 16th April 2024Market Morning Updates for 16th April 2024
Market Morning Updates for 16th April 2024
 
Financial analysis on Risk and Return.ppt
Financial analysis on Risk and Return.pptFinancial analysis on Risk and Return.ppt
Financial analysis on Risk and Return.ppt
 
The Inspirational Story of Julio Herrera Velutini - Global Finance Leader
The Inspirational Story of Julio Herrera Velutini - Global Finance LeaderThe Inspirational Story of Julio Herrera Velutini - Global Finance Leader
The Inspirational Story of Julio Herrera Velutini - Global Finance Leader
 
2024 Q1 Crypto Industry Report | CoinGecko
2024 Q1 Crypto Industry Report | CoinGecko2024 Q1 Crypto Industry Report | CoinGecko
2024 Q1 Crypto Industry Report | CoinGecko
 
Hello this ppt is about seminar final project
Hello this ppt is about seminar final projectHello this ppt is about seminar final project
Hello this ppt is about seminar final project
 
Money Forward Integrated Report “Forward Map” 2024
Money Forward Integrated Report “Forward Map” 2024Money Forward Integrated Report “Forward Map” 2024
Money Forward Integrated Report “Forward Map” 2024
 
Global Economic Outlook, 2024 - Scholaride Consulting
Global Economic Outlook, 2024 - Scholaride ConsultingGlobal Economic Outlook, 2024 - Scholaride Consulting
Global Economic Outlook, 2024 - Scholaride Consulting
 
The top 4 AI cryptocurrencies to know in 2024 .pdf
The top 4 AI cryptocurrencies to know in 2024 .pdfThe top 4 AI cryptocurrencies to know in 2024 .pdf
The top 4 AI cryptocurrencies to know in 2024 .pdf
 
Uae-NO1 Black Magic Specialist In Lahore Black magic In Pakistan Kala Ilam Ex...
Uae-NO1 Black Magic Specialist In Lahore Black magic In Pakistan Kala Ilam Ex...Uae-NO1 Black Magic Specialist In Lahore Black magic In Pakistan Kala Ilam Ex...
Uae-NO1 Black Magic Specialist In Lahore Black magic In Pakistan Kala Ilam Ex...
 
Uae-NO1 Pakistani Amil Baba Real Amil baba In Pakistan Najoomi Baba in Pakist...
Uae-NO1 Pakistani Amil Baba Real Amil baba In Pakistan Najoomi Baba in Pakist...Uae-NO1 Pakistani Amil Baba Real Amil baba In Pakistan Najoomi Baba in Pakist...
Uae-NO1 Pakistani Amil Baba Real Amil baba In Pakistan Najoomi Baba in Pakist...
 

L3-2004-ar

  • 1. National Security Summary Annual Report 2004 Homeland Defense
  • 2. Strategic View Today's Landscape The Ongoing Threat of Terrorism Restructured Defense Budget Bush Reelection Campaign in Afghanistan and Iraq
  • 3. Iraqi Elections Military Transformation Continues Fewer Platforms, Homeland More Security Capabilities Focus on Readiness, Modernization and Joint Operations 1
  • 4. Frank C. Lanza Chairman and Chief Executive Officer 2
  • 5. Dear Shareholders: L-3 had a record year in orders, receiving $7,563.7 million in funded The year 2004 was a time of extraordinary heroism, challenge and orders from all of the company’s major business areas. Backlog was sacrifice for US and coalition forces. In Iraq, the coalition continued $4,757.9 million at December 31, 2004. its efforts to build peaceful conditions and defeat pockets of terrorists and insurgents. The coalition battled successfully in difficult urban At the close of the year 2004, L-3 had a very strong balance sheet. environments and continued to build the infrastructure of Iraq needed The company’s debt to book capitalization decreased to 36.1% at to ensure the country’s future. A most remarkable achievement was December 31, 2004, compared to 48.1% at December 31, 2003. the first free election in Iraq’s history in January 2005 and the birth Additionally, in January 2005, Standard and Poor’s upgraded L-3’s of democracy within the nation. senior debt rating to BBB-, an investment grade rating. At the same time, the Department of Defense (DoD) is moving to In 2004, L-3 was also selected by Standard & Poor’s for inclusion in transform its capabilities and strategies to face today’s world order. its flagship stock market index – the S&P 500 Global Industry This landscape differs significantly from the traditional Cold War chal- Classification Standard (GICS) Aerospace & Defense Sub-Industry lenges wherein the US national strategy was characterized by a con- Index. This was a signature honor for L-3, a milestone that demon- cern about the bipolar nature of the world and its attendant demands. strates the company’s vital role in the defense industry. With recognition of asymmetrical threats facing the US and its allies, the DoD has identified four broad threats that the US will continue to Acquisitions face in the future. Known as the “four-way matrix,” these threats The acquisition of niche companies to augment L-3’s expanding portfo- include irregular, catastrophic, disruptive and traditional challenges. lio of businesses continued to be a key company strategy. In total, the acquisitions had an aggregate purchase price of $434.7 million. A transformational strategy to cope with these threats has been initiat- ed and will be developed and resourced by the DoD in its planning doc- In L-3’s Secure Communications and Intelligence, Surveillance and umentation – the Quadrennial Defense Review (QDR) due in the begin- Reconnaissance (SC & ISR) segment, L-3 acquired key companies ning of 2006. This review will shape the defense capabilities in the that increase its capabilities in important product areas. L-3 added years to come. Cincinnati Electronics, a leading producer of infrared (IR) detectors, imaging sensors, missile warning sensors and products. L-3 also In 2004, the Bush administration initiated a national strategy for acquired BAI Aerosystems, Inc., a leading designer, manufacturer and homeland security focusing on a number of key areas, including nation- integrator of unmanned aerial vehicles (UAV). BAI also offers a com- al joint intelligence and warning, border and transportation security, plete set of UAV subsystems, such as avionics and auto pilots, imaging maritime security, domestic counterterrorism, crisis management, and sensor payloads, ground control stations and support equipment, emergency preparedness and response, protection of critical infrastruc- which are incorporated into its proprietary designs, as well as sold to ture and national assets and defending against catastrophic threats. other UAV manufacturers. Any disruption in commerce, transportation, power and maritime activities can cause a major economic impact to the US and its inter- Training continues to be a high priority for the DoD to improve the national partners. It is anticipated that the Bush administration will skills of its military forces. The use of computer-based training (CBT) ensure the implementation of this strategy to safeguard the nation and systems has proven to be an effective method in reducing the increas- resource the Department of Homeland Security (DHS) to an increased ing costs of maintaining readiness and developing greater skill levels. level of funding. In L-3’s Training, Simulation and Government Services (TS & GS) segment, the company added BEAMHIT, LLC., one of the top laser L-3’s employees, systems, products and services play a significant role marksmanship training systems providers for military and law enforce- in assisting the US military and its civilian protectors in their efforts. ment agencies in the world. D.P. Associates, which produces rapidly There is no greater honor than to help those who put their lives on the deployable CBT systems, brought L-3 important leading-edge course- line for others and L-3 employees take great pride in the work they do ware analysis, design and development capabilities that expand its to support the safety and security of the nation’s protectors with the leadership in the training marketplace. best available products and systems. In the Aircraft Modernization, Operations and Maintenance and Strong Results Products (AM, O&M & P) segment, L-3 acquired Northrop This also was a year in which L-3 continued exceeding its business and Grumman’s Canadian Navigation Systems and Aircraft Modernization financial goals. Sales grew to $6,897.0 million from $5,061.6 million business, a leader in electronic products and systems for aviation and in 2003, a 36.3% increase. Organic sales growth for L-3’s defense ground vehicles and AVISYS, a major international supplier of elec- businesses increased by 16.3% versus 2003 and 15.1% for all of L-3. tronic warfare and electro-optical (E/O) systems, as well as products developed to counter the threat of manportable, shoulder-launched In 2004, operating income rose 28.8% to $748.6 million, increasing surface-to-air missiles. L-3 is now the leading provider of operations, from $581.0 million in 2003. Diluted earnings per share for 2004 maintenance and modernization of platforms in the world and also the rose 27.1% to $3.33, from $2.62 in 2003. largest provider of operations support for Special Operations Forces L-3 recorded $552.1 million in free cash flow, compared to $377.0 and aircrew training. Major facilities are located in Canada, Texas million in 2003, an increase of 46.4%. L-3 concluded the year with and Kentucky and include several thousand personnel at the Army’s $653.4 million of cash on hand. On March 9, 2005, L-3 entered into a Fort Rucker Air School in Alabama, where L-3 provides operational new five-year senior credit facility that allows for total aggregate bor- support. Also, L-3 is teamed with Computer Sciences Corporation to rowings of up to $1.0 billion. provide the training and simulation for Fort Rucker. 3
  • 6. In Specialized Products (SP), L-3 made a number of acquisitions that communications, real-time intelligence and command, control and intel- ligence (C2I). This will make it possible for the military to modernize add significant products to the company’s catalog of offerings. L-3 acquired General Dynamics’ Propulsion Systems business, renamed present platforms as part of military transformation with increased L-3 Combat Propulsion Systems, which provides engines, transmission firepower, survivability, precision and mobility in joint operations and to suspension and turret drive systems for combat vehicles and CAE’s stretch and contain development of expensive new platforms. Marine Controls division, now known as L-3 MAPPS, which offers Containment, reprioritizing and a reduction in many social programs integrated marine controls and products for warships, submarines and will also be necessary to reduce the federal deficit. high-end ocean-going commercial vessels. L-3 MAPPS is also a leader We believe that defense spending will continue to moderately grow, in deploying simulation technology for operator training at power gen- while the DoD will be forced to refocus its spending priorities. eration utilities around the world. Response to the need for readiness and modernization of present In addition, L-3 added to its microwave device catalog by acquiring cardinal platforms with new advanced combat capability has started Boeing’s Electron Dynamic Devices business, now known as L-3 and will be accelerated within this decade. By 2007, the DoD budget Electron Technologies, Inc., a provider of high-technology components will implement the roadmap for the transformation of the military. The and subsystems, including space-qualified Traveling Wave Tubes (TWT), new military will be robust and fight as a joint force, capable of meet- Traveling Wave Tube Amplifiers (TWTA), passive microwave devices ing the new world order and the threats imposed by asymmetrical ter- and electric propulsion systems for commercial, DoD, classified and rorists and rogue nations, as well as traditional regional conflicts. NASA satellites and spacecraft. Electron Technologies also provides Power projection against traditional confrontation will be swift, precise TWTs for terrestrial and airborne defense systems. This operation is and with short timelines. synergistic in technology and customers with L-3’s microwave devices There will be continued growth for companies that have advanced company, which provides similar products to missiles, aircraft and ships products and services that fulfill the needs of the DoD’s transforma- for radars, sensors and communications. L-3 increased its E/O product tional force structure and priorities. We believe that L-3 is well posi- group marketplace with the acquisition of Brashear, which is synergis- tioned for future growth by the company’s continued participation in tic with L-3’s sensor products and provides complex E/O systems, tele- these vital capabilities that the DoD has initiated in transforming the scopes and optical platforms for military and international customers. military to meet both traditional and irregular threats and in homeland In addition, L-3 added Raytheon’s Commercial Infrared business, now security responsibilities. Those areas include shared intelligence, UAVs, L-3 Infrared Products, a well-respected producer of uncooled thermal precision weaponry, sensors, broadband digital communications and imaging products for military and commercial use, which complements upgrading and modifying existing platforms. In addition, as the mili- Cincinnati Electronics, a provider of cooled IR sensors used in military tary continues its support of rebuilding Iraq, we expect that the DoD night vision systems and electronic warfare sensors. will expand its use of outsourcing to assist in the reconstruction. These are all areas where there is solid budget growth and where L-3 has a Prospects for 2005 and Beyond significant presence. There has been much debate about the future of US defense spending and how it will impact the industry, and in particular, L-3. With the We also believe that homeland security will receive greater focus and 2005 top-line defense budget set at about $400 billion, the focus is increased spending in the years ahead. There is general recognition in now on 2006 and beyond. The President has submitted a 2006 defense Congress and in the Administration that there are areas that need budget ($419.3 billion) that is 4.8 percent higher than in 2005 and it greater protection and support. These areas include cargo, maritime is unlikely that the US Congress will make material changes to his and transportation security and passenger entry at airport checkpoints. request. This continues the strong growth that began in fiscal year L-3 will continue, via Independent Research and Development (IR&D) 2001. There is considerable support in the Congress as well as from and acquisitions, to add more capabilities to its existing portfolio of the American people for the military’s effort. There will be a supple- products and government services in 2005. As we survey the acquisi- mental budget request to pay for war operations and the procurement tion landscape, there are non-core businesses of larger platform com- of critical technologies for urban warfare, as well as to recapitalize panies coming onto the market as well as independent defense compa- and reconstitute equipment being used to prosecute US efforts in Iraq nies in the range of $50 million to $300 million in size. We continue to and Afghanistan. review companies that expand our offerings in key areas of each of our In the 2006 budget, the President’s priorities include further emphasis major business segments. on transforming the military to meet the challenges of the 21st century. As a result, we know that we have the people, the products and a That means expanding the Army and Marine Corps and putting greater roadmap for L-3 to continue to achieve its 20 percent growth target in emphasis on mobility, modernization, joint operations and a force struc- 2005 and to maintain continued organic growth. Our products are ture with rapid global reach – all with fewer platforms. leading edge, our backlog is strong, our follow-on programs are well In 2007 with the QDR in place, it is expected that defense spending funded and our employees are world class in their abilities, their may rise at a slower rate of growth. Defense will not be the billpayer dedication to L-3 and their achievements. for the federal budget as it was in 1995. The DoD will now be faced with the challenge of cost containment. How can the DoD continue its transformation, pay for new platforms and maintain readiness, while supporting the demands of war operations in Iraq and Afghanistan? Frank C. Lanza The solution involves new initiatives to insert quantum leaps in technology into developing precision weapons, UAVs, GPS, secure Chairman and Chief Executive Officer 4
  • 7. FINANCIAL HIGHLIGHTS For the years ended December 31, 2004 2002(a) 2001(a) 2000 (a) 2003 (In thousands, except per share amounts) $6,896,997 Sales $5,061,594 $4,011,229 $2,347,422 $1,910,061 748,619 Operating income 581,021 453,979 275,330 222,718 Income before cumulative effect of a change 381,880(e) 277,640(e) 202,467(e) (f) in accounting principle 115,458 82,727 Diluted earnings per share before cumulative effect of a change 3.33(e) in accounting principle (b) (c) 2.62(e) 2.13(e) (f) 1.47 1.18 620,671 Cash flow from operating activities 456,063 318,460 172,968 113,805 Capital expenditures, net of dispositions 68,539 of property, plant and equipment 79,020 58,510 46,884 15,520 552,132 (d) Free cash flow 377,043 259,950 126,084 98,285 3,799,761 Shareholders’ equity 2,574,496 2,202,202 1,213,892 692,569 (a) In accordance with Financial Accounting Standards Board (FASB) Statement of Financial Accounting Standards No. 142, Goodwill and Other Intangible Assets, effective January 1, 2002, we ceased amortizing goodwill. (b) Diluted earnings per share (EPS) for all periods reflects our two-for-one stock split that became effective May 20, 2002. (c) In the fourth quarter of 2004, we adopted the FASB Emerging Issues Task Force Issue No. 04-8 (EITF 04-8), The Effect of Contingently Convertible Debt on Diluted Earnings Per Share, and restated diluted EPS for 2004, 2003 and 2002 to retroactively apply the provisions of EITF 04-8. (d) We define free cash flow as net cash from operating activities, less net capital expenditures (capital expenditures less cash proceeds from dispositions of property, plant and equipment). (e) Includes debt retirement charge of $3.2 million after taxes, or $0.03 per diluted share in 2004, $7.2 million after taxes, or $0.06 per diluted share in 2003 and $9.9 million after taxes, or $0.09 per diluted share in 2002. (f) The year ended December 31, 2002 excludes the cumulative effect of a change in accounting principle for a goodwill impairment of $24.4 million or $0.23 per diluted share. Sales in millions Operating Income in millions Free Cash Flow in millions $8,000 $800 $600 % % % 6,000 600 450 .8 .4 .0 37 35 54 GR GR GR CA CA CA 4,000 400 300 2,000 200 150 00 01 02 03 04 00 01 02 03 04 00 01 02 03 04 5
  • 8. Secure Communications and ISR SATELLITE COMMUNICATIONS L-3 delivers comprehensive ground-to-satellite, real-time global communications capability through NETWORK COMMUNICATIONS a family of transportable field terminals used to com- municate with commercial, military and international L-3 remains committed to US efforts to fully satellites. These terminals, including the Tri-band realize the promise of network-centric warfare, Transportable Medium Earth Terminal (TMET) and providing solutions that deliver real-time, executable the Tri-band SATCOM Subsystem (TSS), provide battlefield information from multiple platforms and remote personnel with constant and effective commu- sources to the warfighter. L-3 ComCept is the prime nications links to distant forces, while minimizing contractor for the Network-Centric Collaborative long-term satellite lease costs. In addition, L-3 pro- Targeting (NCCT) Advanced Concept Technology vides the design, engineering development, fabrication Demonstration (ACTD). NCCT provides machine-to- and test of upgraded Data Distribution Systems machine communications across multiple platforms (DDS) for the United States Marine Corps Tactical for automatic threat identification, characterization Data Network (TDN). This network provides its sub- and location purposes. At the Joint Expeditionary scribers with basic data transfer, switching services Force Experiment 2004 (JEFX-04), NCCT success- and access to joint strategic tactical data networks. fully correlated data from an RC-135 aircraft, a U-2 aircraft, an E-8 aircraft, a surrogate unmanned aerial vehicle with a signals intelligence payload and other national assets. This demonstration was the first time multiple sensors on multiple platforms were networked in real time and it resulted in NCCT’s selection as the Secretary of Defense’s 2004 ACTD Team of the Year. L-3 also completed a successful Critical Design Review for its third-generation Multi-Role Tactical Common Data Link (MR-TCDL) product from Communication Systems-West, which forms the foun- dation for communications on the Army’s Aerial Common Sensor (ACS). Additionally, four L-3 busi- nesses – Communication Systems- West and -East, Integrated Systems and PacOrd – will pro- vide secure, networked communi- cations solutions for the Airborne, Maritime Fixed/Station (AMF) Joint Tactical Radio System (JTRS), which will enable inter- operable communication in the joint battlespace environment. 6
  • 9. ISR PLATFORMS INTEGRATED MARITIME L-3 offers highly COMMUNICATIONS specialized fleet L-3 Communications is a leading US Navy communi- management and cation systems integration contractor. For over 25 support for signals years, Communication Systems-East has provided intelligence and ISR special mission aircraft and air- state-of-the-art communications technology for a borne surveillance systems. In 2004, L-3 Integrated wide range of platforms supporting the US Navy and Systems was selected to begin developing the US other maritime customers. Army’s ACS, a next-generation airborne ISR and tar- Over this 25-year period, L-3 has seen an increasing get identification system that will replace current air- emphasis on integration of communication functional- craft systems, including the US Army’s Guardrail ity. This change, which is consistent with key DoD ini- Common Sensor, the Airborne Reconnaissance Low tiatives, including Maritime Domain Awareness, net- aircraft and the US Navy’s fleet of EP-3 aircraft. work-centric warfare and ForceNet, is fully enabled L-3 IS was also selected for several key international by L-3’s MarComTM digital switching system. The ISR programs, including P-3 surveillance system MarCom system, which was developed using L-3 upgrades for the Republic of Korea and New research and development funding, is an integral part Zealand and the UK Ministry of Defence’s (MOD) of the communication systems for key programs, Nimrod R Mk 1 aircraft. including AEGIS, Deepwater, LPD-17, JTRS and a number of international pursuits. To handle the increased volume of shipboard and shore-based radio room integration work from these UNMANNED programs, L-3 has facilitated a 7,000-square-foot radio room assembly, integration and test facility AERIAL capable of handling 72 racks of equipment at one VEHICLES time. This L-3 Integration and Test Facility (LITF) will lower the cost of building systems and extends (UAV) L-3’s competitiveness into new markets. As the world’s pre- dominant military data communications company, L-3 provides wideband, network-centric interoperability theater-wide with air- borne data links that have been selected for every major UAV platform, including Global Hawk, Shadow, Predator, Fire Scout and Deepwater Eagle Eye. In 2004, L-3 acquired BAI Aerosystems, Inc., a develop- er of a family of UAVs for military remote surveillance missions. BAI brings to L-3 a new capability to test, demonstrate and market a broad array of imaging, sensor and detection systems in the fast-growing UAV sector of the defense market, with aircraft deployed in support of US operations in both Iraq and Afghanistan. 7
  • 10. Secure Communications and ISR (cont’d) SECURE COMMUNICATIONS DATA LINKS L-3 is an unmatched supplier of secure data links for real-time information collection and dissemination to users on a variety of mission-critical platforms, including the RC-135 Rivet Joint, EP-3, E-6B, Guardrail, Cobra Ball, Sea Sentinel and Joint Surveillance Target Attack Radar System (JSTARS). In addition, L-3 has extended its data links expertise to precision weaponry as the ISR data link supplier for the Joint Air-to-Surface Standoff Missile (JASSM) program. This technological break- through from L-3 Communication Systems-West allows bidirectional post-launch communications from ISR networks to strike weapons. 8
  • 11. COMMUNICATION PRODUCTS L-3 Communication Systems-West is on the team to develop wideband satellite communications terminals for a transformational DoD initiative known as the Family of Advanced Beyond Line-of-Sight Terminals (FAB-T). FAB-T is intended to provide strategic forces with multi-mission capable terminals, or radio systems with special-purpose antennas, that talk to different satellites and allow information exchange between ground, air and space platforms. FAB-T will provide critical, protected beyond line-of-sight communications capability for warfighters via the new Advanced Extremely High Frequency system, a new class of secure satellites that supports military forces. The FAB-T program will eventually encom- pass up to 46 airborne platforms with participation from all branches of the armed services. INFORMATION SECURITY L-3 specializes in communication systems for ground command centers, surface and undersea vessels and L-3’s RedEagleTM network encryptor allows tunneling of manned space flights. In 2004, L-3 Communication classified Internet Protocol (IP) traffic through an Systems-West launched the new Rover III Multi-band unclassified IP network, tunneling of compartmented Manpack Receiver, which is designed to provide mili- data through a lower-security level network or tunneling tary, special operations and homeland defense person- of unclassified traffic through a classified network. nel with connectivity to most aerial surveillance plat- The RedEagleTM KG-240 is a High Assurance Internet forms, including Shadow, Predator and Global Hawk. Protocol Interoperability Specification (HAIPIS) interoperable 100 Mbps network encryptor supporting security levels of TS/SCI and below. During 2004, L-3 Communication Systems-East added Voice Over Internet Protocol (VoIP) capability to its Secure Terminal Equipment (STE) product line. Adding secure VoIP to the STE supports convergence of voice and data onto a single network and enables classified network users connected to the Global Information Grid (GIG) to make secure voice calls across the IP backbone. In addition, L-3’s TS & GS business, SYColeman, is developing and supplying an advanced Work-Centered Interface Computer Network Defense (WCI-CND) system that enables network security managers and their com- manders to rapidly and effectively assess, defend and respond to cyber attacks. The use of intelligent agents gives the system advanced capability for rapid adaptation and accomplishing automated correlation and decision support. 9
  • 12. Training, Simulation and Government Services LASER MARKSMANSHIP L-3 MPRI-BEAMHIT develops laser marksmanship training systems that are in regular use today by the US military, federal law enforce- ment agencies and state, local and international policy and security organizations. These systems include weapons from handguns through machine guns and COMPUTER-BASED TRAINING enable users to practice AND DISTANCE LEARNING shooting skills with their own service weapons – without L-3 GSI is providing advanced operational and tacti- live fire, having to go to a cal-level air and space command and control educa- range or depleting their ammunition. tion and training and mentorship to the US Air Force for the 705th Training Squadron at Hurlburt Field, The BEAMHITTM Laser Marksmanship Training System Florida; Nellis Air Force Base (AFB), Nevada; South (LMTS) is a projectile-less modular system allowing Korea; Southwest Asia and other locations. soldiers to use their own service weapons and train in any classroom, maintenance bay or other suitable open L-3 D.P. Associates will support the development of space. The LMTS is designed to be an integral part of naval aviation technical training products for every a well-rounded small arms marksmanship program. Navy and Marine Corps aircraft currently in the Military units that use the LMTS have shown significant inventory. L-3 also provides training for operator and improvements in qualification and readiness levels. aircraft maintenance procedures on the Navy’s new MH-60R/S aircraft and develops courseware for L-3 MPRI Ship Analytics’ driver training products and organizational-level maintenance of F/A-18C/D services offer a unique combination of state-of-the-art aircraft. simulation, computer-based training and classroom instruction. Drivers receive cost-effective, realistic In addition, L-3 SYColeman developed and maintains training in a risk-free environment with the Mark IIITM, the US Army’s official public web site, www.army.mil. TranSim VSTM III and PatrolSimTM III Driver Training The site has grown from 300,000 to 6,000,000 visi- Simulators for commercial trucking, automobile opera- tors per month and is the sec- tions, emergency vehicle and advanced law ond largest federal government enforcement training. L-3 MPRI Ship site in the country. Analytics also offers a Virtual Combat Convoy Trainer (VCCT), which gives battle crews the opportunity to train in a humvee simulator that is linked to a live-fire simulator and an AVCATT Apache helicopter simulator. 10
  • 13. ROTARY-WING AIRCRAFT TRAINING & SUPPORT L-3 Link Simulation and Training’s Aviation Combined Arms Tactical Trainer (AVCATT) provides a realistic, high-intensity virtual combat training envi- ronment for helicopter pilots, crews and teams. The US Army’s AVCATT program continued to under- score the value that combined arms training can bring to military operations. During the year, Link received an order to build an eighth AVCATT suite and gained funding from Congress for additional AVCATT suites and engineering change proposal requirements. Link is also a key partner in the development and support of the US Army’s Flight School XXI INTELLIGENCE SUPPORT program – which is designed to enhance the opera- L-3 GSI, L-3 MPRI and L-3 ILEX were awarded a tional readiness and tactical proficiency of the competitive omnibus contract to support the Army Army’s active, reserve and National Guard aviation Intelligence and Security Command (INSCOM). The units. Link will deliver suites of Advanced Aircraft GSI team will provide critical worldwide support to Virtual Simulators (AAVS) and Reconfigurable INSCOM focused on intelligence, force management Collective Training Devices (RCTD), network all of and information technology services. the program’s training devices and provide contractor logistics support for all AAVS devices and RCTDs. Additionally, L-3 SYColeman supports the Office of the Secretary of Defense (OSD)-led Joint Vertical Aircraft Task Force (JVATF) by providing analytical, technical and programmatic support. 11
  • 14. Training, Simulation and Government Services (cont’d) MILITARY FIXED-WING AIRCRAFT TRAINING Aircrew Coordination Trainers. This win continues Link’s Link will deliver and support state-of-the-art F/A-18 air- position as a supplier of choice for weapons systems craft training systems for the Canadian Air Force’s trainers. Advanced Distributed Combat Training System program, the Royal Australian Air Force (RAAF) F/A-18 Hornet Link is also responsible for the majority of E-3 Airborne Aircrew Training System and the Swiss F/A-18 Flight Warning and Control System (AWACS) ground-based Simulator Upgrade program. Link’s F-16 Aircrew flight crew training, including ownership of the training Training Systems have been selected for use by the Polish devices and training facility. The program provides a full and Royal Omani Air Forces. With its teammates, L-3 spectrum of US Air Force-directed E-3 flight crew train- GSI is creating a reconfigurable E-6B Weapon System ing. An efficient approach to the training program mini- Trainer for the US Navy that will train mission crews. mizes involvement of E-3 Air Force instructors and pro- vides Air Force E-3 flight crew training to a guaranteed In 2004, Link was awarded a contract to deliver five P-3 level of proficiency. Tactical Operational Readiness Trainers to the US Navy, including upgrades to four previously built P-3 Tactical 12
  • 15. LEADERSHIP & SECURITY L-3 MPRI develops leadership programs to help public and private sector customers in RECRUITMENT TRAINING the training, education and development of confident, competent leaders at multiple L-3 MPRI provides support to the US levels who are capable of responding to the Army Recruiting Command (USAREC), challenges of transformation and change in which includes recruiters and guidance business, government and international counselors as well as secu- institutions. rity interviewers and administrative assistants. L-3 MPRI and SYColeman are supporting US troops The division also provides with the Program Executive Office (PEO) Soldier Rapid systems administration to Fielding Initiative (RFI). PEO Soldier is responsible for the GoArmy.com web site, virtually everything a soldier wears or carries in a tacti- which resulted in the most cal environment. This support includes warehousing, successful “lead-genera- transporting and issuing the RFI equipment to soldiers, tion” operation in the both in the US and overseas. USAREC. BALLISTIC MISSILE INTERNATIONAL DEFENSE SYSTEM L-3 MPRI provides inter- MPRI supports the US Army Space and Missile Defense national clients with pro- Command by assessing its command organization, func- fessional services, products tions and responsibilities. MPRI also provides project and integrated solutions to management services to the US Army Field Artillery meet their national security sector reform and private sector School, Depth and Simultaneous Attack Battle Lab in its challenges. In 2004, MPRI conducted a seminar that roles as the Advanced Concept Technology Demonstration focused on recommendations for developing a national mili- (ACTD) Transition Manager, Assistant Operational tary strategy with representatives of the Afghan Ministry of Manager and lead of the Requirements Working Group. Defence and the US Office of Military Cooperation- The objectives of the ACTD are to develop, integrate and Afghanistan (OMC-A). test an earth-penetrating warhead on an Army Tactical In related work, SYColeman’s Iraqi Advisor Task Force Missile System (ATACMS) boost vehicle. (IQATF) provides former US Army Special Forces operators, In addition, L-3 SYColeman provides Iraqi expatriates and local nationals as advisors to military business management, systems engi- commanders dealing with political, cultural, social, econom- neering and integration, independent ic, media, tribal and security-related issues throughout assessment panel support and pro- greater Baghdad. gram protection support to assist in In other international work, L-3 MPRI Ship Analytics, an the development, acquisition and international market leader in maritime products and servic- protection of the Ground-based es, is providing the Indonesian Ministry of Communications Midcourse Defense (GMD) System. with a turnkey solution called the Indonesian Seafarers L-3 SYColeman also supports the Program that is inclusive of six schools, simulation equip- Missile Defense Agency (MDA) in the GMD Test and ment, dozens of laboratories and on-site training. MPRI Ship Evaluation Directorate with the production of Integrated Analytics is also completing its third phase of execution in Data Packages for both flight and ground tests and delivering and supporting an integrated simulators complex provides extensive logistics support to the MDA GMD for the Arab Academy for Science and Technology and Logistics Directorate for sites in Alaska and Vandenberg Maritime Transport in Alexandria, Egypt. AFB, California. 13
  • 16. Aircraft Modernization, Operations & Maintenance and Products LOGISTICS SUPPORT L-3 provides labor augmentation to government customers through several Indefinite Delivery / Indefinite Quantity (ID/IQ) contracts, including the Contract Field Teams (CFT) program, which provides MILITARY TRAINING AIRCRAFT comprehensive maintenance and depot services for L-3 is a leading provider of contractor logistics sup- aircraft and other equipment deployed around the port, life-cycle maintenance and supply for more than world. By the close of 2004, several hundred L-3 3,500 government aircraft, including 1,600 military Vertex CFT personnel were deployed in Iraq, Kuwait training aircraft. Fixed-wing training platforms and Afghanistan, maintaining front-line US Army include the US Navy T-34, T-44, T-45, T-39, T-6 and tactical and logistics aircraft. T-2, as well as the US Air Force T-38, T-6 and F-16. In 2004, L-3 Vertex continued its expansion into L-3 Vertex Aerospace continues to provide contractor ID/IQ technical services by providing maintenance for logistics support for the US Navy Undergraduate multiple fixed- and rotary-wing aircraft and weapons Military Flight Officer Training System (UMFOTS) systems under the US Army Aviation Joint and operation of the Aircraft Intermediate Administrative Management Support Services Maintenance Department (AIMD) at Naval Air (AVJAMSS) program. Stations in Pensacola, Florida and Corpus Christi, Texas. Vertex has served as the incumbent contractor L-3’s TS & GS division, Link Simulation and Training, for UMFOTS since 1994. won a new US Navy contract to provide contractor maintenance and logistics support for USN C-40 (Boeing 737) aircraft over a five-year period. The services provided under this contract are expected to grow as additional C-40 aircraft become part of the fleet. Additionally, L-3 IS is providing logistics support for the C-20, which provides worldwide airlift support for the Vice President, Secretaries of State and Defense, Chairman and members of the Joint Chiefs of Staff, members of Congress and other government officials. 14
  • 17. INTERNATIONAL TACTICAL & MARITIME AIRCRAFT AIRCRAFT L-3 provides aircraft modernization, systems integra- L-3 has a strong global presence tion and life-cycle support services to tactical and in maintaining and modifying maritime aircraft manufacturers around the world. hundreds of fixed- and rotary- In 2004, L-3 Spar completed a number of depot-level wing aircraft for commercial, maintenance inspections for the US Navy and Coast military and government cus- Guard. Additionally, L-3 IS delivered the first of 16 tomers. L-3 Spar completed the refurbished P-3 maritime patrol aircraft and was design and prototyping of a num- subsequently awarded a follow-on contract for anoth- ber of C-130 system improve- er 16 aircraft as part of the US Navy’s Enhanced ments, including cockpit avionics modernization, elec- Special Structural Inspection (ESSI) program. L-3 trical power upgrade, rewiring, wing upgrade and IS will also provide mission systems upgrades to the structural refurbishment. Recent C-130 avionics Navy’s E-6B fleet as part of the E-6 Block I modernization programs in Greece and Malaysia Modification program. positioned L-3 Spar to be selected by the Royal New L-3 IS continues to provide systems integration, Zealand Air Force for the single most comprehensive modification and fleet maintenance on EC-130H C-130 Life Extension Program to date. This program Compass Call aircraft. The EC-130H performs tacti- covers avionics modernization and structural/electri- cal command, control and communications counter- cal overhaul together with comprehensive publication measures and recently completed missions in support updates and training. of Operation Iraqi Freedom. Additionally, L-3 IS is Under Canada’s 20-year Maritime Helicopter Project providing aircraft avionics/system upgrades for the (MHP), L-3 MAS will provide In-Service Support for EP-3 ARIES I/II reconnaissance aircraft. the 28 CH-148 (Sikorsky H-92) medium-lift helicop- ters that will replace the Canadian Forces’ aging fleet of Sea Kings. In addition, L-3 MAS has renewed its contract with the Canadian Department of National Defence to provide engineering, maintenance, compo- nent repair/overhaul and integrated logistics support on Canada’s CF-18s. MAS is also involved in the structural upgrade of all the RAAF’s F/A-18s. In further work, L-3 IS will provide structural modifi- cations, modernized systems design and integration and ground support systems for eight P-3 Orion aircraft for the Republic of Korea’s Navy, and will upgrade mission and communication-navigation sys- tems for New Zealand’s P-3K maritime patrol air- craft. The upgrade will include T2CAS, the combined traffic and terrain collision avoidance system designed and developed by L-3 Aviation Communication & Surveillance Systems (ACSS). 15
  • 18. Aircraft Modernization, Operations & Maintenance and Products (cont’d) SPECIAL OPERATIONS AVIATION L-3’s Joint Operations Group (JOG) has continued an The JOG has increasingly been involved with the modern- increased operational tempo in supporting the global war ization of Army Special Operations Aviation (SOA) on terrorism and homeland security initiatives with the rotary-wing platforms and performs as the prime integra- deployment of 135 personnel for Operation Enduring tor for many “lead the fleet” modifications and system Freedom and Operation Iraqi Freedom. Four of these enhancements. For the Air Force Special Operations deployments included shipboard operations for installa- Command (AFSOC), JOG supports MH-53M/J opera- tion of aircraft survivability equipment (ASE) on Marine tions through Collocated Depot Teams (CDT) and is cur- Corps helicopters en route to Iraq. rently performing reconstitution activities on designated A/MC-130 aircraft. In addition, JOG provides rapid response logistical support and services to customers deployed worldwide. 16
  • 19. AVIATION PRODUCTS L-3 offers expansive product capability for the avia- SCIENCE tion marketplace, with offerings that include cockpit & HEAD- displays, collision avoidance and proximity warning OF-STATE systems, flight management systems and solid state flight data and cockpit voice recorders and data AIRCRAFT transfer units. In 2004, L-3 celebrated several mile- L-3’s aircraft stones, including a multi-year order for Avionics modernization expertise extends to specialized Systems’ SmartDeck® Integrated Flight Controls & markets, including science-related platforms and VIP Display System and the 45,000th delivery of the aircraft interiors. L-3 IS provides design engineering, Stormscope® Lightning Detection System. Also, airframe structural modifications, telescope design L-3’s T2CAS traffic and terrain warning system integration and flight test services for the FAA-certi- manufactured by ACSS was submitted to Airbus for fied Stratospheric Observatory for Infrared certification. Astronomy (SOFIA). SOFIA is NASA's and the Other 2004 highlights included significant contracts German Space Agency DLR’s premier observatory for Display Systems to provide cockpit displays for for infrared astronomy into this century. In addition, several key programs, such as the US Air Force L-3 Display Systems will provide cockpit displays C-130J, and for Avionics Systems to replace aging for the NASA T-38N astronaut trainer/proficiency electro-mechanical systems with its Vertical aircraft. Reference System (VRS) model 3010 on the Air L-3 IS has performed modifications on head-of-state Force’s entire fleet of KC-135 aircraft. In addition, and custom interiors on the world’s most popular demand for the Modular Airborne Data Recorder and wide-body aircraft, including the Airbus A310 and Acquisition System (MADRAS) from Aviation A340, and the Boeing 737, 747, 767 and 777. These Recorders grew with a contract for AgustaWestland’s finely crafted interiors feature the sophisticated A109 Light Twin Helicopter. communications and self-defense systems that VIP Also in 2004,Targa Systems received contracts to customers require in today’s political climate. provide its Data Transfer Systems for the BAE Tornado and NATO Airborne Warning and Control System upgrade programs, while Electrodynamics was awarded a contract from Lockheed Martin for ROTARY AIRCRAFT the Crash Survivable Memory Unit (CSMU) for the L-3 maintains and supplies fleets of F-35 Joint Strike Fighter. rotary-wing training aircraft, includ- ing the US Navy TH-57, as well as the US Army AH-64, UH-60, CH-47, UH-1, TH-67 and OH-58 fleets at Fort Rucker, Alabama. At Fort Rucker, L-3 Vertex serves as managing partner for the Army Fleet Support (AFS) LLC Joint Venture (JV). Fort Rucker is a 10-year contract, providing contractor logistics sup- port to the US Army aviator training and test activity fleets of more than 500 helicopters. 17
  • 20. Specialized Products ELECTRO-OPTICAL/INFRARED (EO/IR) LASER SENSORS L-3 is the market leader in producing uncooled ther- mal infrared detectors and imaging sensors and sys- tems for a broad spectrum of military and commer- ANTENNAS & RADOMES cial applications. During 2004, L-3 significantly expanded its infrared capability with Thermal-Eye™ L-3 leads the industry with a full complement of inte- thermal imaging technology from L-3 Infrared grated ground-based and airborne antenna systems Products. Thermal-Eye is used for search and rescue, for surveillance and radar applications, as well as perimeter surveillance, investigation, industrial ground and shipboard radomes used for air traffic process monitoring, preventive maintenance and control and radio astronomy. L-3 Randtron Antenna automotive and truck night vision for public safety Systems will provide the next-generation Airborne and law enforcement, government agencies, industrial Early Warning (AEW) radar antenna system for the companies and utilities. In support of rapid deploy- US Navy’s E-2 Advanced Hawkeye (AHE) surveil- ment battlespace requirements, L-3 now offers a lance aircraft and will be a member of the team sup- diversity of high-performance IR imaging modules plying low radar cross section GPS antennas for the based on the patented Indium Antimonide (InSb) Joint Standoff Weapon (JSOW), Block II. IR focal plane array architecture developed by L-3 Also, L-3 ESSCO was awarded a contract to upgrade Cincinnati Electronics. L-3 Aeromet, an SC & ISR the existing Haystack 37-meter-diameter high-per- subsidiary of L-3 Integrated Systems, is a leader in formance millimeter wave antenna system. When pointing, acquisition and tracking technology for bal- completed in 2006, Haystack will be the highest per- listic targets. The business offers EO/IR programs formance radar antenna system in the US operating supporting ISR missions and specialized meteorologi- in the 90-100 GHz band. cal applications for such customers as the MDA. Additionally, L-3 WESCAM extended its robust line of imaging turrets with the MX-15D, which is engi- neered to achieve the industry’s longest EO/IR target identification range in its class. US Navy photo. 18
  • 21. SATCOM NAVAL POWER & CONTROL L-3 is a predominant provider AND SONARS of ground-to-satellite, real-time A pioneer in a broad range of naval technologies, global communications through L-3 provides acoustic undersea warfare systems and high-performance products used side scan sonars for such platforms as helicopters, to communicate with commer- submarines and surface ships, and supports every cial, military and international satellites. On behalf of major US Navy shipbuilding program with shock- the US Air Force, the Space and Naval Warfare hardened circuit breakers and switchgear, military System Center (SPAWAR) in Tampa, Florida has power propulsion equipment and ship control and asked L-3 Narda Satellite Networks to provide interior communications equipment. deployable satellite communications systems and sub- systems/components as well as maintenance support L-3 Ocean Systems’ Helicopter Long Range Active to reduce acquisition and operating costs. L-3 Narda Sonar (HELRAS) has long been the preferred solu- Satellite Networks will also manufacture, integrate, tion for a full range of international programs, includ- test, commission and provide maintenance for current ing Italy’s EH-101 and NH-90, The Netherlands’ SATCOM products, including the AN/USC-60A NH-90, Turkey’s S-70B and Greece’s S-70B, and was FlyAway Tri-Band Satellite Terminals (FTSAT), the selected as a preferred supplier in 2004 for both the AN/TSC-161 mobile Quad-Band Dual Hub Terminals Canadian MHP and Singapore government programs. (QDHT) and most significantly, the new AN/TSC-168 A special configuration of HELRAS is currently being transportable Quad-Band Dual Hub SATCOM tested to allow Anti-Submarine Warfare (ASW) mis- Terminal (QHSAT), which will be the standard dual sions to be executed via a remote location from a hub system for future Air Force deployments. Littoral Combat Ship (LCS). Also for the new high- speed LCS, L-3 Henschel developed a Multi-Function Additionally, L-3’s SC & ISR division, Console (MFC) that supports the Total Ship Communication Systems-West, is building new Computing Environment (TSCE) – the backbone of a humvee-mounted ground terminals designed to access new computing infrastructure for future systems and commercial satellites as part of the US Army’s platforms. Additionally, L-3 Westwood’s participa- Phoenix program. As Phoenix is integrated into the tion in the DDG-51 Class Destroyer continued to Army, the systems will be migrated to selected grow with the award for Repair Station Consoles, National Guard and reserve units, bringing those units consisting of large screen visual displays, which will satellite capability for the first time. be placed throughout the ship to enhance crew moni- toring awareness of onboard operating systems. 19
  • 22. Specialized Products (cont’d) NAVIGATION & GUIDANCE SPACE PRODUCTS L-3 is a world premier provider of inertial instru- ments and integrated fire control systems for pro- L-3’s thrust into the space market surged in 2004 grams such as the Multiple Launch Rocket System with the addition of Boeing Electron Dynamic (MLRS) and Army Tactical Missile System Devices, now known as L-3 Electron Technologies, (ATACMS). L-3 is also a major supplier of pointing, Inc. (ETI), a recognized leader in the design, manu- guidance, control and positioning equipment as well facture and sale of space-qualified high technology as GPS products for satellites, artillery and launch components and subsystems used in communications vehicles serving the military, commercial and govern- satellites, manned space programs and key commer- ment markets. In 2004, L-3 Space & Navigation was cial and defense systems worldwide. ETI designs and awarded a hardware contract for the Delta launch produces space-qualified passive microwave devices, vehicle program to supply everything from complex amplifiers and electric propulsion products utilized assemblies that provide inertial sensing, power switch- for deep-space exploration spacecraft. Its broad ing and actuator control functions to simple modules commercial and military customer base includes the used for transient suppression of the launch vehicle. US Army, US Navy In addition, L-3 Henschel provided the Automated and US Air Force, Bridge System to the US Navy’s newest large as well as prime deck amphibious ship contractors and (LHD-8) as well as hard- Original Equipment ware and software for Manufacturers navigation data distribu- (OEM). tion and display onboard US Navy aircraft carriers. ELECTRONIC FUZES, SAFETY & ARMING DEVICES L-3 has a distinguished track record in delivering an array of premium fuzing products, including proximity fuzes, electronic and electro-mechanical safety and arm- ing devices (ESAD) and self-destruct/submunition grenade fuzes. Early in 2004, L-3 KDI began production deliveries of ESADs for the Army's precision Guided Multiple Launch Rocket System (GMLRS). New electronic fuze programs awarded in 2004 include the Tomahawk cruise missile and the Precision Attack Missile used in the Non Line-of- Sight Launch System (NLOS-LS). Also in 2004, L-3 BT Fuze Products received US Army contracts to provide electronic timed artillery fuzing as well as 105mm tactical and training ammunition for the Stryker Mobile Gun System. 20
  • 23. STABILIZED OPTICAL PLATFORMS Recognized for world-class optics technology, L-3 Brashear designs and produces complex electro-opti- cal and electro-mechanical systems and instrumenta- tion for the commercial and defense markets with products that include telescope systems, optical components, stabilized tracking systems, test range instrumentation, small arms fire control systems and high-energy laser beam directors. L-3 Brashear produces the Block 1B upgrade pedestal unit for the PROPULSION Raytheon MK-15 Phalanx Close-In Weapon System (CIWS), extending the capability of the CIWS to L-3 expanded its operations and maintenance identify, track and address threats in a full naval capability into the land systems market with the environment. acquisition of General Dynamics Propulsion Systems, now known as L-3 Combat Propulsion Systems. The company is a recognized market leader in the engineering, design and manufac- ture of engines, transmissions, suspension and turret drive systems for combat vehicles, includ- ing both tracked and wheeled vehicles, and has a MICROWAVE continued presence on core programs, such as Under the well-rec- the Bradley, the Abrams and the Expeditionary ognized Narda Fighting Vehicle (EFV). Combat Propulsion brand name, L-3 Systems’ advanced gun and turret drive system has developed and components are used on programs, including the manufactured Stryker Mobile Gun System, the Opposing Force state-of-the-art Surrogate Vehicle and the Avenger Air Defense microwave components for over 50 years and has System. Additionally, the business is developing been a leader in the development of oscillators, upgrades as part of the spiral performance frequency synthesizers and broadband amplifiers for improvements for the transformation of the US such platforms as the International Space Station Army. and the B-2, F-14, F-15, F-16, F-18 and F-22 military fighter aircraft. L-3 Electron Devices is a well-established supplier of vacuum electronics products that uniquely provide the high power microwave energy and high operating efficiency required in a variety of strategic military systems. Systems such as AWACS, the AEGIS long- range search radar used on destroyers and cruisers, the AIM-120 Advanced Medium Range Air-to-Air Missile (AMRAAM) and the Patriot missile all utilize the performance features available only with vacuum electronics technology. 21
  • 25. TELEMETRY AND SATELLITE COMMAND & CONTROL L-3 leads the industry in the development of compo- nents and systems used for a wide array of ground, airborne and space telemetry applications and broad- ened its reach with the acquisition of Cincinnati Electronics, a producer of high-reliability electronic communications equipment for use on missiles, launch vehicles and spacecraft. SPECIALIZED VEHICLES L-3 Telemetry-East and -West airborne telemetry L-3 is a leader in mobile communications vehicles for hardware is currently being provided for many homeland security, military and law enforcement uses, weapons programs, including Joint Direct Attack broadcast newsgathering and telecommunications. Munition (JDAM), Small Diameter Bomb (SDB), The range of scalable vehicle solutions from L-3 Wolf Joint Air-to-Surface Standoff Missile (JASSM), Coach provides “on-the-move” communications, Joint Standoff Weapon (JSOW), Exoatmospheric multi-frequency radio interoperability and command Kill Vehicle (EKV), AIM-9X Sidewinder, Tactical capability. L-3 Wolf Coach has over a decade of Tomahawk and the Patriot Advanced Capability experience in this area, with hundreds of units (PAC-3) missile. L-3 also provides telemetry deployed around the country for organizations like hardware for various launch vehicles and targets, the New York Police Department (NYPD), the including the Strategic Target System (STARS), Centers for Disease Control (CDC), the National Taurus and Pegasus. Additionally, L-3 Southern Guard, FEMA and many other federal, state, county California Microwave was selected to provide air- and municipal agencies. borne video transmitters and ground receivers for various models of miniature UAVs, including the US Marine Corps’ Dragon Eye and the US Army’s Raven manportable UAVs. 23
  • 26. Homeland Security Our business segments provide products and services for the Homeland Security market in the following areas: CARGO DEEPWATER L-3 Security & Detection Systems (S&DS) was selected by the Transportation Security Administration As part of the (TSA) to participate in a break-bulk air cargo screen- sweeping renovation ing pilot program using the eXaminer 3DX® 6000 in of US Coast Guard air carrier cargo facilities at Miami International (USCG) platforms, Airport (MIA), Chicago O’Hare International Airport the L-3 team will (ORD), Los Angeles International Airport (LAX) and design and develop Ted Stevens International Airport (ANC) in the communications Anchorage, Alaska. The objective of the pilot program suite for the is to evaluate the use of Explosives Detection Systems Command, Control, (EDS) to inspect break-bulk air cargo to determine if Communications and Computers, ISR (C4ISR) system it is feasible and practicable to clear cargo that is that will apply across numerous assets. Key features flown on commercial aircraft using the technology. of this system include the MarCom Integrated Voice Communication System (IVCS), the RF Distribution The Australian Customs Service also selected L-3 System and the Automated Communications S&DS to supply pallet cargo X-ray screening equip- Resource Manager. In addition, a MarCom IVCS was ment for use at its cargo examination facilities. L-3’s successfully integrated as part of a major communi- equipment is being integrated into existing security cations upgrade for the District 7 Command Center protocols to manage and ensure the integrity and safe- in Miami, Florida – the USCG’s most active com- ty of Australia’s borders at Brisbane and Fremantle. mand. L-3 Henschel will also provide Amplified Announcing and Global Maritime Distress & Safety Systems for USCG Deepwater communications. NAVAL PORTS & OIL PLATFORM SECURITY L-3 Klein is supplying its Harborguard® Small Target Detection Radar to naval and commercial customers, including SPAWAR San Diego Systems Center; Naval Station – Guantanamo Bay; Port of Galveston,Texas; Greater New Orleans Expressway Commission – Lake Pontchartrain and several others. The L-3 Klein system sensors are optimized for critical detection and tracking for surface and subsurface surveillance for port and harbor environments. Harborguard will also be used by various customers for oil platform security. In addition, L-3 Aviation Recorders is providing its PROTECTM Automatic Identification System (AIS) to monitor vessel movements for customers in Corpus Christi, Texas, Guantanamo Bay and Malaysia. 24