Exelis reports fourth-quarter and full-year 2012 financial results; provides 2013 outlook
The forward-looking statements in this release are made as of the date
hereof and the company undertakes no obligation to update any
forward-looking statements, whether as a result of new information,
future events or otherwise. In addition, forward-looking statements are
subject to certain risks and uncertainties that could cause actual
results to differ materially from the company’s historical experience
and our present expectations or projections. These risks and
uncertainties include, but are not limited to, those described in the
Exelis Inc. Form 10-K for the fiscal year ended December 31, 2012, and
those described from time to time in our future reports filed with the
Securities and Exchange Commission.
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EXELIS INC.
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CONSOLIDATED AND COMBINED STATEMENTS OF OPERATIONS
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(preliminary and unaudited)
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(IN MILLIONS, EXCEPT PER SHARE AMOUNTS)
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Year ended December 31,
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2012
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2011
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2010
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Product revenue
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$
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2,487
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$
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2,817
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$
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3,596
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Service revenue
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3,035
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3,022
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2,295
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Total revenue
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5,522
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5,839
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5,891
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Costs of product revenue
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1,726
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1,933
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2,491
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Costs of service revenue
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2,633
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2,683
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2,032
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Selling, general and administrative expenses
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516
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566
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525
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Research and development expenses
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67
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99
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119
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Restructuring and asset impairment charges, net
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19
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23
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35
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Operating income
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561
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535
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689
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Interest expense, net
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37
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10
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—
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Other expense (income), net
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3
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(12)
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(7)
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Income from continuing operations before income tax expense
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521
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537
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696
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Income tax expense
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191
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211
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248
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Income from continuing operations
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330
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326
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448
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Income from discontinued operations, net of tax
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—
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—
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139
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Net income
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$
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330
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$
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326
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$
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587
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Earnings Per Share
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Basic
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Continuing operations
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$
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1.76
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$
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1.75
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$
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2.41
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Discontinued operations
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—
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—
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0.75
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Net income
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$
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1.76
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$
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1.75
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$
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3.15
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Diluted
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Continuing operations
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$
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1.75
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$
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1.75
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$
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2.39
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Discontinued operations
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—
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—
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0.74
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Net income
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$
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1.75
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$
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1.75
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$
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3.14
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Weighted average common shares – basic
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187.4
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186.2
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186.2
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Weighted average common shares – diluted
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188.6
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186.7
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187.1
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Cash dividends declared per common share
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$
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0.41
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$
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0.10
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$
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—
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EXELIS INC.
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CONSOLIDATED BALANCE SHEETS
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(preliminary and unaudited)
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(IN MILLIONS)
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December 31,
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2012
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2011
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Assets
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Current assets
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Cash and cash equivalents
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$
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292
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$
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116
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Receivables, net
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995
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1,061
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Inventories, net
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283
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337
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Deferred tax asset
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85
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106
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Other current assets
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58
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49
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Total current assets
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1,713
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1,669
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Plant, property and equipment, net
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512
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494
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Goodwill
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2,180
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2,154
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Other intangible assets, net
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184
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211
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Deferred tax asset
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556
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507
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Other non-current assets
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67
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64
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Total non-current assets
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3,499
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3,430
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Total assets
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$
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5,212
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$
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5,099
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Liabilities and Shareholders' Equity
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Current liabilities
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Accounts payable
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$
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444
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$
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447
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Advance payments and billings in excess of costs
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322
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378
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Compensation and other employee benefits
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246
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250
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Other accrued liabilities
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203
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199
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Total current liabilities
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1,215
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1,274
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Defined benefit plans
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2,203
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2,149
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Long-term debt
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649
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649
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Deferred tax liability
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1
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1
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Other non-current liabilities
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128
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133
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Total non-current liabilities
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2,981
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2,932
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Total liabilities
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4,196
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4,206
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Commitments and contingencies
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Shareholders' equity
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Common stock
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2
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2
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Additional paid-in capital
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2,575
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2,523
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Retained earnings
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274
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23
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Accumulated other comprehensive loss
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(1,835)
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(1,655)
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Total shareholders' equity
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1,016
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893
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Total liabilities and shareholders' equity
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$
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5,212
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$
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5,099
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EXELIS INC.
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CONSOLIDATED AND COMBINED STATEMENTS OF CASH FLOWS
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(preliminary and unaudited)
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(IN MILLIONS)
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Year Ended December 31,
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2012
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2011
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2010
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Operating activities
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Net income
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$
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330
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$
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326
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$
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587
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Less income from discontinued operations
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—
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—
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(139)
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Income from continuing operations
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330
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326
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448
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Adjustments to reconcile income from continuing operations to cash
provided by operating activities:
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Depreciation and amortization
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130
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133
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139
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Stock-based compensation
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24
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18
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15
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Restructuring and asset impairment charges, net
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19
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23
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35
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Payments for restructuring
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(20)
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(19)
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(21)
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Defined benefit plans expense
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43
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46
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7
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Defined benefit plans payments
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(290)
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(87)
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(6)
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Change in assets and liabilities
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Change in receivables
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41
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(106)
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(100)
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Change in inventories
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56
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(99)
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131
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Change in other assets
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(11)
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(27)
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6
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Change in accounts payable
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(2)
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122
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(37)
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Change in advance payments and billings in excess of costs
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(58)
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(49)
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36
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Change in deferred taxes
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112
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64
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(1)
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Change in other liabilities
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9
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(13)
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(12)
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Other, net
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2
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2
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1
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Net cash provided by operating activities
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385
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334
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641
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Investing activities
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Capital expenditures
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(119)
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(95)
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(108)
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Proceeds from the sale of assets
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2
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14
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251
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Acquisitions, net of cash acquired
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(43)
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—
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(29)
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Other, net
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1
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(4)
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—
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Net cash (used in) provided by investing activities
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(159)
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(85)
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114
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Financing activities
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Short-term borrowing under credit facility
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—
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240
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—
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Repayments under credit facility
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—
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(240)
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—
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Proceeds from the issuance of debt, net
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—
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649
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—
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Payment of debt issuance costs
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—
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(6)
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—
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Dividend paid
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(77)
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(19)
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—
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Proceeds from the exercise of stock options
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19
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—
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—
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Transfers to parent, net
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—
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(775)
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(747)
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Other, net
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1
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4
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(28)
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Net cash used in financing activities
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(57)
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(147)
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(775)
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Exchange rate effects on cash and cash equivalents
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7
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(4)
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—
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Net cash from discontinued operations
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—
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—
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4
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Net change in cash and cash equivalents
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176
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98
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(16)
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Cash and cash equivalents – beginning of year
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116
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18
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34
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Cash and cash equivalents – end of year
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$
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292
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$
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116
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$
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18
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Supplemental disclosures of cash flow information
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Cash paid during the year for
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Income taxes (net of refunds received)
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$
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28
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$
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86
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$
|
206
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Interest
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$
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37
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$
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—
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$
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—
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