The effective tax rate for the 2013 first half decreased to 29.8% from
33.9% for the same period last year. The decrease is primarily due to
tax benefits in the 2013 first half of: (1) $15 million related to the
retroactive reinstatement in January 2013 of the U.S. Federal research
and experimentation tax credit for all of 2012 and 2013, of which $10
million ($0.11 per diluted share) relates to the 2012 benefit and $5
million relates to the 2013 first half benefit and (2) $8 million
primarily related to the reversal of amounts accrued for foreign taxes
for years in which the statute of limitations expired and to the
finalization of tax returns in certain foreign jurisdictions.
Net income from continuing operations attributable to L-3 in the 2013
first half increased $1 million to $378 million compared to the 2012
first half, and diluted EPS from continuing operations increased 9% to
$4.14 from $3.79. Diluted weighted average common shares outstanding for
the 2013 first half declined by 8% compared to the 2012 first half due
to repurchases of L-3 common stock.
Orders: Funded orders for the 2013 second quarter were
approximately $3.5 billion and declined 2% compared to the 2012 second
quarter. Funded orders for the 2013 first half were approximately $6.4
billion compared to approximately $7.2 billion for the 2012 first half.
The book-to-bill ratio was 1.09 for the 2013 second quarter and 1.00 for
the 2013 first half. Funded backlog declined 1% to $10.8 billion at June
28, 2013, compared to $10.9 billion at December 31, 2012.
Cash flow and cash returned to shareholders: Net cash from
operating activities from continuing operations increased by $59
million, or 18%, to $396 million for the 2013 first half, compared to
$337 million for the 2012 first half. The table below summarizes the
cash returned to shareholders during the 2013 first half compared to the
2012 first half.
First Half Ended
($ in millions)
June 28, 2013
June 29, 2012
Net cash from operating activities from continuing operations