MELBOURNE, Florida,
Aug. 2, 2011 /PRNewswire/ -- Harris
Corporation (NYSE:HRS) reported revenue in the fourth quarter of
fiscal 2011 of $1.67 billion, a 15
percent increase compared with the prior-year quarter. GAAP
net income in the fourth quarter of fiscal 2011 was $134 million, or $1.06 per diluted share, compared with
$151 million, or $1.16 per diluted share, in the prior-year
quarter. Non-GAAP net income was $156
million, or $1.24 per diluted
share, compared with $161 million, or
$1.24 per diluted share, in the
prior-year quarter. Adjusted EBITDA (earnings before
interest, taxes, depreciation and amortization) was $320 million compared with $300 million in the prior-year quarter.
Orders in the fourth quarter were $1.35 billion compared with $1.72 billion in the prior-year quarter.
Non-GAAP net income and adjusted EBITDA exclude
acquisition-related costs in both quarters. A reconciliation
of GAAP to non-GAAP financial measures is provided in Tables 5
through 10, along with the accompanying notes.
“Harris fourth quarter results represented a solid finish to
another strong year for the company,” said Howard L. Lance, chairman, president and chief
executive officer. “While large shipments of tactical radios
for equipping MRAP vehicles in the prior year continued to create
tough year-over-year comparisons, the company still achieved 4
percent organic revenue growth driven by 11 percent growth in
Government Communications Systems and 7 percent organic growth in
the new Integrated Network Solutions segment. Also, adjusted
EBITDA showed strong growth, increasing 7 percent compared with the
prior year and 9 percent on a sequential basis. The company
achieved these results even while continuing to invest in new
market initiatives.”
Results for Full Fiscal Year
Revenue in fiscal 2011 was $5.92
billion, a 14 percent increase compared with $5.21 billion in the prior year. GAAP net
income was $588 million, or
$4.60 per diluted share, compared
with $562 million, or $4.28 per diluted share, in the prior year.
Non-GAAP net income was $625
million, or $4.89 per diluted
share, compared with $582 million, or
$4.43 per diluted share, in the prior
year. Adjusted EBITDA was $1.23
billion, an 11 percent increase compared with $1.10 billion in the prior year. Non-GAAP
net income and adjusted EBITDA exclude acquisition-related costs in
both years. The company generated strong cash flow from
operations of $833 million in fiscal
2011 compared with $803 million in
the prior year.
Share Repurchase Program and Dividend
The Harris Board of Directors approved a new $1 billion share repurchase authorization.
This new program replaces the existing program, which had an
unused authorization of approximately $200
million. The company expects to repurchase up to
$500 million in shares under this
authorization by the end of calendar year 2011.
In addition, the Board increased the quarterly cash dividend
rate by 12 percent from 25 cents per
share to 28 cents per share and
declared a dividend of 28 cents per
share payable September 16, 2011 to
shareholders of record September 7,
2011. The annualized cash dividend rate is now
$1.12 per share.
“These actions demonstrate our continuing commitment to create
shareholder value through effective cash deployment,” said Lance.
“Our actions also reflect confidence in our financial
strength and positive long-term outlook.”
Share repurchases will be funded with available cash and
commercial paper. Repurchases under the program may be made through
open market purchases, private transactions, transactions
structured through investment banking institutions, or any
combination thereof. The timing, volume, and nature of share
repurchases are subject to market conditions, applicable securities
laws, and other factors, are at the discretion of the company, and
may be suspended or discontinued at any time.
RF Communications
Revenue for the RF Communications segment in the fourth quarter
was $628 million compared with
$630 million in the prior year.
Revenue included $472 million
in Tactical Communications and $156
million in Public Safety and Professional Communications.
International revenue increased significantly and comprised
more than half of Tactical Communications revenue in the quarter.
Tactical Communications revenue in the U.S. market, excluding
shipments for MRAP vehicles, also increased significantly as a
result of continuing Falcon III® adoption in support of
the transition to wideband networking. Revenue in Public
Safety and Professional Communications increased as a result of new
contract wins. Offsetting the revenue increases in the
segment was a $200 million
year-over-year decline in revenue from expedited shipments of
radios to equip MRAP vehicles.
Operating income for the RF Communications segment was
$191 million in the fourth quarter, a
decline compared with the prior-year quarter which benefited
significantly from the MRAP shipments. In the prior-year
quarter, operating income was $220
million and non-GAAP operating income, excluding
acquisition-related costs, was $227
million.
Fourth quarter orders for the RF Communications segment totaled
$447 million, including $257 million in Tactical Communications and
$190 million in Public Safety and
Professional Communications. At the end of the fourth
quarter, total segment backlog was $1.5
billion, including $766
million in Tactical Communications and $737 million in Public Safety and Professional
Communications. Orders in Tactical Communications declined
compared with the prior-year quarter as a result of a $260 million decline in orders related to
equipping MRAP vehicles and a delay in international orders due to
the continuing political uncertainty in Northern Africa, the Middle East and Central Asia. Public Safety and
Professional Communications orders increased compared to the
prior-year quarter, as a result of several major new program
wins.
Tactical Communications orders in the U.S. market included
$25 million from the Marine Corps for
Falcon III radios and $18 million
from the Department of Defense for Falcon II®
high-frequency vehicular radio systems. Orders for Falcon III
AN/PRC-117G multiband manpack radios included $12 million from the Department of Defense,
$16 million from the Army, and
$9 million from the Air Force.
Harris also was awarded a $60
million IDIQ (Indefinite Delivery/Indefinite Quantity)
contract and an initial delivery order of $6
million from the Navy for new encryption devices.
Tactical Communications orders in the international market
included $16 million from a country
in Africa to provide
high-frequency radios; $10 million
from a country in Southeast Asia
for Falcon III and Falcon II tactical radios; $5 million from Brazil for Falcon III VHF radios; and
$5 million from Canada for Falcon III AN/PRC-117G radios.
Public Safety and Professional Communications orders included
$50 million from the Oregon
Department of Transportation to implement a P25 system. This
was the initial order under a 10-year price agreement requirements
contract with a potential value of more than $100 million. Orders also included
$24 million to deploy a public safety
communications system in Floyd County,
Georgia; $18 million from
Linn County, Iowa to upgrade its
public safety communications system; and $12
million from the city of Chicago,
Illinois.
Integrated Network Solutions
Revenue for the Integrated Network Solutions segment was
$585 million in the fourth quarter,
an increase of 45 percent compared with $405
million in the prior year. Adjusting for the impact of
acquisitions, revenue increased 7 percent in the quarter compared
with the prior year. Broadcast Communications continued to
show strong momentum with year-over-year revenue growth of 31
percent; Harris IT Services revenue increased 8 percent; and Harris
CapRock Communications revenue on a pro forma basis was about flat
with the prior year.
Operating income for the Integrated Network Solutions segment
was $2 million in the fourth quarter
compared with a loss of $5 million in
the prior year. Non-GAAP operating income, excluding
acquisition-related costs, was $32
million in the fourth quarter, compared with a loss of
$2 million in the prior-year quarter.
Non-GAAP operating income increased as a result of
significantly higher income in Broadcast Communications, Harris IT
Services, and Harris CapRock Communications. Partially
offsetting these increases were operating losses in the company’s
new cyber and healthcare businesses.
During the quarter, Harris completed the acquisitions of the
Global Connectivity Services business of Schlumberger, a leading
provider of satellite and terrestrial communications services for
the worldwide energy market, and Carefx Corporation, a leading
provider of interoperability workflow solutions for government and
commercial healthcare providers.
New contracts in the quarter in the Integrated Network Solutions
segment included a 3-year master service agreement with a potential
value of $58 million to operate the
Offshore Communications Backbone (OCB), a modular system of
seafloor communications equipment for deep-ocean observation
located in the eastern Mediterranean Sea; a 2-year, $13 million contract from Odfjell Drilling in
Norway for offshore satellite
communications; and $16 million in
orders from Turkmenistan TV for a full range of broadcast products
to upgrade its country-wide broadcast network. During the
quarter, Harris also was awarded contract vehicles from the
Department of Veterans Affairs (VA), including the Transformation
Twenty-One Total Technology (T4) IDIQ contract with a ceiling of
$12 billion to upgrade the VA’s
information technology system, and the Enhance the Veteran
Experience and Access to HealthCare (EVEAH) blanket purchase
agreement with a ceiling of $199
million and initial task orders totaling $15 million. After the close of the
quarter, Harris was awarded a $31
million contract from the VA for the Enterprise Management
Foundation Federated Data Repository (EMF FDR) program to create a
centralized network monitoring system that will provide the VA with
a unified view of its critical infrastructure.
Government Communications Systems
Fourth quarter revenue for the Government Communications Systems
segment was $500 million, an 11
percent increase compared with $450
million in the prior year. Operating income was
$63 million in the fourth quarter and
operating margin was a strong 12.7 percent.
Year-over-year revenue increased from the Geostationary
Operational Environmental Satellite – Series R (GOES-R) Ground and
Antenna Segment weather programs for the National Oceanic and
Atmospheric Administration (NOAA), Highband Networking Radios
(HNRs) for the U.S. Army, and satellite reflector programs for
commercial customers. As expected, revenue from the Field
Data Collection Automation (FDCA) program for the 2010 U.S. Census
declined $19 million.
Major awards during the quarter in the Government Communications
Systems segment included a 42-month, potential $57 million follow-on contract by the Federal
Aviation Administration (FAA) to upgrade and manage the system that
provides real-time weather data and flight-planning capabilities
supporting Alaska’s general aviation community; a $19 million contract for more than 100 HNRs for
the U.S. Army’s Warfighter Information Network – Tactical (WIN-T)
program; and three large awards from classified customers totaling
$115 million. After the close
of the quarter, Harris was selected for a 10-year, $85 million contract award from the FAA to
upgrade the Alaska Satellite Telecommunications Infrastructure
(ASTI) communications network.
Earnings Guidance
The company updated its previous guidance for non-GAAP net
income for fiscal 2012 from a range of $5.10
to $5.20 per diluted share ($4.94 to
$5.04 per diluted share on a GAAP basis) to a range of
$5.10 to $5.30 per diluted share
($4.92 to $5.12 per diluted share on
a GAAP basis). Fiscal 2012 non-GAAP earnings guidance
excludes acquisition-related costs. Fiscal 2012 revenue is
now expected to be in a range from $6.15 to
$6.30 billion, which represents a year-over-year increase of
about 4 to 6 percent compared with fiscal 2011.
Harris will host a conference call today, August 2, at 4:30 p.m.
Eastern Time (ET) to discuss its fourth quarter fiscal 2011
financial results. The dial-in numbers for the teleconference
are (866) 788-0539 (U.S.) and (857) 350-1677 (International), using
participant code 84980289. Please allow at least 10 minutes
prior to the scheduled start time to connect to the teleconference.
Participants may listen to the call and view management’s
supporting slide presentation at www.harris.com/conference-call.
A recording of the call will be available on the Harris
website beginning at 7 p.m. ET on
August 2.
About Harris Corporation
Harris is an international communications and information
technology company serving government and commercial markets in
more than 150 countries. Headquartered in Melbourne, Florida, the company has
approximately $6 billion of annual
revenue and more than 16,000 employees — including nearly 7,000
engineers and scientists. Harris is dedicated to developing
best-in-class assured communications® products, systems, and
services. Additional information about Harris Corporation is
available at www.harris.com.
Non-GAAP Financial Measures
This press release contains non-GAAP financial measures within
the meaning of Regulation G promulgated by the SEC, including
revenue growth for the fourth quarter of fiscal 2011 compared with
the fourth quarter of fiscal 2010, adjusting for the impact of
acquisitions; net income, net income per diluted share and Adjusted
EBITDA for the fourth quarter of fiscal 2011 and the fourth quarter
of fiscal 2010 and for fiscal 2011 and fiscal 2010, in each case
excluding charges for acquisition-related costs, and in the case of
Adjusted EBITDA, including interest, taxes, depreciation and
amortization; Adjusted EBITDA for the third quarter of fiscal 2011,
excluding charges for acquisition-related costs and including
interest, taxes, depreciation and amortization; operating income
for the RF Communications segment for the fourth quarter of fiscal
2010, excluding charges for acquisition-related costs; revenue
growth for the Integrated Network Solutions segment for the fourth
quarter of fiscal 2011 compared with the fourth quarter of fiscal
2010, adjusting for the impact of acquisitions; operating income
for the Integrated Network Solutions segment for the fourth quarter
of fiscal 2011 and the fourth quarter of fiscal 2010, in each case
excluding charges for acquisition-related costs; and guidance for
fiscal 2012 net income per diluted share, excluding charges for
acquisition-related costs. Harris management believes that
these non-GAAP financial measures, when considered together with
the GAAP financial measures, provide information that is useful to
investors in understanding period-over-period operating results
separate and apart from items that may, or could, have a
disproportionately positive or negative impact on results in any
particular period. Management also believes that these
non-GAAP financial measures enhance the ability of investors to
analyze Harris business trends and to understand Harris
performance. In addition, Harris may utilize non-GAAP
financial measures as a guide in its forecasting, budgeting, and
long-term planning process and to measure operating performance for
some management compensation purposes. Any analysis of
non-GAAP financial measures should be used only in conjunction with
results presented in accordance with GAAP.
Forward-Looking Statements
Statements in this press release that are not historical facts
are forward-looking statements that reflect management's current
expectations, assumptions, and estimates of future performance and
economic conditions. Such statements are made in reliance
upon the safe harbor provisions of Section 27A of the Securities
Act of 1933 and Section 21E of the Securities Exchange Act of 1934.
Forward-looking statements in this release include but are
not limited to: earnings and revenue guidance for fiscal 2012;
potential contract opportunities and awards; the potential value of
contract awards; the expected level of share repurchases; and
statements regarding outlook, including expected revenue and
orders. The company cautions investors that any
forward-looking statements are subject to risks and uncertainties
that may cause actual results and future trends to differ
materially from those matters expressed in or implied by such
forward-looking statements. The company's consolidated
results and the forward-looking statements could be affected by
many factors, including but not limited to: the loss of our
relationship with the U.S. government or a shift in U.S. government
funding; potential changes in U.S. government or customer
priorities and requirements (including potential deferrals of
awards, terminations, reductions of expenditures, changes to
respond to the priorities of Congress and the Administration,
budgetary constraints, debt ceiling implications, and cost-cutting
initiatives); risks inherent with large long-term fixed-price
contracts, particularly the ability to contain cost overruns;
financial and government and regulatory risks relating to
international sales and operations; our ability to continue to
develop new products that achieve market acceptance; the
consequences of future geo-political events; strategic acquisitions
and the risks and uncertainties related thereto, including our
ability to manage and integrate acquired businesses; performance of
our subcontractors and suppliers; potential claims that we are
infringing the intellectual property rights of third parties; the
successful resolution of patent infringement claims and the
ultimate outcome of other contingencies, litigation and legal
matters; risks inherent in developing new technologies; changes in
our effective tax rate; the potential impact of natural disasters
or other disruptions on our operations; the potential impact of a
security breach, through cyber attack or otherwise, or other
significant disruptions of our IT networks and systems or those we
operate for customers; the potential impact of satellite bandwidth
constraints on our managed satellite communications services;
changes in future business conditions that could cause business
investments and/or recorded goodwill to become impaired; and the
general downturn in the global economy. Further information
relating to factors that may impact the company's results and
forward-looking statements are disclosed in the company's filings
with the SEC. The forward-looking statements contained in
this release are made as of the date of this release, and the
company disclaims any intention or obligation, other than imposed
by law, to update or revise any forward-looking statements, whether
as a result of new information, future events, or otherwise.
For additional information, contact Harris Corporation at
webmaster@harris.com.
|
|
Table
1
|
|
HARRIS
CORPORATION
|
|
FY '11
Fourth Quarter Summary
|
|
CONDENSED
CONSOLIDATED STATEMENT OF INCOME
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
Fiscal Year
Ended
|
|
|
|
|
July
1,
|
|
July
2,
|
|
July
1,
|
|
July
2,
|
|
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In
millions, except per share amounts)
|
|
Revenue from product sales and
services
|
$
|
1,667.4
|
|
$
|
1,455.9
|
|
$
|
5,924.6
|
|
$
|
5,206.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of product sales and
services
|
|
(1,092.6)
|
|
|
(923.7)
|
|
|
(3,810.5)
|
|
|
(3,334.4)
|
|
Engineering, selling and
administrative expenses
|
|
(347.9)
|
|
|
(286.1)
|
|
|
(1,143.9)
|
|
|
(958.9)
|
|
Non-operating loss
|
|
(0.3)
|
|
|
(0.9)
|
|
|
(1.9)
|
|
|
(1.9)
|
|
Interest income
|
|
0.5
|
|
|
0.4
|
|
|
2.8
|
|
|
1.5
|
|
Interest expense
|
|
(26.2)
|
|
|
(17.6)
|
|
|
(90.4)
|
|
|
(72.1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
|
200.9
|
|
|
228.0
|
|
|
880.7
|
|
|
840.3
|
|
Income taxes
|
|
(68.0)
|
|
|
(76.6)
|
|
|
(293.6)
|
|
|
(278.7)
|
|
Net income
|
|
132.9
|
|
|
151.4
|
|
|
587.1
|
|
|
561.6
|
|
Noncontrolling interests, net of
income taxes
|
|
0.6
|
|
|
¯
|
|
|
0.9
|
|
|
¯
|
|
Net income attributable to
Harris Corporation
|
$
|
133.5
|
|
$
|
151.4
|
|
$
|
588.0
|
|
$
|
561.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per common share
attributable to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Harris Corporation common
shareholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
1.07
|
|
$
|
1.17
|
|
$
|
4.63
|
|
$
|
4.31
|
|
|
Diluted
|
$
|
1.06
|
|
$
|
1.16
|
|
$
|
4.60
|
|
$
|
4.28
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends paid per common
share
|
$
|
0.25
|
|
$
|
0.22
|
|
$
|
1.00
|
|
$
|
0.88
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted average shares
outstanding
|
|
123.8
|
|
|
127.6
|
|
|
125.3
|
|
|
129.0
|
|
Diluted weighted average shares
outstanding
|
|
124.7
|
|
|
128.7
|
|
|
126.3
|
|
|
130.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table
2
|
|
HARRIS
CORPORATION
|
|
FY '11
Fourth Quarter Summary
|
|
BUSINESS
SEGMENT INFORMATION
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
Fiscal Year
Ended
|
|
|
|
|
July
1,
|
|
July
2,
|
|
July
1,
|
|
July
2,
|
|
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In
millions)
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RF Communications
|
$
|
628.0
|
|
$
|
629.9
|
|
$
|
2,289.2
|
|
$
|
2,067.2
|
|
|
Integrated Network
Solutions
|
|
585.4
|
|
|
404.6
|
|
|
1,985.8
|
|
|
1,485.1
|
|
|
Government Communications
Systems
|
|
499.5
|
|
|
449.7
|
|
|
1,776.5
|
|
|
1,747.3
|
|
|
Corporate
eliminations
|
|
(45.5)
|
|
|
(28.3)
|
|
|
(126.9)
|
|
|
(93.5)
|
|
|
|
|
$
|
1,667.4
|
|
$
|
1,455.9
|
|
$
|
5,924.6
|
|
$
|
5,206.1
|
|
Income Before Income
Taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Operating Income
(Loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RF Communications
|
$
|
190.7
|
|
$
|
220.1
|
|
$
|
787.0
|
|
$
|
707.4
|
|
|
|
Integrated Network
Solutions
|
|
2.4
|
|
|
(5.3)
|
|
|
70.2
|
|
|
85.3
|
|
|
|
Government Communications
Systems
|
|
63.2
|
|
|
60.3
|
|
|
227.0
|
|
|
227.4
|
|
|
Unallocated corporate
expense
|
|
(20.3)
|
|
|
(23.4)
|
|
|
(87.8)
|
|
|
(90.4)
|
|
|
Corporate
eliminations
|
|
(9.1)
|
|
|
(5.6)
|
|
|
(26.2)
|
|
|
(16.9)
|
|
|
Non-operating loss
|
|
(0.3)
|
|
|
(0.9)
|
|
|
(1.9)
|
|
|
(1.9)
|
|
|
Net interest expense
|
|
(25.7)
|
|
|
(17.2)
|
|
|
(87.6)
|
|
|
(70.6)
|
|
|
|
|
$
|
200.9
|
|
$
|
228.0
|
|
$
|
880.7
|
|
$
|
840.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table
3
|
|
HARRIS
CORPORATION
|
|
FY '11
Fourth Quarter Summary
|
|
CONDENSED
CONSOLIDATED STATEMENT OF CASH FLOWS
|
|
(Unaudited)
|
|
|
|
|
Fiscal Year
Ended
|
|
|
July
1,
|
|
July
2,
|
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
(In
millions)
|
|
Operating
Activities
|
|
|
|
|
|
|
|
Net income
|
$
|
587.1
|
|
$
|
561.6
|
|
|
Adjustments to reconcile net
income to net cash provided by
operating activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
212.0
|
|
|
165.7
|
|
|
|
Share-based
compensation
|
|
46.1
|
|
|
35.3
|
|
|
|
Non-current deferred income
taxes
|
|
37.1
|
|
|
(6.5)
|
|
|
|
(Increase) decrease
in:
|
|
|
|
|
|
|
|
|
|
Accounts and notes
receivable
|
|
(42.9)
|
|
|
40.0
|
|
|
|
|
Inventories
|
|
(64.7)
|
|
|
(13.9)
|
|
|
|
Increase (decrease)
in:
|
|
|
|
|
|
|
|
|
|
Accounts payable and accrued
expenses
|
|
90.5
|
|
|
(51.8)
|
|
|
|
|
Advance payments and unearned
income
|
|
47.6
|
|
|
53.0
|
|
|
|
|
Income taxes
|
|
(64.6)
|
|
|
0.8
|
|
|
|
Other
|
|
(15.1)
|
|
|
18.5
|
|
Net cash provided by operating
activities
|
|
833.1
|
|
|
802.7
|
|
|
|
|
|
|
|
|
|
|
|
Investing
Activities
|
|
|
|
|
|
|
|
Cash paid for acquired
businesses
|
|
(1,082.6)
|
|
|
(52.1)
|
|
|
Cash paid for cost-method
investment
|
|
(10.0)
|
|
|
¯
|
|
|
Additions of property, plant and
equipment
|
|
(311.3)
|
|
|
(189.9)
|
|
|
Additions of capitalized
software
|
|
(13.6)
|
|
|
(8.1)
|
|
Net cash used in investing
activities
|
|
(1,417.5)
|
|
|
(250.1)
|
|
|
|
|
|
|
|
|
|
|
|
Financing
Activities
|
|
|
|
|
|
|
|
Proceeds from
borrowings
|
|
852.1
|
|
|
¯
|
|
|
Repayments of
borrowings
|
|
(0.7)
|
|
|
(76.8)
|
|
|
Proceeds from exercises of
employee stock options
|
|
24.5
|
|
|
18.9
|
|
|
Repurchases of common
stock
|
|
(256.1)
|
|
|
(208.0)
|
|
|
Cash dividends
|
|
(127.0)
|
|
|
(115.0)
|
|
Net cash provided by (used in)
financing activities
|
|
492.8
|
|
|
(380.9)
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes
on cash and cash equivalents
|
|
3.3
|
|
|
2.3
|
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in cash
and cash equivalents
|
|
(88.3)
|
|
|
174.0
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents,
beginning of year
|
|
455.2
|
|
|
281.2
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents, end
of year
|
$
|
366.9
|
|
$
|
455.2
|
|
|
|
|
|
|
|
|
|
|
|
|
Table
4
|
|
HARRIS
CORPORATION
|
|
FY '11
Fourth Quarter Summary
|
|
CONDENSED
CONSOLIDATED BALANCE SHEET
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
July
1,
|
|
July
2,
|
|
|
|
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In
millions)
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
366.9
|
|
$
|
455.2
|
|
|
Receivables
|
|
836.5
|
|
|
736.0
|
|
|
Inventories
|
|
720.8
|
|
|
615.3
|
|
|
Income taxes
receivable
|
|
57.3
|
|
|
15.3
|
|
|
Current deferred income
taxes
|
|
171.0
|
|
|
145.3
|
|
|
Other current assets
|
|
64.3
|
|
|
37.5
|
|
|
Property, plant and
equipment
|
|
872.8
|
|
|
609.7
|
|
|
Goodwill
|
|
2,381.4
|
|
|
1,576.2
|
|
|
Intangible assets
|
|
502.4
|
|
|
297.8
|
|
|
Non-current deferred income
taxes
|
|
5.7
|
|
|
107.7
|
|
|
Other non-current
assets
|
|
193.7
|
|
|
147.6
|
|
|
|
|
|
$
|
6,172.8
|
|
$
|
4,743.6
|
|
Liabilities and
Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term debt
|
$
|
180.0
|
|
$
|
30.0
|
|
|
Accounts payable
|
|
450.8
|
|
|
329.4
|
|
|
Compensation and
benefits
|
|
266.2
|
|
|
239.7
|
|
|
Other accrued items
|
|
295.8
|
|
|
267.5
|
|
|
Advance payments and unearned
income
|
|
232.8
|
|
|
175.6
|
|
|
Income taxes payable
|
|
¯
|
|
|
8.9
|
|
|
Current portion of long-term
debt
|
|
4.9
|
|
|
0.7
|
|
|
Long-term debt
|
|
1,887.2
|
|
|
1,176.6
|
|
|
Long-term contract
liability
|
|
120.9
|
|
|
132.4
|
|
|
Other long-term
liabilities
|
|
222.2
|
|
|
192.7
|
|
|
Equity
|
|
2,512.0
|
|
|
2,190.1
|
|
|
$
|
6,172.8
|
|
$
|
4,743.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HARRIS
CORPORATION
FY '11 Fourth Quarter
Summary
RECONCILIATION OF NON-GAAP
FINANCIAL MEASURES AND REGULATION G DISCLOSURE
|
|
|
To supplement our condensed consolidated financial statements
presented in accordance with U.S. generally accepted accounting
principles (GAAP), we provide additional measures of segments'
operating income (loss); cost of product sales and services;
engineering, selling and administrative expenses; income before
income taxes; income taxes; net income; net income attributable to
Harris Corporation; net income per diluted common share
attributable to Harris Corporation common shareholders; and
earnings before interest, taxes, depreciation and amortization
("EBITDA") adjusted to exclude certain costs, charges, expenses and
losses. Harris management believes that these non-GAAP financial
measures, when considered together with the GAAP financial
measures, provide information that is useful to investors in
understanding period-over-period operating results separate and
apart from items that may, or could, have a disproportionately
positive or negative impact on results in any particular period.
Harris management also believes that these non-GAAP financial
measures enhance the ability of investors to analyze Harris'
business trends and to understand Harris' performance. In addition,
Harris may utilize non-GAAP financial measures as a guide in its
forecasting, budgeting, and long-term planning process and to
measure operating performance for some management compensation
purposes. Any analysis of non-GAAP financial measures should be
used only in conjunction with results presented in accordance with
GAAP. A reconciliation of these non-GAAP financial measures with
the most directly comparable financial measures calculated in
accordance with GAAP follows:
|
|
Table
5
|
|
HARRIS
CORPORATION
|
|
FY '11
Fourth Quarter Summary
|
|
RECONCILIATION OF NON-GAAP
FINANCIAL MEASURES
|
|
Condensed
Consolidated Statement of Income
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
Quarter
Ended
|
|
|
|
|
|
July 1,
2011
|
|
July 2,
2010
|
|
|
|
|
|
As
Reported
|
|
Adjustment
|
|
Non-GAAP
|
|
As
Reported
|
|
Adjustment
|
|
Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In
millions, except per share amounts)
|
|
Revenue from product sales and
services
|
$
|
1,667.4
|
|
$
|
¯
|
|
$
|
1,667.4
|
|
$
|
1,455.9
|
|
$
|
¯
|
|
$
|
1,455.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of product sales and
services (A)
|
|
(1,092.6)
|
|
|
¯
|
|
|
(1,092.6)
|
|
|
(923.7)
|
|
|
0.7
|
|
|
(923.0)
|
|
Engineering, selling and
administrative
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
expenses (B)
|
|
(347.9)
|
|
|
29.6
|
|
|
(318.3)
|
|
|
(286.1)
|
|
|
9.4
|
|
|
(276.7)
|
|
Non-operating loss
|
|
(0.3)
|
|
|
¯
|
|
|
(0.3)
|
|
|
(0.9)
|
|
|
¯
|
|
|
(0.9)
|
|
Interest income
|
|
0.5
|
|
|
¯
|
|
|
0.5
|
|
|
0.4
|
|
|
¯
|
|
|
0.4
|
|
Interest expense
|
|
(26.2)
|
|
|
¯
|
|
|
(26.2)
|
|
|
(17.6)
|
|
|
¯
|
|
|
(17.6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
|
200.9
|
|
|
29.6
|
|
|
230.5
|
|
|
228.0
|
|
|
10.1
|
|
|
238.1
|
|
Income taxes (C)
|
|
(68.0)
|
|
|
(6.9)
|
|
|
(74.9)
|
|
|
(76.6)
|
|
|
(0.3)
|
|
|
(76.9)
|
|
Net income
|
|
132.9
|
|
|
22.7
|
|
|
155.6
|
|
|
151.4
|
|
|
9.8
|
|
|
161.2
|
|
Noncontrolling interests, net of
income taxes
|
|
0.6
|
|
|
¯
|
|
|
0.6
|
|
|
¯
|
|
|
¯
|
|
|
¯
|
|
Net income attributable to
Harris Corporation
|
$
|
133.5
|
|
$
|
22.7
|
|
$
|
156.2
|
|
$
|
151.4
|
|
$
|
9.8
|
|
$
|
161.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per diluted common
share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
attributable to Harris
Corporation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
common shareholders
|
$
|
1.06
|
|
$
|
0.18
|
|
$
|
1.24
|
|
$
|
1.16
|
|
$
|
0.08
|
|
$
|
1.24
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year
Ended
|
|
Fiscal Year
Ended
|
|
|
|
|
|
July 1,
2011
|
|
July 2,
2010
|
|
|
|
|
|
As
Reported
|
|
Adjustment
|
|
Non-GAAP
|
|
As
Reported
|
|
Adjustment
|
|
Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In
millions, except per share amounts)
|
|
Revenue from product sales and
services
|
$
|
5,924.6
|
|
$
|
¯
|
|
$
|
5,924.6
|
|
$
|
5,206.1
|
|
$
|
¯
|
|
$
|
5,206.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of product sales and
services (A)
|
|
(3,810.5)
|
|
|
¯
|
|
|
(3,810.5)
|
|
|
(3,334.4)
|
|
|
5.7
|
|
|
(3,328.7)
|
|
Engineering, selling and
administrative
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
expenses (B)
|
|
(1,143.9)
|
|
|
46.6
|
|
|
(1,097.3)
|
|
|
(958.9)
|
|
|
20.4
|
|
|
(938.5)
|
|
Non-operating loss
|
|
(1.9)
|
|
|
¯
|
|
|
(1.9)
|
|
|
(1.9)
|
|
|
¯
|
|
|
(1.9)
|
|
Interest income
|
|
2.8
|
|
|
¯
|
|
|
2.8
|
|
|
1.5
|
|
|
¯
|
|
|
1.5
|
|
Interest expense
|
|
(90.4)
|
|
|
¯
|
|
|
(90.4)
|
|
|
(72.1)
|
|
|
¯
|
|
|
(72.1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
|
880.7
|
|
|
46.6
|
|
|
927.3
|
|
|
840.3
|
|
|
26.1
|
|
|
866.4
|
|
Income taxes (C)
|
|
(293.6)
|
|
|
(9.8)
|
|
|
(303.4)
|
|
|
(278.7)
|
|
|
(6.2)
|
|
|
(284.9)
|
|
Net income
|
|
587.1
|
|
|
36.8
|
|
|
623.9
|
|
|
561.6
|
|
|
19.9
|
|
|
581.5
|
|
Noncontrolling interests, net of
income taxes
|
|
0.9
|
|
|
¯
|
|
|
0.9
|
|
|
¯
|
|
|
¯
|
|
|
¯
|
|
Net income attributable to
Harris Corporation
|
$
|
588.0
|
|
$
|
36.8
|
|
$
|
624.8
|
|
$
|
561.6
|
|
$
|
19.9
|
|
$
|
581.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per diluted common
share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
attributable to Harris
Corporation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
common shareholders
|
$
|
4.60
|
|
$
|
0.29
|
|
$
|
4.89
|
|
$
|
4.28
|
|
$
|
0.15
|
|
$
|
4.43
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table
6
|
|
HARRIS
CORPORATION
|
|
FY '11
Fourth Quarter Summary
|
|
RECONCILIATION OF NON-GAAP
FINANCIAL MEASURES
|
|
Business
Segment Information
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
Quarter
Ended
|
|
|
|
|
|
July 1,
2011
|
|
July 2,
2010
|
|
|
|
|
|
As
Reported
|
|
Adjustment
|
|
Non-GAAP
|
|
As
Reported
|
|
Adjustment
|
|
Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In
millions)
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RF Communications
|
|
$
|
628.0
|
|
$
|
¯
|
|
$
|
628.0
|
|
$
|
629.9
|
|
$
|
¯
|
|
$
|
629.9
|
|
|
Integrated Network
Solutions
|
|
|
585.4
|
|
|
¯
|
|
|
585.4
|
|
|
404.6
|
|
|
¯
|
|
|
404.6
|
|
|
Government Communications
Systems
|
|
|
499.5
|
|
|
¯
|
|
|
499.5
|
|
|
449.7
|
|
|
¯
|
|
|
449.7
|
|
|
Corporate
eliminations
|
|
|
(45.5)
|
|
|
¯
|
|
|
(45.5)
|
|
|
(28.3)
|
|
|
¯
|
|
|
(28.3)
|
|
|
|
|
|
$
|
1,667.4
|
|
$
|
¯
|
|
$
|
1,667.4
|
|
$
|
1,455.9
|
|
$
|
¯
|
|
$
|
1,455.9
|
|
Income Before Income
Taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Operating Income
(Loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RF Communications (D)
|
|
$
|
190.7
|
|
$
|
¯
|
|
$
|
190.7
|
|
$
|
220.1
|
|
$
|
6.4
|
|
$
|
226.5
|
|
|
|
Integrated Network Solutions
(E)
|
|
|
2.4
|
|
|
29.6
|
|
|
32.0
|
|
|
(5.3)
|
|
|
3.5
|
|
|
(1.8)
|
|
|
|
Government Communications
Systems (F)
|
63.2
|
|
|
¯
|
|
|
63.2
|
|
|
60.3
|
|
|
0.2
|
|
|
60.5
|
|
|
Unallocated corporate
expense
|
|
|
(20.3)
|
|
|
¯
|
|
|
(20.3)
|
|
|
(23.4)
|
|
|
¯
|
|
|
(23.4)
|
|
|
Corporate
eliminations
|
|
|
(9.1)
|
|
|
¯
|
|
|
(9.1)
|
|
|
(5.6)
|
|
|
¯
|
|
|
(5.6)
|
|
|
Non-operating loss
|
|
|
(0.3)
|
|
|
¯
|
|
|
(0.3)
|
|
|
(0.9)
|
|
|
¯
|
|
|
(0.9)
|
|
|
Net interest expense
|
|
|
(25.7)
|
|
|
¯
|
|
|
(25.7)
|
|
|
(17.2)
|
|
|
¯
|
|
|
(17.2)
|
|
|
|
|
|
$
|
200.9
|
|
$
|
29.6
|
|
$
|
230.5
|
|
$
|
228.0
|
|
$
|
10.1
|
|
$
|
238.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year
Ended
|
|
Fiscal Year
Ended
|
|
|
|
|
|
July 1,
2011
|
|
July 2,
2010
|
|
|
|
|
|
As
Reported
|
|
Adjustment
|
|
Non-GAAP
|
|
As
Reported
|
|
Adjustment
|
|
Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In
millions)
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RF Communications
|
|
$
|
2,289.2
|
|
$
|
¯
|
|
$
|
2,289.2
|
|
$
|
2,067.2
|
|
$
|
¯
|
|
$
|
2,067.2
|
|
|
Integrated Network
Solutions
|
|
|
1,985.8
|
|
|
¯
|
|
|
1,985.8
|
|
|
1,485.1
|
|
|
¯
|
|
|
1,485.1
|
|
|
Government Communications
Systems
|
|
|
1,776.5
|
|
|
¯
|
|
|
1,776.5
|
|
|
1,747.3
|
|
|
¯
|
|
|
1,747.3
|
|
|
Corporate
eliminations
|
|
|
(126.9)
|
|
|
¯
|
|
|
(126.9)
|
|
|
(93.5)
|
|
|
¯
|
|
|
(93.5)
|
|
|
|
|
|
$
|
5,924.6
|
|
$
|
¯
|
|
$
|
5,924.6
|
|
$
|
5,206.1
|
|
$
|
¯
|
|
$
|
5,206.1
|
|
Income Before Income
Taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Operating
Income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RF Communications (D)
|
|
$
|
787.0
|
|
$
|
¯
|
|
$
|
787.0
|
|
$
|
707.4
|
|
$
|
19.3
|
|
$
|
726.7
|
|
|
|
Integrated Network Solutions
(E)
|
|
|
70.2
|
|
|
46.6
|
|
|
116.8
|
|
|
85.3
|
|
|
4.4
|
|
|
89.7
|
|
|
|
Government Communications
Systems (F)
|
227.0
|
|
|
¯
|
|
|
227.0
|
|
|
227.4
|
|
|
2.4
|
|
|
229.8
|
|
|
Unallocated corporate
expense
|
|
|
(87.8)
|
|
|
¯
|
|
|
(87.8)
|
|
|
(90.4)
|
|
|
¯
|
|
|
(90.4)
|
|
|
Corporate
eliminations
|
|
|
(26.2)
|
|
|
¯
|
|
|
(26.2)
|
|
|
(16.9)
|
|
|
¯
|
|
|
(16.9)
|
|
|
Non-operating loss
|
|
|
(1.9)
|
|
|
¯
|
|
|
(1.9)
|
|
|
(1.9)
|
|
|
¯
|
|
|
(1.9)
|
|
|
Net interest expense
|
|
|
(87.6)
|
|
|
¯
|
|
|
(87.6)
|
|
|
(70.6)
|
|
|
¯
|
|
|
(70.6)
|
|
|
|
|
|
$
|
880.7
|
|
$
|
46.6
|
|
$
|
927.3
|
|
$
|
840.3
|
|
$
|
26.1
|
|
$
|
866.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table
7
|
|
HARRIS
CORPORATION
|
|
FY '11
Fourth Quarter Summary
|
|
NON-GAAP
FINANCIAL MEASURES
|
|
Adjusted
EBITDA
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
Quarter
Ended
|
|
|
|
|
|
July 1,
2011
|
|
July 2,
2010
|
|
|
|
|
|
|
|
|
Depreciation
and
|
|
|
|
|
|
|
Depreciation
and
|
|
|
|
|
|
|
|
|
|
Amortization
|
|
Adjusted
|
|
|
|
Amortization
|
|
Adjusted
|
|
|
|
|
|
Non-GAAP
|
|
Adjustment
|
|
EBITDA
(1)
|
|
Non-GAAP
|
|
Adjustment
|
|
EBITDA
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In
millions)
|
|
Segment Operating Income
(Loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RF Communications
|
|
$
|
190.7
|
|
$
|
17.2
|
|
$
|
207.9
|
|
$
|
226.5
|
|
$
|
17.4
|
|
$
|
243.9
|
|
|
Integrated Network
Solutions
|
|
|
32.0
|
|
|
31.3
|
|
|
63.3
|
|
|
(1.8)
|
|
|
12.7
|
|
|
10.9
|
|
|
Government Communications
Systems
|
63.2
|
|
|
12.8
|
|
|
76.0
|
|
|
60.5
|
|
|
12.5
|
|
|
73.0
|
|
Unallocated corporate
expense
|
|
|
(20.3)
|
|
|
2.2
|
|
|
(18.1)
|
|
|
(23.4)
|
|
|
2.1
|
|
|
(21.3)
|
|
Corporate
eliminations
|
|
|
(9.1)
|
|
|
¯
|
|
|
(9.1)
|
|
|
(5.6)
|
|
|
¯
|
|
|
(5.6)
|
|
Non-operating loss
|
|
|
(0.3)
|
|
|
¯
|
|
|
(0.3)
|
|
|
(0.9)
|
|
|
¯
|
|
|
(0.9)
|
|
|
$
|
256.2
|
|
$
|
63.5
|
|
$
|
319.7
|
|
$
|
255.3
|
|
$
|
44.7
|
|
$
|
300.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year
Ended
|
|
Fiscal Year
Ended
|
|
|
|
|
|
July 1,
2011
|
|
July 2,
2010
|
|
|
|
|
|
|
|
|
Depreciation
and
|
|
|
|
|
|
|
Depreciation
and
|
|
|
|
|
|
|
|
|
|
Amortization
|
|
Adjusted
|
|
|
|
Amortization
|
|
Adjusted
|
|
|
|
|
|
Non-GAAP
|
|
Adjustment
|
|
EBITDA
(1)
|
|
Non-GAAP
|
|
Adjustment
|
|
EBITDA
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In
millions)
|
|
Segment Operating
Income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RF Communications
|
|
$
|
787.0
|
|
$
|
66.1
|
|
$
|
853.1
|
|
$
|
726.7
|
|
$
|
68.5
|
|
$
|
795.2
|
|
|
Integrated Network
Solutions
|
|
|
116.8
|
|
|
90.7
|
|
|
207.5
|
|
|
89.7
|
|
|
45.2
|
|
|
134.9
|
|
|
Government Communications
Systems
|
227.0
|
|
|
43.6
|
|
|
270.6
|
|
|
229.8
|
|
|
43.7
|
|
|
273.5
|
|
Unallocated corporate
expense
|
|
|
(87.8)
|
|
|
11.6
|
|
|
(76.2)
|
|
|
(90.4)
|
|
|
8.3
|
|
|
(82.1)
|
|
Corporate
eliminations
|
|
|
(26.2)
|
|
|
¯
|
|
|
(26.2)
|
|
|
(16.9)
|
|
|
¯
|
|
|
(16.9)
|
|
Non-operating loss
|
|
|
(1.9)
|
|
|
¯
|
|
|
(1.9)
|
|
|
(1.9)
|
|
|
¯
|
|
|
(1.9)
|
|
|
$
|
1,014.9
|
|
$
|
212.0
|
|
$
|
1,226.9
|
|
$
|
937.0
|
|
$
|
165.7
|
|
$
|
1,102.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Adjusted EBITDA represents
income before income taxes, net interest expense, depreciation and
amortization, giving
effect to non-GAAP
adjustments.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table
8
|
|
HARRIS
CORPORATION
|
|
FY '11
Fourth Quarter Summary
|
|
NON-GAAP
FINANCIAL MEASURES
|
|
Adjusted
EBITDA
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
Quarter
Ended
|
|
|
|
|
|
October 1,
2010
|
|
December 31,
2010
|
|
|
|
|
|
|
|
|
Depreciation
and
|
|
|
|
|
|
|
Depreciation
and
|
|
|
|
|
|
|
|
|
|
Amortization
|
|
Adjusted
|
|
|
|
Amortization
|
|
Adjusted
|
|
|
|
|
|
Non-GAAP
|
|
Adjustment
|
|
EBITDA
(1)
|
|
Non-GAAP
|
|
Adjustment
|
|
EBITDA
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In
millions)
|
|
Segment Operating
Income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RF Communications
|
|
$
|
228.5
|
|
$
|
16.7
|
|
$
|
245.2
|
|
$
|
189.3
|
|
$
|
16.8
|
|
$
|
206.1
|
|
|
Integrated Network
Solutions
|
|
|
28.6
|
|
|
18.1
|
|
|
46.7
|
|
|
24.7
|
|
|
20.1
|
|
|
44.8
|
|
|
Government Communications
Systems
|
44.6
|
|
|
9.9
|
|
|
54.5
|
|
|
59.4
|
|
|
10.0
|
|
|
69.4
|
|
Unallocated corporate
expense
|
|
|
(25.7)
|
|
|
2.1
|
|
|
(23.6)
|
|
|
(22.0)
|
|
|
2.5
|
|
|
(19.5)
|
|
Corporate
eliminations
|
|
|
(4.9)
|
|
|
¯
|
|
|
(4.9)
|
|
|
(4.4)
|
|
|
¯
|
|
|
(4.4)
|
|
Non-operating loss
|
|
|
(0.4)
|
|
|
¯
|
|
|
(0.4)
|
|
|
(0.9)
|
|
|
¯
|
|
|
(0.9)
|
|
|
$
|
270.7
|
|
$
|
46.8
|
|
$
|
317.5
|
|
$
|
246.1
|
|
$
|
49.4
|
|
$
|
295.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
|
|
|
|
|
|
April 1,
2011
|
|
|
|
|
|
|
|
|
|
|
Depreciation
and
|
|
|
|
|
|
|
|
|
|
|
|
Amortization
|
|
Adjusted
|
|
|
|
|
|
|
|
Non-GAAP
|
|
Adjustment
|
|
EBITDA
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In
millions)
|
|
|
|
Segment Operating
Income:
|
|
|
|
|
|
|
|
|
|
|
|
|
RF Communications
|
|
$
|
178.5
|
|
$
|
15.5
|
|
$
|
194.0
|
|
|
|
|
Integrated Network
Solutions
|
|
|
31.5
|
|
|
21.1
|
|
|
52.6
|
|
|
|
|
Government Communications
Systems
|
59.8
|
|
|
10.9
|
|
|
70.7
|
|
|
|
Unallocated corporate
expense
|
|
|
(19.8)
|
|
|
4.8
|
|
|
(15.0)
|
|
|
|
Corporate
eliminations
|
|
|
(7.8)
|
|
|
¯
|
|
|
(7.8)
|
|
|
|
Non-operating loss
|
|
|
(0.3)
|
|
|
¯
|
|
|
(0.3)
|
|
|
|
|
$
|
241.9
|
|
$
|
52.3
|
|
$
|
294.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Adjusted EBITDA represents
income before income taxes, net interest expense, depreciation and
amortization, giving effect to non-GAAP adjustments.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table
9
|
|
HARRIS
CORPORATION
|
|
FY '11
Fourth Quarter Summary
|
|
Reconciliation of FY '12 GAAP
Net Income per Diluted Share Guidance to
|
|
FY '11 GAAP
Net Income per Diluted Share and FY '12 Non-GAAP Net Income per
Diluted Share Guidance
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
Fiscal
Year
|
|
|
|
2011
|
|
2012
|
|
|
|
(Actual)
|
|
(Guidance)
|
|
GAAP net income per diluted
common share
|
$4.60
|
|
$4.92 to
$5.12
|
|
Charges associated with
acquisitions (G)
|
.29
|
|
.18
|
|
Non-GAAP net income per diluted
common share
|
$4.89
|
|
$5.10 to
$5.30
|
|
|
|
|
|
|
|
|
|
|
Table
10
|
|
HARRIS
CORPORATION
|
|
FY '11
Fourth Quarter Summary
|
|
FY '11
Fourth Quarter Year-Over-Year Organic Revenue Growth
Calculations
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
|
|
|
|
July
1,
|
|
July
2,
|
|
Percent
|
|
|
|
2011
|
|
2010
|
|
Change
|
|
|
|
(In
millions)
|
|
|
|
Harris
Corporation
|
|
|
|
|
|
|
|
|
GAAP revenue
|
$
|
1,667.4
|
|
$
|
1,455.9
|
|
14.5%
|
|
Impact of acquisitions
(H)
|
|
|
|
|
141.4
|
|
|
|
Organic revenue
|
$
|
1,667.4
|
|
$
|
1,597.3
|
|
4.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
|
|
|
|
July
1,
|
|
July
2,
|
|
Percent
|
|
|
|
2011
|
|
2010
|
|
Change
|
|
|
|
(In
millions)
|
|
|
|
Integrated Network Solutions
Segment
|
|
|
|
|
|
|
|
|
GAAP revenue
|
$
|
585.4
|
|
$
|
404.6
|
|
44.7%
|
|
Impact of acquisitions
(H)
|
|
|
|
|
141.4
|
|
|
|
Organic revenue
|
$
|
585.4
|
|
$
|
546.0
|
|
7.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HARRIS
CORPORATION
FY '11 Fourth Quarter
Summary
RECONCILIATION OF GAAP TO
NON-GAAP FINANCIAL MEASURES
(Unaudited)
Notes to
tables 5 through 10:
|
|
|
Note A – Adjustments to cost of product sales and
services for the quarter ended July 2,
2010 are due to integration costs associated with our
acquisition of the Tyco Electronics Wireless Systems business
("Wireless Systems") ($0.7 million).
Adjustments to cost of product sales and services for the fiscal
year ended July 2, 2010 are due to
integration costs and the impact of a step up in inventory
associated with our acquisition of Wireless Systems ($5.7 million).
Note B – Adjustments to engineering, selling and
administrative expenses for the quarter ended July 1, 2011 are due to integration and other
costs associated with our acquisitions of CapRock Communications
("CapRock"), the Global Connectivity Services business of the
Schlumberger group ("Schlumberger GCS"), the infrastructure assets
of the government business of Core180, Inc. ("Core180
Infrastructure") ($27.3 million
collectively) and Carefx Corporation ("Carefx") ($2.3 million). Adjustments to engineering,
selling and administrative expenses for the fiscal year ended
July 1, 2011 are due to integration
and other costs associated with our acquisitions of CapRock,
Schlumberger GCS, Core180 Infrastructure ($44.3 million collectively) and Carefx
($2.3 million). Adjustments to
engineering, selling and administrative expenses for the quarter
ended July 2, 2010 are due to
integration and other costs associated with our acquisitions of
Wireless Systems ($5.7 million),
Patriot Technologies, LLC ("Patriot") ($0.6
million), SignaCert, Inc. ("SignaCert") ($0.3 million), CapRock ($2.6 million), Crucial Security, Inc. ("Crucial")
($0.1 million) and the Air Traffic
Control business unit of SolaCom Technologies Inc. ("SolaCom ATC")
($0.1 million). Adjustments to
engineering, selling and administrative expenses for the fiscal
year ended July 2, 2010 are due to
integration and other costs associated with our acquisitions of
Wireless Systems ($13.6 million),
Patriot ($1.5 million), SignaCert
($0.3 million), CapRock ($2.6 million), Crucial ($1.5 million) and SolaCom ATC ($0.9 million).
Note C – Adjustments to our income taxes are based on the
applicable tax rate in the jurisdiction to which the item
applies.
Note D – Adjustments to our RF Communications segment
operating income for the quarter ended July
2, 2010 are due to integration costs associated with our
acquisition of Wireless Systems ($6.4
million). Adjustments to our RF Communications segment
operating income for the fiscal year ended July 2, 2010 are due to integration costs and the
impact of a step up in inventory associated with our acquisition of
Wireless Systems ($19.3 million).
Note E – Adjustments to our Integrated Network Solutions
segment operating income for the quarter ended July 1, 2011 are due to integration and other
costs associated with our acquisitions of CapRock, Schlumberger
GCS, Core180 Infrastructure ($27.3
million collectively) and Carefx ($2.3 million). Adjustments to our Integrated
Network Solutions segment operating income for the fiscal year
ended July 1, 2011 are due to
integration and other costs associated with our acquisitions of
CapRock, Schlumberger GCS, Core180 Infrastructure ($44.3 million collectively) and Carefx
($2.3 million). Adjustments to our
Integrated Network Solutions segment operating loss for the quarter
ended July 2, 2010 are due to
integration and other costs associated with our acquisitions of
Patriot ($0.6 million), SignaCert
($0.3 million) and CapRock
($2.6 million). Adjustments to our
Integrated Network Solutions segment operating income for the
fiscal year ended July 2, 2010 are
due to integration and other costs associated with our acquisitions
of Patriot ($1.5 million), SignaCert
($0.3 million) and CapRock
($2.6 million).
Note F – Adjustments to our Government Communications
Systems segment operating income for the quarter ended July 2, 2010 are due to integration costs
associated with our acquisitions of Crucial ($0.1 million) and SolaCom ATC ($0.1 million). Adjustments to our Government
Communications Systems segment operating income for the fiscal year
ended July 2, 2010 are due to
integration costs associated with our acquisitions of Crucial
($1.5 million) and SolaCom ATC
($0.9 million).
Note G – Adjustments are for pre-tax charges of
$46.6 million ($.29 per diluted share) for fiscal 2011 and
estimated pre-tax charges of $29
million ($.18 per diluted
share) for fiscal 2012 related to integration and other costs
associated with our acquisitions of CapRock, Schlumberger GCS,
Core180 Infrastructure and Carefx.
Note H – Adjustments relate to the revenue of CapRock,
Schlumberger GCS and Carefx for the quarter ended July 2, 2010.
SOURCE Harris Corporation