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Table 1 HARRIS CORPORATION FY '18 First Quarter Summary CONDENSED CONSOLIDATED STATEMENT OF INCOME (Unaudited) |
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| Quarter Ended | ||||||||
| September 29, 2017 | September 30, 2016 (A) | |||||||
| (In millions, except per share amounts) | ||||||||
| Revenue from product sales and services | $ | 1,413 | $ | 1,420 | ||||
| Cost of product sales and services | (898 | ) | (897 | ) | ||||
| Engineering, selling and administrative expenses | (243 | ) | (277 | ) | ||||
| Operating income | 272 | 246 | ||||||
| Non-operating income | — | 1 | ||||||
| Interest expense | (41 | ) | (44 | ) | ||||
| Income from continuing operations before income taxes | 231 | 203 | ||||||
| Income taxes | (64 | ) | (58 | ) | ||||
| Income from continuing operations | 167 | 145 | ||||||
| Discontinued operations, net of income taxes | (6 | ) | 15 | |||||
| Net income | $ | 161 | $ | 160 | ||||
| Net income per common share | ||||||||
| Basic | ||||||||
| Continuing operations | $ | 1.40 | $ | 1.17 | ||||
| Discontinued operations | (0.05 | ) | 0.12 | |||||
| $ | 1.35 | $ | 1.29 | |||||
| Diluted | ||||||||
| Continuing operations | $ | 1.38 | $ | 1.16 | ||||
| Discontinued operations | (0.06 | ) | 0.11 | |||||
| $ | 1.32 | $ | 1.27 | |||||
| Cash dividends paid per common share | $ | 0.57 | $ | 0.53 | ||||
| Basic weighted average common shares outstanding | 119.1 | 123.9 | ||||||
| Diluted weighted average common shares outstanding | 121.2 | 125.5 | ||||||
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(A) Certain amounts reclassified to conform with current period presentation |
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Table 2 HARRIS CORPORATION FY '18 First Quarter Summary BUSINESS SEGMENT INFORMATION (Unaudited) |
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| Quarter Ended | ||||||||
| September 29, 2017 | September 30, 2016 (A) | |||||||
| (In millions) | ||||||||
| Revenue | ||||||||
| Communication Systems | $ | 410 | $ | 430 | ||||
| Electronic Systems | 540 | 537 | ||||||
| Space and Intelligence Systems | 466 | 453 | ||||||
| Corporate eliminations | (3 | ) | — | |||||
| $ | 1,413 | $ | 1,420 | |||||
| Income From Continuing Operations Before Income Taxes | ||||||||
| Segment Operating Income: | ||||||||
| Communication Systems | $ | 118 | $ | 118 | ||||
| Electronic Systems | 109 | 111 | ||||||
| Space and Intelligence Systems | 87 | 79 | ||||||
| Unallocated corporate expense | (41 | ) | (61 | ) | ||||
| Corporate eliminations | (1 | ) | (1 | ) | ||||
| Non-operating income | — | 1 | ||||||
| Net interest expense | (41 | ) | (44 | ) | ||||
| $ | 231 | $ | 203 | |||||
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(A) |
Certain amounts reclassified to conform with current period presentation of Harris CapRock Communications and government IT services businesses as discontinued operations, including reallocation of stranded costs and Financial Accounting Standards pension income previously reported as part of our Critical Networks segment | . |
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Table 3 HARRIS CORPORATION FY '18 First Quarter Summary CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited) |
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| Quarter Ended | ||||||||
| September 29, 2017 | September 30, 2016 (A) | |||||||
| (In millions) | ||||||||
| Operating Activities | ||||||||
| Net income | $ | 161 | $ | 160 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Depreciation and amortization | 40 | 53 | ||||||
| Amortization of intangible assets from Exelis Inc. acquisition | 25 | 33 | ||||||
| Share-based compensation | 11 | 11 | ||||||
| Qualified pension plan contributions | — | (64 | ) | |||||
| Pension income | (34 | ) | (24 | ) | ||||
| (Increase) decrease in: | ||||||||
| Accounts receivable | (83 | ) | (39 | ) | ||||
| Inventories | (56 | ) | 2 | |||||
| Increase (decrease) in: | ||||||||
| Accounts payable | (88 | ) | (90 | ) | ||||
| Advance payments and unearned income | 12 | (31 | ) | |||||
| Other | 107 | 32 | ||||||
| Net cash provided by operating activities | 95 | 43 | ||||||
| Investing Activities | ||||||||
| Net additions of property, plant and equipment | (23 | ) | (21 | ) | ||||
| Adjustment to proceeds from sale of business | — | (25 | ) | |||||
| Net cash used in investing activities | (23 | ) | (46 | ) | ||||
| Financing Activities | ||||||||
| Proceeds from borrowings | — | 8 | ||||||
| Repayments of borrowings | (35 | ) | (38 | ) | ||||
| Proceeds from exercises of employee stock options | 14 | 15 | ||||||
| Repurchases of common stock | (75 | ) | (100 | ) | ||||
| Cash dividends | (69 | ) | (68 | ) | ||||
| Other financing activities | (9 | ) | (18 | ) | ||||
| Net cash used in financing activities | (174 | ) | (201 | ) | ||||
| Effect of exchange rate changes on cash and cash equivalents | 6 | 1 | ||||||
| Net decrease in cash and cash equivalents | (96 | ) | (203 | ) | ||||
| Cash and cash equivalents, beginning of year | 484 | 487 | ||||||
| Cash and cash equivalents, end of quarter | $ | 388 | $ | 284 | ||||
| (A) Certain amounts reclassified to conform with current period presentation |
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Table 4 HARRIS CORPORATION FY '18 First Quarter Summary CONDENSED CONSOLIDATED BALANCE SHEET (Unaudited) |
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| September 29, 2017 | June 30, 2017 | ||||||
| (In millions) | |||||||
| Assets | |||||||
| Cash and cash equivalents | $ | 388 | $ | 484 | |||
| Receivables | 706 | 623 | |||||
| Inventories | 896 | 841 | |||||
| Property, plant and equipment | 890 | 904 | |||||
| Goodwill | 5,376 | 5,366 | |||||
| Other intangible assets | 1,077 | 1,104 | |||||
| Other assets | 766 | 768 | |||||
| $ | 10,099 | $ | 10,090 | ||||
| Liabilities and Equity | |||||||
| Short-term debt | $ | 80 | $ | 80 | |||
| Accounts payable | 452 | 540 | |||||
| Compensation and benefits | 130 | 140 | |||||
| Advance payments and unearned income | 264 | 252 | |||||
| Current portion of long-term debt | 522 | 554 | |||||
| Defined benefit plans | 1,237 | 1,278 | |||||
| Long-term debt, net | 3,395 | 3,396 | |||||
| Other liabilities | 1,032 | 922 | |||||
| Equity | 2,987 | 2,928 | |||||
| $ | 10,099 | $ | 10,090 | ||||
HARRIS CORPORATION
