1Non-GAAP earnings per diluted share from continuing operations for fiscal 2018 second quarter excludes non-cash charges from a one-time write-down of deferred tax assets and from an adjustment for deferred compensation and for fiscal 2017 second quarter excludes Exelis acquisition-related charges. Reconciliations of GAAP to non-GAAP financial measures are provided in the attached tables.
2Non-GAAP EPS from continuing operations guidance excludes non-cash charges in the second quarter of fiscal 2018 from a one-time write-down of deferred tax assets and from an adjustment for deferred compensation. Reconciliations of GAAP to non-GAAP financial measures are provided in the attached tables.
| Table 1 | |||||||||||||||||||||
| HARRIS CORPORATION | |||||||||||||||||||||
| FY '18 Second Quarter Summary | |||||||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENT OF INCOME | |||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||
| Quarter Ended | Two Quarters Ended | ||||||||||||||||||||
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December 29,
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December 30,
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December 29,
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December 30,
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| (In millions, except per share amounts) | |||||||||||||||||||||
| Revenue from product sales and services | $ | 1,535 | $ | 1,449 | $ | 2,948 | $ | 2,869 | |||||||||||||
| Cost of product sales and services | (999 | ) | (920 | ) | (1,897 | ) | (1,817 | ) | |||||||||||||
| Engineering, selling and administrative expenses | (264 | ) | (252 | ) | (507 | ) | (529 | ) | |||||||||||||
| Operating income | 272 | 277 | 544 | 523 | |||||||||||||||||
| Non-operating income (loss) | (2 | ) | 1 | (2 | ) | 2 | |||||||||||||||
| Interest income | 1 | 1 | 1 | 1 | |||||||||||||||||
| Interest expense | (42 | ) | (44 | ) | (83 | ) | (88 | ) | |||||||||||||
| Income from continuing operations before income taxes | 229 | 235 | 460 | 438 | |||||||||||||||||
| Income taxes | (90 | ) | (72 | ) | (154 | ) | (130 | ) | |||||||||||||
| Income from continuing operations | 139 | 163 | 306 | 308 | |||||||||||||||||
| Discontinued operations, net of income taxes | — | 14 | (6 | ) | 29 | ||||||||||||||||
| Net income | $ | 139 | $ | 177 | $ | 300 | $ | 337 | |||||||||||||
| Net income per common share | |||||||||||||||||||||
| Basic | |||||||||||||||||||||
| Continuing operations | $ | 1.17 | $ | 1.32 | $ | 2.57 | $ | 2.49 | |||||||||||||
| Discontinued operations | — | 0.10 | (0.05 | ) | 0.22 | ||||||||||||||||
| $ | 1.17 | $ | 1.42 | $ | 2.52 | $ | 2.71 | ||||||||||||||
| Diluted | |||||||||||||||||||||
| Continuing operations | $ | 1.15 | $ | 1.30 | $ | 2.52 | $ | 2.45 | |||||||||||||
| Discontinued operations | — | 0.10 | (0.05 | ) | 0.23 | ||||||||||||||||
| $ | 1.15 | $ | 1.40 | $ | 2.47 | $ | 2.68 | ||||||||||||||
| Cash dividends paid per common share | $ | 0.57 | $ | 0.53 | $ | 1.14 | $ | 1.06 | |||||||||||||
| Basic weighted average common shares outstanding | 118.5 | 123.7 | 118.8 | 123.8 | |||||||||||||||||
| Diluted weighted average common shares outstanding | 120.9 | 125.4 | 121.1 | 125.5 | |||||||||||||||||
|
(A) Certain amounts reclassified to conform with current period presentation |
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| Table 2 | |||||||||||||||||||||
| HARRIS CORPORATION | |||||||||||||||||||||
| FY '18 Second Quarter Summary | |||||||||||||||||||||
| BUSINESS SEGMENT INFORMATION | |||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||
| Quarter Ended | Two Quarters Ended | ||||||||||||||||||||
|
December 29,
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December 30,
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December 29,
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December 30,
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| (In millions) | |||||||||||||||||||||
| Revenue | |||||||||||||||||||||
| Communication Systems | $ | 489 | $ | 413 | $ | 899 | $ | 843 | |||||||||||||
| Electronic Systems | 584 | 570 | 1,124 | 1,107 | |||||||||||||||||
| Space and Intelligence Systems | 465 | 468 | 931 | 921 | |||||||||||||||||
| Corporate eliminations | (3 | ) | (2 | ) | (6 | ) | (2 | ) | |||||||||||||
| $ | 1,535 | $ | 1,449 | $ | 2,948 | $ | 2,869 | ||||||||||||||
| Income From Continuing Operations Before Income Taxes | |||||||||||||||||||||
|
Segment Operating Income: |
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| Communication Systems | $ | 144 | $ | 121 | $ | 262 | $ | 239 | |||||||||||||
| Electronic Systems | 101 | 134 | 210 | 245 | |||||||||||||||||
| Space and Intelligence Systems | 81 | 76 | 168 | 155 | |||||||||||||||||
| Unallocated corporate expense | (55 | ) | (53 | ) | (96 | ) | (114 | ) | |||||||||||||
| Corporate eliminations, net | 1 | (1 | ) | — | (2 | ) | |||||||||||||||
| Non-operating income (loss) | (2 | ) | 1 | (2 | ) | 2 | |||||||||||||||
| Net interest expense | (41 | ) | (43 | ) | (82 | ) | (87 | ) | |||||||||||||
| $ | 229 | $ | 235 | $ | 460 | $ | 438 | ||||||||||||||
