Second quarter revenue increased 23% and operating income increased 21% versus prior-year GAAP, primarily due to the post-merger inclusion of L3 operations in results and the factors below regarding pro forma revenue growth. Second quarter revenue increased 4.1% versus prior-year pro forma from a ramp on the F-35 platform in Avionics and classified growth in Intel and Cyber, partially offset by program transition timing and double-digit prior-year growth in Space. Second quarter operating income increased 3% to $235 million versus prior-year pro forma. Second quarter operating margin contracted 20 bps versus prior-year pro forma to 18.8% as operational excellence and integration benefits were more than offset by unfavorable program mix.

Segment funded book-to-bill was 0.94 for the quarter and 0.97 since the merger.

Order momentum in ground-based adjacencies, responsive satellite technology, specialized communications and commercial capabilities was reflected in wins with significant follow-on opportunities in Space and Intel and Cyber, including:

• $81 million sole-source, follow-on award to provide end-to-end mission solutions for a classified customer, extending the ground-based adjacency franchise
• Multi-million-dollar competitive award for small satellites, reinforcing the company's position as a responsive mission prime
• $100 million in specialized communication awards, including $57 million from the U.S. Space Force to provide key communications services to the Enhanced Mobile Satellite Solutions program office and a $43 million sole-source award from the U.S. Army as the prime system integrator to design, develop and integrate tactical cyber equipment
• Multi-million-dollar order from an international customer for a large commercial space reflector supporting a next-generation satellite, furthering the company's space antenna presence internationally

L3Harris continued to strengthen its position in Avionics and Electronic Warfare with $146 million in orders for F-35 modernization and avionics components as well as a $34 million contract to upgrade electronic warfare systems on international F-16s, leveraging the company's next-generation software-defined open systems architecture to maximize aircraft survivability and mission success.

Communication Systems

	($ millions)	Second Quarter										First Half
		2020				2019				Change		2020				2019				Change
	(GAAP to GAAP comparison)
	Revenue	$	1,112			$	609			83%		$	2,206			$	1,189			86%
	Operating income	$	265			$	176			51%		$	515			$	343			50%
	Operating margin	23.8		%		28.9		%		(510)bps		23.3		%		28.8		%		(550)bps
	(GAAP to pro forma comparison)
	Revenue	$	1,112			$	1,086			2.4%		$	2,206			$	2,127			3.7%
	Operating income	$	265			$	239			11%		$	515			$	465			11%
	Operating margin	23.8		%		22.0		%		180bps		23.3		%		21.9		%		140bps
	(Non-GAAP to pro forma comparison) 7
	Revenue	$	1,112			$	1,086			2.4%		$	2,206			$	2,127			3.7%
	Operating income	$	266			$	239			11%		$	516			$	465			11%
	Operating margin	23.9		%		22.0		%		190bps		23.4		%		21.9		%		150bps

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