Harris Corporation Reports Fiscal 2015 Third Quarter Results In Line With Preliminary Third Quarter Estimates
For additional information, contact Harris Corporation at
webmaster@harris.com.
|
Table 1
|
HARRIS CORPORATION
|
FY '15 Third Quarter Summary
|
CONDENSED CONSOLIDATED STATEMENT OF INCOME
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
|
|
Three Quarters Ended
|
|
|
April 3,
|
|
March 28,
|
|
April 3,
|
|
March 28,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions, except per share amounts)
|
Revenue from product sales and services
|
|
$
|
1,186.6
|
|
|
$
|
1,267.5
|
|
|
$
|
3,548.3
|
|
|
$
|
3,682.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of product sales and services
|
|
|
(753.4
|
)
|
|
|
(841.0
|
)
|
|
|
(2,323.8
|
)
|
|
|
(2,410.9
|
)
|
Engineering, selling and administrative expenses
|
|
|
(220.8
|
)
|
|
|
(203.2
|
)
|
|
|
(603.5
|
)
|
|
|
(615.7
|
)
|
Non-operating income
|
|
|
0.3
|
|
|
|
0.2
|
|
|
|
0.5
|
|
|
|
4.7
|
|
Interest income
|
|
|
0.3
|
|
|
|
0.7
|
|
|
|
1.7
|
|
|
|
2.0
|
|
Interest expense
|
|
|
(34.0
|
)
|
|
|
(23.2
|
)
|
|
|
(79.5
|
)
|
|
|
(70.6
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations before income taxes
|
|
|
179.0
|
|
|
|
201.0
|
|
|
|
543.7
|
|
|
|
592.1
|
|
Income taxes
|
|
|
(53.4
|
)
|
|
|
(63.9
|
)
|
|
|
(153.5
|
)
|
|
|
(190.5
|
)
|
Income from continuing operations
|
|
|
125.6
|
|
|
|
137.1
|
|
|
|
390.2
|
|
|
|
401.6
|
|
Discontinued operations, net of income taxes
|
|
|
―
|
|
|
4.1
|
|
|
|
―
|
|
|
1.4
|
|
Net income
|
|
|
125.6
|
|
|
|
141.2
|
|
|
|
390.2
|
|
|
|
403.0
|
|
Noncontrolling interests, net of income taxes
|
|
|
0.1
|
|
|
|
0.2
|
|
|
|
0.1
|
|
|
|
0.4
|
|
Net income attributable to Harris Corporation
|
|
$
|
125.7
|
|
|
$
|
141.4
|
|
|
$
|
390.3
|
|
|
$
|
403.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per common share attributable to
|
|
|
|
|
|
|
|
|
|
|
|
|
Harris Corporation common shareholders
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
$
|
1.21
|
|
|
$
|
1.28
|
|
|
$
|
3.73
|
|
|
$
|
3.75
|
|
Discontinued operations
|
|
|
―
|
|
|
0.04
|
|
|
|
―
|
|
|
0.02
|
|
|
|
$
|
1.21
|
|
|
$
|
1.32
|
|
|
$
|
3.73
|
|
|
$
|
3.77
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
$
|
1.20
|
|
|
$
|
1.27
|
|
|
$
|
3.69
|
|
|
$
|
3.72
|
|
Discontinued operations
|
|
|
―
|
|
|
0.04
|
|
|
|
―
|
|
|
0.01
|
|
|
|
$
|
1.20
|
|
|
$
|
1.31
|
|
|
$
|
3.69
|
|
|
$
|
3.73
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends paid per common share
|
|
$
|
0.47
|
|
|
$
|
0.42
|
|
|
$
|
1.41
|
|
|
$
|
1.26
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted average common shares outstanding
|
|
|
103.7
|
|
|
|
106.2
|
|
|
|
104.1
|
|
|
|
106.3
|
|
Diluted weighted average common shares outstanding
|
|
|
104.8
|
|
|
|
107.4
|
|
|
|
105.2
|
|
|
|
107.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 2
|
HARRIS CORPORATION
|
FY '15 Third Quarter Summary
|
BUSINESS SEGMENT INFORMATION
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
|
|
Three Quarters Ended
|
|
|
April 3,
|
|
March 28,
|
|
April 3,
|
|
March 28,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions)
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
RF Communications
|
|
$
|
450.8
|
|
|
$
|
457.2
|
|
|
$
|
1,270.1
|
|
|
$
|
1,334.8
|
|
Government Communications Systems
|
|
|
455.1
|
|
|
|
476.6
|
|
|
|
1,370.1
|
|
|
|
1,321.2
|
|
Integrated Network Solutions
|
|
|
298.8
|
|
|
|
348.0
|
|
|
|
964.1
|
|
|
|
1,089.5
|
|
Corporate eliminations
|
|
|
(18.1
|
)
|
|
|
(14.3
|
)
|
|
|
(56.0
|
)
|
|
|
(62.9
|
)
|
|
|
$
|
1,186.6
|
|
|
$
|
1,267.5
|
|
|
$
|
3,548.3
|
|
|
$
|
3,682.6
|
|
Income From Continuing Operations Before Income Taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Operating Income:
|
|
|
|
|
|
|
|
|
|
|
|
|
RF Communications
|
|
$
|
151.0
|
|
|
$
|
143.7
|
|
|
$
|
392.5
|
|
|
$
|
421.0
|
|
Government Communications Systems
|
|
|
74.6
|
|
|
|
77.4
|
|
|
|
226.1
|
|
|
|
207.9
|
|
Integrated Network Solutions
|
|
|
11.8
|
|
|
|
21.4
|
|
|
|
63.4
|
|
|
|
83.8
|
|
Unallocated corporate expense
|
|
|
(23.3
|
)
|
|
|
(17.0
|
)
|
|
|
(54.0
|
)
|
|
|
(47.4
|
)
|
Corporate eliminations
|
|
|
(1.7
|
)
|
|
|
(2.2
|
)
|
|
|
(7.0
|
)
|
|
|
(9.3
|
)
|
Non-operating income
|
|
|
0.3
|
|
|
|
0.2
|
|
|
|
0.5
|
|
|
|
4.7
|
|
Net interest expense
|
|
|
(33.7
|
)
|
|
|
(22.5
|
)
|
|
|
(77.8
|
)
|
|
|
(68.6
|
)
|
|
|
$
|
179.0
|
|
|
$
|
201.0
|
|
|
$
|
543.7
|
|
|
$
|
592.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 3
|
HARRIS CORPORATION
|
FY '15 Third Quarter Summary
|
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Quarters Ended
|
|
|
April 3,
|
|
March 28,
|
|
|
2015
|
|
2014
|
|
|
(In millions)
|
Operating Activities
|
|
|
|
|
|
|
Net income
|
|
$
|
390.2
|
|
|
$
|
403.0
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
163.9
|
|
|
|
148.6
|
|
Share-based compensation
|
|
|
26.0
|
|
|
|
28.5
|
|
Non-current deferred income taxes
|
|
|
20.0
|
|
|
|
29.8
|
|
Gain on sale of discontinued operations
|
|
|
―
|
|
|
(1.4
|
)
|
(Increase) decrease in:
|
|
|
|
|
|
|
Accounts receivable
|
|
|
(86.6
|
)
|
|
|
(75.8
|
)
|
Inventories
|
|
|
(17.0
|
)
|
|
|
(5.3
|
)
|
Increase (decrease) in:
|
|
|
|
|
|
|
Accounts payable and accrued expenses
|
|
|
(111.1
|
)
|
|
|
(46.2
|
)
|
Advance payments and unearned income
|
|
|
(24.9
|
)
|
|
|
(9.7
|
)
|
Income taxes
|
|
|
25.7
|
|
|
|
(10.8
|
)
|
Other
|
|
|
9.0
|
|
|
|
(6.7
|
)
|
Net cash provided by operating activities
|
|
|
395.2
|
|
|
|
454.0
|
|
|
|
|
|
|
|
|
Investing Activities
|
|
|
|
|
|
|
Cash paid for intangible assets
|
|
|
―
|
|
|
(3.3
|
)
|
Additions of property, plant and equipment
|
|
|
(102.3
|
)
|
|
|
(139.7
|
)
|
Proceeds from sale of Cyber Integration Center
|
|
|
7.0
|
|
|
|
27.0
|
|
Net cash used in investing activities
|
|
|
(95.3
|
)
|
|
|
(116.0
|
)
|
|
|
|
|
|
|
|
Financing Activities
|
|
|
|
|
|
|
Proceeds from borrowings
|
|
|
14.3
|
|
|
|
5.6
|
|
Repayments of borrowings
|
|
|
(46.7
|
)
|
|
|
(82.4
|
)
|
Proceeds from exercises of employee stock options
|
|
|
34.3
|
|
|
|
133.9
|
|
Repurchases of common stock
|
|
|
(164.8
|
)
|
|
|
(222.1
|
)
|
Cash dividends
|
|
|
(148.7
|
)
|
|
|
(135.5
|
)
|
Other financing activities
|
|
|
(24.3
|
)
|
|
|
―
|
Net cash used in financing activities
|
|
|
(335.9
|
)
|
|
|
(300.5
|
)
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash and cash equivalents
|
|
|
(37.3
|
)
|
|
|
(8.9
|
)
|
|
|
|
|
|
|
|
Net increase (decrease) in cash and cash equivalents
|
|
|
(73.3
|
)
|
|
|
28.6
|
|
|
|
|
|
|
|
|
Cash and cash equivalents, beginning of year
|
|
|
561.0
|
|
|
|
321.0
|
|
|
|
|
|
|
|
|
Cash and cash equivalents, end of quarter
|
|
$
|
487.7
|
|
|
$
|
349.6
|
|
|
|
|
|
|
|
|
|
|
|
Table 4
|
HARRIS CORPORATION
|
FY '15 Third Quarter Summary
|
CONDENSED CONSOLIDATED BALANCE SHEET
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
April 3,
|
|
June 27,
|
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
(In millions)
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
487.7
|
|
$
|
561.0
|
Receivables
|
|
|
652.7
|
|
|
566.1
|
Inventories
|
|
|
635.7
|
|
|
618.7
|
Income taxes receivable
|
|
|
15.4
|
|
|
28.1
|
Current deferred income taxes
|
|
|
116.8
|
|
|
112.2
|
Other current assets
|
|
|
113.8
|
|
|
105.2
|
Property, plant and equipment
|
|
|
705.5
|
|
|
728.1
|
Goodwill
|
|
|
1,665.0
|
|
|
1,711.2
|
Intangible assets
|
|
|
207.2
|
|
|
257.5
|
Non-current deferred income taxes
|
|
|
71.2
|
|
|
87.3
|
Other non-current assets
|
|
|
163.5
|
|
|
155.8
|
|
|
$
|
4,834.5
|
|
$
|
4,931.2
|
Liabilities and Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term debt
|
|
$
|
27.3
|
|
$
|
58.3
|
Accounts payable
|
|
|
279.6
|
|
|
324.3
|
Compensation and benefits
|
|
|
178.4
|
|
|
212.8
|
Other accrued items
|
|
|
301.8
|
|
|
249.8
|
Advance payments and unearned income
|
|
|
241.0
|
|
|
265.9
|
Income taxes payable
|
|
|
19.4
|
|
|
―
|
Current deferred income taxes
|
|
|
0.1
|
|
|
2.1
|
Current portion of long-term debt
|
|
|
―
|
|
|
1.4
|
Long-term debt
|
|
|
1,575.8
|
|
|
1,575.8
|
Long-term contract liability
|
|
|
74.0
|
|
|
83.8
|
Other long-term liabilities
|
|
|
296.7
|
|
|
331.6
|
Equity
|
|
|
1,840.4
|
|
|
1,825.4
|
|
|
$
|
4,834.5
|
|
$
|
4,931.2
|
|
|
|
|
|
|
|
HARRIS CORPORATION
|