^(A)Certain amounts reclassified to conform with current period presentation of our former government IT services business as discontinued operations, including reallocation of stranded costs and Financial Accounting Standards pension income previously reported as part of our Critical Networks segment.

Table 3
HARRIS CORPORATION
FY '18 Second Quarter Summary
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited)
				Two Quarters Ended
				December 29, 2017					December 30, 2016(A)
				(In millions)
Operating Activities
Net income				$	300				$	337
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization				80					101
Amortization of intangible assets from Exelis Inc. acquisition				50					66
Share-based compensation				24					22
Qualified pension plan contributions				—					(103		)
Pension income				(68		)			(49		)
(Increase) decrease in:
Accounts receivable				(19		)			125
Inventories				(102		)			(50		)
Increase (decrease) in:
Accounts payable				(78		)			(47		)
Advance payments and unearned income				38					(58		)
Other				148					(49		)
Net cash provided by operating activities				373					295
Investing Activities
Additions of property, plant and equipment				(43		)			(49		)
Adjustments to proceeds from sales of businesses				(2		)			(25		)
Net cash used in investing activities				(45		)			(74		)
Financing Activities
Net proceeds from borrowings				248					185
Repayments of borrowings				(363		)			(300		)
Proceeds from exercises of employee stock options				18					27
Repurchases of common stock				(150		)			(100		)
Cash dividends				(137		)			(134		)
Other financing activities				(10		)			(19		)
Net cash used in financing activities				(394		)			(341		)
Effect of exchange rate changes on cash and cash equivalents				4					(6		)
Net decrease in cash and cash equivalents				(62		)			(126		)
Cash and cash equivalents, beginning of year				484					487
Cash and cash equivalents, end of quarter				$	422				$	361
(A) Certain amounts reclassified to conform with current period presentation

Table 4
HARRIS CORPORATION
FY '18 Second Quarter Summary
CONDENSED CONSOLIDATED BALANCE SHEET
(Unaudited)
				December 29, 2017				June 30, 2017
				(In millions)
Assets
Cash and cash equivalents				$	422			$	484
Receivables					642				623
Inventories					942				841
Property, plant and equipment					878				904
Goodwill					5,374				5,366
Other intangible assets					1,048				1,104
Other assets					550				768
				$	9,856			$	10,090
Liabilities and Equity
Short-term debt				$	5			$	80
Accounts payable					462				540
Compensation and benefits					120				140
Advance payments and unearned income					290				252
Current portion of long-term debt					523				554
Defined benefit plans					1,202				1,278
Long-term debt, net					3,391				3,396
Other liabilities					869				922
Equity					2,994				2,928
				$	9,856			$	10,090

HARRIS CORPORATION