Harris Corporation Reports Solid Fiscal 2018 Second Quarter Results with Strong Revenue Growth

FY '18 Second Quarter Summary
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES AND REGULATION G DISCLOSURE

To supplement our condensed consolidated financial statements presented in accordance with U.S. generally accepted accounting principles (GAAP), we provide additional measures of income from continuing operations per diluted common share, operating income, operating margin and net cash provided by operating activities, adjusted to exclude certain costs, charges, expenses and losses or other amounts. Harris management believes that these non-GAAP financial measures, when considered together with the GAAP financial measures, provide information that is useful to investors in understanding period-over-period operating results separate and apart from items that may, or could, have a disproportionately positive or negative impact on results in any particular period. Harris management also believes that these non-GAAP financial measures enhance the ability of investors to analyze Harris’ business trends and to understand Harris’ performance. In addition, Harris may utilize non-GAAP financial measures as guides in its forecasting, budgeting, and long-term planning processes and to measure operating performance for some management compensation purposes. Any analysis of non-GAAP financial measures should be used only in conjunction with results presented in accordance with GAAP. A reconciliation of these non-GAAP financial measures with the most directly comparable financial measures calculated in accordance with GAAP follows:

 
Table 5
HARRIS CORPORATION
FY '18 Second Quarter Summary
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
Income from Continuing Operations per Diluted Common Share
(Unaudited)
 
      Quarter Ended     Two Quarters Ended

December 29,
2017

   

December 30,
2016(A)

December 29,
2017

   

December 30,
2016 (A)

GAAP income from continuing operations per diluted common share $ 1.15 $ 1.30 $ 2.52 $ 2.45
Adjustment for one-time non-cash charge from a write-down of deferred tax assets 0.43 0.43
Adjustment for one-time non-cash charge from an adjustment for deferred compensation 0.09 0.10
Adjustment for Exelis Inc. acquisition-related charges 0.08 0.21
Non-GAAP income from continuing operations per diluted common share $ 1.67 $ 1.38 $ 3.05 $ 2.66
 

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