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8-K - 8-K - L3HARRIS TECHNOLOGIES, INC. /DE/d49778d8k.htm

Exhibit 99.1

Table 1

HARRIS CORPORATION

Fiscal 2015 and 2014

UNAUDITED SELECTED HISTORICAL INFORMATION COMBINING HARRIS AND EXELIS OPERATIONS

 

     Quarter Ended              
     September 26,     January 2,     April 3,     July 3,     Fiscal     Fiscal  
     2014     2015     2015     2015     2015     2014  
     (In millions)  

Revenue

            

Communication Systems

   $ 469      $ 539      $ 541      $ 576      $ 2,125      $ 2,275   

Space and Intelligence Systems

     455        488        457        483        1,883        1,831   

Electronic Systems

     378        451        370        387        1,586        1,453   

Critical Networks

     644        672        613        611        2,540        2,742   

Corporate eliminations

     (12     (11     (11     (15     (49     (14
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
   $ 1,934      $ 2,139      $ 1,970      $ 2,042      $ 8,085      $ 8,287   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income Before Income Taxes

            

Segment Operating Income:

            

Communication Systems

   $ 125      $ 144      $ 174      $ 170      $ 613      $ 657   

Space and Intelligence Systems

     57        87        63        48        255        213   

Electronic Systems

     56        78        55        36        225        188   

Critical Networks

     72        83        55        28        238        317   

Unallocated corporate expense (A)

     (19     (40     (31     (192     (282     (113

Non-operating expense

     —          —          —          (108     (108     4   

Net interest expense

     (31     (32     (42     (57     (162     (128
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income before income taxes

     260        320        274        (75     779        1,138   

Income taxes

     (83     (97     (90     —          (270     (387
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income

     177        223        184        (75     509        751   

Noncontrolling interests, net of income taxes

     —          —          —          —          —          1   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income attributable to Harris Corporation

   $ 177      $ 223      $ 184      $ (75   $ 509      $ 752   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(A) Adjusted to include corporate eliminations.


HARRIS CORPORATION

Fiscal 2015 and 2014

UNAUDITED SELECTED HISTORICAL INFORMATION COMBINING HARRIS AND EXELIS OPERATIONS

RECONCILIATION OF AMOUNTS ADJUSTED FOR CERTAIN NON-RECURRING ITEMS WITH UNADJUSTED AMOUNTS

Table 2 includes amounts adjusted for certain non-recurring items, including segment operating income, unallocated corporate expense, non-operating income, net interest expense, income before income taxes, income taxes and net income, in each case as adjusted to exclude certain costs, expenses, charges or other amounts as described in the notes to Table 2. Harris management believes that these adjusted amounts, when considered together with the unadjusted amounts, 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 adjusted amounts enhance the ability of investors to analyze Harris’ business trends and to understand Harris’ performance. In addition, Harris may utilize adjusted amounts as guides in forecasting, budgeting and long-term planning processes and to measure operating performance for some management compensation purposes. Any analysis of adjusted amounts should be used only in conjunction with unadjusted amounts. The notes accompanying Table 2 provide a reconciliation of these adjusted amounts with the most directly comparable unadjusted amount.


Table 2

HARRIS CORPORATION

Fiscal 2015 and 2014—Adjusted for Certain Non-Recurring Items

UNAUDITED SELECTED HISTORICAL INFORMATION COMBINING HARRIS AND EXELIS OPERATIONS

 

     Quarter Ended              
     September 26,     January 2,     April 3,     July 3,     Fiscal     Fiscal  
     2014     2015     2015     2015     2015     2014  
     (In millions)  

Revenue

            

Communication Systems

   $ 469      $ 539      $ 541      $ 576      $ 2,125      $ 2,275   

Space and Intelligence Systems

     455        488        457        483        1,883        1,831   

Electronic Systems

     378        451        370        387        1,586        1,453   

Critical Networks

     644        672        613        611        2,540        2,742   

Corporate eliminations

     (12     (11     (11     (15     (49     (14
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
   $ 1,934      $ 2,139      $ 1,970      $ 2,042      $ 8,085      $ 8,287   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income Before Income Taxes

            

Segment Operating Income:

            

Communication Systems (A)

   $ 125      $ 144      $ 174      $ 173      $ 616      $ 657   

Space and Intelligence Systems (A)

     57        87        63        51        258        213   

Electronic Systems (A)

     56        78        55        39        228        188   

Critical Networks (B)

     72        83        55        67        277        317   

Unallocated corporate expense (C) (D)

     (13     (40     (22     (39     (114     (108

Non-operating income (E)

     —          —          —          2        2        4   

Net interest expense (F)

     (31     (32     (32     (39     (134     (128
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income before income taxes

     266        320        293        254        1,133        1,143   

Income taxes (G)

     (85     (97     (96     (91     (369     (389
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income

     181        223        197        163        764        754   

Noncontrolling interests, net of income taxes

     —          —          —          —          —          1   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income attributable to Harris Corporation

   $ 181      $ 223      $ 197      $ 163      $ 764      $ 755   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

Note A –   Adjusted to exclude $3 million of restructuring costs.
Note B –   Adjusted to exclude (1) impairment charges totaling $34 million related to long-lived assets, including intangible asset associated with Navy/Marine Corps Intranet (“NMCI”) program and (2) $5 million of restructuring costs.
Note C –   Adjusted to include corporate eliminations.
Note D –   Adjusted for quarter ended September 26, 2014 and for fiscal 2014 to exclude separation costs associated with spin-off by Exelis Inc. (“Exelis”) of Vectrus, Inc. Adjusted for quarter ended April 3, 2015 to exclude transaction and other costs associated with acquisition of Exelis. Adjusted for quarter ended July 3, 2015 to exclude transaction, integration and other costs associated with acquisition of Exelis.
Note E –   Adjusted to exclude (1) $118 million of charges associated with optional redemption on May 27, 2015 of 5.95% Notes due December 1, 2017 and 6.375% Notes due June 15, 2019 and (2) $8 million gain, net of selling and other costs, from divesture of healthcare solutions operation.
Note F –   Adjusted for quarters ended April 3, 2015 and July 3, 2015 to exclude financing costs associated with acquisition of Exelis.
Note G –   Adjusted based on applicable tax rate in jurisdiction to which item applies.