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| Table 1 | ||||||||||||||||||||||
| HARRIS CORPORATION | ||||||||||||||||||||||
| FY '15 Fourth Quarter Summary | ||||||||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENT OF INCOME | ||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||
| Quarter Ended | Fiscal Year Ended | |||||||||||||||||||||
| July 3, | June 27, | July 3, | June 27, | |||||||||||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||||||||||||
| (In millions, except per share amounts) | ||||||||||||||||||||||
| Revenue from product sales and services | $ | 1,534.9 | $ | 1,329.4 | $ | 5,083.2 | $ | 5,012.0 | ||||||||||||||
| Cost of product sales and services | (1,038.2 | ) | (899.6 | ) | (3,362.0 | ) | (3,310.5 | ) | ||||||||||||||
| Engineering, selling and administrative expenses | (405.1 | ) | (203.9 | ) | (1,008.6 | ) | (819.6 | ) | ||||||||||||||
| Non-operating income (loss) | (108.6 | ) | (0.4 | ) | (108.1 | ) | 4.3 | |||||||||||||||
| Interest income | 0.6 | 0.8 | 2.3 | 2.8 | ||||||||||||||||||
| Interest expense | (50.4 | ) | (23.0 | ) | (129.9 | ) | (93.6 | ) | ||||||||||||||
| Income (loss) from continuing operations before income taxes | (66.8 | ) | 203.3 | 476.9 | 795.4 | |||||||||||||||||
| Income taxes | 10.7 | (65.7 | ) | (142.8 | ) | (256.2 | ) | |||||||||||||||
| Income (loss) from continuing operations | (56.1 | ) | 137.6 | 334.1 | 539.2 | |||||||||||||||||
| Discontinued operations, net of income taxes | ― | (6.4 | ) | ― | (5.0 | ) | ||||||||||||||||
| Net income (loss) | (56.1 | ) | 131.2 | 334.1 | 534.2 | |||||||||||||||||
| Noncontrolling interests, net of income taxes | (0.1 | ) | 0.2 | ― | 0.6 | |||||||||||||||||
| Net income (loss) attributable to Harris Corporation | $ | (56.2 | ) | $ | 131.4 | $ | 334.1 | $ | 534.8 | |||||||||||||
| Net income (loss) per common share attributable to | ||||||||||||||||||||||
| Harris Corporation common shareholders | ||||||||||||||||||||||
| Basic | ||||||||||||||||||||||
| Continuing operations | $ | (0.51 | ) | $ | 1.30 | $ | 3.15 | $ | 5.05 | |||||||||||||
| Discontinued operations | ― | (0.07 | ) | ― | (0.05 | ) | ||||||||||||||||
| $ | (0.51 | ) | $ | 1.23 | $ | 3.15 | $ | 5.00 | ||||||||||||||
| Diluted | ||||||||||||||||||||||
| Continuing operations | $ | (0.51 | ) | $ | 1.28 | $ | 3.11 | $ | 5.00 | |||||||||||||
| Discontinued operations | ― | (0.06 | ) | ― | (0.05 | ) | ||||||||||||||||
| $ | (0.51 | ) | $ | 1.22 | $ | 3.11 | $ | 4.95 | ||||||||||||||
|
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| Cash dividends paid per common share | $ | 0.47 | $ | 0.42 | $ | 1.88 | $ | 1.68 | ||||||||||||||
| Basic weighted average common shares outstanding | 110.3 | 105.7 | 105.7 | 106.1 | ||||||||||||||||||
| Diluted weighted average common shares outstanding | 110.3 | 107.0 | 106.8 | 107.3 | ||||||||||||||||||
| Table 2 | ||||||||||||||||||||||
| HARRIS CORPORATION | ||||||||||||||||||||||
| FY '15 Fourth Quarter Summary | ||||||||||||||||||||||
| BUSINESS SEGMENT INFORMATION | ||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||
| Quarter Ended | Fiscal Year Ended | |||||||||||||||||||||
| July 3, | June 27, | July 3, | June 27, | |||||||||||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||||||||||||
| (In millions) | ||||||||||||||||||||||
| Revenue | ||||||||||||||||||||||
| RF Communications | $ | 504.7 | $ | 493.2 | $ | 1,774.8 | $ | 1,828.0 | ||||||||||||||
| Government Communications Systems | 484.7 | 480.0 | 1,854.8 | 1,801.2 | ||||||||||||||||||
| Integrated Network Solutions | 288.7 | 373.4 | 1,252.8 | 1,462.9 | ||||||||||||||||||
| Exelis | 279.7 |
― |
279.7 | ― | ||||||||||||||||||
| Corporate eliminations | (22.9 | ) | (17.2 | ) | (78.9 | ) | (80.1 | ) | ||||||||||||||
| $ | 1,534.9 | $ | 1,329.4 | $ | 5,083.2 | $ | 5,012.0 | |||||||||||||||
| Income (Loss) From Continuing Operations Before Income Taxes | ||||||||||||||||||||||
| Segment Operating Income (Loss): | ||||||||||||||||||||||
| RF Communications | $ | 156.6 | $ | 140.5 | $ | 549.1 | $ | 561.5 | ||||||||||||||
| Government Communications Systems | 66.2 | 69.0 | 292.3 | 276.9 | ||||||||||||||||||
| Integrated Network Solutions | (21.3 | ) | 32.6 | 42.1 | 116.4 | |||||||||||||||||
| Exelis | 37.0 | ― | 37.0 | ― | ||||||||||||||||||
| Unallocated corporate expense | (145.0 | ) | (12.8 | ) | (199.0 | ) | (60.2 | ) | ||||||||||||||
| Corporate eliminations | (1.9 | ) | (3.4 | ) | (8.9 | ) | (12.7 | ) | ||||||||||||||
| Non-operating income (loss) | (108.6 | ) | (0.4 | ) | (108.1 | ) | 4.3 | |||||||||||||||
| Net interest expense | (49.8 | ) | (22.2 | ) | (127.6 | ) | (90.8 | ) | ||||||||||||||
| $ | (66.8 | ) | $ | 203.3 | $ | 476.9 | $ | 795.4 | ||||||||||||||
| Table 3 | |||||||||||||
| HARRIS CORPORATION | |||||||||||||
| FY '15 Fourth Quarter Summary | |||||||||||||
| CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS | |||||||||||||
| (Unaudited) | |||||||||||||
| Fiscal Year Ended | |||||||||||||
| July 3, | June 27, | ||||||||||||
| 2015 | 2014 | ||||||||||||
| (In millions) | |||||||||||||
| Operating Activities | |||||||||||||
| Net income | $ | 334.1 | $ | 534.2 | |||||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||
| Depreciation and amortization | 244.3 | 204.3 | |||||||||||
| Share-based compensation | 37.2 | 35.4 | |||||||||||
| Gain on sale of business | (9.3 | ) | ― | ||||||||||
| Impairment of assets | 46.1 | ― | |||||||||||
| Loss on prepayment of long-term debt | 118.2 | ― | |||||||||||
| (Increase) decrease in: | |||||||||||||
| Accounts receivable | 7.8 | 115.8 | |||||||||||
| Inventories | (5.0 | ) | 50.1 | ||||||||||
| Increase (decrease) in: | |||||||||||||
| Accounts payable and accrued expenses | 34.5 | (50.0 | ) | ||||||||||
| Advance payments and unearned income | (48.1 | ) | (42.0 | ) | |||||||||
| Other | 94.2 | 1.4 | |||||||||||
| Net cash provided by operating activities | 854.0 | 849.2 | |||||||||||
| Investing Activities | |||||||||||||
| Net cash paid for acquired businesses | (3,186.1 | ) | ― | ||||||||||
| Cash paid for intangible assets | ― | (3.3 | ) | ||||||||||
| Additions of property, plant and equipment | (148.4 | ) | (209.3 | ) | |||||||||
| Proceeds from sale of property, plant and equipment | 7.0 | 8.0 | |||||||||||
| Proceeds from sale of business | 43.0 | ― | |||||||||||
| Proceeds from sale of discontinued operations | ― | 42.0 | |||||||||||
| Net cash used in investing activities | (3,284.5 | ) | (162.6 | ) | |||||||||
| Financing Activities | |||||||||||||
| Proceeds from borrowings, net of issuance costs | 3,683.2 | 34.2 | |||||||||||
| Repayments of borrowings | (954.1 | ) | (133.9 | ) | |||||||||
| Proceeds from exercises of employee stock options | 46.6 | 141.3 | |||||||||||
| Repurchases of common stock | (165.6 | ) | (309.4 | ) | |||||||||
| Cash dividends | (197.9 | ) | (180.3 | ) | |||||||||
| Other financing activities | (39.3 | ) | ― | ||||||||||
| Net cash provided by (used in) financing activities | 2,372.9 | (448.1 | ) | ||||||||||
| Effect of exchange rate changes on cash and cash equivalents | (22.3 | ) | 1.5 | ||||||||||
| Net increase (decrease) in cash and cash equivalents | (79.9 | ) | 240.0 | ||||||||||
| Cash and cash equivalents, beginning of year | 561.0 | 321.0 | |||||||||||
| Cash and cash equivalents, end of year | $ | 481.1 | $ | 561.0 | |||||||||
| Table 4 | |||||||||
| HARRIS CORPORATION | |||||||||
| FY '15 Fourth Quarter Summary | |||||||||
| CONDENSED CONSOLIDATED BALANCE SHEET | |||||||||
| (Unaudited) | |||||||||
| July 3, | June 27, | ||||||||
| 2015 | 2014 | ||||||||
| (In millions) | |||||||||
| Assets | |||||||||
| Cash and cash equivalents | $ | 481.1 | $ | 561.0 | |||||
| Receivables | 1,139.4 | 566.1 | |||||||
| Inventories | 1,044.0 | 618.7 | |||||||
| Property, plant and equipment | 1,165.1 | 728.1 | |||||||
| Goodwill | 6,348.0 | 1,711.2 | |||||||
| Intangible assets | 1,775.2 | 257.5 | |||||||
| Other assets | 1,176.1 | 476.7 | |||||||
| $ | 13,128.9 | $ | 4,919.3 | ||||||
| Liabilities and Equity | |||||||||
| Accounts payable | 581.2 | 324.3 | |||||||
| Compensation and benefits | 512.2 | 212.8 | |||||||
| Advance payments and unearned income | 433.1 | 265.9 | |||||||
| Defined benefit plans (A) | 1,943.4 | 32.9 | |||||||
| Debt, net (A) | 5,216.1 | 1,623.6 | |||||||
| Other liabilities | 1,040.9 | 634.4 | |||||||
| Equity | 3,402.0 | 1,825.4 | |||||||
| $ | 13,128.9 | $ | 4,919.3 | ||||||
| (A)Certain prior-year amounts have been reclassified to conform to current-year classifications. | |||||||||
HARRIS CORPORATION
