Table 1
HARRIS CORPORATION
FY '17 Third Quarter Summary
CONDENSED CONSOLIDATED STATEMENT OF INCOME
(Unaudited)
				Quarter Ended										Three Quarters Ended
				March 31, 2017					April 1, 2016 (A)					March 31, 2017					April 1, 2016 (A)
				(In millions, except per share amounts)
Revenue from product sales and services				$	1,489				$	1,550				$	4,358				$	4,459
Cost of product sales and services				(964		)			(1,009		)			(2,792		)			(2,895		)
Engineering, selling and administrative expenses				(250		)			(273		)			(768		)			(759		)
Non-operating income (loss)				—					(1		)			2					—
Interest income				—					—					1					1
Interest expense				(42		)			(46		)			(130		)			(139		)
Income from continuing operations before income taxes				233					221					671					667
Income taxes				(69		)			(62		)			(199		)			(198		)
Income from continuing operations				164					159					472					469
Discontinued operations, net of income taxes				(79		)			9					(50		)			(305		)
Net income				$	85				$	168				$	422				$	164
Net income per common share
Basic
Continuing operations				$	1.33				$	1.27				$	3.82				$	3.78
Discontinued operations				(0.63		)			0.08					(0.41		)			(2.46		)
				$	0.70				$	1.35				$	3.41				$	1.32
Diluted
Continuing operations				$	1.31				$	1.26				$	3.77				$	3.74
Discontinued operations				(0.62		)			0.08					(0.40		)			(2.43		)
				$	0.69				$	1.34				$	3.37				$	1.31
Cash dividends paid per common share				$	0.53				$	0.50				$	1.59				$	1.50
Basic weighted average common shares outstanding				122.6					124.0					123.3					123.7
Diluted weighted average common shares outstanding				124.5					125.1					125.0					124.8

(A) Certain amounts reclassified to conform with current period presentation of Harris CapRock Communications and government IT services businesses as discontinued operations

Table 2
HARRIS CORPORATION
FY '17 Third Quarter Summary
BUSINESS SEGMENT INFORMATION
(Unaudited)
				Quarter Ended										Three Quarters Ended
				March 31, 2017					April 1, 2016					March 31, 2017					April 1, 2016
				(In millions)
Revenue
Communication Systems				$	461				$	485				$	1,304				$	1,428
Space and Intelligence Systems				475					489					1,396					1,370
Electronic Systems				553					575					1,660					1,662
Corporate eliminations, net				—					1					(2		)			(1		)
				$	1,489				$	1,550				$	4,358				$	4,459
Income From Continuing Operations Before Income Taxes
Segment Operating Income:
Communication Systems				$	140				$	151				$	379				$	405
Space and Intelligence Systems				76					75					231					208
Electronic Systems				115					111					360					311
Unallocated corporate expense				(55		)			(68		)			(169		)			(116		)
Corporate eliminations				(1		)			(1		)			(3		)			(3		)
Non-operating income (loss)				—					(1		)			2					—
Net interest expense				(42		)			(46		)			(129		)			(138		)
				$	233				$	221				$	671				$	667

(A) Certain amounts reclassified to conform with current period presentation of Harris CapRock Communications and government IT services businesses as discontinued operations

Table 3
HARRIS CORPORATION
FY '17 Third Quarter Summary
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited)
				Three Quarters Ended
				March 31, 2017					April 1, 2016 (A)
				(In millions)
Operating Activities
Net income				$	422				$	164
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization				140					163
Amortization of intangible assets from Exelis Inc. acquisition				99					99
Share-based compensation				33					29
Gain on sale of CapRock commercial business				(23		)			—
Qualified pension plan contributions				(143		)			(134		)
Pension income				(73		)			(17		)
Net liability reduction for certain post-employment benefit plans				—					(101		)
Impairment of goodwill and other assets				240					367
Adjustment to loss on sales of businesses, net				—					20
(Increase) decrease in:
Accounts receivable				14					102
Inventories				(26		)			(22		)
Increase (decrease) in:
Accounts payable and accrued expenses				(113		)			(175		)
Advance payments and unearned income				(62		)			(87		)
Other				(19		)			99
Net cash provided by operating activities				489					507
Investing Activities
Cash paid for fixed income securities				—					(19		)
Net additions of property, plant and equipment				(79		)			(84		)
Proceeds from sale of property, plant and equipment				—					2
Net proceeds from sale of CapRock commercial business				375					—
Adjustment to proceeds from sale of business				(25		)			(11		)
Net cash provided by (used in) investing activities				271					(112		)
Financing Activities
Proceeds from borrowings				235					118
Repayments of borrowings				(548		)			(510		)
Proceeds from exercises of employee stock options				50					36
Repurchases of common stock				(460		)			—
Cash dividends				(199		)			(189		)
Other financing activities				(20		)			(15		)
Net cash used in financing activities				(942		)			(560		)
Effect of exchange rate changes on cash and cash equivalents				(3		)			(14		)
Net decrease in cash and cash equivalents				(185		)			(179		)
Cash and cash equivalents, beginning of year				487					481
Cash and cash equivalents, end of quarter				$	302				$	302

(A) Certain amounts reclassified to conform with current period presentation

Table 4
HARRIS CORPORATION
FY '17 Third Quarter Summary
CONDENSED CONSOLIDATED BALANCE SHEET
(Unaudited)
				March 31, 2017				July 1, 2016 (A)
				(In millions)
Assets
Cash and cash equivalents				$	302			$	487
Receivables				714				674
Inventories				894				867
Property, plant and equipment				895				924
Goodwill				5,367				5,352
Other intangible assets				1,136				1,231
Other assets				1,799				2,474
				$	11,107			$	12,009
Liabilities and Equity
Short-term debt				$	233			$	15
Accounts payable				428				494
Compensation and benefits				179				165
Advance payments and unearned income				231				294
Current portion of long-term debt				121				382
Defined benefit plans				2,069				2,296
Long-term debt, net				3,859				4,120
Other liabilities				1,073				1,186
Equity				2,914				3,057
				$	11,107			$	12,009

(A) Certain balances reclassified to conform with current period presentation of Harris CapRock Communications and government IT services businesses as discontinued operations, which are included in the "Other assets" and "Other liabilities" line items above

HARRIS CORPORATION