FY '17 Third 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 and
income from continuing operations per diluted common share 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:
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Table 5
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HARRIS CORPORATION
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FY '17 Third Quarter Summary
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RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
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Income from Continuing Operations and Income from Continuing
Operations per Diluted Common Share
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(Unaudited)
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Quarter Ended
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March 31, 2017
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As Reported
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Adjustment (A)
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Non-GAAP
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(In millions, except per share amounts)
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Income from continuing operations
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$
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164
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$
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8
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$
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172
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Income from continuing operations per diluted common share
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$
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1.31
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$
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0.07
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$
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1.38
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Quarter Ended
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April 1, 2016
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As Reported
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Adjustment (A)
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Non-GAAP
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(In millions, except per share amounts)
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Income from continuing operations
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$
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159
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$
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11
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$
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170
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Income from continuing operations per diluted common share
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$
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1.26
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$
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0.09
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$
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1.35
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(A) Adjustment for Exelis Inc. acquisition-related and other
charges, net of income taxes
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Table 6
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HARRIS CORPORATION
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FY '17 Third Quarter Summary
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RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
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Free Cash Flow
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(Unaudited)
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Quarter Ended
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2017
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March 31, 2017
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(Guidance)
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(In millions)
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Net cash provided by operating activities
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$
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194
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$
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930
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Less net capital expenditures (A)
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(30
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(130
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Free cash flow
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$
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164
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$
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800
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(A) Reflects additions of property, plant and equipment, net of
proceeds from the sale of property, plant and equipment
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Table 7
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HARRIS CORPORATION
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FY '17 Third Quarter Summary
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RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
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Reconciliation of Guidance for FY '17 Income from Continuing
Operations per Diluted Common Share to
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FY '17 Non-GAAP Income from Continuing Operations per Diluted
Common Share
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(Unaudited)
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2017
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(Guidance)
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GAAP income from continuing operations per diluted common share
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$5.20 to $5.25
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Estimated net impact of Exelis Inc. acquisition-related and other
charges
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$.30
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Non-GAAP income from continuing operations per diluted common share
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$5.50 to $5.55
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