Fourth quarter segment revenue increased 16% from growth in all three businesses. Tactical Communications revenue grew 21%, with DoD up 46% on strong readiness and modernization demand and International up 10% from solid growth in the Middle East and Asia Pacific. Night Vision revenue grew double digits on increased U.S. Army demand. Operating income grew 11% to $162 million on increased volume and operational efficiencies.

Orders strength for the segment continued in the quarter, marking its eighth straight quarter of year-over-year orders growth.

Tactical Communications received several significant awards to meet U.S. DoD readiness demand, support U.S Army modernization, extend Harris ground-based radio expertise into adjacent markets and combat evolving international threats:

• 1,129 HMS Manpack initial production radios for the U.S. Army, a key milestone in a multi-year modernization
• 1,014 handheld radios for the U.S. Air Force Special Operations Command
• $31 million from the U.S. Marine Corps for 117G Manpack radios with MUOS capability and MUOS software upgrades
• $130 million, 5-year, sole source IDIQ contract from the U.S. Air Force to develop and deliver Handheld Video Data Link radios that enable information to be distributed from airborne assets to ground warfighters
• More than $150 million from countries in Europe, Asia Pacific and the Middle East supporting counter-terrorism, border control programs and security force modernization

Public Safety was awarded $26 million in contracts from U.S. Customs and Border Protection for advanced digital handheld radios, as it continues to diversify its customer base from state and local governments to federal agencies and public utilities.

Full year segment revenue increased 9% from 35% growth in DoD Tactical and double-digit growth in Night Vision. Operating margins expanded 10 basis points to 30.0%. Orders grew 28%, resulting in a book-to-bill of 1.25 and greater than 1.0 in all three businesses. Tactical Communications backlog increased more than 80% compared with the prior year.

Electronic Systems
	($ millions)		Fourth Quarter											Full Year
			FY 2018				FY 2017				Change			FY 2018				FY 2017				Change
	Revenue		$	640			$	591			8	%		$	2,373			$	2,251			5	%
	Operating income		$	119			$	104			14	%		$	441			$	464			(5	)%
	Operating margin		18.6		%		17.6		%		100bps			18.6		%		20.6		%		(200)bps

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