Harris Corporation Reports Fiscal 2015 Third Quarter Results In Line With Preliminary Third Quarter Estimates
For additional information, contact Harris Corporation at
webmaster@harris.com.
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Table 1
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HARRIS CORPORATION
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FY '15 Third Quarter Summary
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CONDENSED CONSOLIDATED STATEMENT OF INCOME
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(Unaudited)
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Quarter Ended
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Three Quarters Ended
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April 3,
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March 28,
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April 3,
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March 28,
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2015
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2014
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2015
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2014
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(In millions, except per share amounts)
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Revenue from product sales and services
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$
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1,186.6
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$
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1,267.5
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$
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3,548.3
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$
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3,682.6
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Cost of product sales and services
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(753.4
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)
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(841.0
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)
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(2,323.8
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)
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(2,410.9
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)
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Engineering, selling and administrative expenses
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(220.8
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)
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(203.2
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)
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(603.5
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)
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(615.7
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)
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Non-operating income
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0.3
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0.2
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0.5
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4.7
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Interest income
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0.3
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0.7
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1.7
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2.0
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Interest expense
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(34.0
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)
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(23.2
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)
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(79.5
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)
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(70.6
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)
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Income from continuing operations before income taxes
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179.0
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201.0
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543.7
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592.1
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Income taxes
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(53.4
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)
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(63.9
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)
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(153.5
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)
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(190.5
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)
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Income from continuing operations
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125.6
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137.1
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390.2
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401.6
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Discontinued operations, net of income taxes
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―
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4.1
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―
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1.4
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Net income
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125.6
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141.2
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390.2
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403.0
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Noncontrolling interests, net of income taxes
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0.1
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0.2
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0.1
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0.4
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Net income attributable to Harris Corporation
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$
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125.7
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$
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141.4
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$
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390.3
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$
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403.4
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Net income per common share attributable to
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Harris Corporation common shareholders
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Basic
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Continuing operations
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$
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1.21
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$
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1.28
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$
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3.73
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$
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3.75
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Discontinued operations
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―
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0.04
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―
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0.02
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$
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1.21
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$
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1.32
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$
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3.73
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$
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3.77
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Diluted
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Continuing operations
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$
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1.20
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$
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1.27
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$
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3.69
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$
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3.72
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Discontinued operations
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―
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0.04
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―
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0.01
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$
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1.20
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$
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1.31
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$
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3.69
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$
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3.73
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Cash dividends paid per common share
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$
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0.47
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$
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0.42
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$
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1.41
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$
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1.26
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Basic weighted average common shares outstanding
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103.7
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106.2
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104.1
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106.3
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Diluted weighted average common shares outstanding
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104.8
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107.4
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105.2
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107.4
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Table 2
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HARRIS CORPORATION
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FY '15 Third Quarter Summary
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BUSINESS SEGMENT INFORMATION
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(Unaudited)
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Quarter Ended
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Three Quarters Ended
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April 3,
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March 28,
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April 3,
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March 28,
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2015
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2014
|
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2015
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2014
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(In millions)
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Revenue
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RF Communications
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$
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450.8
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$
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457.2
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$
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1,270.1
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$
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1,334.8
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Government Communications Systems
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455.1
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476.6
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1,370.1
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1,321.2
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Integrated Network Solutions
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298.8
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348.0
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964.1
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1,089.5
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Corporate eliminations
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(18.1
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)
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(14.3
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)
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(56.0
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)
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(62.9
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)
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$
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1,186.6
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$
|
1,267.5
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|
|
$
|
3,548.3
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$
|
3,682.6
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Income From Continuing Operations Before Income Taxes
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Segment Operating Income:
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RF Communications
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$
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151.0
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$
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143.7
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$
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392.5
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$
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421.0
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Government Communications Systems
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74.6
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77.4
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226.1
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207.9
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Integrated Network Solutions
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11.8
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21.4
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63.4
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83.8
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Unallocated corporate expense
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(23.3
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)
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(17.0
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)
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(54.0
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)
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(47.4
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)
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Corporate eliminations
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(1.7
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)
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(2.2
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)
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(7.0
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)
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(9.3
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)
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Non-operating income
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0.3
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0.2
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0.5
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4.7
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Net interest expense
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(33.7
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)
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(22.5
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)
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(77.8
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)
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(68.6
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)
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$
|
179.0
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$
|
201.0
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$
|
543.7
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$
|
592.1
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Table 3
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HARRIS CORPORATION
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FY '15 Third Quarter Summary
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CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
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(Unaudited)
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Three Quarters Ended
|
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April 3,
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March 28,
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2015
|
|
2014
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(In millions)
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Operating Activities
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Net income
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$
|
390.2
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$
|
403.0
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Adjustments to reconcile net income to net cash provided by
operating activities:
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Depreciation and amortization
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163.9
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148.6
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Share-based compensation
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26.0
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28.5
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Non-current deferred income taxes
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|
20.0
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29.8
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Gain on sale of discontinued operations
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―
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(1.4
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)
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(Increase) decrease in:
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Accounts receivable
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(86.6
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)
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(75.8
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)
|
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Inventories
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(17.0
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)
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(5.3
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)
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Increase (decrease) in:
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Accounts payable and accrued expenses
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(111.1
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)
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(46.2
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)
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Advance payments and unearned income
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|
(24.9
|
)
|
|
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(9.7
|
)
|
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Income taxes
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|
25.7
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|
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(10.8
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)
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Other
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9.0
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(6.7
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)
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Net cash provided by operating activities
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395.2
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454.0
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Investing Activities
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Cash paid for intangible assets
|
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―
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(3.3
|
)
|
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Additions of property, plant and equipment
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(102.3
|
)
|
|
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(139.7
|
)
|
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Proceeds from sale of Cyber Integration Center
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7.0
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|
27.0
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Net cash used in investing activities
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|
(95.3
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)
|
|
|
(116.0
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)
|
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|
|
|
|
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Financing Activities
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|
|
|
|
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Proceeds from borrowings
|
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|
14.3
|
|
|
|
5.6
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|
|
Repayments of borrowings
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|
(46.7
|
)
|
|
|
(82.4
|
)
|
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Proceeds from exercises of employee stock options
|
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|
34.3
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|
|
|
133.9
|
|
|
Repurchases of common stock
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|
(164.8
|
)
|
|
|
(222.1
|
)
|
|
Cash dividends
|
|
|
(148.7
|
)
|
|
|
(135.5
|
)
|
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Other financing activities
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|
(24.3
|
)
|
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|
―
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Net cash used in financing activities
|
|
|
(335.9
|
)
|
|
|
(300.5
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)
|
|
|
|
|
|
|
|
|
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Effect of exchange rate changes on cash and cash equivalents
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|
|
(37.3
|
)
|
|
|
(8.9
|
)
|
|
|
|
|
|
|
|
|
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Net increase (decrease) in cash and cash equivalents
|
|
|
(73.3
|
)
|
|
|
28.6
|
|
|
|
|
|
|
|
|
|
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Cash and cash equivalents, beginning of year
|
|
|
561.0
|
|
|
|
321.0
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents, end of quarter
|
|
$
|
487.7
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|
|
$
|
349.6
|
|
|
|
|
|
|
|
|
|
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|
|
|
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Table 4
|
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HARRIS CORPORATION
|
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FY '15 Third Quarter Summary
|
|
CONDENSED CONSOLIDATED BALANCE SHEET
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
April 3,
|
|
June 27,
|
|
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
(In millions)
|
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Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
487.7
|
|
$
|
561.0
|
|
Receivables
|
|
|
652.7
|
|
|
566.1
|
|
Inventories
|
|
|
635.7
|
|
|
618.7
|
|
Income taxes receivable
|
|
|
15.4
|
|
|
28.1
|
|
Current deferred income taxes
|
|
|
116.8
|
|
|
112.2
|
|
Other current assets
|
|
|
113.8
|
|
|
105.2
|
|
Property, plant and equipment
|
|
|
705.5
|
|
|
728.1
|
|
Goodwill
|
|
|
1,665.0
|
|
|
1,711.2
|
|
Intangible assets
|
|
|
207.2
|
|
|
257.5
|
|
Non-current deferred income taxes
|
|
|
71.2
|
|
|
87.3
|
|
Other non-current assets
|
|
|
163.5
|
|
|
155.8
|
|
|
|
$
|
4,834.5
|
|
$
|
4,931.2
|
|
Liabilities and Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term debt
|
|
$
|
27.3
|
|
$
|
58.3
|
|
Accounts payable
|
|
|
279.6
|
|
|
324.3
|
|
Compensation and benefits
|
|
|
178.4
|
|
|
212.8
|
|
Other accrued items
|
|
|
301.8
|
|
|
249.8
|
|
Advance payments and unearned income
|
|
|
241.0
|
|
|
265.9
|
|
Income taxes payable
|
|
|
19.4
|
|
|
―
|
|
Current deferred income taxes
|
|
|
0.1
|
|
|
2.1
|
|
Current portion of long-term debt
|
|
|
―
|
|
|
1.4
|
|
Long-term debt
|
|
|
1,575.8
|
|
|
1,575.8
|
|
Long-term contract liability
|
|
|
74.0
|
|
|
83.8
|
|
Other long-term liabilities
|
|
|
296.7
|
|
|
331.6
|
|
Equity
|
|
|
1,840.4
|
|
|
1,825.4
|
|
|
|
$
|
4,834.5
|
|
$
|
4,931.2
|
|
|
|
|
|
|
|
|
HARRIS CORPORATION
|
