Harris Corporation Reports Fiscal 2017 First Quarter Results

For additional information, contact Harris Corporation at webmaster@harris.com.


Table 1
HARRIS CORPORATION
FY '17 First Quarter Summary
CONDENSED CONSOLIDATED STATEMENT OF INCOME
(Unaudited)

	Quarter Ended
	September 30, 2016			October 2, 2015

	(In millions, except per share amounts)
Revenue from product sales and services	$	1,754		$	1,811
Cost of product sales and services	(1,175		)	(1,220		)
Engineering, selling and administrative expenses	(311		)	(329		)
Non-operating income	—			1
Interest income	1			1
Interest expense	(44		)	(48		)
Income before income taxes	225			216
Income taxes	(65		)	(68		)
Net income	$	160		$	148

Net income per common share
Basic	$	1.29		$	1.20
Diluted	$	1.27		$	1.18

Cash dividends paid per common share	$	0.53		$	0.50
Basic weighted average common shares outstanding	123.9			123.5
Diluted weighted average common shares outstanding	125.5			124.7


Table 2
HARRIS CORPORATION
FY '17 First Quarter Summary
BUSINESS SEGMENT INFORMATION
(Unaudited)

	Quarter Ended
	September 30, 2016			October 2, 2015

	(In millions)
Revenue
Communication Systems	$	431		$	454
Space and Intelligence Systems	453			435
Electronic Systems	361			374
Critical Networks	527			566
Corporate eliminations	(18		)	(18		)
	$	1,754		$	1,811
Income Before Income Taxes
Segment Operating Income:
Communication Systems	$	119		$	138
Space and Intelligence Systems	80			68
Electronic Systems	74			69
Critical Networks	66			63
Unallocated corporate expense	(70		)	(75		)
Corporate eliminations	(1		)	(1		)
Non-operating income	—			1
Net interest expense	(43		)	(47		)
	$	225		$	216


Table 3
HARRIS CORPORATION
FY '17 First Quarter Summary
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited)

	Quarter Ended
	September 30, 2016			October 2, 2015

	(In millions)
Operating Activities
Net income	$	160		$	148
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	53			61
Amortization of intangible assets from Exelis Inc. acquisition	33			33
Share-based compensation	11			10
Qualified pension plan contributions	(64		)	(61		)
Pension income	(24		)	(6		)
(Increase) decrease in:
Accounts receivable	(39		)	82
Inventories	2			(108		)
Increase (decrease) in:
Accounts payable and accrued expenses	(75		)	(158		)
Advance payments and unearned income	(31		)	(13		)
Other	17			76
Net cash provided by operating activities	43			64
Investing Activities
Net additions of property, plant and equipment	(21		)	(24		)
Adjustment to proceeds from sale of business	(25		)	—
Net cash used in investing activities	(46		)	(24		)
Financing Activities
Proceeds from borrowings	8			41
Repayments of borrowings	(38		)	(173		)
Proceeds from exercises of employee stock options	15			19
Repurchases of common stock	(100		)	—
Cash dividends	(68		)	(64		)
Other financing activities	(18		)	(15		)
Net cash used in financing activities	(201		)	(192		)
Effect of exchange rate changes on cash and cash equivalents	1			(9		)
Net decrease in cash and cash equivalents	(203		)	(161		)
Cash and cash equivalents, beginning of year	487			481
Cash and cash equivalents, end of quarter	$	284		$	320



Table 4
HARRIS CORPORATION
FY '17 First Quarter Summary
CONDENSED CONSOLIDATED BALANCE SHEET
(Unaudited)

	September 30, 2016		July 1, 2016

	(In millions)
Assets
Cash and cash equivalents	$	284	$	487
Receivables	976		937
Inventories	962		964
Property, plant and equipment	988		1,015
Goodwill	5,994		5,975
Other intangible assets	1,501		1,542
Other assets	1,073		1,076
	$	11,778	$	11,996
Liabilities and Equity
Short-term debt	$	19	$	15
Accounts payable	508		602
Compensation and benefits	166		177
Advance payments and unearned income	289		319
Current portion of long-term debt	380		382
Defined benefit plans	2,199		2,296
Long-term debt, net	4,087		4,120
Other liabilities	1,070		998
Liabilities of discontinued operations	6		30
Equity	3,054		3,057
	$	11,778	$	11,996

HARRIS CORPORATION

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