| Table 3 | |||||||||||
| HARRIS CORPORATION | |||||||||||
| FY '18 Second Quarter Summary | |||||||||||
| CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS | |||||||||||
| (Unaudited) | |||||||||||
| Two Quarters Ended | |||||||||||
|
December 29, 2017 |
December 30, 2016(A) | ||||||||||
| (In millions) | |||||||||||
| Operating Activities | |||||||||||
| Net income | $ | 300 | $ | 337 | |||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
| Depreciation and amortization | 80 | 101 | |||||||||
| Amortization of intangible assets from Exelis Inc. acquisition | 50 | 66 | |||||||||
| Share-based compensation | 24 | 22 | |||||||||
| Qualified pension plan contributions | — | (103 | ) | ||||||||
| Pension income | (68 | ) | (49 | ) | |||||||
| (Increase) decrease in: | |||||||||||
| Accounts receivable | (19 | ) | 125 | ||||||||
| Inventories | (102 | ) | (50 | ) | |||||||
| Increase (decrease) in: | |||||||||||
| Accounts payable | (78 | ) | (47 | ) | |||||||
| Advance payments and unearned income | 38 | (58 | ) | ||||||||
| Other | 148 | (49 | ) | ||||||||
| Net cash provided by operating activities | 373 | 295 | |||||||||
| Investing Activities | |||||||||||
| Additions of property, plant and equipment | (43 | ) | (49 | ) | |||||||
| Adjustments to proceeds from sales of businesses | (2 | ) | (25 | ) | |||||||
| Net cash used in investing activities | (45 | ) | (74 | ) | |||||||
| Financing Activities | |||||||||||
| Net proceeds from borrowings | 248 | 185 | |||||||||
| Repayments of borrowings | (363 | ) | (300 | ) | |||||||
| Proceeds from exercises of employee stock options | 18 | 27 | |||||||||
| Repurchases of common stock | (150 | ) | (100 | ) | |||||||
| Cash dividends | (137 | ) | (134 | ) | |||||||
| Other financing activities | (10 | ) | (19 | ) | |||||||
| Net cash used in financing activities | (394 | ) | (341 | ) | |||||||
| Effect of exchange rate changes on cash and cash equivalents | 4 | (6 | ) | ||||||||
| Net decrease in cash and cash equivalents | (62 | ) | (126 | ) | |||||||
| Cash and cash equivalents, beginning of year | 484 | 487 | |||||||||
| Cash and cash equivalents, end of quarter | $ | 422 | $ | 361 | |||||||
|
(A) Certain amounts reclassified to conform with current period presentation |
|||||||||||
| Table 4 | |||||||||
| HARRIS CORPORATION | |||||||||
| FY '18 Second Quarter Summary | |||||||||
| CONDENSED CONSOLIDATED BALANCE SHEET | |||||||||
| (Unaudited) | |||||||||
| December 29, 2017 | June 30, 2017 | ||||||||
| (In millions) | |||||||||
| Assets | |||||||||
| Cash and cash equivalents | $ | 422 | $ | 484 | |||||
| Receivables | 642 | 623 | |||||||
| Inventories | 942 | 841 | |||||||
| Property, plant and equipment | 878 | 904 | |||||||
| Goodwill | 5,374 | 5,366 | |||||||
| Other intangible assets | 1,048 | 1,104 | |||||||
| Other assets | 550 | 768 | |||||||
| $ | 9,856 | $ | 10,090 | ||||||
| Liabilities and Equity | |||||||||
| Short-term debt | $ | 5 | $ | 80 | |||||
| Accounts payable | 462 | 540 | |||||||
| Compensation and benefits | 120 | 140 | |||||||
| Advance payments and unearned income | 290 | 252 | |||||||
| Current portion of long-term debt | 523 | 554 | |||||||
| Defined benefit plans | 1,202 | 1,278 | |||||||
| Long-term debt, net | 3,391 | 3,396 | |||||||
| Other liabilities | 869 | 922 | |||||||
| Equity | 2,994 | 2,928 | |||||||
| $ | 9,856 | $ | 10,090 | ||||||
HARRIS CORPORATION
