Second quarter revenue increased 83% and operating income increased 51% versus prior-year GAAP, primarily due to the post-merger inclusion of L3 operations in results and the factors below regarding pro forma revenue growth. On a pro forma basis, second quarter revenue increased 2.4% versus the prior year as the ramp in U.S. DoD modernization programs in Tactical Communications and Integrated Vision Systems was partially offset by international tactical radio sales timing as well as lower demand, as expected, within Public Safety due to COVID-19. Second quarter operating income and non-GAAP⁷ operating income increased 11%, and non-GAAP operating margin expanded 190bps to 23.9% versus prior-year pro forma from integration benefits and cost management.

Segment funded book-to-bill was 1.03 for the quarter as well as since the merger.

DoD tactical radio modernization order momentum continued in the second quarter, with a $95 million award for the third production order under the U.S. Army's $12.7 billion HMS Manpack IDIQ. The company experienced solid international tactical radio demand in Europe for software-defined radio modernization, counter terrorism operations and anti-jamming networks, including strategic wins with the Ukraine Ministry of Defence for Falcon III HF and multi-band radios.

In Broadband Communications, L3Harris extended its position as a key strategic SATCOM provider for the U.S. Army through a $41 million contract, with significant follow-on opportunity, to provide depot and sustainment services for the Modernization of Enterprise Terminals program. The company also received a $74 million order for ROVER® transceivers, supporting situational awareness and surveillance.

Aviation Systems

	($ millions)	Second Quarter										First Half
		2020				2019				Change		2020				2019				Change
	(GAAP to GAAP comparison)
	Revenue	$	800			$	186			n/m		$	1,811			$	330			n/m
	Operating income	$	31			$	19			n/m		$	(146)			$	36			n/m
	Operating margin	3.9		%		10.2		%				(8.1)		%		10.9		%
	(GAAP to pro forma comparison)
	Revenue	$	800			$	965			(17%)		$	1,811			$	1,879			(3.6%)
	Operating income	$	31			$	109			(72%)		$	(146)			$	214			(168%)
	Operating margin	3.9		%		11.3		%		(740)bps		(8.1)		%		11.4		%		(1,950)bps
	(Non-GAAP to pro forma comparison) 9
	Revenue	$	800			$	965			(17%)		$	1,811			$	1,879			(3.6%)
	Operating income	$	100			$	109			(8%)		$	247			$	214			15%
	Operating margin	12.5		%		11.3		%		120bps		13.6		%		11.4		%		220bps
n/m: Not meaningful

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