Reconciliation of Non-Gaap Financial Measures and Regulation G ...

Reconciliation of Non-GAAP Financial
Measures and Regulation G Disclosures
2011 Shareholders Meeting
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Regulation G Disclosures
To supplement our condensed consolidated financial statements presented in accordance with U.S.
generally accepted accounting principles (GAAP), we provide additional measures of segments’
operating income; cost of product sales and services; engineering, selling and administrative
expenses; income before income taxes; income taxes; net income; net income attributable to Harris
Corporation; and net income per diluted common share attributable to Harris Corporation common
shareholders. Harris management believes that these non-GAAP financial measures, when
considered together with the GAAP financial measures, provide information that is useful to investors
in understanding period-over-period operating results separate and apart from items that may, or
could, have a disproportionately positive or negative impact on results in any particular period. Harris
management also believes that these non-GAAP financial measures enhance the ability of investors
to analyze Harris’ business trends and to understand Harris’ performance. In addition, Harris may
utilize non-GAAP financial measures as a guide in its forecasting, budgeting, and long-term planning
process and to measure operating performance for some management compensation purposes. Any
analysis of non-GAAP financial measures should be used only in conjunction with results presented in
accordance with GAAP. A reconciliation of these non-GAAP financial measures with the most directly
comparable financial measures calculated in accordance with GAAP follows:
2011 Shareholders Meeting
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Reconciliation of Non-GAAP Financial Measures
Revenue from product sales and services
Operating Income
Non-operating loss
Net Interest expense
Income before income taxes
Income taxes
Net income
Noncontrolling interests, net of income taxes
Net income attributable to Harris Corporation
Net income per diluted common share attributable to
2011 Shareholders Meeting
$ 5,924.6
Total Company Results
$ ―
$ 5,924.6
$ 5,206.1
$ ―
Non-GAAP
% Change
$ 5,206.1 13.8%
970.2 46.6 (2) 1,016.8 912.8 26.1 (1) 938.9 8.3%
(1.9) ― (1.9) (1.9) ― (1.9)
(87.6) ― (87.6) (70.6) ― (70.6)
880.7 46.6 927.3 840.3 26.1 866.4 7.0%
(293.6) (9.8) (303.4) (278.7) (6.2) (284.9)
$ 588.0
Fiscal 2011
587.1 36.8 623.9 561.6 19.9 581.5
0.9 ― 0.9 ― ― ―
$ 36.8
(In millions, except per share amounts)
$ 624.8
$ 561.6
$ 19.9
$ 581.5 7.4%
Harris Corporation common shareholders $ 4.60 $ 0.29 $ 4.89 $ 4.28 $ 0.15 $ 4.43 10.4%
(1) Adjustments relate to costs associated with our acquisitions of Wireless Systems, Crucial Security, SolaCom ATC, Patriot, SignaCert and CapRock.
(2) Adjustments relate to costs associated with our acquisitions of CapRock, Schlumberger GCS, Core180 and Carefx.
Fiscal 2010
As Reported Adjustment Non-GAAP As Reported Adjustment Non-GAAP
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Reconciliation of Non-GAAP Financial Measures
2011 Shareholders Meeting
FY07 FY08 FY09 FY10 FY11 FY12P
GAAP EPS $ 2.49 $ 3.31 $ 2.33 $ 4.28 $ 4.60 $4.92-5.12
Non-GAAP adjustments 0.22
Earnings Per Share
Fiscal '07 Actual to Fiscal '12 Guidance
(1) 0.02
(2) 1.52
(3) 0.15
(4) 0.29
(5) 0.18 (6)
Non-GAAP EPS $ 2.71 $ 3.33 $ 3.85 $ 4.43 $ 4.89 $5.10-5.30
(1) Adjustments relate to the impact of cost-reduction actions in Broadcast Communications, a charge resulting from a decision to discontinue
a software development effort in Broadcast Communications, and impairment to our investment in Terion.
(2) Adjustments relate to costs associated with our acquisitions of Multimax and Zandar.
(3) Adjustments relate to impairment of goodwill and other long-lived assets in Broadcast Communications, and to costs associated with our
acquisitions of Wireless Systems and Crucial Security.
(4) Adjustments relate to costs associated with our acquisitions of Wireless Systems, Crucial Security, SolaCom ATC, Patriot, SignaCert and CapRock.
(5) Adjustments relate to costs associated with our acquisitions of CapRock, Schlumberger GCS, Core180 and Carefx.
(6) Based on fiscal 2012 guidance provided on October 26, 2011.
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Reconciliation of Non-GAAP Financial Measures
2011 Shareholders Meeting
Total Debt to Total Capital
($ in millions)
Short-term debt
FY11
$ 180.0
Current portion of long-term debt 4.9
Long-term debt 1,887.2
Total debt (A) 2,072.1
Equity 2,512.0
Debt plus equity (total capital) (B) $ 4,584.1
Total debt to total capital (A)/(B) 45.2%
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