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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)<br />

principally in the United Kingdom and Canada, which had $41.9 million and $21.7 million, respectively, of longlived<br />

assets as of July 1, 2011.<br />

Revenue and income from continuing operations before income taxes by segment follows:<br />

Revenue<br />

2011 2010<br />

(In millions)<br />

2009<br />

RF Communications ...................................... $2,289.2 $2,067.2 $1,760.6<br />

Integrated Network Solutions ................................ 1,985.8 1,485.1 1,476.1<br />

Government Communications Systems ......................... 1,776.5 1,747.3 1,864.2<br />

Corporate eliminations ..................................... (126.9) (93.5) (95.9)<br />

$5,924.6 $5,206.1 $5,005.0<br />

Income From Continuing Operations Before Income Taxes<br />

2011(2) 2010(3) 2009(4)<br />

(In millions)<br />

Segment Operating Income (Loss):<br />

RF Communications ........................................ $787.0 $707.4 $ 571.5<br />

Integrated Network Solutions ................................. 70.2 85.3 (133.6)<br />

Government Communications Systems .......................... 227.0 227.4 199.2<br />

Unallocated corporate expense .................................. (87.8) (90.4) (81.4)<br />

Corporate eliminations ........................................ (26.2) (16.9) (17.7)<br />

Non-operating loss (1) ........................................ (1.9) (1.9) (3.1)<br />

Net interest expense .......................................... (87.6) (70.6) (49.6)<br />

$880.7 $840.3 $ 485.3<br />

(1) “Non-operating loss” includes equity investment income (loss), royalties and related intellectual property expenses, gains and losses on sales<br />

of investments and securities available-for-sale, and impairments of investments and securities available-for-sale. Additional information<br />

regarding non-operating loss is set forth in Note 20: Non-Operating Loss.<br />

(2) The operating income in our Integrated Network Solutions segment included a $46.6 million charge for integration and other costs associated<br />

with our acquisitions of CapRock, Schlumberger GCS, the Core180 Infrastructure and Carefx.<br />

(3) The operating income in our RF Communications segment included a $19.3 million charge for integration and other costs associated with our<br />

acquisition of Wireless Systems. The operating income in our Integrated Network Solutions segment included a $4.4 million charge for<br />

integration and other costs associated with our acquisitions of Patriot Technologies, LLC, SignaCert, Inc. and CapRock, and a $9.5 million<br />

charge for cost-reduction actions. The operating income in our Government Communications Systems segment included a $2.4 million charge<br />

for integration and other costs associated with our acquisitions of Crucial Security, Inc. and the Air Traffic Control business unit of SolaCom<br />

Technologies, Inc.<br />

(4) The operating income in our RF Communications segment included a $9.5 million charge for integration and other costs associated with our<br />

acquisition of Wireless Systems. The operating income in our Integrated Network Solutions segment included a $255.5 million charge for<br />

impairment of goodwill and other long-lived assets related to Broadcast and New Media Solutions. The operating income in our Government<br />

Communications Systems segment included an $18.0 million ($11.3 million after-tax, or $.09 per diluted share) charge for schedule and cost<br />

overruns on commercial satellite reflector programs. Additionally, we initiated a number of cost-reduction actions during fiscal 2009,<br />

resulting in charges of $8.1 million, $5.0 million, $13.1 million and $2.4 million in our RF Communications, Integrated Network Solutions<br />

and Government Communications Systems segments and at our corporate headquarters, respectively, for severance and other employeerelated<br />

exit costs and for consolidation of facilities.<br />

NOTE 26: LEGAL PROCEEDINGS AND CONTINGENCIES<br />

From time to time, as a normal incident of the nature and kind of businesses in which we are, or were,<br />

engaged, various claims or charges are asserted and litigation or arbitration is commenced by or against us arising<br />

from or related to matters including, but not limited to: product liability; personal injury; patents, trademarks, trade<br />

secrets or other intellectual property; labor and employee disputes; commercial or contractual disputes; the sale or<br />

use of former products containing asbestos or other restricted materials; breach of warranty; or environmental<br />

matters. Claimed amounts against us may be substantial but may not bear any reasonable relationship to the merits<br />

of the claim or the extent of any real risk of court or arbitral awards. We record accruals for losses related to those<br />

matters against us that we consider to be probable and that can be reasonably estimated. Gain contingencies, if any,<br />

are recognized when they are realized and legal costs are expensed when incurred. While it is not feasible to predict<br />

93

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