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and RF Communications segments. We believe that we have complied with such rules and regulations, where<br />

applicable, with respect to our existing products sold into such jurisdictions. We intend to comply with such rules<br />

and regulations with respect to our future products.<br />

Broadcast and wireless communications (whether TV, radio, satellite or telecommunications) are also subject to<br />

governmental regulation. Equipment produced by our Integrated Network Solutions and RF Communications<br />

segments, in particular, is subject to domestic and international requirements to avoid interference among users of<br />

radio and television frequencies and to permit interconnection of telecommunications equipment. Additionally, our<br />

managed satellite and terrestrial communications solutions operations hold licenses for very small aperture terminals<br />

(“VSATs”) and satellite earth stations, which authorize operation of networks and teleports. We are also required to<br />

comply with technical operating and licensing requirements that pertain to our wireless licenses and operations. We<br />

believe that we have complied with such rules and regulations and licenses with respect to our existing products and<br />

services, and we intend to comply with such rules and regulations and licenses with respect to our future products<br />

and services. Governmental reallocation of the frequency spectrum also could impact our business, financial<br />

condition and results of operations.<br />

Raw Materials and Supplies<br />

Because of the diversity of our products and services, as well as the wide geographic dispersion of our<br />

facilities, we use numerous sources for the wide array of raw materials (such as electronic components, printed<br />

circuit boards, metals and plastics) needed for our operations and for our products. We are dependent upon suppliers<br />

and subcontractors for a large number of components and subsystems and the ability of our suppliers and<br />

subcontractors to adhere to customer or regulatory materials restrictions and to meet performance and quality<br />

specifications and delivery schedules. In some instances, we are dependent upon one or a few sources, either<br />

because of the specialized nature of a particular item or because of local content preference requirements pursuant<br />

to which we operate on a given project. While we have been affected by financial and performance issues of some<br />

of our suppliers and subcontractors, we have not been materially adversely affected by the inability to obtain raw<br />

materials or products. On occasion, we have experienced component shortages from vendors as a result of natural<br />

disasters, or the RoHS environmental regulations in the European Union or similar regulations in other jurisdictions.<br />

These events or regulations may cause a spike in demand for certain electronic components (such as lead-free<br />

components), resulting in industry-wide supply chain shortages. To date, these component shortages have not had a<br />

material adverse effect on our business. For further discussion of risks relating to subcontractors and suppliers, see<br />

“Item 1A. Risk Factors” of this Report.<br />

Seasonality<br />

We do not consider any material portion of our business to be seasonal. Various factors can affect the<br />

distribution of our revenue between accounting periods, including the timing of contract awards and the timing and<br />

availability of U.S. Government funding, as well as the timing of product deliveries and customer acceptance.<br />

Employees<br />

We employed approximately 16,900 employees at the end of fiscal 2011 compared with approximately<br />

15,800 employees at the end of fiscal 2010. Approximately 88 percent of our employees as of the end of fiscal 2011<br />

were located in the United States. A significant number of employees in our Government Communications Systems<br />

segment possess a U.S. Government security clearance. We also utilize a number of independent contractors. None<br />

of our employees in the United States is represented by a labor union. In certain international subsidiaries, our<br />

employees are represented by workers’ councils or statutory labor unions. In general, we believe that our relations<br />

with our employees are good.<br />

Website Access to Harris Reports; Available Information<br />

General. We maintain an Internet website at http://www.<strong>harris</strong>.com. Our annual reports on Form 10-K,<br />

quarterly reports on Form 10-Q, current reports on Form 8-K and amendments to such reports, filed or furnished<br />

pursuant to Section 13(a) or 15(d) of the Exchange Act, are available free of charge on our website as soon as<br />

reasonably practicable after these reports are electronically filed with or furnished to the Securities and Exchange<br />

Commission (the “SEC”). We also will provide the reports in electronic or paper form free of charge upon request.<br />

We also make available free of charge on our website our annual report to shareholders and proxy statement. Our<br />

website and the information posted thereon are not incorporated into this Report or any current or other periodic<br />

report that we file with or furnish to the SEC. All reports we file with or furnish to the SEC also are available free<br />

of charge via the SEC’s electronic data gathering and retrieval (“EDGAR”) system available through the SEC’s<br />

website at http://www.sec.gov.<br />

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