harris corporation

Unallocated Corporate Expense and Corporate Eliminations
2011 2010
2011/2010
Percent
Increase/
(Decrease) 2009
2010/2009
Percent
Increase/
(Decrease)
(Dollars in millions)
Unallocated corporate expense . .................. $87.8 $90.4 (2.9)% $81.4 11.1%
Corporate eliminations ......................... 26.2 16.9 55.0% 17.7 (4.5)%
Fiscal 2011 Compared With Fiscal 2010: Unallocated corporate expense decreased in fiscal 2011 compared
with fiscal 2010, primarily due to a charge associated with a contract termination, recorded in fiscal 2010, and lower
benefit plan expenses. Corporate eliminations increased in fiscal 2011 from fiscal 2010, primarily due to higher
intersegment activity between the Government Communications Systems and Integrated Network Solutions
segments.
Fiscal 2010 Compared With Fiscal 2009: Unallocated corporate expense increased in fiscal 2010 compared
with fiscal 2009, primarily due to investments made in pursuit of new growth opportunities, increased charitable
contributions and a charge associated with a contract termination.
Discontinued Operations
In the fourth quarter of fiscal 2009, in connection with the May 27, 2009 Spin-off to our shareholders of all the
shares of HSTX common stock owned by us, we eliminated our former HSTX operating segment. Our historical
financial results have been restated to account for HSTX as discontinued operations for all periods presented in this
Report. See Note 3: Discontinued Operations for additional information regarding discontinued operations.
LIQUIDITY, CAPITAL RESOURCES AND FINANCIAL STRATEGIES
Cash Flows
2011
Fiscal Years Ended
2010
(Dollars in millions)
2009
Net cash provided by operating activities ........................ $ 833.1 $ 802.7 $ 666.8
Net cash used in investing activities ............................ (1,417.5) (250.1) (864.6)
Net cash provided by (used in) financing activities ................. 492.8 (380.9) 117.1
Effect of exchange rate changes on cash and cash equivalents ......... 3.3 2.3 (8.1)
Net increase (decrease) in cash and cash equivalents. ............... (88.3) 174.0 (88.8)
Cash and cash equivalents, beginning of year ..................... 455.2 281.2 370.0
Cash and cash equivalents, end of year. ......................... $ 366.9 $ 455.2 $ 281.2
Cash and cash equivalents: Our Consolidated Statement of Cash Flows includes the results of HSTX through
the May 27, 2009 Spin-off date. Accordingly, for fiscal 2009, our Consolidated Statement of Cash Flows, and the
following analysis, includes approximately eleven months of cash flows from HSTX.
The decrease in cash and cash equivalents from fiscal 2010 to fiscal 2011 was primarily due to
$1,082.6 million of cash paid for acquired businesses, $324.9 million of additions of property, plant and equipment
and capitalized software, $256.1 million used to repurchase shares of our common stock, and $127.0 million used to
pay cash dividends, partially offset by $833.1 million of net cash provided by operating activities and $851.4 million
of net proceeds from borrowings.
Our financial position remained strong at July 1, 2011. We ended the fiscal year with cash and cash equivalents
of $366.9 million; we have no long-term debt maturing until fiscal 2016; we have a senior unsecured $750 million
revolving credit facility that expires in September 2013 ($570 million of which was available to us as of July 1,
2011 as a result of $180 million of short-term debt outstanding under our commercial paper program, that was
supported by such senior unsecured revolving credit facility); we have a senior unsecured $300 million 364-day
revolving credit facility that expires on September 28, 2011 (all of which was available to us as of July 1, 2011);
and we do not have any material defined benefit pension plan obligations.
Given our current cash position, outlook for funds generated from operations, credit ratings, available credit
facilities, cash needs and debt structure, we have not experienced to date, and do not expect to experience, any
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