harris corporation

material issues with liquidity, although we can give no assurances concerning our future liquidity, particularly in
light of the state of global commerce and financial uncertainty.
We also currently believe that existing cash, funds generated from operations, our credit facilities and access to
the public and private debt and equity markets will be sufficient to provide for our anticipated working capital
requirements, capital expenditures and share repurchases under our New Repurchase Program for the next
12 months. We anticipate tax payments over the next three years to be approximately equal to our tax expense
during the same period. We anticipate that our fiscal 2012 cash outlays may include strategic acquisitions. Other
than those cash outlays noted in the “Contractual Obligations” discussion below in this MD&A, capital
expenditures, potential acquisitions and share repurchases under our New Repurchase Program, no other significant
cash outlays are anticipated in fiscal 2012.
There can be no assurance, however, that our business will continue to generate cash flow at current levels, that
ongoing operational improvements will be achieved, or that the cost or availability of future borrowings, if any,
under our commercial paper program or our credit facilities or in the debt markets will not be impacted by any
potential future credit and capital markets disruptions. If we are unable to maintain cash balances or generate
sufficient cash flow from operations to service our obligations, we may be required to sell assets, reduce capital
expenditures, reduce or eliminate strategic acquisitions, reduce or terminate our New Repurchase Program, reduce or
eliminate dividends, refinance all or a portion of our existing debt or obtain additional financing. Our ability to
make principal payments or pay interest on or refinance our indebtedness depends on our future performance and
financial results, which, to a certain extent, are subject to general conditions in or affecting the defense, government
and integrated communications and information technology and services markets and to general economic, political,
financial, competitive, legislative and regulatory factors beyond our control.
Net cash provided by operating activities: Our net cash provided by operating activities was $833.1 million
in fiscal 2011 compared with $802.7 million in fiscal 2010. All of our segments had positive cash flow from
operating activities in fiscal 2011, reflecting strong operating income, with a significant contribution received from
our RF Communications segment.
Net cash used in investing activities: Our net cash used in investing activities was $1,417.5 million in fiscal
2011 compared with $250.1 million in fiscal 2010. Net cash used in investing activities in fiscal 2011 was due to
$1,082.6 million of cash paid for acquired businesses, $311.3 million of property, plant and equipment additions,
$13.6 million of capitalized software additions and $10.0 million of cash paid for a cost-method investment. Net
cash used in investing activities in fiscal 2010 was due to $189.9 million of property, plant and equipment additions,
$52.1 million of cash paid for acquired businesses and $8.1 million of capitalized software additions. The increase
in capital expenditures in fiscal 2011 compared with fiscal 2010 is primarily due to the build-out of our Cyber
Integration Center and our new RF Communications manufacturing facility. Our total capital expenditures, including
capitalized software, in fiscal 2012 are expected to be between $265 million and $285 million.
Net cash provided by (used in) financing activities: Our net cash provided by financing activities was
$492.8 million in fiscal 2011 compared with net cash used in financing activities of $380.9 million in fiscal 2010.
Net cash provided by financing activities in fiscal 2011 was due to $851.4 million of net proceeds from borrowings
and $24.5 million of proceeds from the exercise of employee stock options, partially offset by $256.1 million used
to repurchase shares of our common stock and $127.0 million used to pay cash dividends. Net cash used in
financing activities in fiscal 2010 was due to $208.0 million used to repurchase shares of our common stock,
$115.0 million used to pay cash dividends and $76.8 million used for repayment of borrowings, partially offset by
$18.9 million of proceeds from the exercise of employee stock options.
Common Stock Repurchases
During fiscal 2011, we used $250.0 million to repurchase 5,325,690 shares of our common stock under our
repurchase program at an average price per share of $46.94, including commissions. During fiscal 2010, we used
$199.9 million to repurchase 4,779,411 shares of our common stock under our repurchase program at an average
price per share of $41.83, including commissions. In fiscal 2011 and fiscal 2010, $6.1 million and $6.7 million,
respectively, in shares of our common stock were delivered to us or withheld by us to satisfy withholding taxes on
employee share-based awards. In fiscal 2010, we used $1.4 million to repurchase 29,760 shares of our common
stock from our Rabbi Trust. Shares repurchased by us are cancelled and retired.
On July 30, 2011, our Board of Directors approved the $1 billion New Repurchase Program. The New
Repurchase Program replaced our previous share repurchase authorization under the 2009 Repurchase Program,
which had a remaining, unused authorization of approximately $200 million at July 1, 2011. The New Repurchase
Program does not have a stated expiration date. We currently expect to repurchase up to $500 million in shares
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