harris corporation
harris corporation harris corporation
CONSOLIDATED BALANCE SHEET July 1, July 2, 2011 2010 (In millions, except shares) Assets Current Assets Cash and cash equivalents ................................................ $ 366.9 $ 455.2 Receivables .......................................................... 836.5 736.0 Inventories ........................................................... 720.8 615.3 Income taxes receivable ................................................. 57.3 15.3 Current deferred income taxes ............................................. 171.0 145.3 Other current assets .................................................... 64.3 37.5 Total current assets ................................................. Non-current Assets 2,216.8 2,004.6 Property, plant and equipment ............................................. 872.8 609.7 Goodwill ............................................................ 2,381.4 1,576.2 Intangible assets ....................................................... 502.4 297.8 Non-current deferred income taxes . . . ...................................... 5.7 107.7 Other non-current assets ................................................. 193.7 147.6 Total non-current assets .............................................. 3,956.0 2,739.0 Liabilities and Equity Current Liabilities $6,172.8 $4,743.6 Short-term debt. ....................................................... $ 180.0 $ 30.0 Accounts payable ...................................................... 450.8 329.4 Compensation and benefits ............................................... 266.2 239.7 Other accrued items .................................................... 295.8 267.5 Advance payments and unearned income ..................................... 232.8 175.6 Income taxes payable ................................................... — 8.9 Current portion of long-term debt .......................................... 4.9 0.7 Total current liabilities ............................................... Non-current Liabilities 1,430.5 1,051.8 Long-term debt ........................................................ 1,887.2 1,176.6 Long-term contract liability ............................................... 120.9 132.4 Other long-term liabilities ................................................ 222.2 192.7 Total non-current liabilities ........................................... Equity Shareholders’ Equity: 2,230.3 1,501.7 Preferred stock, without par value; 1,000,000 shares authorized; none issued .......... Common stock, $1.00 par value; 500,000,000 shares authorized; issued and outstanding — — 123,118,804 shares at July 1, 2011 and 127,460,307 shares at July 2, 2010 .......... 123.1 127.5 Other capital .......................................................... 471.2 461.1 Retained earnings ...................................................... 1,889.0 1,621.4 Accumulated other comprehensive income (loss) ............................... 18.7 (20.4) Total shareholders’ equity ............................................ 2,502.0 2,189.6 Noncontrolling interests ................................................... 10.0 0.5 Total equity ....................................................... 2,512.0 2,190.1 $6,172.8 $4,743.6 See accompanying Notes to Consolidated Financial Statements. 63
CONSOLIDATED STATEMENT OF CASH FLOWS 2011 Fiscal Years Ended 2010 (In millions) 2009 Operating Activities Net income (loss) ............................................... Adjustments to reconcile net income (loss) to net cash provided by operating activities: $ 587.1 $ 561.6 $(124.6) Depreciation and amortization .................................... 212.0 165.7 177.7 Purchased in-process research and development write-off ................ — — 7.0 Share-based compensation. ...................................... 46.1 35.3 41.9 Non-current deferred income taxes ................................ 37.1 (6.5) (47.2) Impairment of securities available-for-sale ........................... — — 7.6 Impairment of goodwill and other long-lived assets .................... — — 556.5 Loss on disposition of discontinued operations. ....................... (Increase) decrease in: — — 62.6 Accounts and notes receivable .................................. (42.9) 40.0 32.7 Inventories ................................................ Increase (decrease) in: (64.7) (13.9) (68.3) Accounts payable and accrued expenses. .......................... 90.5 (51.8) 72.1 Advance payments and unearned income .......................... 47.6 53.0 (17.2) Income taxes. .............................................. (64.6) 0.8 (41.3) Other ...................................................... (15.1) 18.5 7.3 Net cash provided by operating activities ............................... Investing Activities 833.1 802.7 666.8 Cash paid for acquired businesses ................................... (1,082.6) (52.1) (745.3) Cash paid for cost-method investment ................................ (10.0) — — Additions of property, plant and equipment ............................ (311.3) (189.9) (108.9) Additions of capitalized software ................................... (13.6) (8.1) (12.9) Cash paid for short-term investments available-for-sale ................... — — (1.2) Proceeds from the sale of short-term investments available-for-sale . . . ....... — — 3.7 Net cash used in investing activities ................................... Financing Activities (1,417.5) (250.1) (864.6) Proceeds from borrowings ........................................ 852.1 — 531.8 Repayments of borrowings ........................................ (0.7) (76.8) (81.4) Proceeds from exercise of employee stock options. ...................... 24.5 18.9 5.6 Repurchases of common stock ..................................... (256.1) (208.0) (132.3) Cash dividends ................................................. (127.0) (115.0) (106.6) Cash decrease related to spin-off of Harris Stratex Networks, Inc. ........... — — (100.0) 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 ............................... Supplemental disclosure of non-cash investing and financing activities: Distribution of Harris Stratex Networks, Inc. common stock owned by $ 366.9 $ 455.2 $ 281.2 Harris Corporation to Harris Corporation shareholders .............. $ — $ — $173.1 See accompanying Notes to Consolidated Financial Statements. 64
- Page 27 and 28: We are a major developer, supplier
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- Page 31 and 32: in fiscal 2011, $721 million in fis
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- Page 41 and 42: ITEM 2. PROPERTIES. Our principal e
- Page 43 and 44: Norfolk County Retirement System on
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- Page 111 and 112: ITEM 9. CHANGES IN AND DISAGREEMENT
- Page 113 and 114: ITEM 12. SECURITY OWNERSHIP OF CERT
- Page 115 and 116: (3)(a) Restated Certificate of Inco
- Page 117 and 118: Company’s Quarterly Report on For
- Page 119 and 120: *(10)(g)(i) Harris Corporation 1997
- Page 121 and 122: *(10)(y) Harris Corporation Annual
- Page 123 and 124: SCHEDULE II — VALUATION AND QUALI
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CONSOLIDATED STATEMENT OF CASH FLOWS<br />
2011<br />
Fiscal Years Ended<br />
2010<br />
(In millions)<br />
2009<br />
Operating Activities<br />
Net income (loss) ...............................................<br />
Adjustments to reconcile net income (loss) to net cash provided by operating<br />
activities:<br />
$ 587.1 $ 561.6 $(124.6)<br />
Depreciation and amortization .................................... 212.0 165.7 177.7<br />
Purchased in-process research and development write-off ................ — — 7.0<br />
Share-based compensation. ...................................... 46.1 35.3 41.9<br />
Non-current deferred income taxes ................................ 37.1 (6.5) (47.2)<br />
Impairment of securities available-for-sale ........................... — — 7.6<br />
Impairment of goodwill and other long-lived assets .................... — — 556.5<br />
Loss on disposition of discontinued operations. .......................<br />
(Increase) decrease in:<br />
— — 62.6<br />
Accounts and notes receivable .................................. (42.9) 40.0 32.7<br />
Inventories ................................................<br />
Increase (decrease) in:<br />
(64.7) (13.9) (68.3)<br />
Accounts payable and accrued expenses. .......................... 90.5 (51.8) 72.1<br />
Advance payments and unearned income .......................... 47.6 53.0 (17.2)<br />
Income taxes. .............................................. (64.6) 0.8 (41.3)<br />
Other ...................................................... (15.1) 18.5 7.3<br />
Net cash provided by operating activities ...............................<br />
Investing Activities<br />
833.1 802.7 666.8<br />
Cash paid for acquired businesses ................................... (1,082.6) (52.1) (745.3)<br />
Cash paid for cost-method investment ................................ (10.0) — —<br />
Additions of property, plant and equipment ............................ (311.3) (189.9) (108.9)<br />
Additions of capitalized software ................................... (13.6) (8.1) (12.9)<br />
Cash paid for short-term investments available-for-sale ................... — — (1.2)<br />
Proceeds from the sale of short-term investments available-for-sale . . . ....... — — 3.7<br />
Net cash used in investing activities ...................................<br />
Financing Activities<br />
(1,417.5) (250.1) (864.6)<br />
Proceeds from borrowings ........................................ 852.1 — 531.8<br />
Repayments of borrowings ........................................ (0.7) (76.8) (81.4)<br />
Proceeds from exercise of employee stock options. ...................... 24.5 18.9 5.6<br />
Repurchases of common stock ..................................... (256.1) (208.0) (132.3)<br />
Cash dividends ................................................. (127.0) (115.0) (106.6)<br />
Cash decrease related to spin-off of Harris Stratex Networks, Inc. ........... — — (100.0)<br />
Net cash provided by (used in) financing activities ........................ 492.8 (380.9) 117.1<br />
Effect of exchange rate changes on cash and cash equivalents ................ 3.3 2.3 (8.1)<br />
Net increase (decrease) in cash and cash equivalents ..................... (88.3) 174.0 (88.8)<br />
Cash and cash equivalents, beginning of year .......................... 455.2 281.2 370.0<br />
Cash and cash equivalents, end of year ...............................<br />
Supplemental disclosure of non-cash investing and financing activities:<br />
Distribution of Harris Stratex Networks, Inc. common stock owned by<br />
$ 366.9 $ 455.2 $ 281.2<br />
Harris Corporation to Harris Corporation shareholders .............. $ — $ — $173.1<br />
See accompanying Notes to Consolidated Financial Statements.<br />
64
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