harris corporation

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Pro Forma Results (Unaudited)
The following summary, prepared on a pro forma basis, presents our unaudited consolidated results of
operations as if the acquisitions of CapRock and Schlumberger GCS had been completed as of the beginning of
fiscal 2010, after including in fiscal 2010 integration and other costs associated with these acquisitions, and after
including the impact of adjustments such as amortization of intangible assets and interest expense on related
borrowings and, in each case, the related income tax effects. This pro forma presentation does not include any
impact of transaction synergies. In the following table, “income from continuing operations” refers to income from
continuing operations attributable to Harris Corporation common shareholders.
2011 2010
(In millions, except per
share amounts)
Revenue from product sales and services — as reported ..................... $5,924.6 $5,206.1
Revenue from product sales and services — pro forma ...................... $6,082.4 $5,750.8
Income from continuing operations — as reported. ......................... $ 588.0 $ 561.6
Income from continuing operations — pro forma .......................... $ 595.8 $ 539.3
Income from continuing operations per diluted common share — as reported ...... $ 4.60 $ 4.28
Income from continuing operations per diluted common share — pro forma ...... $ 4.66 $ 4.11
The pro forma results are not necessarily indicative of our results of operations had we owned CapRock and
Schlumberger GCS for the entire periods presented.
During fiscal 2009 we made the following significant acquisition:
• Acquisition of Tyco Electronics Wireless Systems Business. On May 29, 2009, we acquired substantially all of the
assets of the Tyco Electronics wireless systems business (“Wireless Systems”) (formerly known as M/A-COM), an
established provider of mission-critical wireless communications systems for law enforcement, fire and rescue,
public service, utility and transportation markets. In connection with the acquisition, we assumed liabilities
primarily related to Wireless Systems. We did not assume the State of New York wireless network contract
awarded to Wireless Systems in December 2004. The total purchase price for Wireless Systems was
$674.9 million. We report Wireless Systems, which we now call Public Safety and Professional Communications,
within our RF Communications segment. We believe the acquisition created a powerful supplier of end-to-end
wireless network solutions to the global land mobile radio systems market.
The goodwill resulting from all the above acquisitions was associated primarily with the acquired companies’
market presence and leading positions, growth opportunities in the markets in which the acquired companies
operated, experienced work forces and established operating infrastructures. The goodwill related to the
Schlumberger GCS and Wireless Systems acquisitions is deductible for tax purposes, the goodwill related to the
Carefx acquisition is nondeductible for tax purposes, and most of the goodwill related to the CapRock acquisition is
nondeductible for tax purposes.
NOTE 5: RECEIVABLES
Receivables are summarized below:
2011 2010
(In millions)
Accounts receivable. .................................................. $703.4 $613.0
Unbilled costs on cost-plus contracts ...................................... 138.5 125.1
Notes receivable due within one year, net. .................................. 6.5 7.9
848.4 746.0
Less allowances for collection losses ...................................... (11.9) (10.0)
$836.5 $736.0
We expect to bill substantially all unbilled costs outstanding on cost-plus contracts at July 1, 2011 during fiscal
2012.
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