harris corporation

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
NOTE 6: INVENTORIES
Inventories are summarized below:
2011 2010
(In millions)
Unbilled costs and accrued earnings on fixed-price contracts .................... $381.0 $295.3
Finished products .................................................... 137.2 134.6
Work in process ..................................................... 60.1 59.7
Raw materials and supplies ............................................. 142.5 125.7
$720.8 $615.3
Unbilled costs and accrued earnings on fixed-price contracts are net of progress payments of $85.1 million at
July 1, 2011 and $35.8 million at July 2, 2010.
NOTE 7: PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment are summarized below:
2011 2010
(In millions)
Land . .......................................................... $ 14.6 $ 13.1
Software capitalized for internal use .................................... 121.0 85.7
Buildings. ....................................................... 493.4 396.6
Machinery and equipment ........................................... 1,087.4 860.2
1,716.4 1,355.6
Less allowances for depreciation and amortization ......................... (843.6) (745.9)
$ 872.8 $ 609.7
Depreciation and amortization expense related to property, plant and equipment was $135.4 million,
$110.0 million and $93.5 million in fiscal 2011, 2010 and 2009, respectively.
NOTE 8: GOODWILL
We test goodwill and other indefinite-lived intangible assets at least annually for impairment. See Note 3:
Discontinued Operations for information regarding impairment of HSTX’s goodwill and its other indefinite-lived
intangible assets recorded in fiscal 2009. See Note 22: Impairment of Goodwill and Other Long-Lived Assets for
information regarding impairment of our Broadcast and New Media Solutions reporting unit’s goodwill recorded in
fiscal 2009.
As discussed further in Note 25: Business Segments in these Notes, effective for the third quarter of fiscal 2011,
we changed our operating segment reporting structure, which also changed certain identified reporting units. As a
result of these changes, we reallocated goodwill to the affected reporting units using the relative fair value approach,
which resulted in changes in the goodwill balances by business segment at July 3, 2009 and at July 2, 2010 as
presented below from amounts previously reported.
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