EX-99.1 2 d344334dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

Table 1

HARRIS CORPORATION

First Quarter, Second Quarter, Third Quarter and First Three Quarters of Fiscal 2012

PRO FORMA HISTORICAL RESULTS OF OPERATIONS — REVISED FOR DISCONTINUED OPERATIONS

(Unaudited)

 

      Quarter Ended    

Three
Quarters

Ended

 
      September 30,
2011
    December 30,
2011
    March 30,
2012
    March 30,
2012
 
     (In millions, except per share amounts)  

Revenue

        

RF Communications

   $ 497.1      $ 525.7      $ 537.7      $ 1,560.5   

Integrated Network Solutions

     418.6        385.4        388.2        1,192.2   

Government Communications Systems

     443.7        422.4        470.5        1,336.6   

Corporate eliminations

     (23.3     (23.3     (27.6     (74.2
  

 

 

   

 

 

   

 

 

   

 

 

 
   $ 1,336.1      $ 1,310.2      $ 1,368.8      $ 4,015.1   
  

 

 

   

 

 

   

 

 

   

 

 

 
        

Income (Loss)

        

Segment Operating Income:

        

RF Communications

   $ 154.0      $ 172.4      $ 181.6      $ 508.0   

Integrated Network Solutions

     21.8        19.5        22.3        63.6   

Government Communications Systems

     63.1        62.9        64.1        190.1   

Unallocated corporate expense

     (18.6     (22.0     (18.6     (59.2

Corporate eliminations

     (1.5     (0.9     (2.4     (4.8

Non-operating income

     0.7        2.9        8.1        11.7   

Net interest expense

     (27.2     (28.9     (27.5     (83.6
  

 

 

   

 

 

   

 

 

   

 

 

 

Income from continuing operations before income taxes

     192.3        205.9        227.6        625.8   

Income taxes

     (61.7     (71.1     (73.2     (206.0
  

 

 

   

 

 

   

 

 

   

 

 

 

Income from continuing operations

     130.6        134.8        154.4        419.8   

Discontinued operations, net of income taxes

     (9.5     (2.5     (508.5     (520.5
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss)

     121.1        132.3        (354.1     (100.7

Noncontrolling interests, net of income taxes

     0.5        0.8        0.9        2.2   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss) attributable to Harris Corporation

   $ 121.6      $ 133.1      $ (353.2   $ (98.5
  

 

 

   

 

 

   

 

 

   

 

 

 
        

Net income (loss) per diluted common share attributable

to Harris Corporation common shareholders

        

Continuing operations

   $ 1.08      $ 1.19      $ 1.38      $ 3.66   

Discontinued operations

     (0.07     (0.03     (4.51     (4.51
  

 

 

   

 

 

   

 

 

   

 

 

 
   $ 1.01      $ 1.16      $ (3.13   $ (0.85
  

 

 

   

 

 

   

 

 

   

 

 

 


Table 2

HARRIS CORPORATION

Fiscal 2011

PRO FORMA HISTORICAL RESULTS OF OPERATIONS — REVISED FOR DISCONTINUED OPERATIONS

(Unaudited)

 

      Quarter Ended        
     October 1,
2010
    December 31,
2010
    April 1,
2011
    July 1,
2011
    Total Fiscal
2011
 
     (In millions, except per share amounts)  

Revenue

          

RF Communications

   $ 566.5      $ 544.7      $ 550.0      $ 628.0      $ 2,289.2   

Integrated Network Solutions

     326.8        366.5        332.8        419.2        1,445.3   

Government Communications Systems

     424.1        421.7        431.2        499.5        1,776.5   

Corporate eliminations

     (23.7     (20.9     (22.3     (25.7     (92.6
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
   $ 1,293.7      $ 1,312.0      $ 1,291.7      $ 1,521.0      $ 5,418.4   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
          

Income

          

Segment Operating Income:

          

RF Communications

   $ 228.5      $ 189.3      $ 178.5      $ 190.7      $ 787.0   

Integrated Network Solutions

     39.1        26.0        22.1        3.5        90.7   

Government Communications Systems

     44.6        59.4        59.8        63.2        227.0   

Unallocated corporate expense

     (25.7     (22.0     (19.8     (20.3     (87.8

Corporate eliminations

     (4.3     (4.1     (6.8     (6.7     (21.9

Non-operating loss

     (0.4     (0.9     (0.3     (0.3     (1.9

Net interest expense

     (17.6     (20.7     (25.8     (26.6     (90.7
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income from continuing operations before income taxes

     264.2        227.0        207.7        203.5        902.4   

Income taxes

     (92.7     (73.1     (68.7     (71.1     (305.6
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income from continuing operations

     171.5        153.9        139.0        132.4        596.8   

Discontinued operations, net of income taxes

     (7.6     (2.8     0.2        0.5        (9.7
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income

     163.9        151.1        139.2        132.9        587.1   

Noncontrolling interests, net of income taxes

     —          —          0.3        0.6        0.9   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income attributable to Harris Corporation

   $ 163.9      $ 151.1      $ 139.5      $ 133.5      $ 588.0   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
          

Net income (loss) per diluted common share attributable

to Harris Corporation common shareholders

          

Continuing operations

   $ 1.33      $ 1.20      $ 1.09      $ 1.05      $ 4.67   

Discontinued operations

     (0.06     (0.02     —          0.01        (0.07
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
   $ 1.27      $ 1.18      $ 1.09      $ 1.06      $ 4.60   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 


HARRIS CORPORATION

First Quarter, Second Quarter, Third Quarter and First Three Quarters of Fiscal 2012; Fiscal 2011

PRO FORMA HISTORICAL RESULTS OF OPERATIONS — REVISED FOR DISCONTINUED OPERATIONS

(UNAUDITED)

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

AND REGULATION G DISCLOSURE

To supplement Tables 1 and 2 presented in accordance with U.S. generally accepted accounting principles (GAAP), Tables 3 and 4 and the related notes set forth pro forma historical results of operations data and other financial information revised for discontinued operations, as adjusted to exclude certain costs, charges, expenses and losses. Harris management believes that these non-GAAP financial measures, when considered together with the GAAP financial measures, provide information that is useful to investors in understanding period-over-period operating results separate and apart from items that may, or could, have a disproportionately positive or negative impact on results in any particular period. Harris management also believes that these non-GAAP financial measures enhance the ability of investors to analyze Harris’ business trends and to understand Harris’ performance. In addition, Harris may utilize non-GAAP financial measures as a guide in its forecasting, budgeting, and long-term planning process and to measure operating performance for some management compensation purposes. Any analysis of non-GAAP financial measures should be used only in conjunction with results presented in accordance with GAAP. A reconciliation of these non-GAAP financial measures with the most directly comparable financial measures calculated in accordance with GAAP follows:


Table 3

HARRIS CORPORATION

First Quarter, Second Quarter, Third Quarter and First Three Quarters of Fiscal 2012 — Non-GAAP

PRO FORMA HISTORICAL RESULTS OF OPERATIONS — REVISED FOR DISCONTINUED OPERATIONS

(Unaudited)

 

      Quarter Ended    

Three
Quarters

Ended

 
      September 30,
2011
    December 30,
2011
    March 30,
2012
    March 30,
2012
 
     (In millions, except per share amounts)  

Revenue

        

RF Communications

   $ 497.1      $ 525.7      $ 537.7      $ 1,560.5   

Integrated Network Solutions

     418.6        385.4        388.2        1,192.2   

Government Communications Systems

     443.7        422.4        470.5        1,336.6   

Corporate eliminations

     (23.3     (23.3     (27.6     (74.2
  

 

 

   

 

 

   

 

 

   

 

 

 
   $ 1,336.1      $ 1,310.2      $ 1,368.8      $ 4,015.1   
  

 

 

   

 

 

   

 

 

   

 

 

 
        

Income

        

Segment Operating Income:

        

RF Communications

   $ 154.0      $ 172.4      $ 181.6      $ 508.0   

Integrated Network Solutions (A)

     31.4        29.2        33.4        94.0   

Government Communications Systems

     63.1        62.9        64.1        190.1   

Unallocated corporate expense

     (18.6     (22.0     (18.6     (59.2

Corporate eliminations

     (1.5     (0.9     (2.4     (4.8

Non-operating income

     0.7        2.9        8.1        11.7   

Net interest expense

     (27.2     (28.9     (27.5     (83.6
  

 

 

   

 

 

   

 

 

   

 

 

 

Income from continuing operations before income taxes

     201.9        215.6        238.7        656.2   

Income taxes (B)

     (64.3     (74.2     (76.7     (215.2
  

 

 

   

 

 

   

 

 

   

 

 

 

Income from continuing operations

     137.6        141.4        162.0        441.0   

Noncontrolling interests, net of income taxes

     0.5        0.8        0.9        2.2   
  

 

 

   

 

 

   

 

 

   

 

 

 

Income from continuing operations attributable to Harris Corporation

   $ 138.1      $ 142.2      $ 162.9      $ 443.2   
  

 

 

   

 

 

   

 

 

   

 

 

 
        

Income from continuing operations per diluted common share

attributable to Harris Corporation common shareholders

   $ 1.14      $ 1.24      $ 1.42      $ 3.79   


Table 4

HARRIS CORPORATION

Fiscal 2011 — Non-GAAP

PRO FORMA HISTORICAL RESULTS OF OPERATIONS — REVISED FOR DISCONTINUED OPERATIONS

(Unaudited)

 

     Quarter Ended        
     October 1,
2010
    December 31,
2010
    April 1,
2011
    July 1,
2011
    Total
Fiscal
2011
 
     (In millions, except per share amounts)  

Revenue

          

RF Communications

   $ 566.5      $ 544.7      $ 550.0      $ 628.0      $ 2,289.2   

Integrated Network Solutions

     326.8        366.5        332.8        419.2        1,445.3   

Government Communications Systems

     424.1        421.7        431.2        499.5        1,776.5   

Corporate eliminations

     (23.7     (20.9     (22.3     (25.7     (92.6
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
   $ 1,293.7      $ 1,312.0      $ 1,291.7      $ 1,521.0      $ 5,418.4   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
          

Income

          

Segment Operating Income:

          

RF Communications

   $ 228.5      $ 189.3      $ 178.5      $ 190.7      $ 787.0   

Integrated Network Solutions (C)

     41.1        30.2        32.9        33.1        137.3   

Government Communications Systems

     44.6        59.4        59.8        63.2        227.0   

Unallocated corporate expense

     (25.7     (22.0     (19.8     (20.3     (87.8

Corporate eliminations

     (4.3     (4.1     (6.8     (6.7     (21.9

Non-operating loss

     (0.4     (0.9     (0.3     (0.3     (1.9

Net interest expense

     (17.6     (20.7     (25.8     (26.6     (90.7
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income from continuing operations before income taxes

     266.2        231.2        218.5        233.1        949.0   

Income taxes (B)

     (93.2     (73.8     (70.4     (78.0     (315.4
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income from continuing operations

     173.0        157.4        148.1        155.1        633.6   

Noncontrolling interests, net of income taxes

     —          —          0.3        0.6        0.9   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income from continuing operations attributable to Harris Corporation

   $ 173.0      $ 157.4      $ 148.4      $ 155.7      $ 634.5   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
          

Income from continuing operations per diluted common share

attributable to Harris Corporation common shareholders

   $ 1.34      $ 1.22      $ 1.16      $ 1.23      $ 4.96   


HARRIS CORPORATION

First Quarter, Second Quarter, Third Quarter and First Three Quarters of Fiscal 2012; Fiscal 2011

PRO FORMA HISTORICAL RESULTS OF OPERATIONS — REVISED FOR DISCONTINUED OPERATIONS

(UNAUDITED)

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

Notes to tables 3 and 4:

Note A – Integrated Network Solutions segment non-GAAP operating income for the quarter ended September 30, 2011, the quarter ended December 30, 2011, the quarter ended March 30, 2012 and the three quarters ended March 30, 2012 excludes pre-tax charges related to integration and other costs associated with our acquisitions of CapRock Communications (“CapRock”) and the Global Connectivity Services business of the Schlumberger group (“Schlumberger GCS”) ($7.3 million, $9.7 million, $11.1 million and $28.1 million, respectively). Integrated Network Solutions segment non-GAAP operating income for the quarter ended September 30, 2011 and the three quarters ended March 30, 2012 excludes pre-tax charges related to integration and other costs associated with our acquisition of Carefx Corporation (“Carefx”) ($2.3 million and $2.3 million, respectively).

Note B – Adjustments to our income taxes are based on the applicable tax rate in the jurisdiction to which the item applies.

Note C – Integrated Network Solutions segment non-GAAP operating income for the quarter ended October 1, 2010, the quarter ended December 31, 2010, the quarter ended April 1, 2011, the quarter ended July 1, 2011 and total fiscal 2011 excludes pre-tax charges related to integration and other costs associated with our acquisitions of CapRock and Schlumberger GCS ($2.0 million, $4.2 million, $9.9 million, $27.3 million and $43.4 million, respectively). Integrated Network Solutions segment non-GAAP operating income for the quarter ended April 1, 2011 and total fiscal 2011 excludes pre-tax charges related to integration and other costs associated with our acquisition of the terrestrial network infrastructure assets of the government business of Core180, Inc. ($0.9 million and $0.9 million, respectively). Integrated Network Solutions segment non-GAAP operating income for the quarter ended July 1, 2011 and total fiscal 2011 excludes pre-tax charges related to integration and other costs associated with our acquisition of Carefx ($2.3 million and $2.3 million, respectively).