L3Harris (LHX) 11-K Annual report of employee stock purchases

TABLE OF CONTENTS

INDEPENDENT AUDITOR’S REPORT
Financial Statements
	Statements of Net Assets Available for Benefits
	Statement of Changes in Net Assets Available for Benefits With Fund Information
	Notes to Financial Statements

SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 11-K

(Mark One)

[X]  ANNUAL REPORT PURSUANT TO SECTION 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended June 30, 1999

OR

[   ]     TRANSITION REPORT PURSUANT TO SECTION 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _______ to _______

Commission file number 1-3863

      A. Full title of the plan and the address of the plan, if different from that of the issuer named below:

Harris Corporation Retirement Plan

      B. Name of issuer of the securities held pursuant to the plan and the address of its principal executive office:

Harris Corporation
1025 W. NASA Blvd.
Melbourne, Florida 32919

HARRIS CORPORATION
RETIREMENT PLAN

Financial Statements

June 30, 1999

HARRIS CORPORATION RETIREMENT PLAN

Table of Contents
June 30, 1999

		Page
Independent Auditor’s Report			1
Financial Statements:
	Statements of Net Assets Available for Benefits		3
	Statement of Changes in Net Assets Available for Benefits With Fund Information		4-5
	Notes to Financial Statements		6-11

INDEPENDENT AUDITOR’S REPORT

Investment Committee
Harris Corporation Retirement Plan
Melbourne, Florida

      We have audited the accompanying statements of net assets available for benefits of the Harris Corporation Retirement Plan (the “Plan”) as of June 30, 1999 and 1998, and the related statement of changes in net assets available for benefits with fund information for the year ended June 30, 1999. These financial statements are the responsibility of the Plan’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

      We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

      In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for benefits of the Plan at June 30, 1999 and 1998, and the changes in its net assets available for benefits for the year ended June 30, 1999, in conformity with generally accepted accounting principles.

Bray, Beck & Koetter
Melbourne, Florida
November 23, 1999

Financial Statements

2

HARRIS CORPORATION RETIREMENT PLAN

Statements of Net Assets Available for Benefits
June 30, 1999 and 1998

			1999		1998
ASSETS
Investments, at fair value (Note 4):
	Plan interest in Harris Corporation Master Trust		$	2,523,521,342	$	2,238,332,501
	Participant loans			32,387,655		34,819,599
		Total investments		2,555,908,997		2,273,152,100
Receivables:
	Contributions receivable:
		Harris Corporation		22,332,310		29,795,876
		Participants		3,500,786		3,922,511
	Loan payments			1,439,907		1,613,953
	Accrued interest and dividends			5,430,158		5,437,988
	Securities sold			17,887,431		17,835,383
		Total receivables		50,590,592		58,605,711
Cash and cash equivalents (Note 3)				55,450,282		76,897,460
		Total assets		2,661,949,871		2,408,655,271
LIABILITIES
Accounts payable				7,648,413		5,859,595
Accrued expenses				2,464,626		1,952,000
Securities purchased				16,032,636		8,002,613
Outstanding options				1,003,807		3,678,574
		Total liabilities		27,149,482		19,492,782
Net assets available for benefits			$	2,634,800,389	$	2,389,162,489

      See accompanying notes to financial statements.

3

HARRIS CORPORATION RETIREMENT PLAN

Statement of Changes in Net Assets Available for Benefits With Fund Information
Year Ended June 30, 1999

								Money		Equity
			Balanced			Short-Term		Market		Income
			Fund			Bond Fund		Fund		Fund
Increases:
	Plan interest in Harris Corporation
		Master Trust investment income	$	124,575,589		$	4,894,737	$	1,912,298	$	41,963,500
	Interest income			—			—		—		—
	Contributions:
		Participant rollover		551,249			140,142		95,043		262,969
		Employer profit sharing		5,204,318			1,076,031		439,608		3,440,780
		Employer matching		4,957,256			1,407,218		418,813		4,824,628
		Employee		9,393,483			1,990,421		759,481		8,821,033
				144,681,895			9,508,549		3,625,243		59,312,910
Net transfers (to) from Harris Corporation
	Union Retirement Plan			(3,478,964	)		307,754		2,477,629		(15,636,847	)
Net participants’ transfers between funds				(83,333,295	)		3,547,754		22,084,208		(120,001,609	)
Decreases:
	Benefits paid directly to participants			53,315,937			7,103,812		11,497,286		22,180,638
	Administrative expenses			3,148,706			283,346		102,468		1,585,328
				56,464,643			7,387,158		11,599,754		23,765,966
Net increase (decrease) in net assets available for benefits				1,404,993			5,976,899		16,587,326		(100,091,512	)
Net assets available for benefits:
	Beginning of year			938,618,296			90,354,545		25,798,954		434,318,728
	End of year		$	940,023,289		$	96,331,444	$	42,386,280	$	334,227,216

See accompanying notes to financial statements.

4

			Equity		Stable					Harris
			Index		Value			Growth		Corporation
			Fund		Fund			Fund		Stock Fund
Increases:
	Plan interest in Harris Corporation Master Trust investment income		$	81,627,868	$	19,922,091		$	47,134,261	$	(1,916,761	)
	Interest income			—		—			—		—
	Contributions:
		Participant rollover		789,678		240,818			547,561		—
		Employer profit sharing		4,655,154		1,865,278			3,637,636		—
		Employer matching		5,437,443		2,294,081			3,774,157		5,075,027
		Employee		10,455,255		3,702,101			7,638,262		2,968,851
				102,965,398		28,024,369			62,731,877		6,127,117
Net transfers (to) from Harris Corporation
	Union Retirement Plan			8,621,709		(1,722,634	)		9,215,929		65,086
Net participants’ transfers between funds				16,991,058		115,786,580			44,438,285		(1,088,382	)
Decreases:
	Benefits paid directly to participants			23,472,461		29,446,986			13,928,749		1,669,712
	Administrative expenses			1,188,013		493,529			874,460		1,271
				24,660,474		29,940,515			14,803,209		1,670,983
Net increase (decrease) in net assets available for benefits				103,917,691		112,147,800			101,582,882		3,432,838
Net assets available for benefits:
	Beginning of year			376,368,823		261,718,937			187,115,349		32,602,895
	End of year		$	480,286,514	$	373,866,737		$	288,698,231	$	36,035,733

[Additional columns below]

[Continued from above table, first column(s) repeated]

			International			Loan
			Fund			Fund			Total
Increases:
	Plan interest in Harris Corporation Master Trust investment income		$	(270,408	)	$	—		$	319,843,175
	Interest income			—			1,496,623			1,496,623
	Contributions:
		Participant rollover		52,085			—			2,679,545
		Employer profit sharing		139,257			—			20,458,062
		Employer matching		150,451			—			28,339,074
		Employee		358,516			—			46,087,403
				429,901			1,496,623			418,903,882
Net transfers (to) from Harris Corporation
	Union Retirement Plan			262,069			93,942			205,673
Net participants’ transfers between funds				2,746,646			(1,171,245	)		—
Decreases:
	Benefits paid directly to participants			320,904			2,851,264			165,787,749
	Administrative expenses			6,785			—			7,683,906
				327,689			2,851,264			173,471,655
Net increase (decrease) in net assets available for benefits				3,110,927			(2,431,944	)		245,637,900
Net assets available for benefits:
	Beginning of year			7,446,363			34,819,599			2,389,162,489
	End of year		$	10,557,290		$	32,387,655		$	2,634,800,389

5

HARRIS CORPORATION RETIREMENT PLAN

Notes to Financial Statements
June 30, 1999 and 1998

1. Description of the Plan

The following description of the Harris Corporation Retirement Plan (“Plan”) provides only general information. Participants should refer to the Plan document for a more complete description of the Plan’s provisions.

      General

The Harris Corporation Retirement Plan is a defined contribution plan covering substantially all domestic employees of Harris Corporation who are not covered by a collective bargaining agreement. It is subject to the provisions of the Employee Retirement Income Security Act of 1974 (ERISA).

      Contributions

The Harris Corporation Retirement Plan and the Harris Corporation Union Retirement Plan share a common Profit-Sharing Program and Deferred Income Savings Program. The Corporation’s annual contribution to the Profit-Sharing Program is equal to 11.5% of the Corporation’s adjusted and consolidated net income as defined under the plan documents, plus any discretionary amount determined by the Board of Directors of the Corporation. The Profit-Sharing contribution is allocated, in the subsequent Plan year, among participating employees’ individual account balances based on eligible compensation. The Deferred Income Savings Program was designed to take advantage of Internal Revenue Code Section 401(k). Under the Deferred Income Savings Program, participants may contribute up to 12% of their regular eligible compensation to the Plan in 1% increments. The contributions can be in pre-tax or after-tax dollars at the participant’s election. The employer contributes a matching amount equal to 100% of the participant’s contributions, to a maximum of 6.857% of eligible compensation. Participants are eligible to make elective contributions on a pre-tax or after-tax basis during the first year of service. Participants become eligible to receive allocations under the Profit- Sharing Program and matching contributions under the Deferred Income Savings Program after completing one year of credited service.

      Payments of Benefits

Distributions from the Plan can be made in the event of death, disability, termination of employment or financial hardship.

      Participant Loans

The loan program permits employees to borrow against their 401(k) plan contributions. Employees may borrow in increments of $100 from a minimum of $500 to a maximum of $50,000, within certain limitations established by the Plans. Payback periods range from one to 4 1/2 years at the option of the participant. Interest rates are established by the Corporation based on market rates. The outstanding loans have been established as a separate fund. Principal and interest paid on the loans are allocated to the funds consistent with the allocation of their 401(k) plan contributions.

6

HARRIS CORPORATION RETIREMENT PLAN
Notes to Financial Statements
June 30, 1999 and 1998

1.   Description of the Plan, continued

      Vesting

A participant’s right to profit-sharing funds and employer matched deferred income contributions becomes vested using a formula based upon service, with 30% vesting after three years of credited service, an additional 10% vesting for the fourth year, and an additional 20% vesting for each of the three following years of credited service. At the time of retirement, death, or termination of employment, a participant’s vested share of the Plan’s assets, net of any participant loans outstanding, becomes distributable in a lump-sum payment or through installments over a period of time as requested by the participant and approved by the Corporate Administrative Committee.

      Forfeitures

A participant who terminates employment for reasons other than retirement or other specified circumstances and is not 100% vested, will forfeit the non-vested portion of the Corporation’s contributions unless the participant returns to employment within five years. The forfeited contributions reduce the cash contributions from the Corporation. For the year ended June 30, 1999, employer contributions were reduced by $3,742,398 from forfeited nonvested accounts.

      Plan Termination

Although it has not expressed any intent to do so, Harris Corporation has the right under the Plan to discontinue its contributions at any time and to terminate the Plan subject to the provisions of ERISA. In the event of Plan termination participants will become 100 percent vested in their accounts.

      Investment Options

Upon enrollment into the Plan, a participant may direct employer, employee, and profit sharing contributions in any of nine investment options, except that profit sharing contributions may not be invested in the Harris Stock Fund. The investment options are fully described in the “Employer Summary Plan Description”. Elections to change funds can be made daily; however, amounts in the Stable Value Fund, which is comprised of unallocated insurance contracts, cannot be transferred directly to the Short-Term Bond Fund or the Money Market Fund.

2.   Summary of Significant Accounting Policies

      Basis of Accounting

The accounting records of the Plan are maintained on the accrual basis.

      Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires the plan administrator to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results may differ from those estimates.

7

HARRIS CORPORATION RETIREMENT PLAN
Notes to Financial Statements
June 30, 1999 and 1998

2.   Summary of Significant Accounting Policies, continued

      Investment Valuation and Income Recognition

The fair value of the Plan’s interest in the Harris Corporation Master Trust (the “Master Trust”) is based on the beginning of year value of the Plan’s interest in the trust plus actual contributions and allocated investment income less actual distributions and allocated administrative expenses. Quoted market prices are used when available, to value investments in the Master Trust. Investments for which a quoted market value is not available are stated at fair values reported by the trustee or investee company. Investments in unallocated insurance contracts are stated at contract value. Participant loans are stated at cost.

Purchases and sales of securities are recorded on a trade-date basis. Interest income is recorded on the accrual basis. Dividends are recorded on the ex-dividend date. The net appreciation (depreciation) in fair value of investments represents the sum of the unrealized appreciation or depreciation in aggregate fair value of investments and the realized gain or loss on sale of investments.

      Administrative Expenses

Unless otherwise elected by Harris Corporation, all ordinary and extraordinary charges and expenses incurred by the Trustee in connection with the administration of the Plan are paid by the Trustee from the assets of the Master Trust.

      Payment of Benefits

Benefits are recorded when paid.

3.   Transactions with Parties-in-Interest

Under Department of Labor regulations for reporting and disclosure, an employee benefit plan is required to report investment transactions and compensation paid to a “party-in-interest”.

The term “party-in-interest” is broadly defined but would include Harris Corporation as the Plan Sponsor; Bankers Trust Company as Trustee; and any person or corporation that renders services to the Plan.

Investments of the Master Trust at June 30 include the following:

	1999				1998
	Shares		Fair Value		Shares		Fair Value
BT Pyramid Broad Market Fixed Income Fund		107,258,171	$	231,708,754		97,182,986	$	203,471,047
BT Pyramid Equity Index Fund		197,986		649,181,888		198,897		531,147,396
Bankers Trust Company common stock		—		—		27,800		3,226,551
Harris Corporation common stock		942,183		36,921,796		693,016		30,969,499

8

HARRIS CORPORATION RETIREMENT PLAN
Notes to Financial Statements
June 30, 1999 and 1998

3.   Transactions with Parties-in-Interest, continued

      Cash and cash equivalents at June 30 includes (but is not limited to) the following:

	1999				1998
	Shares		Fair Value		Shares		Fair Value
BT Pyramid Directed Account Cash Fund		36,377,091	$	36,377,091		38,642,181	$	38,642,181

4.   Interest in Harris Corporation Master Trust

The Harris Corporation Master Trust was established for the investment of assets of the Plan and the Harris Corporation Union Retirement Plan. Each participating retirement plan has an undivided interest in the Master Trust. The assets of the Master Trust are held by Bankers Trust Company (Trustee). At June 30, 1999 and 1998, the Plan’s interest in the net assets of the Master Trust was approximately 96.94% and 96.97%, respectively. Investment income and administrative expenses relating to the Master Trust are allocated to the individual plans based upon average daily balances invested by each plan.

      Investments of the Master Trust are as follows:

				1999		1998
Fair value as determined by quoted market prices:
	U.S. government securities			$	145,430,356	$	136,991,415
	Corporate debt securities				118,559,105		119,443,881
	Foreign debt securities				3,426,807		8,105,656
	Corporate equity securities				963,401,968		891,181,774
	Morgan Stanley International Magnum Fund				76,388,635		73,003,976
	Putnam New Opportunities Fund				56,766,848		82,309,171
					1,363,973,719		1,311,035,873
	Fair value as determined by investee company:
	BT Pyramid Broad Market Fixed Income Fund				231,708,754		203,471,047
	BT Pyramid Equity Index Fund				649,181,888		531,147,396
					880,890,642		734,618,443
		Contract value:
			Unallocated insurance contracts		358,207,264		261,412,879
	Totals ­ Master Trust			$	2,603,071,625	$	2,307,067,195
	Plan interest in Master Trust			$	2,523,521,342	$	2,238,332,501

9

HARRIS CORPORATION RETIREMENT PLAN
Notes to Financial Statements
June 30, 1999 and 1998

4.   Interest in Harris Corporation Master Trust, continued

      Investment income of the Master Trust for the year ended June 30, 1999 is as follows:

Net appreciation (depreciation) in fair value as determined by quoted market price:
	U.S. government securities	$	(2,980,701	)
	Corporate debt securities		(987,949	)
	Foreign debt securities		(243,118	)
	Corporate equity securities		149,962,397
	Morgan Stanley International Magnum Fund		(3,198,259	)
	Putnam New Opportunities Fund		8,723,770
			151,276,140
Net appreciation (depreciation) in fair value as determined by investee company:
	BT Pyramid Broad Market Fixed Income Fund		4,367,131
	BT Pyramid Equity Index Fund		114,958,006
			119,325,137
Interest and dividends			59,087,752
Totals — Master Trust		$	329,689,029
Plan interest in Master Trust		$	319,843,175

5.   Tax Status

The Plan obtained its latest determination letter on August 18, 1998, in which the Internal Revenue Service stated that the Plan, as then designed, was in compliance with the applicable requirements of the Internal Revenue Code. The Plan administrator believes that the Plan currently is designed and being operated in compliance with the applicable requirements of the Internal Revenue Code and that, therefore, the Plan qualifies under Section 401(a) and the related trust is tax-exempt as of June 30, 1999. Therefore, no provision for income taxes has been included in the Plan’s financial statements.

6.   Year 2000 Issues (Unaudited)

      Certain software and hardware systems are time-sensitive. Older time-sensitive systems often use a two-digit dating convention (e.g. “00” rather than “2000”) that could result in system failure and disruption of operations as the year 2000 approaches. The Year 2000 problem will impact the Plan Sponsor, the trustee, recordkeeper, and investment managers, as well as their vendors and suppliers. Harris Corporation (“Company”) has determined its needs to replace or modify several of its software systems. The Company has identified exposure in various operating and business systems including financial and administrative functions. The Company has also initiated communications with suppliers and other relevant third parties to identify and minimize disruptions to the Company’s operations and to assist in resolving Year 2000 issues. However, there can be no certainty that the systems and products of other companies on which the Company and Plan relies will not have an adverse effect on the Company’s or Plan’s operations.

10

HARRIS CORPORATION RETIREMENT PLAN
Notes to Financial Statements
June 30, 1999 and 1998

7.   Subsequent Events

      Semiconductor business sale

In August 1999, Harris Corporation sold its Semiconductor business to Intersil Corporation. Substantially all employees of Harris Semiconductor were offered positions with Intersil. In October 1999 approximately $308 million, representing the value of the Harris Semiconductor employees’ participant accounts, was transferred from the Master Trust to T. Rowe Price, the Intersil Plan’s trustee, custodian, and recordkeeper. Intersil also became the plan sponsor of the Harris Corporation Union Retirement Plan effective with the sale. The assets of the Union plan, approximately $85 million, were also transferred to T. Rowe Price in October 1999.

      Lanier Worldwide, Inc. stock dividend

On November 5, 1999 Harris Corporation distributed one share of Lanier Worldwide, Inc. common stock for each share of Harris Corporation common stock owned to shareholders of record on November 1, 1999. Lanier Worldwide, Inc. common stock distributed to the Plan’s Harris Corporation Stock Fund was immediately sold with the proceeds of the sale used to purchase additional shares of Harris Corporation common stock.

11

SIGNATURES

      The Plan. Pursuant to the requirements of the Securities Exchange Act of 1934, the trustees (or other persons who administer the employee benefit plan) have duly caused this annual report to be signed on their behalf by the undersigned hereunto duly authorized.

Harris Corporation Retirement Plan

/s/ Jeffrey Pratt Morrill
Jeffrey Pratt Morrill
Plan Administrator

      Date: December 22, 1999