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).
