L3Harris (LHX) 10-Q 6 Nov 15 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Oct. 02, 2015	Nov. 04, 2015
Document and Entity Information [Abstract]
Entity Registrant Name	HARRIS CORP /DE/
Trading Symbol	HRS
Entity Central Index Key	202,058
Document Type	10-Q
Document Period End Date	Oct. 2, 2015
Amendment Flag	false
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--07-01
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding (actual number)		124,413,101

Condensed Consolidated Statemen

Condensed Consolidated Statement of Income (Unaudited) - USD ($) shares in Millions, $ in Millions	3 Months Ended
	Oct. 02, 2015	Sep. 26, 2014
Condensed Consolidated Statement of Income [Abstract]
Revenue from product sales and services	$ 1,811	$ 1,155
Cost of product sales and services	(1,220)	(762)
Engineering, selling and administrative expenses	(329)	(195)
Non-operating income	1	0
Interest income	1	1
Interest expense	(48)	(23)
Income from before income taxes	216	176
Income taxes	(68)	(51)
Net income	$ 148	$ 125
Basic net income per common share
Total basic net income per common share	$ 1.20	$ 1.19
Diluted net income per common share
Total diluted net income per common share	1.18	1.18
Cash dividends paid per common share	$ 0.50	$ 0.47
Basic weighted average common shares outstanding	123.5	104.6
Diluted weighted average common shares outstanding	124.7	105.8

Condensed Consolidated Stateme3

Condensed Consolidated Statement of Comprehensive Income (Unaudited) - USD ($) $ in Millions	3 Months Ended
	Oct. 02, 2015	Sep. 26, 2014
Statement of Income and Comprehensive Income [Abstract]
Net income	$ 148	$ 125
Other comprehensive loss:
Foreign currency translation loss, net of income taxes	(32)	(29)
Net unrealized loss on hedging derivatives, net of income taxes	0	(1)
Net unrecogonized gain on postretirement obligations, net of income taxes	0	9
Other comprehensive loss, net of income taxes	(32)	(21)
Total comprehensive income	$ 116	$ 104

Condensed Consolidated Balance

Condensed Consolidated Balance Sheet (Unaudited) - USD ($) $ in Millions	Oct. 02, 2015	Jul. 03, 2015	Sep. 26, 2014	Jun. 27, 2014
Current Assets
Cash and cash equivalents	$ 320	$ 481	$ 449	$ 561
Receivables	1,078	1,168
Inventories	1,107	1,015
Income taxes receivable	30	87
Current deferred income taxes	346	341
Deferred compensation plan investments	40	267
Other current assets	132	165
Total current assets	3,053	3,524
Non-current Assets
Property, plant and equipment	1,150	1,165
Goodwill	6,321	6,348
Other intangible assets	1,729	1,775
Non-current deferred income taxes	165	163
Other non-current assets	146	154
Total non-current assets	9,511	9,605
Total assets	12,564	13,129
Current Liabilities
Short-term debt	50	33
Accounts payable	455	581
Compensation and benefits	258	255
Other accrued items	474	518
Advance payments and unearned income	421	433
Income taxes payable	70	57
Current deferred income taxes	1	7
Deferred compensation plan liabilities	12	267
Current portion of long-term debt	130	130
Total current liabilities	1,871	2,281
Non-current Liabilities
Defined benefit plans	1,876	1,943
Long-term debt	4,901	5,053
Long-term contract liability	67	71
Non-current deferred income taxes	14	7
Other long-term liabilities	372	372
Total non-current liabilities	7,230	7,446
Shareholders' Equity:
Preferred stock, without par value; 1,000,000 shares authorized; none issued	0	0
Common stock, $1.00 par value; 500,000,000 shares authorized; issued and outstanding 124,168,650 shares at October 2, 2015 and 123,675,756 shares at July 3, 2015	124	124
Other capital	2,044	2,031
Retained earnings	1,342	1,258
Accumulated other comprehensive loss	(48)	(16)
Total shareholders' equity	3,462	3,397
Noncontrolling interests	1	5
Total equity	3,463	3,402
Total liabilities and equity	$ 12,564	$ 13,129

Condensed Consolidated Balance5

Condensed Consolidated Balance Sheet (Unaudited) (Parenthetical) - $ / shares	Oct. 02, 2015	Jul. 03, 2015
Shareholders' Equity:
Preferred shares, par value	$ 0	$ 0
Preferred shares, authorized	1,000,000	1,000,000
Preferred shares, issued	0	0
Common shares, par value	$ 1	$ 1
Common shares, authorized	500,000,000	500,000,000
Common shares, issued	124,168,650	123,675,756
Common shares, outstanding	124,168,650	123,675,756

Condensed Consolidated Stateme6

Condensed Consolidated Statement of Cash Flows (Unaudited) - USD ($) $ in Millions	3 Months Ended
	Oct. 02, 2015	Sep. 26, 2014
Operating Activities
Net income	$ 148	$ 125
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	61	51
Amortization of intangible assets from Exelis Inc. acquisition	33
Share-based compensation	10	8
Pension contributions	(61)
Pension income	(6)
Non-current deferred income taxes	60	(1)
(Increase) decrease in:
Accounts receivable	82	(38)
Inventories	(108)	(30)
Increase (decrease) in:
Accounts payable and accrued expenses	(158)	(102)
Advance payments and unearned income	(13)	12
Income taxes	0	45
Other	16	10
Net cash provided by operating activities	64	80
Investing Activities
Additions of property, plant and equipment	(26)	(41)
Proceeds from sale of property, plant and equipment	2
Proceeds from sale of Cyber Integration Center	0	7
Net cash used in investing activities	(24)	(34)
Financing Activities
Proceeds from borrowings, net of issuance costs	41	3
Repayments of borrowings	(173)	(9)
Proceeds from exercises of employee stock options	19	18
Repurchases of common stock	0	(100)
Cash dividends	(64)	(50)
Other financing activities	(15)	(12)
Net cash used in financing activities	(192)	(150)
Effect of exchange rate changes on cash and cash equivalents	(9)	(8)
Net increase (decrease) in cash and cash equivalents	(161)	(112)
Cash and cash equivalents, beginning of year	481	561
Cash and cash equivalents, end of quarter	$ 320	$ 449

Significant Accounting Policies

Significant Accounting Policies and Recent Accounting Standards	3 Months Ended
	Oct. 02, 2015
Significant Accounting Policies and Recent Accounting Standards [Abstract]
Significant Accounting Policies and Recent Accounting Standards	NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) Note A — Significant Accounting Policies and Recent Accounting Standards Basis of Presentation The accompanying condensed consolidated financial statements include the accounts of Harris Corporation and its consolidated subsidiaries. As used in these Notes to Condensed Consolidated Financial Statements (Unaudited) (these “Notes”), the terms “Harris,” “Company,” “we,” “our ” and “us” refer to Harris Corporation and its consolidated subsidiaries. I nt ra company transactions and accounts have been eliminated in consolidation . The accompanying condensed consolidated financial statements have been prepared by Harris, without an audit, in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, such interim financial statements do not include all information and footnotes necessary for a complete presentation of financial position, results of operations and cash flows in conformity with U.S. GAAP for annual financial statements . In the opinion of management, such interim financial statements reflect all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation of our financial position, results of operations and cash flows for the periods presented therein . The results for the first quarter of fiscal 2016 are not necessarily indicative of the results that may be expected for the full fiscal year or any subsequent period. The balance sheet at July 3, 2015 has been derived from our audited financial statements , but does not include all of the information and footnotes required by U.S. GAAP for annual financial statements. We provide complete , audited financial statements in our Annual Report on Form 10-K, which includes information and footnotes required by the rules and regulations of the SEC. The information included in this Quarterly Report on Form 10-Q (this “Report”) should be read in conjunction with the Management's Discussion and Analysis of Financial Cond ition and Results of Operations and the Consolidated Financial Statements and accompanying Notes to Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended July 3, 2015 (our “Fiscal 2015 Form 10-K”) . Use of Estimates The preparation of financial statements in accordance with U.S. GAAP requires us to make estimates and assumptions that affect the amounts reported in the accompanying condensed consolidated financial statements and these Notes. These estimates and assumptions are based on experience and other information available prior to issuance of the accompanying condensed consolidated financial statements and these Notes. Materially different results can occur as circumstances change and additional information becomes known. Adoption of New Accounting Standards In the first quarter of fiscal 2016, we adopted an accounting standard issued by the Financial Accounting Standards Board (“FASB”) that eliminates the requirement for an acquirer in a business combination to retrospectively account for measurement-period adjustments . Instead, t he new guidance requires that the cum ulative impact of a measurement- period adjustment (including the impact on prior periods) be recogniz ed in the reporting period in which the adjustment is identified . This standard is to be applied pro spectively. The adoption of this standard did not have a material impact on our financial position, results of operations or cash flows. Accounting Standards Issued But Not Yet Effective In May 2014, the FASB issued a comprehensive new revenue recognition standard that supersedes nearly all revenue recognition guidance under U.S. GAAP and International Financial Reporting Standards and supersedes some cost guidance for construction-type and production-type contracts. The guidance in this standard is principles-based, and consequently , entities will be required to use more judgment and make more estimates than under prior guidance, including identifying contract performance obligations, estimating variable consideration to include in the contract price and allocating the transaction price to separate performance obligations. The guidance in this standard is applicable to all contracts with customers, regardless of industry-specific or transaction-specific fact patterns. Additionally, this standard provides guidance for transactions that were not previously addressed comprehensively (e.g., service revenue, contract modifications and licenses of intellectual property) and modifies guidance for multiple-element arrangements. The core principle of this standard is that entities should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. To help financial statement users better understand the nature, amount, timing and potential uncertainty of the revenue that is recognized, this standard requires significantly more interim and annual disclosures. This standard allows for either “full retrospective” adoption (application to all periods presented) or “modified retrospective” adoption (application to only the most current period presented in the financial statements, as well as certain additional required footnote disclosures). In August 2015 , the FASB issued an accounting standards update that defers the effective date of this standard by one year , while permitting entities to elect to adopt one year earlier on the original effective date. As a result, this standard is now effective for fiscal years, and interim reporting periods within those years, beginning after December 15, 2017, which for us is our fiscal 2019. We are currently evaluating the impact this standard will have on our financial position, resul ts of operations and cash flows .

Stock Options and Other Share-B

Stock Options and Other Share-Based Compensation	3 Months Ended
	Oct. 02, 2015
Stock Options and Other Share-Based Compensation [Abstract]
Stock Options and Other Share-Based Compensation	Note B — Stock Options and Other Share-Based Compensation During the quarter ended October 2, 2015, we had one shareholder-approved emplo yee stock incentive plan (“SIP ”) , the Harris Corporation 2005 Equity Incentive Plan (As Amended and Restated Effective A ugust 27, 2010) , under which options or other share-based compensation was outstanding, and we have granted the following types o f share-based awards under our SIP : stock options, restricted stock awards, restricted stock unit awards , performance share awards, performance share unit awar ds and awards of immediately vested shares of our common stock . We believe that such awards more closely align the interests of employees with those of shareholders. Certain share-based awards provide for accelerated vesting if there is a change in co ntrol (as defined under our SIP ). The compensation cost related to our share-based awards that was charged against income was $10 million and $ 8 million f or the quarters ended October 2, 2015 and September 26, 2014 , respectively . Gr ants to employees under our SIP during the quarter ended October 2, 2015 consisted of 1,647,890 stock options, 66,670 restricted stock awards and 282,595 performance share unit awards . The fair value as of the grant date of each option award was determined using the Black- Scholes -Merton option-pricing model , which used the following assumptions: expected dividend yield of 2. 50 percent; expected volatility of 23 .0 1 percent; risk-free interest rates averaging 1. 52 percent; and expected term in years of 5.05 . The fair value as of the grant date of each restricted stock award was based on the closing price of our common stock on the grant date. The fair value as of the grant date of each performance share unit award was determined based on a fair value from a multifactor Monte Carlo valuation model that simulates our stock price and total shareholder return (“TSR”) relative to other companies in our TSR peer group, less a discount to reflect the delay in payment s of cash dividend-equivalents that are made only upon vesting .

Accumulated Other Comprehensive

Accumulated Other Comprehensive Loss	3 Months Ended
	Oct. 02, 2015
Accumulated Other Comprehensive Loss [Abstract]
Accumulated Other Comprehensive Loss	Note C — Accumulated Other Comprehensive Loss The components of accumulated other comprehensive loss are summarized below : October 2, July 3, 2015 (1) 2015 (1) (In millions) Foreign currency translation, net of income taxes of $19 million and $15 million at October 2, 2015 and July 3, 2015, respectively $ (94) $ (62) Net unrealized loss on hedging derivatives, net of income taxes of $12 million at October 2, 2015 and July 3, 2015 (19) (19) Unrecognized postretirement obligations, net of income taxes of $42 million at October 2, 2015 and July 3, 2015 65 65 $ (48) $ (16) ________________ (1) Reclassifications out of accumulated other comprehensive loss to earnings were not material for the first quarter of fiscal 201 6 or 201 5 .

Receivables

Receivables	3 Months Ended
	Oct. 02, 2015
Receivables [Abstract]
Receivables	Note D — Receivables Re ceivables are summarized below: October 2, July 3, 2015 2015 (In millions) Accounts receivable $ 770 $ 837 Unbilled costs and accrued earnings on cost-plus contracts 320 343 1,090 1,180 Less allowances for collection losses (12) (12) $ 1,078 $ 1,168

Inventories

Inventories	3 Months Ended
	Oct. 02, 2015
Inventories [Abstract]
Inventories	Note E — Inventories Inventories are summarized below: October 2, July 3, 2015 2015 (In millions) Unbilled costs and accrued earnings on fixed-price contracts $ 556 $ 463 Finished products 110 100 Work in process 235 256 Raw materials and supplies 206 196 $ 1,107 $ 1,015 Unbilled costs and accrued earnings on fixed-price contracts were net of progress payments of $ 69 million at October 2, 2015 and $ 85 million at July 3, 2015 .

Property, Plant and Equipment

Property, Plant and Equipment	3 Months Ended
	Oct. 02, 2015
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment	Note F — Property, Plant and Equipment Property, plant and equipment are summarized below: October 2, July 3, 2015 2015 (In millions) Land $ 45 $ 45 Software capitalized for internal use 154 155 Buildings 632 587 Machinery and equipment 1,491 1,526 2,322 2,313 Less accumulated depreciation and amortization (1,172) (1,148) $ 1,150 $ 1,165 Depreciation and amortization expense related to property, plant and equipment for the quarter s ended October 2, 2015 and September 26, 2014 was $ 50 million and $ 3 5 million, respectively.

Goodwill

Goodwill	3 Months Ended
	Oct. 02, 2015
Goodwill [Abstract]
Goodwill	N ote G — Goodwill As discussed in Note O — Business Segments , we adjusted our segment reporting in the first quarter of fiscal 2016 to reflect our new organizational structure that was effective at the beginning of fiscal 2016 , which resulted in changes to our operating segments, which are also our reportable segments and are referred to as our business segments . In accordance with GAAP, we have re assigned goodwill using a relative fair value approach. Because our accounting for our acquisition of Exelis Inc. and its subsidiaries (collectively, “Exelis”) in the fourth quarter of fiscal 2015 is still preliminary, we assigned the goodw ill acquired as a result of the acquisition on a provisional basis. Immediately before and after our goodwill assignments, we completed an assessment of any potentia l goodwill impairment under our former and new segment reporting structure and determined that no impairment existed. The assignment of goodwill by business segment is as follows: Space and Communication Intelligence Electronic Critical Systems Systems Systems Networks Total (In millions) Balance at July 3, 2015 $ 760 $ 1,446 $ 1,718 $ 2,424 $ 6,348 Currency translation adjustments (2) (1) ― (14) (17) Other (including true-ups of previously estimated purchase price allocations) (1) 2 (9) 4 (7) (10) Balance at October 2, 2015 $ 760 $ 1,436 $ 1,722 $ 2,403 $ 6,321 ________________ (1) Our accounting for the Exelis acquisition is still preliminary. The fair value estimates for the assets acquired and liabilities assumed were based on preliminary calculations, and our estimates and assumptions are subject to change as we obtain additional information for our estimates during the measurement period (up to one year from the acquisition date). The primary areas of these preliminary estimates that are not yet finalized relate to certain tangible assets and liabilities acquired, identifiable intangible assets and tax-related items. During the quarter ended October 2, 2015, we recorded several purchase price adjustments which impacted goodwill, the largest of which was a $ 31 million reduction in current liabilities related to unrecognized tax benefits.

Accrued Warranties

Accrued Warranties	3 Months Ended
	Oct. 02, 2015
Accrued Warranties [Abstract]
Accrued Warranties	Note H — Accrued Warranties Changes in our liability for standard product warranties , which is included as a component of the “Other accrued items” and “Other long-term liabilities” line items in the accompanying Condensed Consolidated Balance Sheet (Unaudited), during the first quarter of fiscal 201 6 were as follows: (In millions) Balance at July 3, 2015 $ 36 Warranty provision for sales 4 Settlements (6) Balance at October 2, 2015 $ 34 We also sell extended product warranties and recognize revenue from these arrangements over the warranty period. Costs of warranty services under these arrangements are recognized as incurred. Deferred revenue associated with extended product warranties at October 2 , 2015 and July 3 , 2015 was $ 34 million and $ 36 million, respectively, and is included as a component of the “Advance payments and unearned income” and “Other long-term liabilities” line items in the accompanying Condensed Consolidated Balance Sheet (Unaudited).

Postretirement Benefit Plans

Postretirement Benefit Plans	3 Months Ended
	Oct. 02, 2015
Compensation and Retirement Disclosure [Abstract]
Pension and Other Postretirement Benefits	Note I – Postretirement Benefit Plans The following table provides the components of our net periodic benefit cost for our defined benefit plans, including defined benefit pension plans and other postretirement defined benefit plans: Quarter Ended October 2, 2015 Other Pension Benefits Total (In millions) Net periodic benefit cost Service cost $ 18 $ 1 $ 19 Interest cost 62 4 66 Expected return on plan assets (86) (5) (91) Amortization of net actuarial loss ― 2 2 Amortization of prior service cost ― (3) (3) Total net periodic benefit cost $ (6) $ (1) $ (7) We contributed $ 61 million to our qualified defined benefit pension pla ns during the first quarter of fiscal 2016 . We currently anticipate making additional contributions to our qualified defined benefit pension plans of approximately $ 11 2 million during the remainder of fiscal 2016 .

Net Income Per Common Share

Net Income Per Common Share	3 Months Ended
	Oct. 02, 2015
Net Income Per Common Share [Abstract]
Net income per common share	Note J — Net Income Per Common Share The computations of net income per common share are as follows: Quarter Ended October 2, September 26, 2015 2014 (In millions, except per share amounts) Net income $ 148 $ 125 Adjustments for participating securities outstanding ― (1) Net income used in per basic and diluted common share calculations (A) $ 148 $ 124 Basic weighted average common shares outstanding (B) 123.5 104.6 Impact of dilutive share-based awards 1.2 1.2 Diluted weighted average common shares outstanding (C) 124.7 105.8 Net income per basic common share (A)/(B) $ 1.20 $ 1.19 Net income per diluted common share (A)/(C) $ 1.18 $ 1.18 Potential dilutive common share s primarily consist of employee stock options and performance share unit awards . Employee stock options to purchase approximately 1 ,003,902 and 386,531 shares of our common stock were outstanding at October 2, 2015 and September 26, 2014 , respectively, but were not included as dilutive stock options in the c omputations of net income per diluted common share because the effect would have been antidilutive .

Income Taxes

Income Taxes	3 Months Ended
	Oct. 02, 2015
Income Taxes [Abstract]
Income Taxes	Note K — Income Taxes Our effective tax rate (income taxes as a percentage of income before income taxes) was 31.5 percent in the first quarter of fiscal 2016 compared with 29.0 percent in the first quarter of fiscal 2015. In the first quarter of fiscal 2016, our effective tax rate benefited from the settlement of several items for amounts that were lower than previously recorded estimates . In the first quarter of fiscal 2015 , our effective tax rate benefited from the recognition of foreign tax credits resulting from a dividend paid by a foreign subsidiary during fiscal 2013 that exceeded the U.S. tax liability in respect of the dividend. This resulted in a benefit of approximately $ 9 million (approximately 5 percent of income before income taxes) that was recognized in calculating our effective tax rate in the first quarter of fiscal 2015 when the issue was settled with the I nternal Revenue Service .

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Oct. 02, 2015
Fair Value Measurements [Abstract]
Fair Value Measurements	Note L — Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in the principal market (or most advantageous market, in the absence of a principal market) for the asset or liability in an orderly transaction between market participants at the measurement date. E ntities are required to maximize the use of observable inputs and minimize the use of unobservable inputs in measuring fair value, and to utilize a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. The three levels of inputs used to measure fair value are as follows: • Level 1 — Qu oted prices in active markets for identical assets or liabilities. • Level 2 — Observable inputs other than quoted prices included within Level 1, including quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; and inputs other than quoted prices that are observable or are derived principally from, or corroborated by, observable market data by correlation or other means. • Level 3 — Unobservable inputs that are supported by little or no market activity , are significant to the fair value of the assets or liabilities, and reflect our own assumptions about the assumptions market participants would use in pricing the asset or liability developed using the best information available in the circumstances. The following table presents the fair value hierarchy of our assets and liabilities measured at fair value on a recurring basis (at least annually) as of October 2, 2015 : Level 1 Level 2 Level 3 Total (In millions) Assets Deferred compensation plan investments: (1) Corporate-owned life insurance $ ― $ 17 $ ― $ 17 Stock fund 52 ― ― 52 Equity security 35 ― ― 35 Liabilities Deferred compensation plans (2) 36 83 ― 119 ____________ (1 ) Represents investments held in a “R abbi T rust ” associated with our non-qualified deferred compensation plans, which we include in the “ Deferred compensation plan investments ” and “Other non-current assets” line items in the accompanying Condensed Consolidated Balance Sheet (Unaudited). ( 2 ) Primarily represents obligations to pay benefits under certain non-qualified deferred compensation plans, which we include in the “ Deferred compensation plan liabilities ” and “Other long-term liabilities” line items in the accompanying Condensed Consolidated Balance Sheet (Unaudited). Under these plans, participants designate investment options (including money market, stock and fixed-income funds), which serve as the basis for measurement of the n otional value of their accounts . T he following table presents the carrying amounts and estimated fair values of our significant financial instruments that were not measured at fair value (carrying amounts of other financial instruments not listed in the table below approximate fair value due to the short-term nature of those items): October 2, 2015 July 3, 2015 Carrying Fair Carrying Fair Amount Value Amount Value (In millions) Financial Liabilities Long-term debt (including current portion) (1) $ 5,031 $ 5,121 $ 5,183 $ 5,230 ____________ (1) The fair value was estimated using a market approach based on quoted market prices for our debt traded in the secondary market . If our long-term debt in our balance sheet were measured at fair value, it would be categorized in Level 2 of the fair value hierarchy .

Derivative Instruments and Hedg

Derivative Instruments and Hedging Activities	3 Months Ended
	Oct. 02, 2015
Derivative Instruments and Hedging Activities [Abstract]
Derivative Instruments and Hedging Activities	Note M — Derivative Instruments and Hedging Activities In the normal course of doing business, we are exposed to global market risks, including the effect of changes in foreign currency exchange rates. We use derivative instruments to manage our exposure to such risks and formally document all relationships between hedging instruments and hedged items, as well as the risk-management objective and strategy for undertaking hedge transactions. We recognize all derivatives in the accompanying Condensed Consolidated Balance Sheet (Unaudited) at fair value. We do not hold or issue derivatives for speculative trading purposes. At October 2, 2015, we had open foreign currency forward contracts with a n aggregate notional amount of $ 72 million, of which $ 70 million were classified as fair value hedges and $ 2 million were classified as cash flow hedges. This compares with open foreign currency forward contracts with a n aggregate notional amount of $ 74 million at July 3, 2015, of which $ 73 million were classified as fair value hedges and $ 1 million were classified as cash flow hedges. At October 2, 2015, contract expiration dates ranged from less than 1 month to 3 months with a weighted average contract life of 1 month. Exchange- Rate Risk — Balance Sheet Hedges To manage the exposure in our balance sheet to risks from changes in foreign currency exchange rates, we implement fair value hedges. More specifically, we use foreign currency forward contracts and options to hedge certain balance sheet items, including foreign currency denominated accounts receivable and inventory. Changes in the value of the derivatives and the related hedged items are reflected in earnings in the “Cost of product sales and services” line item in the accompanying Condensed Consolidated Statement of Income ( Unaudited). As of October 2, 2015, we had outstanding foreign currency forward contracts denominated in the British Pound, Australian Dollar, Singapor e Dollar, Brazilian Real, Norwegian Krone , Canadian Dollar and Mexican Peso to hedge certain balance sheet items. The net gains or losses on foreign currency forward contracts designated as fair value hedges were not material in the quarter ended October 2, 2015 or in the quarter ended September 26, 2014 . In addition, no amounts were recognized in earnings in the quarter ended October 2, 2015 or in the quarter ended September 26, 2014 related to hedged firm commitments that no longer qualify as fair value hedges. Exchange- Rate Risk — Cash Flow Hedges To manage our exposure to currency risk and market fluctuation risk associated with anticipated cash flows that are probable of occurring in the future, we implement cash flow hedges. More specifically, we use foreign currency forward contracts and options to hedge off-balance sheet future foreign currency commitments, including purchase commitments to suppliers, future committed sales to customers and int ersegment transactions. These derivatives are being used to hedge currency exposures from cash flows anticipated across our business segments . We also have hedged U.S. D ollar payments to suppliers to maintain our anticipated profit margins in our international operations. As of October 2, 2015, we had outstanding foreign currency forward contracts denom inated in the Canadian Dollar to hedge certain forecasted transactions. These derivatives have only nominal intrinsic value at the time of purchase and have a high degree of correlation to the anticipated cash flows they are designated to hedge. Hedge effectiveness is determined by the correlation of the anticipated cash flows from the hedging instruments and the anticipated cash flows from the future foreign currency commitments through the maturity dates of the derivatives used to hedge these cash flows. These financial instruments are marked-to-market using forward prices and fair value quotes with the offset to accumulated other comprehensive income, net of hedge ineffectiveness. Gains and losses from other comprehensive income are reclassified to earnings when the related hedged item is recognized in earnings. The ineffective portion of a derivative's change in fair value is immediately recognized in earnings. The cash flow impact of our derivatives is included in the same category in the accompanying Condensed Consolidated Statement of Cash Flows (Unaudited) as the cash flows of the related hedged items . The net gains or losses from cash flow hedges recognized in earnings or recorded in other comprehensive income, including gains or losses related to hedge ineffectiveness, w ere not material in the quarter ended October 2, 2015 or in the quarter ended September 26, 2014 . We do not expect the net gains or losses recognized in the “Accumulated other comprehensive loss ” line item in the accompanying Condensed Consolidated Balance Sheet (Unaudited) as of October 2, 2015 that will be reclassified to earnings from other comprehensive income within the next 12 months to be material. Credit Risk We are exposed to the risk of credit losses from non-performance by counterparties to the financial instruments discussed above , but we do not expect any of the counterparties to fail to meet their obligations. To manage credit risks, we select counterparties based on credit ratings, limit our exposure to any single counterparty under defined guidelines and monitor the market position with each counterparty. The amount of assets and liabilities related to foreign c urrency forward contracts in the accompanying Condensed Consolidated Balance Sheet (Unaudited) as of October 2, 2015 was immaterial .

Changes in Estimates

Changes in Estimates	3 Months Ended
	Oct. 02, 2015
Changes in Estimates [Abstract]
Changes in Estimates	Note N — Changes in Estimates Estimates and assumptions , and changes ther e in, are important in connection with, among others, our segments' revenue recognition policies related to development and product ion contracts . Revenue and profits related to development and production contracts are recognized using the percentage-of-completion method, generally based on the ratio of costs incurred to estimated total costs at completion (i.e., the “ cost-to-cost ” method) or the ratio of actual units delivered to estimated total units to be delivered under the contract (i.e., the “units-of-delivery” method) with consideration given for risk of performance and estimated profit. Revenue and profits on cost-reimbursable development and production contracts are recognized as allowable costs are incurred on the contract, and become billable to the customer, in an amount equal to the allowable costs plus the profit on those costs. Development and production contracts are combined when specific aggregation criteria are met. Criteria generally include closely interrelated activities performed for a single customer within the same economic environment. Development and production contracts are generally not segmented. If development and production contracts are segmented, we have determined that they meet specific segmenting criteria. Change orders, claims or other items that may change the scope of a development and production contract are included in contract value only when the value can be reliably estimated and realization is probable. Possible i n centives or penalties and award fees applicable to performance on development and production contracts are considered in estimating contract value and profit rates and are recorded when there is sufficient information to assess anticipated contract p erformance. Incentive provisions that increase earnings based solely on a single significant event are generally not recognized until the event occurs. Under the percentage-of-completion method of accounting, a single estimated total profit margin is used to recognize profit for each development and production contract over its period of performance. Recognition of profit on development and production fixed-price contracts requires estimates of the total cost at completion and the measurement of progress toward completion. The estimated profit or loss on a development and production contract is equal to the difference between the estimated contract value and the estimated total cost at completion. Due to the long-term nature of many of our programs, developing the estimated total cost at completion often requires judgment. Factors that must be considered in estimating the cost of the work to be completed include the nature and complexity of the work to be performed, subcontractor performance, the risk and impact of delayed performance, availability and timing of funding from the customer and the recoverability of any claims outside the original development and production contract included in the estimate to complete. At the outset of each contract, we gauge its complexity and perceived risks and establish an estimated total cost at completion in line with these expectations. After establishing the estimated total cost at completion, we follow a standard e stimate at c ompletion (“EAC”) process in which management reviews the progress and performance on our ongoing development and production contracts at least quarterly and, in many cases, more frequently. If we successfully retire risks associated with the technical, schedule and cost aspects of a contract, we may lower our estimated total cost at completion commensurate with the retirement of these risks. Conversely, if we are not successful in retiring these risks, we may increase our estimated total cost at completion. Additionally, at the outset of a cost-reimbursable contract (for example, contracts containing award or incentive fees), we establish an estimate d total contract value, or revenue, based on our expectation of performance on the contract. As the cost-reimbursable co ntract progresses, our estimated total contract value may increase or decrease if, for example, we receive higher or lower than expected award fees. When adjustments in estimated total costs at completion or in estimate d total contract value are determined, the related impact to operating income is recognized using the cumulative catch-up method, which recognizes in the current period the cumulative effect of such adjustments for all prior periods. Anticipated losses on development and production contracts or programs in progress are charged to operating income when identified. Net EAC adjustments resulting from changes in estimates favorably impacted our operating income by $ 17 million ($ 0. 08 per diluted share) in the first quarter of fiscal 2016 and by $ 22 million ($ 0. 15 per diluted share) in the first quarter of 2015 .

Business Segments

Business Segments	3 Months Ended
	Oct. 02, 2015
Business Segments [Abstract]
Business Segments	Note O — Business Segments We adjusted our segment reporting in the first quarter of fiscal 2016 to reflect our new organizational structure that was effective at the beginning of fiscal 2016 . We structure our operations primarily around the products and services we sell and the markets we serve , and commencing with the first quarter of fiscal 2016, we report the financial results of our operations in the following four operating segments , which are also our reportable segments and are referred to as our bus iness segments : Communicati on Systems, serving markets in tactical and airborne radios, night vision technology, and defense and public safety networks; Space and Intelligence Systems , providing complete earth observation, weather, geospatial, space protection, and intelligence solutions from advanced sensors and payloads, as well as ground processing and information analytics; Electronic Systems , offering an extensive portf olio of solutions in electronic warfare, avionics, wireless technology, command, control, communications, computers and intelligence (“C4I ” ), undersea systems and aerostructures ; and Critical Networks, providing managed services supporting air traffic management, energy and maritime communications, and ground network operation and sustainment, as well as high-value information technology (“IT”) and engineering services. The historical results, discussion and presentation of our business segments as set forth in this Quarterly Report on Form 10-Q reflect the impact of these adjustments for all periods presented. There is no impact on our previously reported consolidated statements of income, balance sheets or statements of cash flows resulting from these adjustments. The accounting policies of our business segments are the same as those described in Note 1: “Significant Accounting Policies” in our Notes to Consolidated Financial Statements in our Fiscal 2015 Form 10-K. We evaluate each segm ent's performance based on its operating income or loss , which we define as profit or loss from operations before income taxes excluding interest income and expense, royalties and related intellectual property expenses, equity method investment income or loss and gains or losses from se curities and other investments. Intersegment sales are generally transferred at cost to the buying segment , and the sourcing segment recognizes a profit that is eliminated. The “Corporate eliminations” line ite ms in the tables below represent the elimination of intersegment sales and their related profits. The “Unallocated corporate expense” line item in the tables below represents the portion of corpora te expenses not allocated to our business segments. Total assets by business segment are summarized below: October 2, July 3, 2015 2015 (In millions) Total Assets Communication Systems $ 1,853 $ 1,906 Space and Intelligence Systems 2,139 2,096 Electronic Systems 2,517 2,513 Critical Networks 3,438 3,492 Corporate (1) 2,617 3,122 $ 12,564 $ 13,129 _____________ (1) Because the acquisition of Exelis in the fourth quarter of fiscal 2015 benefited the entire Company as opposed to any individual segments, the approximately $ 1.6 billion of identifiable intangible assets acquired in the Exelis acquisition was recorded as Corporate assets . Segment revenue, segment operating income and a reconciliation of segment operating income to total income before income taxes follow: Quarter Ended October 2, September 26, 2015 2014 (In millions) Revenue Communication Systems $ 454 $ 389 Space and Intelligence Systems 435 253 Electronic Systems 374 109 Critical Networks 566 407 Corporate eliminations (18) (3) $ 1,811 $ 1,155 Income Before Income Taxes Segment Operating Income : Communication Systems $ 138 $ 116 Space and Intelligence Systems 68 37 Electronic Systems 69 22 Critical Networks 63 42 Unallocated corporate expense (1) (75) (17) Corporate eliminations (1) (2) Non-operating income (2) 1 ― Net interest expense (47) (22) $ 216 $ 176 ____________ ( 1) Because the acquisition of Exelis in the fourth quarter of fiscal 2015 benefited the entire Company as opposed to any individual segments, the amortization of identifiable intangible assets acquired in the Exelis acquisition wa s recorded as u nallocated corporate expense. (2) “Non-operating income” in the quarter ended October 2, 2015 primarily consisted of income related to intellectual property matters.

Legal Proceedings And Contingen

Legal Proceedings And Contingencies	3 Months Ended
	Oct. 02, 2015
Legal Proceedings And Contingencies [Abstract]
Legal Matters and Contingencies [Text Block]	Note P – Legal Proceedings and Contingencies From time to time, as a normal incident of the nature and kind of businesses in which we are, and were, engaged, various claims or charges are asserted and litigation or arbitration is commenced by or against us arising from or related to matters, including but not limited to: product liability; personal injury; patents, trademarks, trade secrets or other intellectual property; labor and employee disputes; commercial or contractual disputes; strategic acquisitions or divestitures; the prior sale or use of former products allegedly containing asbestos or other restricted materials; breach of warranty; or environmental matters. Claimed amounts against us may be substantial but may not bear any reasonable relationship to the merits of the claim or the extent of any real risk of court or arbitral awards. We record accruals for losses related to those matters against us that we consider to be probable and that can be reasonably estimated. Gain contingencies, if any, are recognized when they are realized and legal costs generally are expensed when incurred. At October 2 , 2015, our accrual for the potential resolution of lawsuits, claims or proceedings that we consider probable of being decided unfavorably to us is not material. Although it is not feasible to predict the outcome of these matters with certainty, it is reasonably possible that some lawsuits, claims or proceedings may be disposed of or decided unfavorably to us and in excess of the amounts currently accrued. Based on available information, in the opinion of management, settlements, arbitration awards and final judgments, if any, which are considered probable of being rendered against us in litigation or arbitration in existence at October 2 , 2015 are reserved against or would not have a material adverse effect on our financial condition, results of operations or cash flows. Legal Proceedings On February 4, 2013, we completed the sale of our broadcast communications operation (“ Broadcast Communications ”), which provided digital media management solutions in support of broadcast customers , to an affiliate of The Gores Group, LLC (the “Buyer”) pursuant to a definitive Asset Sale Agreement entered into December 5, 2012 for $ 225 million, including $ 160 million in cash, subject to customary adjustments (including a post-closing working capital adjustment, which is currently in arbitration), a $ 15 million subordinated promissory note (which was collected in fiscal 2014) and an earnout of up to $ 50 million based on future performance. In the arbitration noted above, the current range of possible outcomes is no additional adjustment to the purchase price, based on our calculation of post-closing working capital, on one hand, to an additional downward adjustment of $67 million to the purchase price, based on the Buyer's claims in its calculation of post-closing working capital, on the other hand. We are not able to determine the likely outcome of the arbitration, but we believe the Buyer's claims in its calculation of post-closing working capital are without merit and its asserted additional downward adjustment to the purchase price is significantly overstated, and we intend to defend against the Buyer's claims and asserted additional downward adjustment to the purchase price vigorously. We expect this arbitration to be concluded in fiscal 2016. Environmental Matters We are subject to numerous U.S. Federal, state, local and international environmental laws and regulatory requirements and are involved from time to time in investigations or litigation of various potential environmental issues. We are responsible, or are alleged to be responsible, for ongoing environmental investigation and remediation of multiple sites, including as a result of our acquisition of Exelis. These sites are in various stages of investigation and/or remediation and in some of these proceedings our liability is considered de minimis . We have received notices from the U.S. Environmental Protection Agency (the “EPA”) or equivalent state or international environmental agencies that a number of sites formerly or currently owned and/or operated by us or companies we have acquired, and other properties or water supplies that may be or have been impacted from those operations, contain disposed or recycled materials or wastes and require environmental investigation and/or remediation. These sites include instances where we have been identified as a potentially responsible party under the Comprehensive Environmental Response, Compensation and Liability Act (commonly known as the “Superfund Act”) and/or equivalent state and international laws. For example, Exelis received notice in June 2014 from the Department of Justice, Environment and Natural Resources Division, that it may be potentially responsible for contribution to the environmental investigation and remediation of multiple locations in Alaska. In addition, the EPA issued on April 11, 2014 a proposed plan for remedial alternatives to address the cleanup of the lower eight mile stretch of the Passaic River. The EPA estimates the cost for the alternatives will range from $ 0.4 billion to $ 3.2 billion. The EPA's preferred alternative would involve dredging the river bank to bank and installing an engineered cap at an estimated cost of $ 1.7 billion. The EPA is currently evaluating input from a public comment period that ended in August 2014 before it makes its final record of decision, which is expected in our fiscal 2016. Therefore, the ultimate remedial approach and associated costs and the parties who will participate in funding the remediation and their respective allocations have not been determined. We have found no evidence that Exelis contributed any of the primary contaminants of concern to the Passaic River. We intend to vigorously defend ourselves in this matter and we believe our ultimate costs will not be material. Although it is not feasible to predict the outcome of these environmental claims, based on available information, in the opinion of our management, any payments we may be required to make as a result of environmental claims in existence at October 2 , 2015 are reserved against , covered by insurance or would not have a material adverse effect on our financial condition, results of operations or cash flows.

Condensed Consolidating Financi

Condensed Consolidating Financial Statements	3 Months Ended		12 Months Ended
	Oct. 02, 2015	Sep. 26, 2014	Jul. 03, 2015
Guarantees [Abstract]
Condensed Consolidating Financial Statements	Note Q – Condensed Consolidating Financial Statements On May 29, 2015, we acquired Exelis Inc. and its subsidiaries, and Exelis Inc. became a 100 percent directly owned subsidiary of Harris Corporation. In connection with the acquisition, Harris Corporation fully and unconditionally guaranteed all of the long-term fixed-rate debt securities issued by Exelis Inc. outstanding at the time of the acquisition, which consisted of $ 250 million in aggregate principal amount of 4.25 % senior notes due October 1, 2016 and $ 400 million in aggregate principal amount of 5.55 % senior notes due October 1, 2021 (the “Exelis Notes” ). The Exelis Notes are included in our long-term fixed-rate debt i n the accompanying Condensed Consolidat ed Balance Sheet (Unaudited) . In addition, Exelis Inc. fully and unconditionally guaranteed all of the long-term fixed-rate debt securities issued by Harris Corporation outstanding at the time of the acquisition, which consisted of nine serie s of fixed-rate debt securities in an aggregate principal amount of $ 3.226 billion. The Exelis Notes are guaranteed only by Harris Corporation, and the nine series of long-term fixed-rate debt securities issued by Harris Corporation are guaranteed only by Exelis Inc. None of our other subsidiaries (including the subsidiaries of Exelis Inc.) is a guarantor of the Exelis Notes or any of the nine series of fixed-rate debt securities issued by Harris Corporation. The following condensed consolidating financial statements, consisting of condensed consolidating statements of comprehensive income, balance sheets and statements of cash flows, are provided so that separate condensed consolidat ed financial statements of Harris Corporation and Exelis Inc., the issuers and guarantors as described above, are not required to be filed with the Securities and Exchange Commission. The condensed consolidating financial statements provide information for Harris Corporation, Exelis Inc. and our non-guarantor subsidiaries (including the subsidiaries of Exelis Inc.) for all periods presented to reflect the cross guarantees of our outstanding long-term fixed-rate debt securities as described above. The condensed consolidating financial statements reflect investments in subsidiaries using the equity method of accounting. The consolidating adjustments primarily relate to eliminations of investments in subsidiaries and intercompany transactions and balances. The issuers and guarantors as described above and the non-guarantor subsidiaries are not consistent with our reporting segments; and consequently , this basis of presentation is not included to present our financial condition, results of operations or cash flows for any purpose other than to comply with the specific requirements for guarantor reporting . The cross guarantees of our outstanding long-term fixed-rate debt securities as described above are subject to being released under customary circumstances, as reflected in the supplemental indentures providing for the cross guarantees filed with the Securities and Exchange Commission as exhibits to our Current Report on Form 8-K filed on June 2, 2015. Moreover, we currently expect that in the second quarter of fiscal 2016, Exelis Inc. will merge with and into Harris Corporation, with Harris Corporation being the surviving entity, and the cross guarantees of our outstanding long-term fixed-rate debt securities as described above will terminat e. CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (Unaudited) Quarter Ended October 2, 2015 Harris Exelis Non-Guarantor Consolidating Consolidated Parent Co. Parent Co. Subsidiaries Adjustments Total (In millions) Revenue from product sales and services $ 790 $ 584 $ 437 $ ― $ 1,811 Cost of product sales and services (491) (422) (307) ― (1,220) Engineering, selling and administrative expenses (156) (86) (87) ― (329) Intercompany income (expense), net (12) 2 10 ― ― Non-operating income 1 ― ― ― 1 Interest income ― ― 1 ― 1 Interest expense (41) (5) (2) ― (48) Income before income taxes 91 73 52 ― 216 Income taxes (26) (26) (16) ― (68) Equity in earnings of subsidiaries, net of income taxes 83 9 ― (92) ― Net income 148 56 36 (92) 148 Other comprehensive loss, net of income taxes (84) (15) (25) 92 (32) Total comprehensive income $ 64 $ 41 $ 11 $ ― $ 116 CONDENSED CONSOLIDATING BALANCE SHEET (Unaudited) Quarter Ended October 2, 2015 Harris Exelis Non-Guarantor Consolidating Consolidated Parent Co. Parent Co. Subsidiaries Adjustments Total (In millions) Assets Current Assets Cash and cash equivalents $ 64 $ 49 $ 207 $ ― $ 320 Receivables 503 498 2,359 (2,282) 1,078 Inventories 530 285 292 ― 1,107 Income taxes receivable 16 6 8 ― 30 Current deferred income taxes 103 212 31 ― 346 Deferred compensation plan investments 12 28 ― ― 40 Other current assets 34 42 56 ― 132 Total current assets 1,262 1,120 2,953 (2,282) 3,053 Non-current Assets Property, plant and equipment 534 383 233 ― 1,150 Goodwill 465 4,683 1,173 ― 6,321 Other intangible assets 29 1,255 445 ― 1,729 Non-current deferred income taxes 97 179 ― (111) 165 Investment in subsidiaries 8,518 11 ― (8,529) ― Other non-current assets 103 ― 96 (53) 146 Total non-current assets 9,746 6,511 1,947 (8,693) 9,511 $ 11,008 $ 7,631 $ 4,900 $ (10,975) $ 12,564 Liabilities and Equity Current Liabilities Short-term debt $ 25 $ ― $ 25 $ ― $ 50 Accounts payable 2,355 161 221 (2,282) 455 Compensation and benefits 134 79 45 ― 258 Other accrued items 241 161 72 ― 474 Advance payments and unearned income 149 177 95 ― 421 Income taxes payable 43 8 19 ― 70 Current deferred income taxes ― ― 1 ― 1 Deferred compensation plan liabilities 12 ― ― ― 12 Current portion of long-term debt 130 ― ― ― 130 Total current liabilities 3,089 586 478 (2,282) 1,871 Non-current Liabilities Defined benefit plans ― 1,841 35 ― 1,876 Long-term debt 4,179 698 24 ― 4,901 Long-term contract liability 67 ― ― ― 67 Non-current deferred income taxes ― ― 125 (111) 14 Other long-term liabilities 210 124 91 (53) 372 Total non-current liabilities 4,456 2,663 275 (164) 7,230 Equity Shareholders’ Equity: Common stock 124 ― ― ― 124 Other capital 3,796 4,283 2,307 (8,342) 2,044 Retained earnings (117) 36 1,934 (511) 1,342 Accumulated other comprehensive loss (340) 63 (95) 324 (48) Total shareholders’ equity 3,463 4,382 4,146 (8,529) 3,462 Noncontrolling interests ― ― 1 ― 1 Total equity 3,463 4,382 4,147 (8,529) 3,463 $ 11,008 $ 7,631 $ 4,900 $ (10,975) $ 12,564 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (Unaudited) Quarter Ended October 2, 2015 Harris Exelis Non-Guarantor Consolidating Consolidated Parent Co. Parent Co. Subsidiaries Adjustments Total (In millions) Net cash provided by (used in) operating activities $ 177 $ 1 $ (114) $ ― $ 64 Investing Activities Intercompany loans (61) ― 5 56 ― Additions of property, plant and equipment (15) (6) (5) ― (26) Proceeds from sale of property, plant and equipment 2 ― ― ― 2 Net cash provided by (used in) investing activities (74) (6) ― 56 (24) Financing Activities Intercompany loans (5) ― 61 (56) ― Proceeds from borrowings 25 ― 16 ― 41 Repayments of borrowings (150) ― (23) ― (173) Proceeds from exercises of employee stock options 19 ― ― ― 19 Cash dividends (64) ― ― ― (64) Other financing activities (15) ― ― ― (15) Net cash provided by (used in) financing activities (190) ― 54 (56) (192) Effect of exchange rate changes on cash and cash equivalents ― ― (9) ― (9) Net decrease in cash and cash equivalents (87) (5) (69) ― (161) Cash and cash equivalents, beginning of year 151 54 276 ― 481 Cash and cash equivalents, end of quarter $ 64 $ 49 $ 207 $ ― $ 320	CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (Unaudited) Quarter Ended September 26, 2014 Harris Non-Guarantor Consolidating Consolidated Parent Co. Subsidiaries Adjustments Total (In millions) Revenue from product sales and services $ 827 $ 328 $ ― $ 1,155 Cost of product sales and services (524) (238) ― (762) Engineering, selling and administrative expenses (157) (38) ― (195) Intercompany income (expense), net (8) 8 ― ― Non-operating income (loss) 13 (13) ― ― Interest income ― 1 ― 1 Interest expense (23) ― ― (23) Income before income taxes 128 48 ― 176 Income taxes (36) (15) ― (51) Equity in earnings of subsidiaries, net of income taxes 33 ― (33) ― Net income 125 33 (33) 125 Other comprehensive loss, net of income taxes (37) (17) 33 (21) Total comprehensive income $ 88 $ 16 $ ― $ 104 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (Unaudited) Quarter Ended September 26, 2014 Harris Non-Guarantor Consolidating Consolidated Parent Co. Subsidiaries Adjustments Total (In millions) Net cash provided by (used in) operating activities $ 212 $ (132) $ ― $ 80 Investing Activities Intercompany loans (35) 93 (58) ― Additions of property, plant and equipment (31) (10) ― (41) Proceeds from sale of Cyber Integration Center 7 ― ― 7 Net cash provided by (used in) investing activities (59) 83 (58) (34) Financing Activities Intercompany loans (93) 35 58 ― Proceeds from borrowings ― 3 ― 3 Repayments of borrowings ― (9) ― (9) Proceeds from exercises of employee stock options 18 ― ― 18 Repurchases of common stock (100) ― ― (100) Cash dividends (50) ― ― (50) Other financing activities (12) ― ― (12) Net cash provided by (used in) financing activities (237) 29 58 (150) Effect of exchange rate changes on cash and cash equivalents ― (8) ― (8) Net decrease in cash and cash equivalents (84) (28) ― (112) Cash and cash equivalents, beginning of year 252 309 ― 561 Cash and cash equivalents, end of quarter $ 168 $ 281 $ ― $ 449	CONDENSED CONSOLIDATING BALANCE SHEET Fiscal Year Ended July 3, 2015 Harris Exelis Non-Guarantor Consolidating Consolidated Parent Co. Parent Co. Subsidiaries Adjustments Total (In millions) Assets Current Assets Cash and cash equivalents $ 151 $ 54 $ 276 $ ― $ 481 Receivables 623 333 2,430 (2,218) 1,168 Inventories 478 272 265 ― 1,015 Income taxes receivable 17 65 5 ― 87 Current deferred income taxes 108 202 31 ― 341 Deferred compensation plan investments 12 255 ― ― 267 Other current assets 39 68 58 ― 165 Total current assets 1,428 1,249 3,065 (2,218) 3,524 Non-current Assets Property, plant and equipment 549 375 241 ― 1,165 Goodwill 462 4,693 1,193 ― 6,348 Other intangible assets 31 1,282 462 ― 1,775 Non-current deferred income taxes 95 179 ― (111) 163 Investment in subsidiaries 8,249 2 ― (8,251) ― Other non-current assets 110 10 34 ― 154 Total non-current assets 9,496 6,541 1,930 (8,362) 9,605 $ 10,924 $ 7,790 $ 4,995 $ (10,580) $ 13,129 Liabilities and Equity Current Liabilities Short-term debt $ ― $ ― $ 33 $ ― $ 33 Accounts payable 2,201 290 308 (2,218) 581 Compensation and benefits 128 70 57 ― 255 Other accrued items 246 226 46 ― 518 Advance payments and unearned income 149 187 97 ― 433 Income taxes payable 27 19 11 ― 57 Current deferred income taxes ― ― 7 ― 7 Deferred compensation plan liabilities 12 255 ― ― 267 Current portion of long-term debt 130 ― ― ― 130 Total current liabilities 2,893 1,047 559 (2,218) 2,281 Non-current Liabilities Defined benefit plans ― 1,923 20 ― 1,943 Long-term debt 4,328 701 24 ― 5,053 Long-term contract liability 71 ― ― ― 71 Non-current deferred income taxes ― ― 118 (111) 7 Other long-term liabilities 235 38 99 ― 372 Total non-current liabilities 4,634 2,662 261 (111) 7,446 Equity Shareholders’ Equity: Common stock 124 ― ― ― 124 Other capital 3,731 4,023 2,342 (8,065) 2,031 Retained earnings (202) (20) 1,898 (418) 1,258 Accumulated other comprehensive loss (256) 78 (70) 232 (16) Total shareholders’ equity 3,397 4,081 4,170 (8,251) 3,397 Noncontrolling interests ― ― 5 ― 5 Total equity 3,397 4,081 4,175 (8,251) 3,402 $ 10,924 $ 7,790 $ 4,995 $ (10,580) $ 13,129 Note : The above table reflects the correction of classification errors of $ 194 million in goodwill between Harris Parent Co. and Non-Guarantor Subsidiaries , $ 126 million in accounts payable between Exelis Parent Co. and Non-Guarantor Subsidiaries and $ 25 million in income taxes payable between Harris Parent Co. and Exelis Parent C o . , in each case in the Consolidated Balance Sheet for the fiscal year ended July 3, 2015 in Note 26: “Condensed Consolidating Financial Statements” in our Notes to Consolidated Financial Statements in our Fiscal 2015 Form 10-K. The errors impacted the “Goodwill , ” “Accounts payable,” “Income taxes payable,” “Investment in subsidiaries” and “Other capital” line items. The error s and correction s did not impact amounts in the Consolidated Total column for any line items or the Company's consolidated financial results .

Significant Accounting Polici24

Significant Accounting Policies and Recent Accounting Standards (Policies)	3 Months Ended
	Oct. 02, 2015
Significant Accounting Policies and Recent Accounting Standards (Policies) [Abstract]
Basis of Presentation	Basis of Presentation The accompanying condensed consolidated financial statements include the accounts of Harris Corporation and its consolidated subsidiaries. As used in these Notes to Condensed Consolidated Financial Statements (Unaudited) (these “Notes”), the terms “Harris,” “Company,” “we,” “our ” and “us” refer to Harris Corporation and its consolidated subsidiaries. I nt ra company transactions and accounts have been eliminated in consolidation . The accompanying condensed consolidated financial statements have been prepared by Harris, without an audit, in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, such interim financial statements do not include all information and footnotes necessary for a complete presentation of financial position, results of operations and cash flows in conformity with U.S. GAAP for annual financial statements . In the opinion of management, such interim financial statements reflect all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation of our financial position, results of operations and cash flows for the periods presented therein . The results for the first quarter of fiscal 2016 are not necessarily indicative of the results that may be expected for the full fiscal year or any subsequent period. The balance sheet at July 3, 2015 has been derived from our audited financial statements , but does not include all of the information and footnotes required by U.S. GAAP for annual financial statements. We provide complete , audited financial statements in our Annual Report on Form 10-K, which includes information and footnotes required by the rules and regulations of the SEC. The information included in this Quarterly Report on Form 10-Q (this “Report”) should be read in conjunction with the Management's Discussion and Analysis of Financial Cond ition and Results of Operations and the Consolidated Financial Statements and accompanying Notes to Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended July 3, 2015 (our “Fiscal 2015 Form 10-K”) .
Use of Estimates	Use of Estimates The preparation of financial statements in accordance with U.S. GAAP requires us to make estimates and assumptions that affect the amounts reported in the accompanying condensed consolidated financial statements and these Notes. These estimates and assumptions are based on experience and other information available prior to issuance of the accompanying condensed consolidated financial statements and these Notes. Materially different results can occur as circumstances change and additional information becomes known.
Adoption of New Accounting Standards	Adoption of New Accounting Standards In the first quarter of fiscal 2016, we adopted an accounting standard issued by the Financial Accounting Standards Board (“FASB”) that eliminates the requirement for an acquirer in a business combination to retrospectively account for measurement-period adjustments . Instead, t he new guidance requires that the cum ulative impact of a measurement- period adjustment (including the impact on prior periods) be recogniz ed in the reporting period in which the adjustment is identified . This standard is to be applied pro spectively. The adoption of this standard did not have a material impact on our financial position, results of operations or cash flows.
Accounting Standards Issued But Not Yet Effective	Accounting Standards Issued But Not Yet Effective In May 2014, the FASB issued a comprehensive new revenue recognition standard that supersedes nearly all revenue recognition guidance under U.S. GAAP and International Financial Reporting Standards and supersedes some cost guidance for construction-type and production-type contracts. The guidance in this standard is principles-based, and consequently , entities will be required to use more judgment and make more estimates than under prior guidance, including identifying contract performance obligations, estimating variable consideration to include in the contract price and allocating the transaction price to separate performance obligations. The guidance in this standard is applicable to all contracts with customers, regardless of industry-specific or transaction-specific fact patterns. Additionally, this standard provides guidance for transactions that were not previously addressed comprehensively (e.g., service revenue, contract modifications and licenses of intellectual property) and modifies guidance for multiple-element arrangements. The core principle of this standard is that entities should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. To help financial statement users better understand the nature, amount, timing and potential uncertainty of the revenue that is recognized, this standard requires significantly more interim and annual disclosures. This standard allows for either “full retrospective” adoption (application to all periods presented) or “modified retrospective” adoption (application to only the most current period presented in the financial statements, as well as certain additional required footnote disclosures). In August 2015 , the FASB issued an accounting standards update that defers the effective date of this standard by one year , while permitting entities to elect to adopt one year earlier on the original effective date. As a result, this standard is now effective for fiscal years, and interim reporting periods within those years, beginning after December 15, 2017, which for us is our fiscal 2019. We are currently evaluating the impact this standard will have on our financial position, resul ts of operations and cash flows .
Stock Options and Other Share-Based Compensation	The fair value as of the grant date of each option award was determined using the Black- Scholes -Merton option-pricing model , which used the following assumptions: expected dividend yield of 2. 50 percent; expected volatility of 23 .0 1 percent; risk-free interest rates averaging 1. 52 percent; and expected term in years of 5.05 . The fair value as of the grant date of each restricted stock award was based on the closing price of our common stock on the grant date. The fair value as of the grant date of each performance share unit award was determined based on a fair value from a multifactor Monte Carlo valuation model that simulates our stock price and total shareholder return (“TSR”) relative to other companies in our TSR peer group, less a discount to reflect the delay in payment s of cash dividend-equivalents that are made only upon vesting .
Extended Product Warranty	We also sell extended product warranties and recognize revenue from these arrangements over the warranty period. Costs of warranty services under these arrangements are recognized as incurred.
Fair Value Measurements, Recurring Basis	Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in the principal market (or most advantageous market, in the absence of a principal market) for the asset or liability in an orderly transaction between market participants at the measurement date. E ntities are required to maximize the use of observable inputs and minimize the use of unobservable inputs in measuring fair value, and to utilize a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. The three levels of inputs used to measure fair value are as follows: • Level 1 — Qu oted prices in active markets for identical assets or liabilities. • Level 2 — Observable inputs other than quoted prices included within Level 1, including quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; and inputs other than quoted prices that are observable or are derived principally from, or corroborated by, observable market data by correlation or other means. • Level 3 — Unobservable inputs that are supported by little or no market activity , are significant to the fair value of the assets or liabilities, and reflect our own assumptions about the assumptions market participants would use in pricing the asset or liability developed using the best information available in the circumstances.
Revenue Recognition	Estimates and assumptions , and changes ther e in, are important in connection with, among others, our segments' revenue recognition policies related to development and product ion contracts . Revenue and profits related to development and production contracts are recognized using the percentage-of-completion method, generally based on the ratio of costs incurred to estimated total costs at completion (i.e., the “ cost-to-cost ” method) or the ratio of actual units delivered to estimated total units to be delivered under the contract (i.e., the “units-of-delivery” method) with consideration given for risk of performance and estimated profit. Revenue and profits on cost-reimbursable development and production contracts are recognized as allowable costs are incurred on the contract, and become billable to the customer, in an amount equal to the allowable costs plus the profit on those costs. Development and production contracts are combined when specific aggregation criteria are met. Criteria generally include closely interrelated activities performed for a single customer within the same economic environment. Development and production contracts are generally not segmented. If development and production contracts are segmented, we have determined that they meet specific segmenting criteria. Change orders, claims or other items that may change the scope of a development and production contract are included in contract value only when the value can be reliably estimated and realization is probable. Possible i n centives or penalties and award fees applicable to performance on development and production contracts are considered in estimating contract value and profit rates and are recorded when there is sufficient information to assess anticipated contract p erformance. Incentive provisions that increase earnings based solely on a single significant event are generally not recognized until the event occurs. Under the percentage-of-completion method of accounting, a single estimated total profit margin is used to recognize profit for each development and production contract over its period of performance. Recognition of profit on development and production fixed-price contracts requires estimates of the total cost at completion and the measurement of progress toward completion. The estimated profit or loss on a development and production contract is equal to the difference between the estimated contract value and the estimated total cost at completion. Due to the long-term nature of many of our programs, developing the estimated total cost at completion often requires judgment. Factors that must be considered in estimating the cost of the work to be completed include the nature and complexity of the work to be performed, subcontractor performance, the risk and impact of delayed performance, availability and timing of funding from the customer and the recoverability of any claims outside the original development and production contract included in the estimate to complete. At the outset of each contract, we gauge its complexity and perceived risks and establish an estimated total cost at completion in line with these expectations. After establishing the estimated total cost at completion, we follow a standard e stimate at c ompletion (“EAC”) process in which management reviews the progress and performance on our ongoing development and production contracts at least quarterly and, in many cases, more frequently. If we successfully retire risks associated with the technical, schedule and cost aspects of a contract, we may lower our estimated total cost at completion commensurate with the retirement of these risks. Conversely, if we are not successful in retiring these risks, we may increase our estimated total cost at completion. Additionally, at the outset of a cost-reimbursable contract (for example, contracts containing award or incentive fees), we establish an estimate d total contract value, or revenue, based on our expectation of performance on the contract. As the cost-reimbursable co ntract progresses, our estimated total contract value may increase or decrease if, for example, we receive higher or lower than expected award fees. When adjustments in estimated total costs at completion or in estimate d total contract value are determined, the related impact to operating income is recognized using the cumulative catch-up method, which recognizes in the current period the cumulative effect of such adjustments for all prior periods. Anticipated losses on development and production contracts or programs in progress are charged to operating income when identified.
Evaluation of performance and intersegment sales policy	The accounting policies of our business segments are the same as those described in Note 1: “Significant Accounting Policies” in our Notes to Consolidated Financial Statements in our Fiscal 2015 Form 10-K. We evaluate each segm ent's performance based on its operating income or loss , which we define as profit or loss from operations before income taxes excluding interest income and expense, royalties and related intellectual property expenses, equity method investment income or loss and gains or losses from se curities and other investments. Intersegment sales are generally transferred at cost to the buying segment , and the sourcing segment recognizes a profit that is eliminated. The “Corporate eliminations” line ite ms in the tables below represent the elimination of intersegment sales and their related profits. The “Unallocated corporate expense” line item in the tables below represents the portion of corpora te expenses not allocated to our business segments.
Goodwill	In accordance with GAAP, we have re assigned goodwill using a relative fair value approach. Because our accounting for our acquisition of Exelis Inc. and its subsidiaries (collectively, “Exelis”) in the fourth quarter of fiscal 2015 is still preliminary, we assigned the goodw ill acquired as a result of the acquisition on a provisional basis. Immediately before and after our goodwill assignments, we completed an assessment of any potentia l goodwill impairment under our former and new segment reporting structure and determined that no impairment existed.

Accumulated Other Comprehensi25

Accumulated Other Comprehensive Loss (Tables)	3 Months Ended
	Oct. 02, 2015
Accumulated Other Comprehensive Loss (Tables) [Abstract]
Components of accumulated other comprehensive loss	The components of accumulated other comprehensive loss are summarized below : October 2, July 3, 2015 (1) 2015 (1) (In millions) Foreign currency translation, net of income taxes of $19 million and $15 million at October 2, 2015 and July 3, 2015, respectively $ (94) $ (62) Net unrealized loss on hedging derivatives, net of income taxes of $12 million at October 2, 2015 and July 3, 2015 (19) (19) Unrecognized postretirement obligations, net of income taxes of $42 million at October 2, 2015 and July 3, 2015 65 65 $ (48) $ (16) ________________ (1) Reclassifications out of accumulated other comprehensive loss to earnings were not material for the first quarter of fiscal 201 6 or 201 5 .

Receivables (Tables)

Receivables (Tables)	3 Months Ended
	Oct. 02, 2015
Receivables (Tables) [Abstract]
Receivables	Re ceivables are summarized below: October 2, July 3, 2015 2015 (In millions) Accounts receivable $ 770 $ 837 Unbilled costs and accrued earnings on cost-plus contracts 320 343 1,090 1,180 Less allowances for collection losses (12) (12) $ 1,078 $ 1,168

Inventories (Tables)

Inventories (Tables)	3 Months Ended
	Oct. 02, 2015
Inventories (Tables) [Abstract]
Inventories	Inventories are summarized below: October 2, July 3, 2015 2015 (In millions) Unbilled costs and accrued earnings on fixed-price contracts $ 556 $ 463 Finished products 110 100 Work in process 235 256 Raw materials and supplies 206 196 $ 1,107 $ 1,015

Property Plant and Equipment (T

Property Plant and Equipment (Tables)	3 Months Ended
	Oct. 02, 2015
Property, Plant and Equipment (Tables) [Abstract]
Property, Plant and Equipment	Property, plant and equipment are summarized below: October 2, July 3, 2015 2015 (In millions) Land $ 45 $ 45 Software capitalized for internal use 154 155 Buildings 632 587 Machinery and equipment 1,491 1,526 2,322 2,313 Less accumulated depreciation and amortization (1,172) (1,148) $ 1,150 $ 1,165

Goodwill (Tables)

Goodwill (Tables)	3 Months Ended
	Oct. 02, 2015
Goodwill (Tables) [Abstract]
Changes in carrying amount of Goodwill	The assignment of goodwill by business segment is as follows: Space and Communication Intelligence Electronic Critical Systems Systems Systems Networks Total (In millions) Balance at July 3, 2015 $ 760 $ 1,446 $ 1,718 $ 2,424 $ 6,348 Currency translation adjustments (2) (1) ― (14) (17) Other (including true-ups of previously estimated purchase price allocations) (1) 2 (9) 4 (7) (10) Balance at October 2, 2015 $ 760 $ 1,436 $ 1,722 $ 2,403 $ 6,321 ________________ (1) Our accounting for the Exelis acquisition is still preliminary. The fair value estimates for the assets acquired and liabilities assumed were based on preliminary calculations, and our estimates and assumptions are subject to change as we obtain additional information for our estimates during the measurement period (up to one year from the acquisition date). The primary areas of these preliminary estimates that are not yet finalized relate to certain tangible assets and liabilities acquired, identifiable intangible assets and tax-related items. During the quarter ended October 2, 2015, we recorded several purchase price adjustments which impacted goodwill, the largest of which was a $ 31 million reduction in current liabilities related to unrecognized tax benefits.

Accrued Warranties (Tables)

Accrued Warranties (Tables)	3 Months Ended
	Oct. 02, 2015
Accrued Warranties (Tables) [Abstract]
Changes in warranty liability	Changes in our liability for standard product warranties , which is included as a component of the “Other accrued items” and “Other long-term liabilities” line items in the accompanying Condensed Consolidated Balance Sheet (Unaudited), during the first quarter of fiscal 201 6 were as follows: (In millions) Balance at July 3, 2015 $ 36 Warranty provision for sales 4 Settlements (6) Balance at October 2, 2015 $ 34

Postretirement Benefit Plans (T

Postretirement Benefit Plans (Tables)	3 Months Ended
	Oct. 02, 2015
Compensation and Retirement Disclosure [Abstract]
Components of Net Periodic Benefit Cost	Quarter Ended October 2, 2015 Other Pension Benefits Total (In millions) Net periodic benefit cost Service cost $ 18 $ 1 $ 19 Interest cost 62 4 66 Expected return on plan assets (86) (5) (91) Amortization of net actuarial loss ― 2 2 Amortization of prior service cost ― (3) (3) Total net periodic benefit cost $ (6) $ (1) $ (7)

Net Income Per Common Share (Ta

Net Income Per Common Share (Tables)	3 Months Ended
	Oct. 02, 2015
Income From Continuing Operations Per Share (Tables) [Abstract]
Net income per common share	The computations of net income per common share are as follows: Quarter Ended October 2, September 26, 2015 2014 (In millions, except per share amounts) Net income $ 148 $ 125 Adjustments for participating securities outstanding ― (1) Net income used in per basic and diluted common share calculations (A) $ 148 $ 124 Basic weighted average common shares outstanding (B) 123.5 104.6 Impact of dilutive share-based awards 1.2 1.2 Diluted weighted average common shares outstanding (C) 124.7 105.8 Net income per basic common share (A)/(B) $ 1.20 $ 1.19 Net income per diluted common share (A)/(C) $ 1.18 $ 1.18

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Oct. 02, 2015
Fair Value Measurements (Tables) [Abstract]
Assets and liabilities measured at fair value on a recurring basis	The following table presents the fair value hierarchy of our assets and liabilities measured at fair value on a recurring basis (at least annually) as of October 2, 2015 : Level 1 Level 2 Level 3 Total (In millions) Assets Deferred compensation plan investments: (1) Corporate-owned life insurance $ ― $ 17 $ ― $ 17 Stock fund 52 ― ― 52 Equity security 35 ― ― 35 Liabilities Deferred compensation plans (2) 36 83 ― 119 ____________ (1 ) Represents investments held in a “R abbi T rust ” associated with our non-qualified deferred compensation plans, which we include in the “ Deferred compensation plan investments ” and “Other non-current assets” line items in the accompanying Condensed Consolidated Balance Sheet (Unaudited). ( 2 ) Primarily represents obligations to pay benefits under certain non-qualified deferred compensation plans, which we include in the “ Deferred compensation plan liabilities ” and “Other long-term liabilities” line items in the accompanying Condensed Consolidated Balance Sheet (Unaudited). Under these plans, participants designate investment options (including money market, stock and fixed-income funds), which serve as the basis for measurement of the n otional value of their accounts .
Carrying amounts and estimated fair values of financial instruments not measured at fair value	T he following table presents the carrying amounts and estimated fair values of our significant financial instruments that were not measured at fair value (carrying amounts of other financial instruments not listed in the table below approximate fair value due to the short-term nature of those items): October 2, 2015 July 3, 2015 Carrying Fair Carrying Fair Amount Value Amount Value (In millions) Financial Liabilities Long-term debt (including current portion) (1) $ 5,031 $ 5,121 $ 5,183 $ 5,230 ____________ (1) The fair value was estimated using a market approach based on quoted market prices for our debt traded in the secondary market . If our long-term debt in our balance sheet were measured at fair value, it would be categorized in Level 2 of the fair value hierarchy .

Business Segments (Tables)

Business Segments (Tables)	3 Months Ended
	Oct. 02, 2015
Business Segments (Tables) [Abstract]
Summary of total assets by business segment	Total assets by business segment are summarized below: October 2, July 3, 2015 2015 (In millions) Total Assets Communication Systems $ 1,853 $ 1,906 Space and Intelligence Systems 2,139 2,096 Electronic Systems 2,517 2,513 Critical Networks 3,438 3,492 Corporate (1) 2,617 3,122 $ 12,564 $ 13,129 _____________ (1) Because the acquisition of Exelis in the fourth quarter of fiscal 2015 benefited the entire Company as opposed to any individual segments, the approximately $ 1.6 billion of identifiable intangible assets acquired in the Exelis acquisition was recorded as Corporate assets .
Revenue and income from continuing operations before income taxes by segment	Segment revenue, segment operating income and a reconciliation of segment operating income to total income before income taxes follow: Quarter Ended October 2, September 26, 2015 2014 (In millions) Revenue Communication Systems $ 454 $ 389 Space and Intelligence Systems 435 253 Electronic Systems 374 109 Critical Networks 566 407 Corporate eliminations (18) (3) $ 1,811 $ 1,155 Income Before Income Taxes Segment Operating Income : Communication Systems $ 138 $ 116 Space and Intelligence Systems 68 37 Electronic Systems 69 22 Critical Networks 63 42 Unallocated corporate expense (1) (75) (17) Corporate eliminations (1) (2) Non-operating income (2) 1 ― Net interest expense (47) (22) $ 216 $ 176 ____________ ( 1) Because the acquisition of Exelis in the fourth quarter of fiscal 2015 benefited the entire Company as opposed to any individual segments, the amortization of identifiable intangible assets acquired in the Exelis acquisition wa s recorded as u nallocated corporate expense. (2) “Non-operating income” in the quarter ended October 2, 2015 primarily consisted of income related to intellectual property matters.

Condensed Consolidating Finan35

Condensed Consolidating Financial Statements (Tables)	3 Months Ended		12 Months Ended
	Oct. 02, 2015	Sep. 26, 2014	Jul. 03, 2015
Guarantees [Abstract]
Comprehensive Income (Loss) [Table Text Block]	CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (Unaudited) Quarter Ended October 2, 2015 Harris Exelis Non-Guarantor Consolidating Consolidated Parent Co. Parent Co. Subsidiaries Adjustments Total (In millions) Revenue from product sales and services $ 790 $ 584 $ 437 $ ― $ 1,811 Cost of product sales and services (491) (422) (307) ― (1,220) Engineering, selling and administrative expenses (156) (86) (87) ― (329) Intercompany income (expense), net (12) 2 10 ― ― Non-operating income 1 ― ― ― 1 Interest income ― ― 1 ― 1 Interest expense (41) (5) (2) ― (48) Income before income taxes 91 73 52 ― 216 Income taxes (26) (26) (16) ― (68) Equity in earnings of subsidiaries, net of income taxes 83 9 ― (92) ― Net income 148 56 36 (92) 148 Other comprehensive loss, net of income taxes (84) (15) (25) 92 (32) Total comprehensive income $ 64 $ 41 $ 11 $ ― $ 116	CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (Unaudited) Quarter Ended September 26, 2014 Harris Non-Guarantor Consolidating Consolidated Parent Co. Subsidiaries Adjustments Total (In millions) Revenue from product sales and services $ 827 $ 328 $ ― $ 1,155 Cost of product sales and services (524) (238) ― (762) Engineering, selling and administrative expenses (157) (38) ― (195) Intercompany income (expense), net (8) 8 ― ― Non-operating income (loss) 13 (13) ― ― Interest income ― 1 ― 1 Interest expense (23) ― ― (23) Income before income taxes 128 48 ― 176 Income taxes (36) (15) ― (51) Equity in earnings of subsidiaries, net of income taxes 33 ― (33) ― Net income 125 33 (33) 125 Other comprehensive loss, net of income taxes (37) (17) 33 (21) Total comprehensive income $ 88 $ 16 $ ― $ 104
Condensed Balance Sheet [Table Text Block]	CONDENSED CONSOLIDATING BALANCE SHEET (Unaudited) Quarter Ended October 2, 2015 Harris Exelis Non-Guarantor Consolidating Consolidated Parent Co. Parent Co. Subsidiaries Adjustments Total (In millions) Assets Current Assets Cash and cash equivalents $ 64 $ 49 $ 207 $ ― $ 320 Receivables 503 498 2,359 (2,282) 1,078 Inventories 530 285 292 ― 1,107 Income taxes receivable 16 6 8 ― 30 Current deferred income taxes 103 212 31 ― 346 Deferred compensation plan investments 12 28 ― ― 40 Other current assets 34 42 56 ― 132 Total current assets 1,262 1,120 2,953 (2,282) 3,053 Non-current Assets Property, plant and equipment 534 383 233 ― 1,150 Goodwill 465 4,683 1,173 ― 6,321 Other intangible assets 29 1,255 445 ― 1,729 Non-current deferred income taxes 97 179 ― (111) 165 Investment in subsidiaries 8,518 11 ― (8,529) ― Other non-current assets 103 ― 96 (53) 146 Total non-current assets 9,746 6,511 1,947 (8,693) 9,511 $ 11,008 $ 7,631 $ 4,900 $ (10,975) $ 12,564 Liabilities and Equity Current Liabilities Short-term debt $ 25 $ ― $ 25 $ ― $ 50 Accounts payable 2,355 161 221 (2,282) 455 Compensation and benefits 134 79 45 ― 258 Other accrued items 241 161 72 ― 474 Advance payments and unearned income 149 177 95 ― 421 Income taxes payable 43 8 19 ― 70 Current deferred income taxes ― ― 1 ― 1 Deferred compensation plan liabilities 12 ― ― ― 12 Current portion of long-term debt 130 ― ― ― 130 Total current liabilities 3,089 586 478 (2,282) 1,871 Non-current Liabilities Defined benefit plans ― 1,841 35 ― 1,876 Long-term debt 4,179 698 24 ― 4,901 Long-term contract liability 67 ― ― ― 67 Non-current deferred income taxes ― ― 125 (111) 14 Other long-term liabilities 210 124 91 (53) 372 Total non-current liabilities 4,456 2,663 275 (164) 7,230 Equity Shareholders’ Equity: Common stock 124 ― ― ― 124 Other capital 3,796 4,283 2,307 (8,342) 2,044 Retained earnings (117) 36 1,934 (511) 1,342 Accumulated other comprehensive loss (340) 63 (95) 324 (48) Total shareholders’ equity 3,463 4,382 4,146 (8,529) 3,462 Noncontrolling interests ― ― 1 ― 1 Total equity 3,463 4,382 4,147 (8,529) 3,463 $ 11,008 $ 7,631 $ 4,900 $ (10,975) $ 12,564		CONDENSED CONSOLIDATING BALANCE SHEET Fiscal Year Ended July 3, 2015 Harris Exelis Non-Guarantor Consolidating Consolidated Parent Co. Parent Co. Subsidiaries Adjustments Total (In millions) Assets Current Assets Cash and cash equivalents $ 151 $ 54 $ 276 $ ― $ 481 Receivables 623 333 2,430 (2,218) 1,168 Inventories 478 272 265 ― 1,015 Income taxes receivable 17 65 5 ― 87 Current deferred income taxes 108 202 31 ― 341 Deferred compensation plan investments 12 255 ― ― 267 Other current assets 39 68 58 ― 165 Total current assets 1,428 1,249 3,065 (2,218) 3,524 Non-current Assets Property, plant and equipment 549 375 241 ― 1,165 Goodwill 462 4,693 1,193 ― 6,348 Other intangible assets 31 1,282 462 ― 1,775 Non-current deferred income taxes 95 179 ― (111) 163 Investment in subsidiaries 8,249 2 ― (8,251) ― Other non-current assets 110 10 34 ― 154 Total non-current assets 9,496 6,541 1,930 (8,362) 9,605 $ 10,924 $ 7,790 $ 4,995 $ (10,580) $ 13,129 Liabilities and Equity Current Liabilities Short-term debt $ ― $ ― $ 33 $ ― $ 33 Accounts payable 2,201 290 308 (2,218) 581 Compensation and benefits 128 70 57 ― 255 Other accrued items 246 226 46 ― 518 Advance payments and unearned income 149 187 97 ― 433 Income taxes payable 27 19 11 ― 57 Current deferred income taxes ― ― 7 ― 7 Deferred compensation plan liabilities 12 255 ― ― 267 Current portion of long-term debt 130 ― ― ― 130 Total current liabilities 2,893 1,047 559 (2,218) 2,281 Non-current Liabilities Defined benefit plans ― 1,923 20 ― 1,943 Long-term debt 4,328 701 24 ― 5,053 Long-term contract liability 71 ― ― ― 71 Non-current deferred income taxes ― ― 118 (111) 7 Other long-term liabilities 235 38 99 ― 372 Total non-current liabilities 4,634 2,662 261 (111) 7,446 Equity Shareholders’ Equity: Common stock 124 ― ― ― 124 Other capital 3,731 4,023 2,342 (8,065) 2,031 Retained earnings (202) (20) 1,898 (418) 1,258 Accumulated other comprehensive loss (256) 78 (70) 232 (16) Total shareholders’ equity 3,397 4,081 4,170 (8,251) 3,397 Noncontrolling interests ― ― 5 ― 5 Total equity 3,397 4,081 4,175 (8,251) 3,402 $ 10,924 $ 7,790 $ 4,995 $ (10,580) $ 13,129 Note : The above table reflects the correction of classification errors of $ 194 million in goodwill between Harris Parent Co. and Non-Guarantor Subsidiaries , $ 126 million in accounts payable between Exelis Parent Co. and Non-Guarantor Subsidiaries and $ 25 million in income taxes payable between Harris Parent Co. and Exelis Parent C o . , in each case in the Consolidated Balance Sheet for the fiscal year ended July 3, 2015 in Note 26: “Condensed Consolidating Financial Statements” in our Notes to Consolidated Financial Statements in our Fiscal 2015 Form 10-K. The errors impacted the “Goodwill , ” “Accounts payable,” “Income taxes payable,” “Investment in subsidiaries” and “Other capital” line items. The error s and correction s did not impact amounts in the Consolidated Total column for any line items or the Company's consolidated financial results .
Condensed Cash Flow Statement [Table Text Block]	CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (Unaudited) Quarter Ended October 2, 2015 Harris Exelis Non-Guarantor Consolidating Consolidated Parent Co. Parent Co. Subsidiaries Adjustments Total (In millions) Net cash provided by (used in) operating activities $ 177 $ 1 $ (114) $ ― $ 64 Investing Activities Intercompany loans (61) ― 5 56 ― Additions of property, plant and equipment (15) (6) (5) ― (26) Proceeds from sale of property, plant and equipment 2 ― ― ― 2 Net cash provided by (used in) investing activities (74) (6) ― 56 (24) Financing Activities Intercompany loans (5) ― 61 (56) ― Proceeds from borrowings 25 ― 16 ― 41 Repayments of borrowings (150) ― (23) ― (173) Proceeds from exercises of employee stock options 19 ― ― ― 19 Cash dividends (64) ― ― ― (64) Other financing activities (15) ― ― ― (15) Net cash provided by (used in) financing activities (190) ― 54 (56) (192) Effect of exchange rate changes on cash and cash equivalents ― ― (9) ― (9) Net decrease in cash and cash equivalents (87) (5) (69) ― (161) Cash and cash equivalents, beginning of year 151 54 276 ― 481 Cash and cash equivalents, end of quarter $ 64 $ 49 $ 207 $ ― $ 320	CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (Unaudited) Quarter Ended September 26, 2014 Harris Non-Guarantor Consolidating Consolidated Parent Co. Subsidiaries Adjustments Total (In millions) Net cash provided by (used in) operating activities $ 212 $ (132) $ ― $ 80 Investing Activities Intercompany loans (35) 93 (58) ― Additions of property, plant and equipment (31) (10) ― (41) Proceeds from sale of Cyber Integration Center 7 ― ― 7 Net cash provided by (used in) investing activities (59) 83 (58) (34) Financing Activities Intercompany loans (93) 35 58 ― Proceeds from borrowings ― 3 ― 3 Repayments of borrowings ― (9) ― (9) Proceeds from exercises of employee stock options 18 ― ― 18 Repurchases of common stock (100) ― ― (100) Cash dividends (50) ― ― (50) Other financing activities (12) ― ― (12) Net cash provided by (used in) financing activities (237) 29 58 (150) Effect of exchange rate changes on cash and cash equivalents ― (8) ― (8) Net decrease in cash and cash equivalents (84) (28) ― (112) Cash and cash equivalents, beginning of year 252 309 ― 561 Cash and cash equivalents, end of quarter $ 168 $ 281 $ ― $ 449

Stock Options and Other Share36

Stock Options and Other Share-Based Compensation (Details) $ in Millions	3 Months Ended
	Oct. 02, 2015USD ($)shares	Sep. 26, 2014USD ($)
Stock Options and Other Share Based Compensation (Textuals)
Number of shareholder approved employee stock incentive plans	1
Compensation cost for share-based awards | $	$ 10	$ 8
Stock options granted, shares	1,647,890
Expected dividend yield	2.50%
Expected volatility	23.01%
Risk free interest rates	1.52%
Expected term (years)	5 years 18 days
Performance Share And Performance Share Unit [Member]
Share-based awards
Share-based awards	282,595
Restricted Stock Awards [Member]
Share-based awards
Share-based awards	66,670

Accumulated Other Comprehensi37

Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Oct. 02, 2015	Jul. 03, 2015
Components of accumulated other comprehensive loss
Foreign currency translation, net of income taxes of $19 million and $15 million at October 2, 2015 and July 3, 2015, respectively	$ (94)	$ (62)
Net unrealized loss on hedging derivatives, net of income taxes of $12 million at October 2, 2015 and July 3, 2015	(19)	(19)
Unrecognized postretirement obligations, net of income taxes of $42 million at October 2, 2015 and July 3, 2015	65	65
Accumulated other comprehensive loss	(48)	(16)
Tax effect on unrecognized post-retirement obligations	42	42
Tax effect on unrealized loss on hedging derivatives	12	12
Tax effect on foreign currency translation	$ 19	$ 15

Receivables (Details)

Receivables (Details) - USD ($) $ in Millions	Oct. 02, 2015	Jul. 03, 2015
Receivables
Accounts receivable	$ 770	$ 837
Unbilled costs and accrued earnings on cost-plus contracts	320	343
Receivables, gross	1,090	1,180
Less allowances for collection losses	(12)	(12)
Receivables, net	$ 1,078	$ 1,168

Inventories (Details)

Inventories (Details) - USD ($) $ in Millions	Oct. 02, 2015	Jul. 03, 2015
Inventories
Unbilled costs and accrued earnings on fixed-price contracts	$ 556	$ 463
Finished products	110	100
Work in process	235	256
Raw materials and supplies	206	196
Inventories	1,107	1,015
Inventories (Textuals)
Progress payments	$ 69	$ 85

Property, Plant and Equipment (

Property, Plant and Equipment (Details) - USD ($) $ in Millions	3 Months Ended
	Oct. 02, 2015	Jul. 03, 2015
Property, Plant and Equipment
Land	$ 45	$ 45
Software capitalized for internal use	154	155
Buildings	632	587
Machinery and equipment	1,491	1,526
Property, plant and equipment, gross	2,322	2,313
Less accumulated depreciation and amortization	(1,172)	(1,148)
Property, plant and equipment	1,150	1,165
Property Plant and Equipment (Textuals)
Depreciation and amortization expense related to property, plant and equipment	$ 50	$ 35

Goodwill (Details)

Goodwill (Details) $ in Millions	3 Months Ended
	Oct. 02, 2015USD ($)
Changes in the carrying amount of goodwill
Balance at July 3, 2015	$ 6,348
Currency translation adjustments	(17)
Other (including true-ups of previously estimated purchase price allocations)	(10)
Balance at October 2, 2015	6,321
Exelis [Member]
Goodwill Details (Textuals) [Abstract]
Unrecognized Tax Benefits	31
Communication Systems [Member]
Changes in the carrying amount of goodwill
Balance at July 3, 2015	760
Currency translation adjustments	(2)
Other (including true-ups of previously estimated purchase price allocations)	2
Balance at October 2, 2015	760
Space and Intelligence Systems [Member]
Changes in the carrying amount of goodwill
Balance at July 3, 2015	1,446
Currency translation adjustments	(1)
Other (including true-ups of previously estimated purchase price allocations)	(9)
Balance at October 2, 2015	1,436
Electronic Systems [Member]
Changes in the carrying amount of goodwill
Balance at July 3, 2015	1,718
Currency translation adjustments	0
Other (including true-ups of previously estimated purchase price allocations)	4
Balance at October 2, 2015	1,722
Critical Networks [Member]
Changes in the carrying amount of goodwill
Balance at July 3, 2015	2,424
Currency translation adjustments	(14)
Other (including true-ups of previously estimated purchase price allocations)	(7)
Balance at October 2, 2015	$ 2,403

Accrued Warranties (Details)

Accrued Warranties (Details) - USD ($) $ in Millions	3 Months Ended
	Oct. 02, 2015	Jul. 03, 2015
Changes in warranty liability
Balance at July 3, 2015	$ 36
Warranty provision for sales made during the first quarter of fiscal 2016	4
Settlements made during the first quarter of fiscal 2016	(6)
Balance at October 2, 2015	34
Extended Product Warranty Disclosure [Abstract]
Extended Product Warranty Accrual	$ 34	$ 36

Postretirement Benefit Plans (D

Postretirement Benefit Plans (Details Textual1) $ in Millions	3 Months Ended
	Oct. 02, 2015USD ($)
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 19
Interest cost	66
Expected return on plan assets	(91)
Amortization of net actuarial loss	2
Amortization of prior service cost	(3)
Total net periodic benefit cost	(7)
Pension
Defined Benefit Plan Disclosure [Line Items]
Service cost	18
Interest cost	62
Expected return on plan assets	(86)
Total net periodic benefit cost	(6)
Other Benefits
Defined Benefit Plan Disclosure [Line Items]
Service cost	1
Interest cost	4
Expected return on plan assets	(5)
Amortization of net actuarial loss	2
Amortization of prior service cost	(3)
Total net periodic benefit cost	$ (1)

Postretirement Benefit Plans 44

Postretirement Benefit Plans (Details 1) $ in Millions	3 Months Ended
	Oct. 02, 2015USD ($)
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, contributions by employer	$ 61
Defined benefit plan, estimated future employer contributions in remaining fiscal year	$ 112

Net Income Per Common Share (De

Net Income Per Common Share (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended
	Oct. 02, 2015	Sep. 26, 2014
Net Income Per Common Share [Abstract]
Net income	$ 148	$ 125
Adjustments for participating securities outstanding	0	(1)
Net income used in per basic and diluted common share calculations (A)	$ 148	$ 124
Basic weighted average common shares outstanding (B)	123,500,000	104,600,000
Impact of dilutive share-based awards	1,200,000	1,200,000
Diluted weighted average common shares outstanding (C)	124,700,000	105,800,000
Net income per basic common share (A)/(B)	$ 1.20	$ 1.19
Net income per diluted common share (A)/(C)	$ 1.18	$ 1.18
Net Income Per Common Share (Textuals) [Abstract]
Outstanding antidilutive employee stock options	1,003,902	386,531

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended
	Oct. 02, 2015	Sep. 26, 2014
Income Taxes (Textuals) [Abstract]
Effective tax rate	31.50%	29.00%
Tax credits resulting from dividend - amount		$ 9
Tax credits resulting from dividends - percentage		5.00%

Fair Value Measurements (Detail

Fair Value Measurements (Details) $ in Millions	Oct. 02, 2015USD ($)
Deferred Compensation Plan Stock Fund [Member]
Assets measured at fair value on recurring basis
Available-for-sale securities	$ 52
Deferred Compensation Plan Equity Securities [Member]
Assets measured at fair value on recurring basis
Available-for-sale securities	35
Deferred Compensation Plan Corporate Owned Life Insurance [Member]
Assets measured at fair value on recurring basis
Corporate-owned life insurance	17
Deferred Compensation Plan [Member]
Liabilities measured at fair value on recurring basis
Deferred compensation plans	119
Fair Value, Inputs, Level 1 [Member] | Deferred Compensation Plan Stock Fund [Member]
Assets measured at fair value on recurring basis
Available-for-sale securities	52
Fair Value, Inputs, Level 1 [Member] | Deferred Compensation Plan Equity Securities [Member]
Assets measured at fair value on recurring basis
Available-for-sale securities	35
Fair Value, Inputs, Level 1 [Member] | Deferred Compensation Plan Corporate Owned Life Insurance [Member]
Assets measured at fair value on recurring basis
Corporate-owned life insurance	0
Fair Value, Inputs, Level 1 [Member] | Deferred Compensation Plan [Member]
Liabilities measured at fair value on recurring basis
Deferred compensation plans	36
Fair Value, Inputs, Level 2 [Member] | Deferred Compensation Plan Stock Fund [Member]
Assets measured at fair value on recurring basis
Available-for-sale securities	0
Fair Value, Inputs, Level 2 [Member] | Deferred Compensation Plan Equity Securities [Member]
Assets measured at fair value on recurring basis
Available-for-sale securities	0
Fair Value, Inputs, Level 2 [Member] | Deferred Compensation Plan Corporate Owned Life Insurance [Member]
Assets measured at fair value on recurring basis
Corporate-owned life insurance	17
Fair Value, Inputs, Level 2 [Member] | Deferred Compensation Plan [Member]
Liabilities measured at fair value on recurring basis
Deferred compensation plans	83
Fair Value, Inputs, Level 3 [Member] | Deferred Compensation Plan Stock Fund [Member]
Assets measured at fair value on recurring basis
Available-for-sale securities	0
Fair Value, Inputs, Level 3 [Member] | Deferred Compensation Plan Equity Securities [Member]
Assets measured at fair value on recurring basis
Available-for-sale securities	0
Fair Value, Inputs, Level 3 [Member] | Deferred Compensation Plan Corporate Owned Life Insurance [Member]
Assets measured at fair value on recurring basis
Corporate-owned life insurance	0
Fair Value, Inputs, Level 3 [Member] | Deferred Compensation Plan [Member]
Liabilities measured at fair value on recurring basis
Deferred compensation plans	$ 0

Fair Value Measurements (Deta48

Fair Value Measurements (Details 2) - USD ($) $ in Millions	Oct. 02, 2015	Jul. 03, 2015
Carrying amounts and estimated fair values of financial instruments not measured at fair value [Abstract]
Financial Liabilities, Long-term debt (including current portion), Carrying amount	$ 5,031	$ 5,183
Financial Liabilities, Long-term debt (including current portion), Fair value	$ 5,121	$ 5,230

Derivative Instruments and He49

Derivative Instruments and Hedging Activities (Details) - USD ($) $ in Millions	3 Months Ended
	Oct. 02, 2015	Jul. 03, 2015
Derivative Instruments and Hedging Activities (Textuals)
Contract expiration dates lower range	1 month
Contract expiration dates upper range	3 months
Weighted average contract life	1 month
ForeignExchangeForwardMember
Derivative Instruments and Hedging Activities (Textuals)
Derivative, Notional Amount	$ 72	$ 74
Fair Value Hedge [Member] | ForeignExchangeForwardMember
Derivative Instruments and Hedging Activities (Textuals)
Derivative, Notional Amount	70	73
Cash Flow Hedge [Member] | ForeignExchangeForwardMember
Derivative Instruments and Hedging Activities (Textuals)
Derivative, Notional Amount	$ 2	$ 1

Changes in Estimate (Details)

Changes in Estimate (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended
	Oct. 02, 2015	Sep. 26, 2014
Change In Accounting Estimate [Line Items]
Earnings Per Share, Diluted	$ 1.18	$ 1.18
Contracts Accounted for under Percentage of Completion [Member]
Change In Accounting Estimate [Line Items]
Operating Income	$ 17	$ 22
Earnings Per Share, Diluted	$ 0.08	$ 0.15

Business Segments (Details)

Business Segments (Details) - USD ($) $ in Millions	3 Months Ended
	Oct. 02, 2015	Sep. 26, 2014	Jul. 03, 2015
Segment Reporting Information [Line Items]
Total assets	$ 12,564		$ 13,129
Revenue and income from continuing operations before income taxes by segment
Revenue from product sales and services	1,811	$ 1,155
Unallocated corporate expense	(75)	(17)
Corporate eliminations	(1)	(2)
Non-operating income	1	0
Income from continuing operations before income taxes	216	176
Business Segments (Textuals)
Identifiable intangible assets	1,729		1,775
Exelis [Member]
Business Segments (Textuals)
Identifiable intangible assets	1,600
Communication Systems [Member]
Segment Reporting Information [Line Items]
Total assets	1,853		1,906
Revenue and income from continuing operations before income taxes by segment
Revenue from product sales and services	454	389
Segment operating income	138	116
Space and Intelligence Systems [Member]
Segment Reporting Information [Line Items]
Total assets	2,139		2,096
Revenue and income from continuing operations before income taxes by segment
Revenue from product sales and services	435	253
Segment operating income	68	37
Electronic Systems [Member]
Segment Reporting Information [Line Items]
Total assets	2,517		2,513
Revenue and income from continuing operations before income taxes by segment
Revenue from product sales and services	374	109
Segment operating income	69	22
Critical Networks [Member]
Segment Reporting Information [Line Items]
Total assets	3,438		3,492
Revenue and income from continuing operations before income taxes by segment
Revenue from product sales and services	566	407
Segment operating income	63	42
Corporate [Member]
Segment Reporting Information [Line Items]
Total assets	2,617		$ 3,122
Revenue and income from continuing operations before income taxes by segment
Revenue from product sales and services	$ (18)	$ (3)

Legal proceedings and conting52

Legal proceedings and contingencies (Details) - USD ($) $ in Millions	3 Months Ended
	Oct. 02, 2015	Dec. 28, 2012
Broadcast Communications [Member]
Loss Contingencies [Line Items]
Asset Sale Agreement		$ 225
Asset Sale Agreement, cash		160
Asset Sale Agreement, promissory note		15
Asset Sale Agreement, earnout		$ 50
Low-End Range Of Possible Outcomes In Arbitration	$ 0
High-End Range of Possible Outcomes In Arbitration	67
Passaic River Alaska [Member] | Exelis [Member]
Loss Contingencies [Line Items]
Estimated cost for all participating parities of remedial alternatives low range	400
Estimated cost for all participating parties of remedial alternatives high range	3,200
Estimated cost for all participating parties of EPA's preferred alternative	$ 1,700

Condensed Consolidating Finan53

Condensed Consolidating Financial Statements (Details Textuals 1) $ in Millions	Jul. 03, 2015USD ($)
Fixed rate debt securities | Financial guarantee by Exelis Inc.
Guarantor Obligations [Line Items]
Notes Payable	$ 3,226
5.55% notes, due October 1, 2021 (Exelis) | Financial guarantee by Harris Corporation
Guarantor Obligations [Line Items]
Notes Payable	$ 400
Interest rate on fixed rate debt	5.55%
4.25% notes, due October 1, 2016 (Exelis) | Financial guarantee by Harris Corporation
Guarantor Obligations [Line Items]
Notes Payable	$ 250
Interest rate on fixed rate debt	4.25%
Exelis
Guarantor Obligations [Line Items]
Business acquisition percentage of voting interests acquired	100.00%

Condensed Consolidating Stateme

Condensed Consolidating Statement of Comprehensive Income (Details 1) - USD ($) $ in Millions	3 Months Ended
	Oct. 02, 2015	Sep. 26, 2014
Guarantor Obligations [Line Items]
Revenue from product sales and services	$ 1,811	$ 1,155
Cost of product sales and services	(1,220)	(762)
Engineering, selling and administrative expenses	(329)	(195)
Non-operating income	1	0
Interest income	1	1
Interest expense	(48)	(23)
Income from before income taxes	216	176
Income taxes	(68)	(51)
Net income	148	125
Other comprehensive loss, net of income taxes	(32)	(21)
Consolidation, Eliminations [Member]
Guarantor Obligations [Line Items]
Revenue from product sales and services	0	0
Cost of product sales and services	0	0
Engineering, selling and administrative expenses	0	0
Intercompany income (expense), net	0
Non-operating income	0	0
Interest income	0	0
Interest expense	0	0
Income from before income taxes	0	0
Income taxes	0	0
Equity in earnings of subsidiaries, net of income taxes	(92)	(33)
Net income	(92)	(33)
Other comprehensive loss, net of income taxes	92	33
Total comprehensive income	0	0
Harris Parent Company [Member] | Financial Guarantee [Member]
Guarantor Obligations [Line Items]
Revenue from product sales and services	790	827
Cost of product sales and services	(491)	(524)
Engineering, selling and administrative expenses	(156)	(157)
Intercompany income (expense), net	(12)	(8)
Non-operating income	1	13
Interest income	0	0
Interest expense	(41)	(23)
Income from before income taxes	91	128
Income taxes	(26)	(36)
Equity in earnings of subsidiaries, net of income taxes	83	33
Net income	148	125
Other comprehensive loss, net of income taxes	(84)	(37)
Total comprehensive income	64	88
Exelis Parent Company [Member] | Financial Guarantee [Member]
Guarantor Obligations [Line Items]
Revenue from product sales and services	584
Cost of product sales and services	(422)
Engineering, selling and administrative expenses	(86)
Intercompany income (expense), net	2
Non-operating income	0
Interest income	0
Interest expense	(5)
Income from before income taxes	73
Income taxes	(26)
Equity in earnings of subsidiaries, net of income taxes	9
Net income	56
Other comprehensive loss, net of income taxes	(15)
Total comprehensive income	41
Non-Guarantor Subsidiaries [Member]
Guarantor Obligations [Line Items]
Revenue from product sales and services	437	328
Cost of product sales and services	(307)	(238)
Engineering, selling and administrative expenses	(87)	(38)
Intercompany income (expense), net	10	8
Non-operating income	0	(13)
Interest income	1	1
Interest expense	(2)	0
Income from before income taxes	52	48
Income taxes	(16)	(15)
Equity in earnings of subsidiaries, net of income taxes	0	0
Net income	36	33
Other comprehensive loss, net of income taxes	(25)	(17)
Total comprehensive income	$ 11	$ 16

Condensed Consolidating Balance

Condensed Consolidating Balance Sheet (Details 2) - USD ($) $ in Millions	Oct. 02, 2015	Jul. 03, 2015	Sep. 26, 2014	Jun. 27, 2014
Current Assets
Cash and cash equivalents	$ 320	$ 481	$ 449	$ 561
Receivables	1,078	1,168
Inventories	1,107	1,015
Income taxes receivable	30	87
Current deferred income taxes	346	341
Deferred compensation plan investments	40	267
Other current assets	132	165
Total current assets	3,053	3,524
Non-current Assets
Property, plant and equipment	1,150	1,165
Goodwill	6,321	6,348
Other intangible assets	1,729	1,775
Non-current deferred income taxes	165	163
Other non-current assets	146	154
Total non-current assets	9,511	9,605
Total assets	12,564	13,129
Current Liabilities
Short-term debt	50	33
Accounts payable	455	581
Compensation and benefits	258	255
Other accrued items	474	518
Advance payments and unearned income	421	433
Income taxes payable	70	57
Current deferred income taxes	1	7
Deferred compensation plan liabilities	12	267
Current portion of long-term debt	130	130
Liabilities, Current	1,871	2,281
Non-current Liabilities
Defined benefit plans	1,876	1,943
Non-current deferred income taxes	14	7
Long-term debt	4,901	5,053
Long-term contract liability	67	71
Other long-term liabilities	372	372
Total non-current liabilities	7,230	7,446
Shareholders' Equity:
Preferred stock, without par value; 1,000,000 shares authorized; none issued	0	0
Common stock, $1.00 par value; 500,000,000 shares authorized; issued and outstanding 124,168,650 shares at October 2, 2015 and 123,675,756 shares at July 3, 2015	124	124
Other capital	2,044	2,031
Retained earnings	1,342	1,258
Accumulated other comprehensive loss	(48)	(16)
Total shareholders' equity	3,462	3,397
Noncontrolling interests	1	5
Total equity	3,463	3,402
Total liabilities and equity	12,564	13,129
Consolidation, Eliminations [Member]
Current Assets
Cash and cash equivalents	0	0
Receivables	(2,282)	(2,218)
Inventories	0	0
Income taxes receivable	0	0
Current deferred income taxes	0	0
Deferred compensation plan investments	0	0
Other current assets	0	0
Total current assets	(2,282)	(2,218)
Non-current Assets
Property, plant and equipment	0	0
Goodwill	0	0
Other intangible assets	0	0
Non-current deferred income taxes	(111)	(111)
Investment in Subsidiaries	(8,529)	(8,251)
Other non-current assets	(53)	0
Total non-current assets	(8,693)	(8,362)
Total assets	(10,975)	(10,580)
Current Liabilities
Short-term debt	0	0
Accounts payable	(2,282)	(2,218)
Compensation and benefits	0	0
Other accrued items	0	0
Advance payments and unearned income	0	0
Income taxes payable	0	0
Current deferred income taxes	0	0
Deferred compensation plan liabilities	0	0
Current portion of long-term debt	0	0
Liabilities of discontinued operations	0	0
Liabilities, Current	(2,282)	(2,218)
Non-current Liabilities
Defined benefit plans	0	0
Non-current deferred income taxes	(111)	(111)
Long-term debt	0	0
Long-term contract liability	0	0
Other long-term liabilities	(53)	0
Non-current liabilities of discontinued operations	0	0
Total non-current liabilities	(164)	(111)
Shareholders' Equity:
Common stock, $1.00 par value; 500,000,000 shares authorized; issued and outstanding 124,168,650 shares at October 2, 2015 and 123,675,756 shares at July 3, 2015	0	0
Other capital	(8,342)	(8,065)
Retained earnings	(511)	(418)
Accumulated other comprehensive loss	324	232
Total shareholders' equity	(8,529)	(8,251)
Noncontrolling interests	0	0
Total equity	(8,529)	(8,251)
Harris Parent Company [Member] | Financial Guarantee [Member]
Current Assets
Cash and cash equivalents	64	151
Receivables	503	623
Inventories	530	478
Income taxes receivable	16	17
Current deferred income taxes	103	108
Deferred compensation plan investments	12	12
Other current assets	34	39
Total current assets	1,262	1,428
Non-current Assets
Property, plant and equipment	534	549
Goodwill	465	462
Other intangible assets	29	31
Non-current deferred income taxes	97	95
Investment in Subsidiaries	8,518	8,249
Other non-current assets	103	110
Total non-current assets	9,746	9,496
Total assets	11,008	10,924
Current Liabilities
Short-term debt	25	0
Accounts payable	2,355	2,201
Compensation and benefits	134	128
Other accrued items	241	246
Advance payments and unearned income	149	149
Income taxes payable	43	27
Current deferred income taxes	0	0
Deferred compensation plan liabilities	12	12
Current portion of long-term debt	130	130
Liabilities of discontinued operations	0	0
Liabilities, Current	3,089	2,893
Non-current Liabilities
Defined benefit plans	0	0
Non-current deferred income taxes	0	0
Long-term debt	4,179	4,328
Long-term contract liability	67	71
Other long-term liabilities	210	235
Non-current liabilities of discontinued operations	0	0
Total non-current liabilities	4,456	4,634
Shareholders' Equity:
Common stock, $1.00 par value; 500,000,000 shares authorized; issued and outstanding 124,168,650 shares at October 2, 2015 and 123,675,756 shares at July 3, 2015	124	124
Other capital	3,796	3,731
Retained earnings	(117)	(202)
Accumulated other comprehensive loss	(340)	(256)
Total shareholders' equity	3,463	3,397
Noncontrolling interests	0	0
Total equity	3,463	3,397
Exelis Parent Company [Member] | Financial Guarantee [Member]
Current Assets
Cash and cash equivalents	49	54
Receivables	498	333
Inventories	285	272
Income taxes receivable	6	65
Current deferred income taxes	212	202
Deferred compensation plan investments	28	255
Other current assets	42	68
Total current assets	1,120	1,249
Non-current Assets
Property, plant and equipment	383	375
Goodwill	4,683	4,693
Other intangible assets	1,255	1,282
Non-current deferred income taxes	179	179
Investment in Subsidiaries	11	2
Other non-current assets	0	10
Total non-current assets	6,511	6,541
Total assets	7,631	7,790
Current Liabilities
Short-term debt	0	0
Accounts payable	161	290
Compensation and benefits	79	70
Other accrued items	161	226
Advance payments and unearned income	177	187
Income taxes payable	8	19
Current deferred income taxes	0	0
Deferred compensation plan liabilities	0	255
Current portion of long-term debt	0	0
Liabilities of discontinued operations	0	0
Liabilities, Current	586	1,047
Non-current Liabilities
Defined benefit plans	1,841	1,923
Non-current deferred income taxes	0	0
Long-term debt	698	701
Long-term contract liability	0	0
Other long-term liabilities	124	38
Non-current liabilities of discontinued operations	0	0
Total non-current liabilities	2,663	2,662
Shareholders' Equity:
Common stock, $1.00 par value; 500,000,000 shares authorized; issued and outstanding 124,168,650 shares at October 2, 2015 and 123,675,756 shares at July 3, 2015	0	0
Other capital	4,283	4,023
Retained earnings	36	(20)
Accumulated other comprehensive loss	63	78
Total shareholders' equity	4,382	4,081
Noncontrolling interests	0	0
Total equity	4,382	4,081
Non-Guarantor Subsidiaries [Member]
Current Assets
Cash and cash equivalents	207	276
Receivables	2,359	2,430
Inventories	292	265
Income taxes receivable	8	5
Current deferred income taxes	31	31
Deferred compensation plan investments	0	0
Other current assets	56	58
Total current assets	2,953	3,065
Non-current Assets
Property, plant and equipment	233	241
Goodwill	1,173	1,193
Other intangible assets	445	462
Non-current deferred income taxes	0	0
Investment in Subsidiaries	0	0
Other non-current assets	96	34
Total non-current assets	1,947	1,930
Total assets	4,900	4,995
Current Liabilities
Short-term debt	25	33
Accounts payable	221	308
Compensation and benefits	45	57
Other accrued items	72	46
Advance payments and unearned income	95	97
Income taxes payable	19	11
Current deferred income taxes	1	7
Deferred compensation plan liabilities	0	0
Current portion of long-term debt	0	0
Liabilities of discontinued operations	0	0
Liabilities, Current	478	559
Non-current Liabilities
Defined benefit plans	35	20
Non-current deferred income taxes	125	118
Long-term debt	24	24
Long-term contract liability	0	0
Other long-term liabilities	91	99
Non-current liabilities of discontinued operations	0	0
Total non-current liabilities	275	261
Shareholders' Equity:
Common stock, $1.00 par value; 500,000,000 shares authorized; issued and outstanding 124,168,650 shares at October 2, 2015 and 123,675,756 shares at July 3, 2015	0	0
Other capital	2,307	2,342
Retained earnings	1,934	1,898
Accumulated other comprehensive loss	(95)	(70)
Total shareholders' equity	4,146	4,170
Noncontrolling interests	1	5
Total equity	$ 4,147	$ 4,175

Condensed Consolidating Balan56

Condensed Consolidating Balance Sheet (Details Textuals 2) - USD ($) $ in Millions	Oct. 02, 2015	Jul. 03, 2015
Guarantor Obligations [Line Items]
Goodwill	$ 6,321	$ 6,348
Accounts payable	455	581
Income taxes payable	$ 70	57
Classification error between Harris Parent Co. and Non-Guarantor Subsidiaries
Guarantor Obligations [Line Items]
Goodwill		194
Classification error between Harris Parent Co. and Exelis Parent Co.
Guarantor Obligations [Line Items]
Income taxes payable		25
Classification error between Exelis Parent Co. and Non-Guarantor Subsidiaries
Guarantor Obligations [Line Items]
Accounts payable		$ 126

Condensed Consolidating State57

Condensed Consolidating Statement of Cash Flows (Details 3) - USD ($) $ in Millions	3 Months Ended
	Oct. 02, 2015	Sep. 26, 2014
Guarantor Obligations [Line Items]
Net Cash Provided by (Used in) Operating Activities	$ 64	$ 80
Investing Activities
Additions of property, plant and equipment	(26)	(41)
Proceeds from sale of property, plant and equipment	2
Proceeds from sale of Cyber Integration Center	0	7
Net Cash Provided by (Used in) Investing Activities	(24)	(34)
Financing Activities
Proceeds from borrowings, net of issuance costs	41	3
Repayments of borrowings	(173)	(9)
Proceeds from exercises of employee stock options	19	18
Repurchases of common stock	0	(100)
Cash dividends	(64)	(50)
Other financing activities	(15)	(12)
Net cash provided by (used in) financing activities	(192)	(150)
Effect of exchange rate changes on cash and cash equivalents	(9)	(8)
Net increase in cash and cash equivalents	(161)	(112)
Cash and cash equivalents, beginning of year	481	561
Cash and cash equivalents, end of quarter	320	449
Consolidation, Eliminations [Member]
Financing Activities
Cash and cash equivalents, beginning of year	0
Cash and cash equivalents, end of quarter	0
Consolidation, Eliminations [Member] | Statement of Cash Flows [Member]
Guarantor Obligations [Line Items]
Net Cash Provided by (Used in) Operating Activities	0	0
Investing Activities
Intercompany loans (investing activities)	56	(58)
Net cash paid for acquired businesses	0	0
Cash paid for intangible assets	0	0
Cash paid for cost-method investment	0	0
Additions of property, plant and equipment	0	0
Additions of capitalized software	0	0
Proceeds from sale of property, plant and equipment	0	0
Proceeds from sale of business	0	0
Proceeds from sale of Cyber Integration Center	0	0
Proceeds from sale of securities available-for-sale	0	0
Net Cash Provided by (Used in) Investing Activities	56	(58)
Financing Activities
Intercompany loans (financing activities)	(56)	58
Proceeds from borrowings, net of issuance costs	0	0
Repayments of borrowings	0	0
Payment of contingent consideration	0	0
Proceeds from exercises of employee stock options	0	0
Repurchases of common stock	0	0
Cash dividends	0	0
Other financing activities	0	0
Net cash provided by (used in) financing activities	(56)	58
Effect of exchange rate changes on cash and cash equivalents	0	0
Net increase in cash and cash equivalents	0	0
Cash and cash equivalents, beginning of year	0	0
Cash and cash equivalents, end of quarter	0	0
Harris Parent Company [Member] | Financial Guarantee [Member]
Financing Activities
Effect of exchange rate changes on cash and cash equivalents		0
Cash and cash equivalents, beginning of year	151
Cash and cash equivalents, end of quarter	64
Harris Parent Company [Member] | Financial Guarantee [Member] | Statement of Cash Flows [Member]
Guarantor Obligations [Line Items]
Net Cash Provided by (Used in) Operating Activities	177	212
Investing Activities
Intercompany loans (investing activities)	(61)	(35)
Net cash paid for acquired businesses	0	0
Cash paid for intangible assets	0	0
Cash paid for cost-method investment	0	0
Additions of property, plant and equipment	(15)	(31)
Additions of capitalized software	0	0
Proceeds from sale of property, plant and equipment	2	0
Proceeds from sale of business	0	0
Proceeds from sale of Cyber Integration Center	0	7
Proceeds from sale of securities available-for-sale	0	0
Net Cash Provided by (Used in) Investing Activities	(74)	(59)
Financing Activities
Intercompany loans (financing activities)	(5)	(93)
Proceeds from borrowings, net of issuance costs	25	0
Repayments of borrowings	(150)	0
Payment of contingent consideration	0	0
Proceeds from exercises of employee stock options	19	18
Repurchases of common stock	0	(100)
Cash dividends	(64)	(50)
Other financing activities	(15)	(12)
Net cash provided by (used in) financing activities	(190)	(237)
Effect of exchange rate changes on cash and cash equivalents	0
Net increase in cash and cash equivalents	(87)	(84)
Cash and cash equivalents, beginning of year	151	252
Cash and cash equivalents, end of quarter	64	168
Exelis Parent Company [Member] | Financial Guarantee [Member]
Financing Activities
Cash and cash equivalents, beginning of year	54
Cash and cash equivalents, end of quarter	49
Exelis Parent Company [Member] | Financial Guarantee [Member] | Statement of Cash Flows [Member]
Guarantor Obligations [Line Items]
Net Cash Provided by (Used in) Operating Activities	1
Investing Activities
Intercompany loans (investing activities)	0
Net cash paid for acquired businesses	0
Cash paid for intangible assets	0
Cash paid for cost-method investment	0
Additions of property, plant and equipment	(6)
Additions of capitalized software	0
Proceeds from sale of property, plant and equipment	0
Proceeds from sale of business	0
Proceeds from sale of Cyber Integration Center	0
Proceeds from sale of securities available-for-sale	0
Net Cash Provided by (Used in) Investing Activities	(6)
Financing Activities
Intercompany loans (financing activities)	0
Proceeds from borrowings, net of issuance costs	0
Repayments of borrowings	0
Payment of contingent consideration	0
Proceeds from exercises of employee stock options	0
Repurchases of common stock	0
Cash dividends	0
Other financing activities	0
Net cash provided by (used in) financing activities	0
Effect of exchange rate changes on cash and cash equivalents	0
Net increase in cash and cash equivalents	(5)
Cash and cash equivalents, beginning of year	54
Cash and cash equivalents, end of quarter	49
Non-Guarantor Subsidiaries [Member]
Financing Activities
Cash and cash equivalents, beginning of year	276
Cash and cash equivalents, end of quarter	207
Non-Guarantor Subsidiaries [Member] | Statement of Cash Flows [Member]
Guarantor Obligations [Line Items]
Net Cash Provided by (Used in) Operating Activities	(114)	(132)
Investing Activities
Intercompany loans (investing activities)	5	93
Net cash paid for acquired businesses	0	0
Cash paid for intangible assets	0	0
Cash paid for cost-method investment	0	0
Additions of property, plant and equipment	(5)	(10)
Additions of capitalized software	0	0
Proceeds from sale of property, plant and equipment	0	0
Proceeds from sale of business	0	0
Proceeds from sale of Cyber Integration Center	0	0
Proceeds from sale of securities available-for-sale	0	0
Net Cash Provided by (Used in) Investing Activities	0	83
Financing Activities
Intercompany loans (financing activities)	61	35
Proceeds from borrowings, net of issuance costs	16	3
Repayments of borrowings	(23)	(9)
Payment of contingent consideration	0	0
Proceeds from exercises of employee stock options	0	0
Repurchases of common stock	0	0
Cash dividends	0	0
Other financing activities	0	0
Net cash provided by (used in) financing activities	54	29
Effect of exchange rate changes on cash and cash equivalents	(9)	(8)
Net increase in cash and cash equivalents	(69)	(28)
Cash and cash equivalents, beginning of year	276	309
Cash and cash equivalents, end of quarter	$ 207	$ 281