1 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _____________________ FORM 11-K _____________________ (Mark One) [X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended June 30, 1996 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________ to ________ Commission file number 1-3863 A. Full title of the plan and the address of the plan, if different from that of the issuer named below: Lanier Worldwide, Inc. Savings Incentive Plan B. Name of issuer of the securities held pursuant to the plan and the address of its principal executive office: Harris Corporation 1025 W. NASA Blvd. Melbourne, Florida 32919 2 LANIER WORLDWIDE, INC. SAVINGS INCENTIVE PLAN Financial Statements and Supplementary Information June 30, 1996 and 1995 3 LANIER WORLDWIDE, INC. SAVINGS INCENTIVE PLAN Table of Contents June 30, 1996 and 1995 PAGE - -------------------------------------------------------------------------------- INDEPENDENT AUDITOR'S REPORT 1 FINANCIAL STATEMENTS: Statements of Net Assets Available for Benefits 2-5 Statements of Changes in Net Assets Available for Benefits 6-9 Notes to Financial Statements 10-12 SUPPLEMENTARY INFORMATION: Schedule of Assets Held for Investment 13 Schedule of Reportable Transactions 14 - -------------------------------------------------------------------------------- 4 INDEPENDENT AUDITOR'S REPORT Pension and Retirement Committee Lanier Worldwide, Inc. Savings Incentive Plan Melbourne, Florida We have audited the accompanying statements of net assets available for benefits of the Lanier Worldwide, Inc. Savings Incentive Plan as of June 30, 1996 and 1995, and the related statements of changes in net assets available for benefits for the years then ended. These financial statements are the responsibility of the Plan's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for benefits of the Plan at June 30, 1996 and 1995, and the changes in its net assets available for benefits for the years then ended, in conformity with generally accepted accounting principles. Our audit was made for the purpose of forming an opinion on the financial statements taken as a whole. The accompanying supplemental schedules contained on pages 13 and 14 as of and for the year ended June 30, 1996 are presented for purposes of complying with the Department of Labor's Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974, and are not a required part of the financial statements. The supplemental schedules have been subjected to the auditing procedures applied in our audit of the 1996 financial statements and, in our opinion, are fairly stated in all material respects in relation to the 1996 financial statements taken as a whole. Melbourne, Florida November 10, 1996 1 - -------------------------------------------------------------------------------- 5 FINANCIAL STATEMENTS 6 LANIER WORLDWIDE, INC. SAVINGS INCENTIVE PLAN Statements of Net Assets Available for Benefits June 30, 1996 - -------------------------------------------------------------------------------- T. Rowe Price T. Rowe Price T. Rowe Price T. Rowe Price Prime Reserve Summit Cash Equity Index Short Term Fund Reserve Fund Fund Bond Fund ------------- ------------- ------------- ------------- ASSETS INVESTMENTS (NOTE 4): Mutual fund balances $ -- $15,253,639 $34,606,310 $ 1,523,479 Harris Corporation common stock -- -- -- -- Participant loans -- -- -- -- ----------- ----------- ----------- ----------- Total investments -- 15,253,639 34,606,310 1,523,479 RECEIVABLES: Contributions receivable: Employer contributions -- 10,762 15,222 1,653 Employee contributions -- 45,396 74,388 7,512 ----------- ----------- ----------- ----------- -- 56,158 89,610 9,165 LIABILITIES -- -- -- -- ----------- ----------- ----------- ----------- NET ASSETS AVAILABLE FOR BENEFITS $ -- $15,309,797 $34,695,920 $ 1,532,644 =========== =========== =========== =========== See accompanying note to financial statements. 2 - -------------------------------------------------------------------------------- 7 - -------------------------------------------------------------------------------- T. Rowe Price T. Rowe Price T. Rowe Price T. Rowe Price New America Balanced International Harris Loan Growth Fund Fund Stock Fund Stock Fund Fund Total - ------------- ------------- ------------- ------------ ------------- ------------ $20,340,388 $ 8,082,548 $ 3,013,427 $ -- $ -- $82,819,791 -- -- -- 150,767 -- 150,767 -- -- -- -- 5,642,956 5,642,956 - ----------- ----------- ----------- ----------- ----------- ----------- 20,340,388 8,082,548 3,013,427 150,767 5,642,956 88,613,514 13,370 5,680 2,469 6,364 -- 55,520 69,285 27,233 14,455 12,724 -- 250,993 - ----------- ----------- ----------- ----------- ----------- ----------- 82,655 32,913 16,924 19,088 -- 306,513 -- -- -- -- -- -- - ----------- ----------- ----------- ----------- ----------- ----------- $20,423,043 $ 8,115,461 $ 3,030,351 $ 169,855 $ 5,642,956 $88,920,027 =========== =========== =========== =========== =========== =========== 3 - -------------------------------------------------------------------------------- 8 LANIER WORLDWIDE, INC. SAVINGS INCENTIVE PLAN Statements of Net Assets Available for Benefits June 30, 1995 - -------------------------------------------------------------------------------- T. Rowe Price T. Rowe Price T. Rowe Price T. Rowe Price Prime Reserve Equity Index Short Term New America Fund Fund Bond Fund Growth Fund ------------- ------------- ------------- ------------- ASSETS INVESTMENTS (NOTE 4): Mutual fund balances $16,038,770 $26,614,705 $ 1,701,112 $11,080,189 Participant loans -- -- -- -- ----------- ----------- ----------- ----------- Total investments 16,038,770 26,614,705 1,701,112 11,080,189 Contributions receivable 290,710 381,412 47,941 278,092 LIABILITIES -- -- -- -- ----------- ----------- ----------- ----------- NET ASSETS AVAILABLE FOR BENEFITS $16,329,480 $26,996,117 $ 1,749,053 $11,358,281 =========== =========== =========== =========== See accompanying note to financial statements. 4 - -------------------------------------------------------------------------------- 9 - -------------------------------------------------------------------------------- T. Rowe Price T. Rowe Price T. Rowe Price Balanced International Loan Fund Stock Fund Fund Total ------------- ------------- ------------- ------------ $ 6,408,727 $ 1,698,627 $ -- $ 63,542,130 -- -- 4,860,867 4,860,867 ----------- ----------- ------------ ------------ 6,408,727 1,698,627 4,860,867 68,402,997 151,270 56,774 -- 1,206,199 -- -- -- -- ------------ ------------ ----------- ------------ $ 6,559,997 $ 1,755,401 $ 4,860,867 $ 69,609,196 ============ ============ =========== ============ 5 - -------------------------------------------------------------------------------- 10 LANIER WORLDWIDE, INC. SAVINGS INCENTIVE PLAN Statements of Changes in Net Assets Available for Benefits Year Ended June 30, 1996 - -------------------------------------------------------------------------------- T. Rowe Price T. Rowe Price T. Rowe Price T. Rowe Price Prime Reserve Summit Cash Equity Index Short Term Fund Reserve Fund Fund Bond Fund ------------ ------------ ------------ ------------ INCREASES: Investment income $ 207,683 $ 605,561 $ 1,463,778 $ 94,981 Contributions from employer 307,409 1,342,104 2,652,712 278,229 Contributions from employees -- 369,646 565,373 57,009 ------------ ------------ ------------ ------------ 515,092 2,317,311 4,681,863 430,219 Net transfers between funds (16,256,157) 13,723,913 (780,266) (392,908) DECREASES: Benefits paid directly to participants 588,415 726,083 1,683,342 229,269 Administrative expenses -- 5,344 12,125 1,103 ------------ ------------ ------------ ------------ 588,415 731,427 1,695,467 230,372 Net appreciation (depreciation) in fair value of investments (Note 4) -- -- 5,493,673 (23,348) ------------ ------------ ------------ ------------ Net increase in net assets available for benefits (16,329,480) 15,309,797 7,699,803 (216,409) NET ASSETS AVAILABLE FOR BENEFITS: Beginning of year 16,329,480 -- 26,996,117 1,749,053 ------------ ------------ ------------ ------------ END OF YEAR $ -- $ 15,309,797 $ 34,695,920 $ 1,532,644 ============ ============ ============ ============ See accompanying note to financial statements. 6 - -------------------------------------------------------------------------------- 11 - -------------------------------------------------------------------------------- T. Rowe Price T. Rowe Price T. Rowe Price T. Rowe Price New America Balanced International Harris Loan Growth Fund Fund Stock Fund Stock Fund Fund Total - ----------- ----------- ----------- ----------- ----------- ----------- $ 740,699 $ 346,196 $ 55,512 $ 567 $ 408,502 $ 3,923,479 2,425,337 1,045,360 472,259 84,285 -- 8,607,695 465,250 202,373 78,944 88,146 -- 1,826,741 - ----------- ----------- ----------- ----------- ----------- ----------- 3,631,286 1,593,929 606,715 172,998 408,502 14,357,915 2,588,665 (204,894) 658,259 -- 663,388 -- 1,229,051 513,688 281,823 54 289,801 5,541,526 8,088 3,669 1,183 -- -- 31,512 - ----------- ----------- ----------- ----------- ----------- ----------- 1,237,139 517,357 283,006 54 289,801 5,573,038 4,081,950 683,786 292,982 (3,089) -- 10,525,954 - ----------- ----------- ----------- ----------- ----------- ----------- 9,064,762 1,555,464 1,274,950 169,855 782,089 19,310,831 11,358,281 6,559,997 1,755,401 -- 4,860,867 69,609,196 - ----------- ----------- ----------- ----------- ----------- ----------- $20,423,043 $ 8,115,461 $ 3,030,351 $ 169,855 $ 5,642,956 $88,920,027 =========== =========== =========== =========== =========== =========== 7 - -------------------------------------------------------------------------------- 12 LANIER WORLDWIDE, INC. SAVINGS INCENTIVE PLAN Statements of Changes in Net Assets Available for Benefits Year Ended June 30, 1995 - ------------------------------------------------------------------------------- T. Rowe Price T. Rowe Price T. Rowe Price T. Rowe Price Prime Reserve Equity Index Short Term New America Fund Fund Bond Fund Growth Fund ------------- ------------- ------------- ------------- INCREASES: Investment income $ 754,980 $ 838,424 $ 95,227 $ 184,593 Contributions from employer 438,023 554,532 70,443 365,872 Contributions from employees 1,826,524 2,485,434 307,410 1,822,763 ------------ ------------ ------------ ------------ 3,019,527 3,878,390 473,080 2,373,228 Net transfers between funds (791,917) (582,059) (83,304) (571,833) DECREASES: Benefits paid directly to participants 1,161,160 1,487,149 81,628 728,635 Administrative expenses 8,640 11,040 1,223 6,213 ------------ ------------ ------------ ------------ 1,169,800 1,498,189 82,851 734,848 Net appreciation (depreciation) in fair value of investments (Note 4) -- 4,538,376 (32,377) 1,879,118 ------------ ------------ ------------ ------------ Net increase in net assets available for benefits 1,057,810 6,336,518 274,548 2,945,665 NET ASSETS AVAILABLE FOR BENEFITS: Beginning of year 15,271,670 20,659,599 1,474,505 8,412,616 ------------ ------------ ------------ ------------ END OF YEAR $ 16,329,480 $ 26,996,117 $ 1,749,053 $ 11,358,281 ============ ============ ============ ============ See accompanying note to financial statements. 8 - -------------------------------------------------------------------------------- 13 - -------------------------------------------------------------------------------- T. Rowe Price T. Rowe Price T. Rowe Price Balanced International Loan Fund Stock Fund Fund Total - ------------- ------------- ------------- ----------- $ 357,314 $ 76,967 $ 280,692 $ 2,588,197 200,185 54,010 -- 1,683,065 945,834 261,696 -- 7,649,661 - ----------- ----------- ----------- ----------- 1,503,333 392,673 280,692 11,920,923 (92,604) 1,458,482 663,235 -- 353,319 29,450 228,426 4,069,767 3,640 -- -- 30,756 - ----------- ----------- ----------- ----------- 356,959 29,450 228,426 4,100,523 570,156 (66,304) -- 6,888,969 - ----------- ----------- ----------- ----------- 1,623,926 1,755,401 715,501 14,709,369 4,936,071 -- 4,145,366 54,899,827 - ----------- ----------- ----------- ----------- $ 6,559,997 $ 1,755,401 $ 4,860,867 $69,609,196 =========== =========== =========== =========== 9 - -------------------------------------------------------------------------------- 14 LANIER WORLDWIDE, INC. SAVINGS INCENTIVE PLAN Notes to Financial Statements June 30, 1996 and 1995 - -------------------------------------------------------------------------------- 1. DESCRIPTION OF THE PLAN The Lanier Worldwide, Inc. Savings Incentive Plan (the "Plan") is a defined contribution plan available to employees of Lanier Worldwide, Inc. ("the Company and Sponsor") who have completed one full year of service and are at least 21 years of age. Participants can contribute up to 15% of their salary in 1% increments. The Company matches 50% of the participant's contribution up to a maximum of 3% of compensation. All participants' contributions and earnings thereon are 100% vested. Company contributions to participants' accounts vest 20% per year of service, until a participant becomes fully vested after five years of service. Forfeitures of terminated participants' nonvested accounts reduce the matching contributions of the Company. Participants may allocate contributions among six T. Rowe Price Mutual Funds. Participants may borrow against the vested portion of their accounts from a minimum of $500 up to a maximum of $50,000 or 50% of the vested portion of a participant's account, whichever is less. Loans made under the Plan range from one year to four years. Loan provisions were changed in 1995 to allow participants to direct funds from which the principal amount is withdrawn. Upon termination, vested participants receive full lump sum distributions. The full value of benefits are payable upon retirement, total or permanent disability or to beneficiaries upon death of the participant regardless of years of service. Under provisions of the Plan, the Company reserved the right to amend or terminate the Plan at any time. If the plan is terminated, each participant's account will become fully vested. T. Rowe Price Retirement Plan Services, Inc. (T. Rowe Price) is the Plan's Trustee, record keeper, and investment manager. 2. SIGNIFICANT ACCOUNTING POLICIES The accounting records of the Plan are maintained on the accrual basis. Unless otherwise elected by the Company, all ordinary and extraordinary charges and expenses incurred by the Trustee in connection with the administration of the Plan are paid by the Trustee from the assets of the Plan. In both fiscal 1996 and 1995, the Company elected to pay certain administrative expenses such as legal fees, tax counsel and accounting fees. Administrative expenses, which consist of Trustee, record keeping and investment manager fees and commissions paid to T. Rowe Price, were paid by the Plan. 10 - -------------------------------------------------------------------------------- 15 LANIER WORLDWIDE, INC. SAVINGS INCENTIVE PLAN Notes to Financial Statements June 30, 1996 and 1995 - -------------------------------------------------------------------------------- 2. SIGNIFICANT ACCOUNTING POLICIES, CONTINUED Investments in securities are stated at fair value as determined by quoted market prices as of the close of business on the last day of the plan year. Investments for which a quoted market value is not available are stated at fair values reported by the trustee or investee company. Participant loans are stated at cost. The net appreciation (depreciation) in fair value of investments reflected in the statements of changes in net assets available for plan benefits represents the sum of the unrealized appreciation or depreciation in the aggregate fair value of investments and the realized gain or loss on the sale of investments. 3. INCOME TAX STATUS The Internal Revenue Service has determined that the Plan qualifies under Section 401(k) of the Internal Revenue Code (IRC) and is, therefore, not subject to tax under federal income tax laws. Once qualified, the Plan is required to operate in conformity with the IRC to maintain its qualification. 4. INVESTMENTS During the years ended June 30, 1996 and 1995, the Plan's investments (including investments bought and sold as well as held during the year) appreciated (depreciated) in fair value by $10,525,954 and $6,888,968, respectively as follows: Net Appreciation (Depreciation) in Fair Value During 1996 1995 ------------ ------------ Fair value as determined by quoted market price: T. Rowe Price Equity Index Fund $ 5,493,673 $ 4,538,376 T. Rowe Price Short-term Bond Fund (23,348) (32,377) T. Rowe Price New America Growth Fund 4,081,950 1,879,118 T. Rowe Price Balanced Fund 683,786 570,156 T. Rowe Price International Stock Fund 292,982 (66,304) Harris Stock Fund (3,089) -- ------------ ------------ $ 10,525,954 $ 6,888,969 ============ ============ 5. TRANSACTIONS WITH PARTIES-IN-INTEREST Under Department of Labor regulations for reporting and disclosure, an employee benefit plan such as the Lanier Worldwide, Inc. Savings Incentive Plan is required to report investment transactions and compensation paid to parties-in-interest. 11 - -------------------------------------------------------------------------------- 16 LANIER WORLDWIDE, INC. SAVINGS INCENTIVE PLAN Notes to Financial Statements June 30, 1996 and 1995 - -------------------------------------------------------------------------------- 5. TRANSACTIONS WITH PARTIES-IN-INTEREST, CONTINUED The term "party-in-interest" is broadly defined, but would include Lanier Worldwide, Inc.; Harris Corporation, Lanier Worldwide, Inc.'s parent company; T. Rowe Price (Note 2) and any person or corporation that renders services to the Plan. At June 30, 1996 and 1995 all investments were held in T. Rowe Price funds. 6. RECONCILIATION OF FINANCIAL STATEMENTS TO FORM 5500 The following is a reconciliation of net assets available for benefits per the financial statements at June 30, 1996 and 1995 to Form 5500: 1996 1995 ------------ ------------ Net assets available for benefits per the Financial statement $ 88,920,027 $ 69,609,196 Amounts allocated to withdrawing participants (623,535) (1,227,279) ------------ ------------ Net assets available for benefits per the Form 5500 $ 88,296,492 $ 68,381,917 ============ ============ The following is a reconciliation of benefits paid to participants per the financial statements for the year ended June 30, 1996 to Form 5500: Benefits paid to participants per the financial statements $ 5,541,526 Add: Amounts allocated to withdrawing participants at June 30, 1996 623,535 Less: Amounts allocated to withdrawing participants at June 30, 1995 (1,227,279) ------------ Benefits paid to participants per Form 5500 $ 4,937,782 =========== Amounts allocated to withdrawing participants are recorded on Form 5500 for benefit claims that have been processed and approved for payment, but not yet paid as of June 30. 7. AMENDMENTS The following amendments were made to the Plan during 1996: - The Harris Stock Fund was added as an investment option, effective April 1, 1996. Participant contributions are limited to no more than 1% of compensation. Shares of Harris Corporation common stock are purchased or contributed by the Company at a discount established from time to time by the Company. Amounts may not be transferred from other funds into the Harris Stock Fund. Contributions other than dividends must remain in the fund for a minimum of 36 months. - The provision that a participant be employed on the last day of the Plan quarter in order to receive an employer matching contribution was deleted, effective April 1, 1996. Henceforth, employer matching contributions are to be made at the time employee contributions are made to the Plan. 12 - -------------------------------------------------------------------------------- 17 LANIER WORLDWIDE, INC. SAVINGS INCENTIVE PLAN ITEM 27,j SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES Identity of issue, borrower, Description of lessor, or similar party investment Cost Current value - ---------------------------- -------------- ------ ------------- PARTICIPANT LOAN 0.0875/0.0950 5,642,956 HARRIS STOCK FUND RESTRICTED COMPANY STOCK 153,293 150,199 HARRIS STOCK FUND UNRESTRICTED COMPANY STOCK 566 567 INTERNATIONAL STOCK FUND MUTUAL FUND 2,784,403 3,013,427 EQUITY INDEX FUND MUTUAL FUND 25,220,873 34,606,310 SHORT TERM BOND FUND MUTUAL FUND 1,591,450 1,523,479 NEW AMERICA GROWTH FUND MUTUAL FUND 15,299,750 20,340,388 BALANCED FUND MUTUAL FUND 7,122,938 8,082,548 SUMMIT CASH RESERVES MUTUAL FUND 15,253,639 15,253,639 13 18 LANIER WORLDWIDE, INC. SAVINGS INCENTIVE PLAN ITEM 27,j Continued SCHEDULE OF REPORTABLE TRANSACTIONS Current value Description of asset of Purchase Cost of on transaction Net gain Identity of party involved asset price Selling price asset date or (loss) - -------------------------- ------------ --------- ------------- ------- --------------- --------- PRF MUTUAL FUND 1,131,558 1,131,558 1,131,558 PRF MUTUAL FUND (7,166,299) (7,166,299) (7,166,299) (7,166,299) EXF MUTUAL FUND 6,384,610 6,384,610 6,378,680 EXF MUTUAL FUND (2,944,895) (3,881,087) (2,944,895) (3,881,087) 936,192 NAG MUTUAL FUND 7,205,340 7,205,340 7,204,675 NAG MUTUAL FUND (1,539,095) (2,026,839) (1,539,095) (2,026,839) 487,743 BAL MUTUAL FUND 2,230,653 2,230,653 2,230,588 BAL MUTUAL FUND (1,105,778) (1,240,613) (1,105,778) (1,240,613) 134,836 SCR MUTUAL FUND 8,810,585 8,810,585 8,810,585 SCR MUTUAL FUND (3,556,081) (3,556,081) (3,556,081) (3,556,081) 14 19 SIGNATURES The Plan. Pursuant to the requirements of the Securities Exchange Act of 1934, the trustees (or other persons who administer the employee benefit plan) have duly caused this annual report to be signed on their behalf by the undersigned hereunto duly authorized. Lanier Worldwide, Inc. Savings Incentive Plan /s/ Edward T. Golitko ---------------------------- Edward T. Golitko Plan Administrator Date: December 20, 1996