Summary
L3Harris Technologies, Inc. (formerly Harris Corporation) announced on September 27, 2002, the completion of the sale of its ownership interest in the LiveTV, LLC joint venture to JetBlue Airways Corporation. This transaction involved JetBlue acquiring all equity interests in LiveTV, LLC. The sale is a significant event for L3Harris as it divests a non-core asset and generates immediate cash flow. Investors should note the financial implications of this sale, including the cash received and the expected gain. Under the terms of the agreement, L3Harris received $19 million in cash from JetBlue. Additionally, JetBlue assumed approximately $40 million of LiveTV's debt, with Harris being responsible for roughly half of that amount through guarantees. The company anticipates recording a gain of approximately $18.5 million from this transaction, which will positively impact its financial statements.
Key Highlights
- 1Completion of the sale of L3Harris's ownership interest in LiveTV, LLC joint venture to JetBlue Airways Corporation.
- 2JetBlue Airways Corporation acquired all equity interests in LiveTV, LLC.
- 3L3Harris received $19 million in cash from JetBlue.
- 4JetBlue repaid approximately $40 million of LiveTV debt, with half guaranteed by L3Harris.
- 5L3Harris expects to record a gain of approximately $18.5 million from the transaction.
- 6The transaction was finalized on September 26, 2002.
- 7The filing was made on September 27, 2002.