What is the impact of the By-Laws amendment on existing shareholders?

The amendment to the By-Laws allows Harris to issue stock in uncertificated form and prepares the company for the Depository Trust Company's Direct Registration System. While this change aims to modernize stock handling, existing shareholders are not immediately impacted unless they opt for uncertificated shares and request a physical certificate.

How does the two-for-one stock split work, and what will I receive?

The two-for-one stock split is being executed as a 100% stock dividend. This means for every share of Harris common stock you own on the record date of March 14, 2005, you will receive one additional share. The shares will be distributed on March 30, 2005. For example, if you own 100 shares, you will own 200 shares after the dividend is paid.

Will the stock split affect the value of my investment?

A stock split, in itself, does not change the total market value of an investor's holdings. It divides the existing equity into a larger number of shares, with each share having a proportionally lower price. The overall market capitalization of the company remains the same immediately after the split.

What is the Direct Registration System, and why is Harris adopting it?

The Direct Registration System (DRS) is a method of holding securities electronically directly with the issuer or its transfer agent, rather than through physical stock certificates or brokerage accounts. Harris is adopting it to modernize its stock administration, potentially increasing efficiency and reducing costs associated with physical stock management.

LHX 8-K: Corporate Changes

Summary

L3Harris Technologies, Inc. (formerly Harris Corporation) filed an 8-K on February 28, 2005, detailing two significant corporate actions. Firstly, the Board of Directors adopted an amendment to the company's By-Laws to permit the issuance of stock in either certificated or uncertificated form. This change is a preparatory step for Harris to join the Depository Trust Company’s Direct Registration System, aiming to streamline the handling of its publicly traded securities. Secondly, and of potentially greater immediate interest to investors, the Board declared a two-for-one stock split effected as a 100% stock dividend. This means shareholders will receive one additional share for every share they own. The distribution is scheduled for March 30, 2005, for shareholders of record on March 14, 2005. This split will also necessitate adjustments to equity-based compensation plans and the conversion ratio of the company's 3.5% Convertible Debentures due 2022.

Key Highlights

1Harris Corporation amended its By-Laws to allow for uncertificated shares, preparing for Depository Trust Company's Direct Registration System.
2A two-for-one stock split was declared, structured as a 100% stock dividend.
3Shareholders will receive one additional share for each share held.
4The stock dividend will be distributed on March 30, 2005.
5The record date for the stock dividend is March 14, 2005.
6Adjustments will be made to equity-based compensation plans.
7The conversion ratio of the 3.5% Convertible Debentures due 2022 will be adjusted due to the stock split.

L3HARRIS TECHNOLOGIES, INC. /DE/ 8-K Report, Bylaw Amendment (Feb 28, 2005)

Summary

Key Highlights

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