How will the new segment structure differ from the old one?

The company is creating a new 'Defense Communications and Electronics' segment by moving the Defense Programs business out of 'Government Communications Systems' and combining it with 'RF Communications.' The 'Government Communications Systems' segment will then comprise Civil Programs, National Programs, and Information Technology Services. The other segments, 'Broadcast Communications' and 'Harris Stratex Networks,' remain unchanged.

Will this change in segment reporting affect the company's past financial results?

No, the filing explicitly states that there is no impact on the company's previously reported consolidated statements of income, balance sheets, statements of cash flows, or statements of comprehensive income and shareholders' equity. The reclassified data is for historical context and trend analysis.

What are non-GAAP financial measures, and why is the company discussing them?

Non-GAAP financial measures are numerical performance measures that exclude or include amounts differently than GAAP. L3Harris is presenting them to offer investors a clearer view of operating results, separate from items that might disproportionately impact performance in a given period, such as cost-reduction charges or acquisition costs. The company believes these measures enhance the ability to analyze trends and understand performance, and they are presented alongside reconciliations to GAAP measures.

LHX 8-K: Earnings & Results & Regulation FD

Q: What is the primary purpose of this 8-K filing?

The primary purpose of this 8-K filing is to announce a change in L3Harris Technologies' operating segment reporting structure, effective for fiscal year 2008, and to provide updated historical segment data reflecting this change.

Summary

This L3Harris Technologies (LHX) 8-K filing from September 11, 2007, primarily serves to inform investors about a significant change in the company's operating segment reporting structure, effective for fiscal year 2008. The company is realigning its government businesses to better reflect its management structure. This involves reclassifying the Defense Programs area from the Government Communications Systems segment and combining it with the RF Communications segment to form a new 'Defense Communications and Electronics' segment. Accompanying this announcement is Exhibit 99.1, which provides historical reclassified operating segment data for fiscal years 2006 and 2007. While this restructuring impacts how the company reports its segments, it does not alter previously reported consolidated financial statements. Investors should note the company's emphasis on non-GAAP financial measures, which are presented alongside GAAP figures in Exhibit 99.1 to provide a clearer view of underlying operating performance by excluding certain charges, gains, or losses. These non-GAAP measures are intended to aid investors in analyzing trends and understanding performance, particularly in segments like Broadcast Communications and Harris Stratex Networks.

Key Highlights

1L3Harris Technologies is implementing a new operating segment reporting structure effective for fiscal year 2008, designed to align with its management approach.
2A new 'Defense Communications and Electronics' segment will be created by combining the Defense Programs area (formerly in Government Communications Systems) with the RF Communications segment.
3The Government Communications Systems segment will continue to include Civil Programs, National Programs, and Information Technology Services.
4Exhibit 99.1, furnished with the report, provides reclassified historical operating segment data for fiscal years 2006 and 2007.
5The change in segment reporting does not affect previously issued consolidated financial statements (income, balance sheets, cash flows).
6The company utilizes and presents non-GAAP financial measures, explaining their purpose to provide a clearer view of performance by excluding specific items, with reconciliations to GAAP provided in Exhibit 99.1.
7Investors are advised to read this filing in conjunction with the company's Annual Report on Form 10-K for the fiscal year ended June 29, 2007.

L3HARRIS TECHNOLOGIES, INC. /DE/ 8-K Report, Financial Results (Sep 11, 2007)

Summary

Key Highlights

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