Summary
This 8-K/A filing from L3Harris Technologies (formerly Harris Corporation) amends a previous report to disclose a significant impairment charge related to its majority-owned subsidiary, Harris Stratex Networks, Inc. The company has determined that a substantial portion of the goodwill and intangible assets associated with the Harris Stratex Networks segment will be written down due to the challenging global economic environment and a decline in the subsidiary's market capitalization. Specifically, an impairment charge of approximately $279.0 million will be recognized to write down all of Harris Stratex Networks' goodwill, and an additional $22.0 million will be recognized to write down a majority of the carrying value of the Stratex trade name. These impairments, totaling approximately $301 million, will be recorded in the consolidated financial results for the fiscal quarter ended January 2, 2009. It is important for investors to note that these are non-cash charges and will not result in any current or future cash expenditures for the company or its subsidiary.
Key Highlights
- 1L3Harris Technologies (Harris Corporation) is filing an amendment to its previous 8-K to report an impairment charge.
- 2The impairment charge is related to the subsidiary Harris Stratex Networks, Inc.
- 3A total impairment charge of approximately $301 million is being recognized ($279 million for goodwill and $22 million for intangible assets).
- 4The impairment is attributed to the current global economic environment and a decline in the market capitalization of Harris Stratex Networks.
- 5The impairment will be recorded in the fiscal quarter ended January 2, 2009.
- 6These are non-cash charges and do not require any current or future cash expenditures.