What was the main purpose of this 8-K filing for Harris Corporation?

The main purpose of this 8-K filing was to report the completion of Harris Corporation's acquisition of the wireless systems business from Tyco Electronics Group S.A., along with the funding methods used and a significant impairment charge. It also disclosed the spin-off of Harris Stratex Networks and updated financial guidance.

How was the acquisition of the wireless systems business funded?

A significant portion of the $675 million purchase price was funded through the issuance of approximately $504 million in unsecured commercial paper notes. The company also utilized existing cash and potentially other financing methods to cover the remaining amount, subject to post-closing adjustments.

What is the nature of the anticipated impairment charge, and why is it occurring?

Harris Corporation expects to record a non-cash impairment charge between $250 million and $275 million related to goodwill and other intangible assets in its Broadcast Communications segment. This charge is due to current market conditions leading to reduced capital expenditures for broadcast infrastructure systems, which has lowered the fair value of these assets below their carrying value.

What impact does the spin-off of Harris Stratex Networks have on the company?

The spin-off of Harris Stratex Networks involved distributing approximately 56% of the outstanding shares to Harris shareholders. The company also expects to incur a $60 million to $70 million after-tax charge related to the write-down of HSTX's net assets to fair value and other spin-off related expenses.

LHX 8-K: Acquisitions & Dispositions, Financial Events & More

Summary

L3Harris Technologies (then Harris Corporation) filed this 8-K on June 2, 2009, to report several significant events. The primary focus is the completion of the acquisition of substantially all of the assets of Tyco Electronics' wireless systems business for $675 million in cash. This acquisition expands Harris's offerings in wireless communications systems for public safety, federal, military, and commercial markets. Additionally, the filing details Harris's use of commercial paper to fund a portion of the acquisition, issuing approximately $504 million in unsecured notes. The report also discloses an anticipated non-cash impairment charge of $250 million to $275 million related to goodwill and intangible assets in its Broadcast Communications segment, attributed to current market conditions impacting capital expenditures. Finally, the company announced the spin-off of its holdings in Harris Stratex Networks and updated earnings guidance.

Key Highlights

1Harris Corporation completed the acquisition of Tyco Electronics' wireless systems business for $675 million on May 29, 2009.
2The acquired business designs, builds, and supplies wireless communications systems, including land mobile radio and broadband equipment.
3Funding for the acquisition included approximately $504 million in unsecured commercial paper notes.
4The company anticipates a non-cash impairment charge of $250-$275 million for goodwill and intangibles in its Broadcast Communications segment due to market conditions.
5Harris also completed the spin-off of its stake in Harris Stratex Networks (HSTX).
6Updated earnings guidance for fiscal years 2009 and 2010 was provided.
7The company's commercial paper program is supported by a $750 million revolving credit agreement.

L3HARRIS TECHNOLOGIES, INC. /DE/ 8-K Report, Acquisition Completed (Jun 2, 2009)

Summary

Key Highlights

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