Summary
This Form 8-K filing by Harris Corporation (now L3Harris Technologies) from May 1, 2012, primarily announces the company's third-quarter fiscal year 2012 financial results and significant strategic decisions. Key among these is the approval of a plan to divest its Broadcast Communications segment, which the company no longer considers aligned with its long-term strategy. This divestiture is expected to occur in fiscal year 2013. Furthermore, the filing discloses a substantial non-cash impairment charge of $424.0 million ($406.5 million after-tax) related to goodwill and other long-lived assets within the Broadcast Communications segment. This impairment stems from an unanticipated revenue decline and operating loss in the segment, coupled with depressed market values observed during a portfolio review. Investors should note that while this impairment is non-cash, the company also anticipates incurring material charges related to exit and disposal activities in connection with the divestiture, though specific estimates are not yet available.
Key Highlights
- 1Harris Corporation announced its third-quarter fiscal year 2012 results.
- 2The company's Board of Directors has approved a plan to divest the Broadcast Communications segment.
- 3A non-cash impairment charge of $424.0 million ($406.5 million after-tax) was recorded for goodwill and long-lived assets in the Broadcast Communications segment.
- 4The impairment charge is attributed to a revenue decline, operating loss, and market valuation indicators for the Broadcast Communications segment.
- 5Harris provided revised guidance for fiscal year 2012 and initial guidance for fiscal year 2013, excluding the Broadcast Communications segment.
- 6The Broadcast Communications segment is expected to be classified as discontinued operations starting in fiscal year 2013.
- 7The company expects to incur material charges related to exit and disposal activities for the divestiture, with estimates to be disclosed later.