8-KEarnings & ResultsFinancial EventsRegulation FD+1

L3HARRIS TECHNOLOGIES, INC. /DE/ 8-K Report, Financial Results (May 1, 2012)

Filed May 1, 2012For Securities:LHX

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.

Frequently Asked Questions

This filing is primarily to announce Harris Corporation's financial results for its third quarter of fiscal year 2012 and to disclose a significant strategic decision: the approval of a plan to divest the Broadcast Communications segment. It also details a substantial impairment charge related to this segment.

Harris Corporation recorded a preliminary, 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 charge is not expected to result in any current or future cash expenditures.

Harris Corporation expects to complete the divestiture of the Broadcast Communications segment during fiscal year 2013. The assets are expected to be classified as held for sale in the fourth quarter of fiscal year 2012, and the segment will be reported as discontinued operations starting from the fourth quarter of fiscal year 2012.

Yes, the filing includes forward-looking statements regarding expectations for impairment charges, exit costs, the classification of discontinued operations, and the timing of the divestiture. The company cautions that actual results could differ materially due to various risks and uncertainties. Investors are advised to refer to Harris' SEC filings for a comprehensive list of risk factors.