8-K/AFinancial Events

L3HARRIS TECHNOLOGIES, INC. /DE/ 8-K/A Report, Exit or Disposal Costs (Dec 11, 2012)

Filed December 11, 2012For Securities:LHX

Summary

This 8-K Amendment filed by Harris Corporation on December 11, 2012, provides an update on the divestiture of its Broadcast Communications segment. The company has entered into a definitive asset sale agreement with Gores Broadcast Solutions, Inc., an affiliate of The Gores Group, LLC, with an expected closing in early calendar year 2013. As a result of this divestiture, Harris Corporation anticipates incurring total estimated pre-tax charges ranging from $80 million to $120 million. These charges, which are expected to be recognized in the second quarter of fiscal 2013, include impairments to goodwill, other long-lived assets, and inventory. Investors should note that these impairment charges are in addition to previously disclosed charges related to the Broadcast Communications segment.

Key Highlights

  • 1Harris Corporation has entered into a definitive agreement to sell its Broadcast Communications segment.
  • 2The buyer is Gores Broadcast Solutions, Inc., an affiliate of The Gores Group, LLC.
  • 3The divestiture is expected to be completed in early calendar year 2013.
  • 4Harris anticipates total estimated pre-tax charges of $80 million to $120 million related to the divestiture.
  • 5These charges will include impairments to goodwill, other long-lived assets, and inventory.
  • 6The charges are expected to be reflected in the company's results for the second quarter of fiscal 2013.
  • 7The impairment charges are incremental to previously disclosed charges related to this divestiture.

Frequently Asked Questions

This filing is an amendment to a previous 8-K and provides an update on Harris Corporation's plan to divest its Broadcast Communications segment, including details on the sale agreement and anticipated charges.

Harris Corporation estimates total pre-tax charges between $80 million and $120 million, primarily for goodwill, long-lived asset, and inventory impairments. This translates to an after-tax impact of $73 million to $101 million, or $0.64 to $0.89 per diluted share.

The company expects to complete the sale of the Broadcast Communications segment in early calendar year 2013.

These specific impairment charges are in addition to any previously disclosed charges related to the Broadcast Communications divestiture in earlier SEC filings.