Summary
L3Harris Technologies, Inc. (formerly Harris Corporation) filed an 8-K on April 11, 2013, to report preliminary results for its third quarter of fiscal year 2013 and provide updated guidance for the full fiscal year. The company revised its fiscal 2013 outlook, including expected income from continuing operations per diluted share, revenue, and tax rate. This update also disclosed significant restructuring and other actions planned primarily for the fourth quarter of fiscal 2013. The restructuring efforts are designed to align resources with the current business outlook and challenging economic conditions. Key components include workforce reductions, facility consolidation, and importantly, the prepayment of $300 million in 5% Notes due October 1, 2015. The company anticipates incurring pre-tax charges between $65 million and $115 million related to these actions, with a substantial portion expected to impact the fourth quarter of fiscal 2013.
Key Highlights
- 1Harris Corporation (now L3Harris Technologies) announced updated fiscal year 2013 guidance, including revised expectations for income per diluted share, revenue, and tax rate.
- 2The company is implementing company-wide restructuring and other actions, primarily in Q4 FY2013, to adapt to its business outlook and the fiscal environment.
- 3These restructuring actions include workforce reductions and facility consolidations.
- 4A significant financial action is the planned redemption of its entire $300 million 5% Notes due October 1, 2015, in Q4 FY2013.
- 5Total estimated pre-tax charges for these restructuring activities are projected to be between $65 million and $115 million.
- 6The majority of these estimated charges are expected to be recognized in the fourth quarter of fiscal 2013.
- 7Approximately $65 million to $75 million of the total estimated charges are expected to result in future cash expenditures.