0000202058false00002020582024-10-242024-10-24

l3harrislogopra33.jpg
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): October 24, 2024
L3HARRIS TECHNOLOGIES, INC.
(Exact name of registrant as specified in its charter)
Delaware
1-386334-0276860
(State or other jurisdiction
 of incorporation)		(Commission
 File Number)		(I.R.S. Employer
 Identification No.)
1025 West NASA Boulevard
Melbourne,Florida 32919
(Address of principal executive offices)(Zip Code)
Registrant’s telephone number, including area code: (321) 727-9100
No change
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:


☐
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, par value $1.00 per shareLHXNew York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
 Emerging growth company
☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
☐







Item 2.02 Results of Operations and Financial Condition.

On October 24, 2024, L3Harris Technologies, Inc. released its third quarter financial results in an earnings release.

The earnings release announcing the release of the third quarter financial results is furnished herewith as Exhibit 99.1 and is incorporated herein by reference. The information contained in this Current Report on Form 8-K that is furnished under Item 2.02 and, including Exhibit 99.1, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section and shall not be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such a filing, except as shall be expressly set forth by specific reference.     


Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

                        EXHIBIT INDEX
     The following exhibits are provided herewith:




SIGNATURE
     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
L3HARRIS TECHNOLOGIES, INC.
  
By:/s/ Kenneth L. Bedingfield
Name:Kenneth L. Bedingfield
Title:Senior Vice President and Chief Financial Officer
Date: October 24, 2024


Exhibit 99.1
l3harris_logoxregxrgba.jpg                        Earnings Release

L3Harris Technologies Reports Strong Third Quarter 2024 Results,
Increases 2024 Guidance


Highlights*
•Orders of $7.2 billion; book-to-bill of 1.4x
•Revenue of $5.3 billion, up 8%, and 5% organically
•Operating margin of 9.4%; adjusted segment operating margin of 15.7%
•Diluted earnings per share (EPS) of $2.10; non-GAAP diluted EPS of $3.34
•2024 revenue guidance range increased to $21.1B - $21.3B
•2024 adjusted segment operating margin guidance increased to ~15.5%
•2024 non-GAAP diluted EPS guidance range increased to $12.95 - $13.15

MELBOURNE, Fla., October 24, 2024 — L3Harris Technologies (NYSE: LHX) reported third quarter 2024 diluted EPS of $2.10, an increase of 4% from third quarter 2023, on third quarter 2024 revenue of $5.3 billion, an increase of 8%. Third quarter 2024 non-GAAP diluted EPS was $3.34, a 5% increase from third quarter 2023. A reconciliation of non-GAAP results are detailed in tables beginning on page 11.

"We delivered strong third-quarter results, highlighted by outstanding book-to-bill of 1.4x, solid organic growth, and while continuing to improve margins as we make progress toward the financial framework announced at our 2023 Investor Day. These results reaffirm that our Trusted Disruptor strategy is working, driving value for our customers, shareholders and employees," said Christopher E. Kubasik, Chair and CEO.

Kubasik added, "We are making impressive progress on our LHX NeXt initiative and expect to exceed the 2024 cost savings target of $400 million. As a result, we are updating our 2024 savings target to at least $600 million and now expect to reach the overall target of $1 billion a year early. Our pipeline provides opportunity for additional cost savings opportunities to exceed the $1 billion target. All of this gives us confidence to deliver 2026 segment operating margins of at least 16%."





*Organic revenue, adjusted segment operating margin and non-GAAP diluted EPS are non-GAAP financial measures defined on page 17. A reconciliation of adjusted segment operating margin guidance and non-GAAP diluted EPS guidance is not available. See the note on page 2 and Non-GAAP Financial Measures on page 7 for more information.
PAGE 1


SUMMARY FINANCIAL RESULTS AND 2024 GUIDANCE*
Third QuarterYear to Date2024 Guidance
($ millions, except per share data)20242023Change20242023Change
Revenue (see Table 4 for organic revenue)
Space & Airborne Systems$1,683$1,686$5,141$5,056
Integrated Mission Systems1,6711,5685,069 5,003 
Communication Systems1,3821,2554,022 3,707 
Aerojet Rocketdyne5964551,719 455 
Corporate eliminations(40)(49)(149)(142)
Revenue$5,292$4,9158 %$15,802$14,07912 %
$21.1B - $21.3B
(Prior: $21.0B - $21.3B)
Operating income
Space & Airborne Systems$195$210$626$565
Integrated Mission Systems204187600534
Communication Systems359282998873
Aerojet Rocketdyne755622256
Corporate unallocated items(338)(256)(1,097)(756)
Operating income$495$4793 %$1,349$1,2726 %
Unallocated items (see Table 5)
3382561,097795
Adjusted segment operating income$833$73513 %$2,446$2,06718 %
— — — — 
Margin
Operating margin9.4 %9.7 %8.5 %9.0 %
Adjusted segment operating margin15.7 %15.0 %70 bps15.5 %14.7 %80 bps
~15.5%
(Prior: 15.2% - 15.4%)
Tax rate
Effective tax rate (GAAP)6.0 %4.5 %4.9 %6.4 %
Effective tax rate (non-GAAP)12.9 %12.9 %13.0 %13.2 %
EPS
Diluted EPS$2.10$2.024 %$5.50$5.61(2 %)
Non-GAAP diluted EPS$3.34$3.195 %$9.63$9.017 %
$12.95 - $13.15
(Prior: $12.85 - $13.15)
Pension adjusted non-GAAP diluted EPS
$2.94$2.718 %$8.44$7.6211 %
Cash flow
Cash from operations$780$54344 %$1,430$1,3079 %
Adjusted free cash flow$728$61718 %$1,286$1,2731 %~$2.2B

Revenue: Third quarter revenue increased 8%, primarily driven by the acquisition of Aerojet Rocketdyne (AR) and 5% total organic growth, primarily from continued robust demand for our resilient communication products and night vision devices in our Communication Systems (CS) segment. Organic growth was also driven by our Integrated Mission Systems (IMS) segment, with higher aircraft missionization volumes, increased volumes for advanced electronics related to space and munitions programs, and higher volumes in our Commercial Aviation business, the divestiture of which is pending closure.




* Adjusted segment operating income and margin, effective tax rate on non-GAAP income, non-GAAP diluted EPS, pension adjusted non-GAAP diluted EPS, organic revenue and adjusted free cash flow are non-GAAP financial measures defined on page 17. A reconciliation of adjusted segment operating income and margin, effective tax rate on non-GAAP income, non-GAAP diluted EPS and adjusted free cash flow on a forward-looking basis to GAAP is not available without unreasonable effort due to the unavailability of items for exclusion from the GAAP measure. We are unable to address the probable significance of this information, the variability of which may have a significant impact on future GAAP results. See Non-GAAP Financial Measures on page 7 for more information.
PAGE 2


Operating Margin:
GAAP: Third quarter operating margin decreased 30 bps to 9.4% primarily driven by an increase in unallocated items, including an increase in valuation allowance related to the pending Commercial Aviation Solutions business divestiture and increases in fair value of non-qualified retirement plan liabilities. This was partially offset by improved segment performance and a full quarter of contribution from AR.

Adjusted segment operating margin: Expanded 70 bps to 15.7%, with solid contribution from LHX NeXt cost savings, strong performance from higher volume and favorable mix in our CS segment, and improved program performance in our IMS segment. This was partially offset by the absence of a non-recurring license sale that positively impacted 2023 and challenges on classified space development programs, both in our SAS segment.

Diluted EPS:
GAAP: Third quarter diluted EPS increased 4% to $2.10 due to an increase in operating income and lower FAS/CAS operating adjustment, partially offset by higher interest expense.

Non-GAAP: Increased 5% to $3.34 driven by higher adjusted segment operating income, partially offset by higher interest expense.

Pension Adjusted Non-GAAP: Increased 8% to $2.94 driven by higher adjusted segment operating income, partially offset by higher interest expense. We believe this represents the best economic measure of our EPS as it reflects the operational performance of our segments without non-cash impacts of pension accounting, primarily FAS/CAS operating adjustment.

The largest differences between GAAP and Non-GAAP diluted EPS are attributable to amortization of acquisition-related intangibles and LHX NeXt implementation costs.

Cash Flows:
Cash from Operations: Third quarter cash from operations increased 44% to $780 million driven by net income growth and decreases in transaction costs related to the AJRD acquisition, partially offset by timing of working capital.

Adjusted free cash flow: Increased 18% to $728 million driven by net income growth and decreases in capital expenditures, partially offset by timing of working capital.















PAGE 3


SEGMENT RESULTS AND GUIDANCE*

SAS
Third QuarterYear to Date2024 Guidance
($ millions)20242023Change20242023Change
Revenue$1,683$1,686—%$5,141$5,0562%~$7,000
Operating margin11.6 %12.5 %(90) bps12.2 %11.2 %100 bpslow 12%
Revenue: Third quarter revenue was flat, reflecting the divestiture of the antenna business in the second quarter. Excluding the divestiture impact, organic revenue increased 2%, primarily from growth of classified programs in Intel and Cyber, and increased volume in our FAA mission-critical safety of flight networks business. Organic revenue was partially offset by lower F-35 related volumes as TR-3 development ramps down in our Airborne Combat Systems business. Growth was also impacted by challenges on classified development programs, LHX NeXt cost savings and the absence of a non-recurring license sale that positively impacted 2023.

Operating Margin: Third quarter operating margin decreased 90 bps, primarily due to the absence of an $18 million non-recurring license sale that positively impacted 2023 and challenges on classified development programs, partially offset by growth in Intel and Cyber and FAA mission-critical safety of flight networks businesses, and LHX NeXt cost savings.

IMS
Third QuarterYear to Date2024 Guidance
($ millions)20242023Change20242023Change
Revenue$1,671$1,5687%$5,069$5,0031%
$6,600 - $6,700
(Prior: $6,500 - $6,700)
Operating margin12.2 %11.9 %30 bps11.8 %10.7 %110 bps
mid - high 11%
(Prior: mid 11%)
Revenue: Third quarter revenue increased primarily from higher aircraft missionization volumes, increased advanced electronics demand for space and munitions programs, and higher volumes in our Commercial Aviation Solutions business, the divestiture of which is pending closure.

Operating Margin: Third quarter operating margin increased 30 bps, primarily from improved program performance across the segment, LHX NeXt cost savings and higher volume and favorable mix in Commercial Aviation Solutions, partially offset by unfavorable mix impact in our aircraft missionization business.






*Organic revenue is a non-GAAP financial measure defined on page 17.
PAGE 4


CS
Third QuarterYear to Date2024 Guidance
($ millions)20242023Change20242023Change
Revenue$1,382$1,25510%$4,022$3,7078%
~$5,400
(Prior: $5,300 - $5,400)
Operating margin26.0 %22.5 %350 bps24.8 %23.6 %120 bps
mid - high 24%
(Prior: mid 24%)
Revenue: Third quarter revenue increased 10%, primarily driven by robust demand for our resilient communication equipment, related waveforms, and night vision devices. Growth for software defined tactical radios was especially strong across international markets, in particular from NATO countries, reflecting demand for our superior capabilities for critical battlefield communications equipment and waveforms.

Operating Margin: Third quarter operating margin increased 350 bps as a result of strong performance from higher volumes, favorable high margin international mix, proprietary waveform license sales, and LHX NeXt cost savings.


AR
Third QuarterYear to Date2024 Guidance
($ millions)20242023Change20242023Change
Revenue$596$455 31%$1,719$455 278%$2,400 - $2,500
Operating margin12.6 %12.3 %60 bps12.9 %12.3 %60 bps
mid 12%
(Prior: high 11%)
Revenue and Operating Margin: Third quarter results are attributed to program execution across both sectors, Missile Solutions and Space Propulsion and Power Systems, reflecting a full quarter of contribution for 2024 and a partial quarter for 2023, from the July 28, 2023 acquisition date. Operating margins include the positive impact of amortization related to purchase price adjustments.

























PAGE 5


SUPPLEMENTAL INFORMATION*


20242023
Other InformationCurrentPriorActuals
FAS/CAS operating adjustment~$30 million~$30 million$110 million
Non-service FAS pension income~$310 million~$310 million$310 million
Net interest expense~$660 million~$660 million$543 million
Effective tax rate on GAAP income1.9%
Effective tax rate on non-GAAP income13.0% - 13.5%13.0% - 13.5%13.0%
Average diluted sharesFlatFlat190.6
Capital expenditures~2% sales~2% sales2% sales



































*Effective tax rate on non-GAAP income is a non-GAAP financial measure defined on page 17. A reconciliation of effective tax rate on non-GAAP income guidance is not available. See Non-GAAP Financial Measures on page 7 for more information.
PAGE 6


Forward-Looking Statements
This earnings release contains forward-looking statements within the meaning of federal securities laws made in reliance on the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Examples include, but are not limited to: potential divestitures and their timing; 2024 guidance; 2026 financial framework; anticipated LHX NeXt initiative costs and savings targets and 2026 margins; supplemental information for 2024; projection of other financial items; and assumptions underlying any of the foregoing. Investors should not place undue reliance on forward-looking statements, which reflect management’s current expectations, estimates, projections, assumptions and information currently available to management, and are not guarantees of future performance or actual results. Important risks that could cause our results to differ materially from those expressed in or implied by these forward-looking statements or from our historical results include, but are not limited to, risks arising from: competitive markets; U.S. Government spending priorities; changes in contract mix; inflation; unilateral contract action by the U.S. Government; uncertain economic conditions; future geo-political events; supply chain disruptions; impacts of LHX NeXt; indebtedness; defined benefit plan liabilities and returns; interest rates and other market factors; changes in effective tax rate or additional tax exposures; pending and contemplated divestitures.These and other important risks that could impact forward-looking statements are described more fully in the "Risk Factors" in our Form 10-K for fiscal 2023 filed with the SEC. All subsequent written and oral forward-looking statements attributable to us or any person acting on our behalf are qualified by the cautionary statements in this section, and we have no duty to and disclaim any intention or obligation, other than imposed by law, to update or revise any forward-looking statements, whether as a result of new information, future events or developments or otherwise.

Non-GAAP Financial Measures
Management believes the adjustments to non-GAAP Financial Measures ("NGFMs") in the tables beginning on page 11 are useful to investors because the excluded costs do not reflect our ongoing operating performance. Such adjustments, considered together with the unadjusted GAAP financial measures, provide information that management believes is useful to investors to understand period-over-period operating results separate from items that management believes may disproportionately impact operating results in any particular period; however there is no guarantee that items excluded from NGFMs will not reoccur in future periods. Management also believes that NGFMs enhance the ability of investors to analyze business trends, understand performance and evaluate our initiatives to drive improved financial performance. Management utilizes NGFMs to guide forecasting and long-term planning and for compensation purposes. NGFMs should be considered in addition to, and not as a substitute for, financial measures presented in accordance with GAAP. A reconciliation of forward-looking NGFMs to GAAP is not available without unreasonable effort because of inherent difficulty in forecasting and quantifying comparable GAAP measures and applicable adjustments and other amounts necessary for a reconciliation because of potentially high variability, complexity and low visibility of applicable adjustments and other unusual amounts that could disproportionately impact future GAAP results, such as the impact of the acquisition of AR, LHX NeXt, potential divestitures and their timing, and the extent of tax deductibility.
Conference Call and Webcast
L3Harris Technologies will host a call tomorrow, October 25, 2024, at 8:30 a.m. Eastern Time (ET). Participants are encouraged to listen via webcast, which will be broadcast live at L3Harris.com/investors. The dial-in numbers for the teleconference are (U.S.) 800-274-8461 and (International) 203-518-9814, and participants will be directed to an operator. A recording of the call will be available on the L3Harris website, beginning at approximately 12 p.m. ET on October 25, 2024.

Investor Relations Contact:
Daniel Gittsovich, 321-724-3170
investorrelations@l3harris.com
Media Relations Contact:
Sara Banda, 321-306-8927
media@l3harris.com

PAGE 7



Table 1 - Condensed Consolidated Statement of Operations (Unaudited)
Third QuarterYear to Date
(In millions, except per share amounts)2024202320242023
Revenue$5,292 $4,915 $15,802 $14,079 
Cost of revenue(3,873)(3,608)(11,675)(10,419)
General and administrative expenses(924)(828)(2,778)(2,388)
Operating income495 479 1,349 1,272 
Non-service FAS pension income and other, net101 80 275 245 
Interest expense, net(166)(159)(514)(372)
Income before income taxes430 400 1,110 1,145 
Income taxes(26)(18)(54)(73)
Net income404 382 1,056 1,072 
Noncontrolling interests, net of income taxes(4)1 (7)(3)
Net income attributable to L3Harris Technologies, Inc.$400 $383 $1,049 $1,069 
Net income per common share attributable to L3Harris Technologies, Inc. common shareholders
Basic$2.11 $2.02 $5.53 $5.64 
Diluted$2.10 $2.02 $5.50 $5.61 
Basic weighted-average common shares outstanding189.6 189.3 189.7 189.6 
Diluted weighted-average common shares outstanding190.5 190.1 190.7 190.6 

























PAGE 8



Table 2 - Consolidated Statement of Cash Flow (Unaudited)
Third QuarterYear to Date
(In millions)2024202320242023
Operating Activities
Net income$404 $382 $1,056 $1,072 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization324 310 963 816 
Share-based compensation23 22 76 67 
Pension and other postretirement benefit plan income(72)(68)(215)(209)
Share-based matching contributions under defined contribution plans57 51 199 172 
Deferred income taxes467 (34)220 (277)
(Increase) decrease in:
Receivables, net188 158 163 53 
Contract assets(207)36 (372)(136)
Inventories, net40 (80)46 (195)
Other current assets(6)(15)(32)(87)
Increase (decrease) in:
Accounts payable155 (41)(45)(18)
Contract liabilities(12)(18)(150)202 
Compensation and benefits(44)(45)(145)(55)
Other current liabilities(26)(24)59 (27)
Income taxes(469)5 (258)15 
Other operating activities(42)(96)(135)(86)
Net cash provided by operating activities780 543 1,430 1,307 
Investing Activities
Net cash paid for acquired businesses— (4,715)— (6,688)
Additions to property, plant and equipment(78)(148)(290)(312)
Proceeds from sales of businesses, net— — 158 71 
Other investing activities(15)(1)(19)(9)
Net cash used in investing activities(93)(4,864)(151)(6,938)
Financing Activities
Proceeds from borrowings, net of issuance cost585 5,319 2,826 7,568 
Repayments of borrowings(2)(2,099)(2,609)(3,159)
Change in commercial paper, maturities under 90 days, net(404)806 93 1,330 
Proceeds from commercial paper, maturities over 90 days— 646 688 701 
Repayments of commercial paper, maturities over 90 days(520)— (1,205)— 
Proceeds from exercises of employee stock options48 5 111 18 
Repurchases of common stock(190)— (512)(518)
Dividends paid(220)(216)(665)(652)
Other financing activities(6)(1)(36)(34)
Net cash (used in) provided by financing activities(709)4,460 (1,309)5,254 
Effect of exchange rate changes on cash and cash equivalents14 (6)9 (4)
Net decrease in cash and cash equivalents(8)133 (21)(381)
Cash and cash equivalents, beginning of period547 366 560 880 
Cash and cash equivalents, end of period$539 $499 $539 $499 
PAGE 9




Table 3 - Condensed Consolidated Balance Sheet (Unaudited)
(In millions)September 27, 2024December 29, 2023
Assets
Current assets
Cash and cash equivalents$539 $560 
Receivables, net1,042 1,230 
Contract assets3,401 3,196 
Inventories, net1,399 1,472 
Income taxes receivable329 61 
Other current assets462 430 
Assets of business held for sale1,130 1,106 
Total current assets8,302 8,055 
Non-current assets
Property, plant and equipment, net2,795 2,862 
Goodwill20,433 19,979 
Intangible assets, net7,874 8,540 
Deferred income taxes119 91 
Other non-current assets2,366 2,160 
Total assets$41,889 $41,687 
Liabilities and equity
Current liabilities
Short-term debt$1,177 $1,602 
Current portion of long-term debt, net640 363 
Accounts payable2,049 2,106 
Contract liabilities1,878 1,900 
Compensation and benefits402 544 
Income taxes payable35 88 
Other current liabilities1,549 1,129 
Liabilities of business held for sale 243 272 
Total current liabilities7,973 8,004 
Non-current liabilities
Long-term debt, net11,093 11,160 
Deferred income taxes885 815 
Other long-term liabilities2,876 2,879 
Total liabilities22,827 22,858 
Total equity19,062 18,829 
Total liabilities and equity$41,889 $41,687 
PAGE 10




Reconciliation of Non-GAAP Financial Measures
Table 4 - Organic Revenue (Unaudited)
Third Quarter
20242023
(In millions)GAAP
Adjustments1
Organic
GAAP
Adjustments2
Organic
SAS$1,683 $— $1,683 $1,686 $(42)$1,644 
IMS1,671 — 1,671 1,568 — 1,568 
CS1,382 — 1,382 1,255 — 1,255 
AR596 (159)437 455 — 455 
Corporate eliminations(40)— (40)(49)— (49)
Revenue$5,292 $(159)$5,133 $4,915 $(42)$4,873 
Year to Date
20242023
(In millions)GAAP
Adjustments1
OrganicGAAP
Adjustments2
Organic
SAS
$5,141 $— $5,141 $5,056 $(70)$4,986 
IMS
5,069 — 5,069 5,003 — 5,003 
CS
4,022 — 4,022 3,707 — 3,707 
AR
1,719 (1,282)437 455 — 455 
Corporate eliminations(149)— (149)(142)— (142)
Revenue$15,802 $(1,282)$14,520 $14,079 $(70)$14,009 
1Adjustment to exclude amounts attributable to each acquired business through the date of acquisition.
2Adjustment to exclude amounts attributable to each divested business.
PAGE 11




Table 5 - Operating Income and Margin and Adjusted Segment Operating Income and Margin (Unaudited)
Third QuarterYear to Date
(In millions)2024202320242023
Revenue (A)$5,292 $4,915 $15,802 $14,079 
Operating income (B)$495 $479 $1,349 $1,272 
Corporate items add back1
33 (41)86 (45)
Significant and/or non-recurring items:
Amortization of acquisition-related intangibles and additional cost of revenue related to the fair value step-up in inventory sold2
210 208 642 576 
Merger, acquisition, and divestiture-related expenses2
25 56 86 144 
Business divestiture-related losses, net and impairment of goodwill and other assets2
29 — 67 52 
LHX NeXt implementation costs2
41 33 216 68 
Total significant and/or non-recurring items305 297 1,011 840 
Unallocated items338 256 1,097 795 
Adjusted segment operating income (C)$833 $735 $2,446 $2,067 
Margins
Operating margin (B)/(A)9.4 %9.7 %8.5 %9.0 %
Adjusted segment operating margin (C)/(A)15.7 %15.0 %15.5 %14.7 %
1Corporate items add back includes unallocated corporate department expense of $40M and $106M for the third quarter and year to date 2024, respectively, and unallocated corporate department income of $14M for the third quarter 2023 and unallocated corporate department expense of $27M for year to date 2023. Additionally, includes the FAS/CAS operating adjustment of $7M and $20M for the third quarter and year to date 2024, respectively, and $27M and $72M for the third quarter and year to date 2023, respectively. The FAS/CAS operating adjustment represents the difference between the service cost component of Financial Accounting Standards (“FAS”) pension and Other Postretirement Benefits (“OPEB”) income or expense and total U.S. Government Cost Accounting Standards (“CAS”) pension and OPEB cost.
2Refer to Key Terms and Non-GAAP Definitions on page 17.
PAGE 12




Table 6 - Effective Tax Rate on Non-GAAP Income (unaudited)

Third Quarter
20242023
(In millions)Earnings Before TaxTax Expense
(Benefit)		Effective Tax RateEarnings Before TaxTax ExpenseEffective Tax Rate
Income before income taxes$430 $26 6.0 %$400 $18 4.5 %
Amortization of acquisition-related intangibles and additional cost of revenue related to the fair value step-up in inventory sold1
210 52 208 53 
Merger, acquisition, and divestiture-related expenses1
25 5 56 8 
Business divestiture-related losses, net and impairment of goodwill and other assets1
29 (6)— 3 
LHX NeXt implementation costs1
41 18 33 8 
Non-GAAP income before income taxes$735 $95 12.9 %$697 $90 12.9 %
Year to Date
20242023
(In millions)Earnings Before TaxTax Expense
(Benefit) 		Effective Tax RateEarnings Before TaxTax ExpenseEffective Tax Rate
Income before income taxes$1,110 $54 4.9 %$1,145 $73 6.4 %
Amortization of acquisition-related intangibles and additional cost of revenue related to the fair value step-up in inventory sold1
642 159 576 137 
Merger, acquisition, and divestiture-related expenses1
86 16 144 26 
Business divestiture-related losses, net and impairment of goodwill and other assets1
67 (8)52 9 
LHX NeXt implementation costs1
216 54 68 17 
Non-GAAP income before income taxes$2,121 $275 13.0 %$1,985 $262 13.2 %
1Refer to Key Terms and Non-GAAP Definitions on page 17.



PAGE 13




Table 7 - Non-GAAP Diluted EPS (unaudited)
Third QuarterYear to Date
(In millions, except per share data)2024202320242023
Diluted weighted-average common shares outstanding190.5 190.1 190.7 190.6 
Diluted EPS$2.10 $2.02 $5.50 $5.61 
Significant and/or non-recurring items included in diluted EPS above:
Amortization of acquisition-related intangibles and additional cost of revenue related to the fair value step-up in inventory sold1
1.10 1.09 3.37 3.02 
Merger, acquisition, and divestiture-related expenses1
0.13 0.29 0.45 0.76 
Business divestiture-related losses, net and impairment of goodwill and other assets1
0.15 — 0.35 0.27 
LHX NeXt implementation costs1
0.22 0.17 1.13 0.36 
Income taxes on above adjustments(0.36)(0.38)(1.17)(1.01)
Non-GAAP diluted EPS$3.34 $3.19 $9.63 $9.01 
    
1Refer to Key Terms and Non-GAAP Definitions on page 17.
PAGE 14



Table 8 - Adjusted Free Cash Flow (unaudited)
Third QuarterYear to Date
(In millions)2024202320242023
Net cash provided by operating activities$780 $543 $1,430 $1,307 
Additions to property, plant and equipment(78)(148)(290)(312)
Free cash flow702 395 1,140 995 
Cash used for merger, acquisition and severance1,2
26 222 146 278 
Adjusted free cash flow$728 $617 $1,286 $1,273 
1Refer to Key Terms and Non-GAAP Definitions on page 17.
22023 amounts reclassified to include cash paid for severance.





































PAGE 15



Table 9 - Pension Adjusted Non-GAAP Diluted EPS (unaudited)

Third QuarterYear to Date
(In millions)2024202320242023
Non-GAAP diluted EPS1
$3.34 $3.19 $9.63 $9.01 
Per share impact of:
FAS/CAS operating adjustment2
0.03 0.12 0.09 0.33 
Non-service FAS pension income2
0.37 0.36 1.10 1.06 
Pension adjusted non-GAAP diluted EPS$2.94 $2.71 $8.44 $7.62 
1Reconciled in Table 7.
2Net of tax effect.
PAGE 16





Key Terms and Non-GAAP Definitions
DescriptionDefinition
Amortization of acquisition-related intangibles and additional cost of revenue related to the fair value step-up in inventory soldAmortization of identifiable intangible assets acquired in connection with business combinations. Additional cost of revenue related to the fair value step-up in inventory is the difference between the balance sheet value of inventory from the acquiree and the acquisition date fair value.
Merger, acquisition, and divestiture-related expensesTransaction and integration expenses associated with Tactical Data Links and AR acquisitions; external costs related to pursuing acquisition and divestiture portfolio optimization; non-transaction costs related to divestitures; and salaries of employees in roles dedicated to planned divestiture and acquisition activity.
Business divestiture-related losses, net and impairment of goodwill and other assets
In 2023, includes a gain on sale of our Visual Information Solutions business, impairment of contract assets and other assets related to the restructuring of a customer contract and impairment of in-process research and development associated with a facility closure. In 2024, includes valuation allowance increase related to the pending sale of our Commercial Aviation Solutions business (QTD and YTD) and impairment of goodwill and loss on sale recognized in connection with the sale of our antenna and related businesses (YTD).
LHX NeXt implementation costs
Costs related to the LHX NeXt initiative are expected to continue through 2025 and are expected to include workforce optimization costs and incremental IT expenses for implementation of new systems, third-party consulting expenses and other related costs, including costs related to personnel dedicated to this project.
LHX NeXt cost savingsRepresents annual gross run rate savings driven by the LHX NeXt transformation initiative. It is an operational measure that includes savings from initiatives related to labor and function optimization, direct and indirect procurement, and infrastructure expected to recur on an ongoing basis.
OrdersTotal value of funded and unfunded contract awards received from the U.S. Government and other customers, including incremental funding and adjustments to previous awards, excluding unexercised contract options and potential orders under ordering-type contracts, such as indefinite delivery, indefinite quantity (IDIQ) contracts.
Organic revenue*
Excludes the impact of completed divestitures and first year revenue associated with acquisitions and is reconciled in Table 4.
Adjusted segment operating income and margin*
On a consolidated basis represents operating income and margin, excluding the FAS/CAS operating adjustment, corporate unallocated items and items reconciled in Table 5.
Non-GAAP diluted EPS*
Represents EPS (net income per diluted common share attributable to L3Harris Technologies, Inc. common shareholders) adjusted for items reconciled in Table 7.
Pension adjusted non-GAAP diluted EPS*
Represents Non-GAAP diluted EPS, described above, adjusted for the after tax per share impact of the FAS/CAS operating adjustment and Non-service FAS pension income reconciled in Table 9.
Adjusted Free Cash Flow*
Net cash provided by operating activities less capital expenditures, cash used for merger, acquisition, and severance reconciled in Table 8.
Cash used for merger, acquisition, and severance*Cash related to merger and acquisition expenses (described above) and severance costs included in LHX NeXt implementation costs.
Non-GAAP income before income taxes*
Represents income before income taxes adjusted for items reconciled in Table 6.
Effective tax rate on non-GAAP income*
Represents the effective tax rate (tax expense as a percentage of income before income taxes) adjusted for the tax effect of items reconciled in Table 6.
_____
*Refer to Non-GAAP Financial Measures on page 7 for more information.
PAGE 17

v3.24.3
Cover Page
Oct. 24, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date Oct. 24, 2024
Entity Registrant Name L3HARRIS TECHNOLOGIES, INC.
Entity Incorporation, State or Country Code DE
Entity File Number 1-3863
Entity Tax Identification Number 34-0276860
Entity Address, Address Line One 1025 West NASA Boulevard
Entity Address, City or Town Melbourne,
Entity Address, State or Province FL
Entity Address, Postal Zip Code 32919
City Area Code 321
Local Phone Number 727-9100
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock, par value $1.00 per share
Trading Symbol LHX
Security Exchange Name NYSE
Entity Emerging Growth Company false
Entity Central Index Key 0000202058
Amendment Flag false
L3Harris Technologies (NYSE:LHX)
Historical Stock Chart
Von Dez 2024 bis Jan 2025 Click Here for more L3Harris Technologies Charts.
L3Harris Technologies (NYSE:LHX)
Historical Stock Chart
Von Jan 2024 bis Jan 2025 Click Here for more L3Harris Technologies Charts.