Business Combination (Tables)

3 Months Ended

Sep. 27, 2019

Schedule of Preliminary Calculation of Estimated Consideration Transferred

Our preliminary calculation of estimated consideration transferred is summarized below:



	(In millions, except exchange ratio and per share amounts)
Outstanding shares of L3 common stock as of June 28, 2019	79.63
L3 restricted stock unit awards settled in shares of L3Harris common stock	0.41
L3 performance unit awards settled in shares of L3Harris common stock	0.04
	80.08
Exchange Ratio	1.30
Shares of L3Harris common stock issued for L3 outstanding common stock	104.10
Price per share of L3Harris common stock as of June 28, 2019	$	189.13
Fair value of L3Harris common stock issued for L3 outstanding common stock	$	19,689
Fair value of replacement RSUs attributable to merger consideration	10
Fair value of L3Harris stock options issued for L3 outstanding stock options	101
Withholding tax liability incurred for converted L3 share-based awards	45
Fair value of replacement award consideration	156
Fair value of total consideration	19,845
Less cash acquired	(1,195		)
Total net consideration transferred	$	18,650

Schedule of Measurement of Assets Acquired, Liabilities Assumed and Noncontrolling Interest

Our preliminary measurement of assets acquired, liabilities assumed and nonconrolling interests is summarized below:



	(In millions)
Receivables	$	849
Contract assets	1,708
Inventories	1,056
Other current assets	517
Property, plant and equipment	1,176
Operating lease right-of-use assets	704
Goodwill	15,423
Other intangible assets	6,768
Other non-current assets	327
Total assets acquired	$	28,528

Accounts payable	$	898
Contract liabilities	722
Other current liabilities	772
Operating lease liabilities	715
Defined benefit plans	1,411
Long-term debt, net	3,548
Other long-term liabilities	1,661
Total liabilities assumed	9,727
Net assets acquired	18,801
Noncontrolling interests	(151		)
Total net consideration transferred	$	18,650

Schedule of Identifiable Intangible Assets Acquired

The following table provides further detail of the fair value and weighted-average amortization period of identified intangible assets acquired by major intangible asset class:



	Weighted Average Amortization Period	Total

	(In years)	(In millions)
Identifiable intangible assets acquired:
Customer relationships (Government)	15	$	3,549
Customer relationships (Commercial)	16	561
Trade names — Divisions	10	162
Developed technology	8	630
Total identifiable intangible assets subject to amortization	14	4,902
Trade names — Corporate	indefinite	1,803
In-process research and development	n/a	63
Total identifiable intangible assets		$	6,768

Schedule of Pro Forma Results

The following summary, prepared on a pro forma basis, presents our unaudited consolidated results of operations for the quarter ended September 28, 2018 as if the L3Harris Merger had been completed as of the beginning of the quarter ended September 28, 2018, after including any post-acquisition adjustments directly attributable to the acquisition, such as the sale of Harris’ Night Vision business, and after including the impact of adjustments such as amortization of intangible assets as well as the related income tax effects. This pro forma presentation does not include any impact of transaction synergies. The pro forma results are not necessarily indicative of our results of operations that actually would have been obtained had the combination of Harris and L3 been completed on the assumed date or for the period presented, or which may be realized in the future.



	September 28, 2018

	(In millions)
Revenue from product sales and services — as reported	$	1,542
Revenue from product sales and services — pro forma	$	4,018
Income from continuing operations — as reported	$	216
Income from continuing operations — pro forma	$	373