BUSINESS COMBINIATION (Tables)

6 Months Ended

Jan. 03, 2020

Schedule of Calculation of Consideration Transferred

Our calculation of consideration transferred is as follows:



(In millions, except exchange ratio and per share amounts)	June 29, 2019

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 Preliminary Measurement of Assets Acquired, Liabilities Assumed and Non Controlling Interest

Our preliminary measurement of assets acquired, liabilities assumed and noncontrolling interests as of the Closing Date and measurement period adjustments during the two quarters ended January 3, 2020, are as follows:



	Preliminary Fair Value			Measurement Period Adjustments			Adjusted Fair Value

	(In millions)
Receivables	$	849		$	(15	)	$	834
Contract assets	1,708			(41		)	1,667
Inventories	1,056			(37		)	1,019
Other current assets	517			(20		)	497
Property, plant and equipment	1,176			39			1,215
Operating lease right-of-use assets	704			—			704
Goodwill	15,423			(774		)	14,649
Other intangible assets	6,768			1,109			7,877
Other non-current assets	327			(6		)	321
Total assets acquired	$	28,528		$	255		$	28,783

Accounts payable	$	898		$	(14	)	$	884
Contract liabilities	722			(4		)	718
Other current liabilities	772			60			832
Operating lease liabilities	715			—			715
Defined benefit plans	1,411			—			1,411
Long-term debt, net	3,548			—			3,548
Other long-term liabilities	1,661			209			1,870
Total liabilities assumed	9,727			251			9,978
Net assets acquired	18,801			4			18,805
Noncontrolling interests	(151		)	(4		)	(155		)
Total net consideration transferred	$	18,650		$	—		$	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	$	4,677
Customer relationships (Commercial)	15	643
Trade names — Divisions	9	123
Developed technology	7	562
Total identifiable intangible assets subject to amortization	14	6,005
Trade names — Corporate	indefinite	1,803
In-process research and development	n/a	69
Total identifiable intangible assets		$	7,877

Schedule of Pro Forma Results

The following summary, prepared on a pro forma basis, presents our unaudited consolidated results of operations for the comparable period ended December 28, 2018 as if the L3Harris Merger had been completed on June 29, 2018, the beginning of the comparable period ended December 28, 2018, after including any post-merger adjustments directly attributable to the L3Harris Merger, such as the sale of the 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 L3Harris Merger been completed on the assumed date or for the period presented, or which may be realized in the future.



	Two Quarters Ended
	December 28, 2018

	(In millions)
Revenue from product sales and services — as reported	$	3,208
Revenue from product sales and services — pro forma	$	8,404
Income from continuing operations — as reported	$	441
Income from continuing operations — pro forma	$	760