Harris Corporation Statistics at a Glance
Harris Corporation’s fiscal 2018 numbers show a company that was still growing revenue, carrying substantial debt, and generating strong earnings from a diversified mix of communications, electronic, and space-related systems.
The clearest story in the data is that Harris was scaling a large defense and technology business while keeping profitability, backlog, and segment operating income in view (Harris Corporation FY2018 Form 10-K).
Table of Contents
- Revenue and profitability
- Balance sheet and capital structure
- Segment performance
- Backlog, workforce, and operating footprint
- Asset base and working capital
- Research and development
Revenue and profitability
Harris Corporation’s fiscal 2018 revenue from product sales and services was $6,182 million, up from $5,900 million in FY2017, $5,992 million in FY2016, $3,885 million in FY2015, and $3,622 million in FY2014 (Harris Corporation FY2018 Form 10-K).
That five-year pattern matters because it shows the company moving from a mid-$3 billion revenue base in FY2014 and FY2015 to a much larger scale by FY2018, without a collapse in operating performance.
The revenue path across five years
| Fiscal year | Revenue from product sales and services |
|---|---|
| FY2014 | $3,622 million |
| FY2015 | $3,885 million |
| FY2016 | $5,992 million |
| FY2017 | $5,900 million |
| FY2018 | $6,182 million |
Revenue from FY2017 to FY2018 increased by $282 million, while the step from FY2015 to FY2016 was much larger at $2,107 million (Harris Corporation FY2018 Form 10-K). That kind of jump suggests a meaningful change in scale rather than a smooth, incremental drift.
Cost of product sales and services also increased over the same period, reaching $3,931 million in FY2018 versus $3,734 million in FY2017, $3,832 million in FY2016, $2,304 million in FY2015, and $2,118 million in FY2014 (Harris Corporation FY2018 Form 10-K). The cost base moved with revenue, but not in a way that erased the company?s ability to report healthy profits.
Income from continuing operations before income taxes was $926 million in FY2018, $905 million in FY2017, $884 million in FY2016, $396 million in FY2015, and $642 million in FY2014 (Harris Corporation FY2018 Form 10-K).
Income from continuing operations was $721 million in FY2018, up from $638 million in FY2017, $611 million in FY2016, $287 million in FY2015, and $440 million in FY2014 (Harris Corporation FY2018 Form 10-K).
Net income followed a similar pattern: $718 million in FY2018, $553 million in FY2017, $324 million in FY2016, $334 million in FY2015, and $534 million in FY2014 (Harris Corporation FY2018 Form 10-K).
What the earnings mix says
A useful way to read these figures is to separate operating strength from financing and tax effects.
- Income before taxes stayed above $800 million in FY2016, FY2017, and FY2018 (Harris Corporation FY2018 Form 10-K).
- Income taxes were $205 million in FY2018, $267 million in FY2017, $273 million in FY2016, $109 million in FY2015, and $202 million in FY2014 (Harris Corporation FY2018 Form 10-K).
- Discontinued operations were a loss of $3 million in FY2018, a loss of $85 million in FY2017, a loss of $287 million in FY2016, and income of $47 million in FY2015 and $94 million in FY2014 (Harris Corporation FY2018 Form 10-K).
Those discontinued-operations figures matter because they help explain why net income does not move in a perfectly straight line even when continuing operations are improving.
Diluted EPS from continuing operations rose to $5.94 in FY2018 from $5.12 in FY2017, $4.87 in FY2016, $2.67 in FY2015, and $4.08 in FY2014 (Harris Corporation FY2018 Form 10-K).
Diluted EPS from net income was $5.92 in FY2018, $4.44 in FY2017, $2.59 in FY2016, $3.11 in FY2015, and $4.95 in FY2014 (Harris Corporation FY2018 Form 10-K).
A simple takeaway: per-share profitability improved strongly from FY2015 into FY2017 and remained high in FY2018, even as the business absorbed debt service and operating complexity.
Balance sheet and capital structure
Harris Corporation carried meaningful leverage across the period, and the debt figures are one of the defining features of the dataset.
Long-term debt, net was $3,408 million in FY2018, $3,396 million in FY2017, $4,120 million in FY2016, $5,053 million in FY2015, and $1,564 million in FY2014 (Harris Corporation FY2018 Form 10-K).
That sequence shows debt peaking in FY2015 and then easing substantially by FY2018. The shift is visible in the balance sheet, where total assets were $9,839 million in FY2018 versus $10,090 million in FY2017, $12,009 million in FY2016, $13,127 million in FY2015, and $4,919 million in FY2014 (Harris Corporation FY2018 Form 10-K).
Equity was $3,322 million in FY2018, $2,928 million in FY2017, $3,057 million in FY2016, $3,402 million in FY2015, and $1,825 million in FY2014 (Harris Corporation FY2018 Form 10-K).
Book value per share moved with that equity base and was $28.09 in FY2018, $24.48 in FY2017, $24.53 in FY2016, $27.51 in FY2015, and $17.30 in FY2014 (Harris Corporation FY2018 Form 10-K).
Debt, equity, and shareholder returns
Cash dividends per share were $2.28 in FY2018, $2.12 in FY2017, $2.00 in FY2016, $1.88 in FY2015, and $1.68 in FY2014 (Harris Corporation FY2018 Form 10-K).
That dividend track shows steady increases during the period, even as the company continued to carry a large debt load. The combination of rising dividends and rising EPS suggests Harris was able to return cash while still supporting the capital structure.
Interest expense was $170 million in FY2018, $172 million in FY2017, $183 million in FY2016, $130 million in FY2015, and $94 million in FY2014 (Harris Corporation FY2018 Form 10-K).
Net interest expense was $168 million in FY2018, $170 million in FY2017, and $181 million in FY2016 (Harris Corporation FY2018 Form 10-K).
The direction here is clear: interest costs stayed material, but they did not prevent the company from generating solid pre-tax income.
Quick comparison table
| Metric | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|---|---|---|---|---|
| Long-term debt, net | $1,564M | $5,053M | $4,120M | $3,396M | $3,408M |
| Equity | $1,825M | $3,402M | $3,057M | $2,928M | $3,322M |
| Cash dividends per share | $1.68 | $1.88 | $2.00 | $2.12 | $2.28 |
| Book value per share | $17.30 | $27.51 | $24.53 | $24.48 | $28.09 |
This table highlights a company that expanded aggressively, then worked through a period of heavy leverage while preserving shareholder distributions and book value.
Segment performance
Harris reported three operating segments in the dataset: Communication Systems, Electronic Systems, and Space and Intelligence Systems.
Revenue in FY2018 was $1,903 million for Communication Systems, $2,373 million for Electronic Systems, and $1,921 million for Space and Intelligence Systems, with corporate eliminations of $15 million (Harris Corporation FY2018 Form 10-K).
For FY2017, those figures were $1,753 million, $2,251 million, and $1,902 million, with corporate eliminations of $6 million. For FY2016, the corresponding values were $1,864 million, $2,233 million, and $1,899 million, with corporate eliminations of $4 million (Harris Corporation FY2018 Form 10-K).
Segment revenue snapshot
| Segment | FY2016 | FY2017 | FY2018 |
|---|---|---|---|
| Communication Systems | $1,864M | $1,753M | $1,903M |
| Electronic Systems | $2,233M | $2,251M | $2,373M |
| Space and Intelligence Systems | $1,899M | $1,902M | $1,921M |
Electronic Systems was the largest revenue segment in each of the three years shown. Communication Systems dipped in FY2017 and recovered in FY2018. Space and Intelligence Systems was comparatively stable across all three years, changing only modestly.
Operating income provides a second lens.
Communication Systems operating income was $522 million in FY2016, $524 million in FY2017, and $571 million in FY2018 (Harris Corporation FY2018 Form 10-K).
Electronic Systems operating income was $430 million in FY2016, $464 million in FY2017, and $441 million in FY2018 (Harris Corporation FY2018 Form 10-K).
Space and Intelligence Systems operating income was $288 million in FY2016, $311 million in FY2017, and $336 million in FY2018 (Harris Corporation FY2018 Form 10-K).
Unallocated corporate expense and corporate eliminations were $185 million in FY2016 and $226 million in both FY2017 and FY2018 (Harris Corporation FY2018 Form 10-K).
That means each segment contributed differently:
- Communication Systems showed the strongest FY2018 operating income acceleration.
- Electronic Systems remained the biggest revenue engine but was not the strongest margin expansion story in FY2018.
- Space and Intelligence Systems delivered steady operating income growth across the period.
Total segment operating income plus reconciling items was $884 million in FY2016, $905 million in FY2017, and $926 million in FY2018 (Harris Corporation FY2018 Form 10-K).
Non-operating loss was $28 million in FY2018, while non-operating income was $2 million in FY2017 and $10 million in FY2016 (Harris Corporation FY2018 Form 10-K).
Backlog, workforce, and operating footprint
Harris had approximately 17,500 employees at the end of fiscal 2018, and about 7,900 of them were engineers and scientists (Harris Corporation FY2018 Form 10-K).
That is an unusually technical workforce mix, and it fits a company built around complex communications, electronics, and space systems.
Approximately 95 percent of Harris employees at the end of fiscal 2018 were located in the U.S., and approximately 600 U.S. employees were covered by collective bargaining agreements (Harris Corporation FY2018 Form 10-K).
Harris served customers in more than 100 countries at the end of fiscal 2018 (Harris Corporation FY2018 Form 10-K).
The funded backlog figures show how much future work was already on the books.
- Total company-wide funded backlog was approximately $5.2 billion at the end of fiscal 2018.
- Total company-wide funded backlog was approximately $4.1 billion at the end of fiscal 2017.
- Total company-wide funded backlog was approximately $4.0 billion at the end of fiscal 2016 (Harris Corporation FY2018 Form 10-K).
Harris expected to convert about 56 percent of fiscal 2018 year-end funded backlog to revenue in fiscal 2019 (Harris Corporation FY2018 Form 10-K).
That expected conversion rate is important because it gives context to near-term revenue visibility without implying that backlog is already cash.
Asset base and working capital
Net working capital was $435 million in FY2018, $147 million in FY2017, $643 million in FY2016, $909 million in FY2015, and $877 million in FY2014 (Harris Corporation FY2018 Form 10-K).
The drop from FY2016 to FY2017 is large, but FY2018 recovered to a more comfortable level. In practical terms, the company was still operating with a tight working capital profile relative to its size.
Net property, plant and equipment was $900 million in FY2018, $904 million in FY2017, $924 million in FY2016, $1,031 million in FY2015, and $576 million in FY2014 (Harris Corporation FY2018 Form 10-K).
Inventory also moved noticeably.
- Finished products inventory was $91 million in FY2018 and $96 million in FY2017.
- Work in process inventory was $104 million in FY2018 and $96 million in FY2017.
- Raw materials and supplies inventory was $199 million in FY2018 and $195 million in FY2017.
- Total inventory was $925 million in FY2018 and $841 million in FY2017 (Harris Corporation FY2018 Form 10-K).
Inventory reserves were $66 million in FY2018, equal to 14 percent of gross inventory, versus $52 million in FY2017, equal to 12 percent of gross inventory (Harris Corporation FY2018 Form 10-K).
That reserve increase suggests Harris was carrying more conservative coverage against inventory risk in FY2018.
On the receivables side, Harris had a nonrecourse receivables sale agreement allowing sales of up to $50 million of receivables at any given time (Harris Corporation FY2018 Form 10-K).
Asset composition and goodwill
Harris had $288 million of cash and cash equivalents as of June 29, 2018 (Harris Corporation FY2018 Form 10-K).
Of that cash, $134 million was held by foreign subsidiaries, and $69 million of the foreign cash was considered permanently reinvested (Harris Corporation FY2018 Form 10-K).
The company also had a $1 billion revolving credit facility that expired in June 2023, with $925 million available under the revolver as of June 29, 2018 (Harris Corporation FY2018 Form 10-K).
Short-term debt outstanding under commercial paper was $75 million as of June 29, 2018, and long-term debt outstanding was $3.4 billion (Harris Corporation FY2018 Form 10-K).
Goodwill was $5,372 million as of June 29, 2018, compared with $5,366 million as of June 30, 2017 (Harris Corporation FY2018 Form 10-K).
The segment allocation of goodwill was concentrated in Electronic Systems, which held $3,107 million. Space and Intelligence Systems carried $1,480 million, and Communication Systems carried $785 million as of June 29, 2018 (Harris Corporation FY2018 Form 10-K).
Research and development
Harris recorded $311 million of company-sponsored research and development costs in FY2018, $310 million in FY2017, and $305 million in FY2016 (Harris Corporation FY2018 Form 10-K).
Those numbers are tightly clustered, which suggests the company kept a stable level of internal investment even while revenue, debt, and segment composition were shifting.
For a business built around specialized systems, that consistency is not a side note. It is part of the operating model.
The company also reported depreciation and amortization expense related to property, plant and equipment of $143 million in FY2018, and gross property, plant and equipment of $2,183 million with accumulated depreciation and amortization of $1,283 million (Harris Corporation FY2018 Form 10-K).
That combination reinforces the picture of a capital-intensive, technically oriented enterprise with substantial legacy assets and ongoing investment needs.
Harris?s FY2018 employee base, revenue scale, backlog, and segment mix all point to a company that operated at the intersection of engineering depth and large-contract execution. The figures are most useful when read together: revenue growth, steady profitability, a leveraged but managed balance sheet, and a backlog-supported operating base (Harris Corporation FY2018 Form 10-K).