L3Harris Technologies, Inc. (NYSE:LHX) Q3 2023 Earnings Conference Call October 27, 2023 8:30 AM ET Corporate Participants Mark Kratz - Vice President, Investor Relations Chris Kubasik - Chief Executive Officer Michelle Turner - Chief Financial Officer Conference Call Participants Kristine Liwag - Morgan Stanley Gautam Khanna - TD Cowen Noah Poponak - Goldman Sachs Scott Deuschle - Deutsche Bank Jason Gursky - Citi Richard Safran - Seaport Global Research Ken Herbert - RBC Capital Markets Matt Akers - Wells ...

For the quarterly period ended September 29, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______________ to ______________ Commission File Number 1-3863 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 L3HARRIS TECHNOLOGIES, INC. (Exact name of registrant as specified in its charter) Delawar ...

L3Harris Technologies, Inc. (NYSE:LHX) Q2 2023 Earnings Call Transcript July 27, 2023 8:00 AM ET Company Participants Mark Kratz - VP, IR Chris Kubasik - CEO Michelle Turner - CFO Conference Call Participants Peter Arment - Baird Seth Seifman - JPMorgan Robert Spingarn - Melius Research Doug Harned - Bernstein Sheila Kahyaoglu - Jefferies Pete Skibitski - Alembic Global Myles Walton - Wolfe Research Operator Greetings, and welcome to the L3Harris Technologies Second Quarter 2023 Earnings Conference Call. At ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Registrant's telephone number, including area code: (321) 727-9100 | Securities registered pursuant to Section 12(b) of the Act: | | | | --- | --- | --- | | Title of each class | Trading Symbol(s) | Name of each exchange on which registered | | Common Stock, par value $1.00 per share | LHX | New York Stock Exchange | For the qu ...

Financial Data and Key Metrics - Revenue grew by 9% YoY, with all segments contributing to growth [33] - Operating income increased in two out of three segments despite headwinds [33] - EPS for Q1 was $2.86, with expectations to build from there [33] - Free cash flow improved significantly to over $300 million, up from the previous year [33] - The company front-loaded its share repurchase commitment, with $400 million completed in Q1 and $100 million remaining for the year [11] Business Line Data and Key Metrics - The space business recorded $1.5 billion in new prime space awards, with a book-to-bill ratio over 2.0 [66] - International orders accounted for 30% of the $5.8 billion record orders in Q1, with a book-to-bill ratio over 1.5 for international markets [6] - The company submitted over $7 billion in space proposals in the last six months, indicating strong growth potential [66] Market Data and Key Metrics - The President's budget request of $842 billion for defense represents a 3% growth, with a 4% increase in investment accounts [4] - The company expects a book-to-bill ratio over 1.0 for the year, driven by international growth and defense spending [4] - The Defense Production Act (DPA) funding of $215 million for Aerojet Rocketdyne supports capacity and production enhancements [7][8] Company Strategy and Industry Competition - The company is focusing on divestitures to generate cash for the Aerojet Rocketdyne acquisition, targeting $1 billion in proceeds from two or three divestitures [1][2] - The acquisition of Aerojet Rocketdyne is strategic, filling a gap in the portfolio and aligning with growth markets highlighted in recent budget decisions [61] - The company is leveraging its domestic footprint to drive international growth, particularly in the space domain [94] Management Commentary on Operating Environment and Future Outlook - Management is confident in the 2023 close of the Aerojet Rocketdyne acquisition, citing no vertical or horizontal competition with the company [36][61] - The company is optimistic about supply chain improvements, with 1,300 alternative parts introduced to mitigate shortages [96] - Management expects margins to improve in the second half of the year, driven by higher-margin product deliveries and easing supply chain constraints [73][74] Other Important Information - The company is undergoing an enterprise transformation, focusing on cost savings and efficiency improvements, with tangible results expected in the next 90 days [102][103] - Working capital improved by $300 million YoY, with a target to reduce working capital days to 53-54 by year-end [106][107] - The company is targeting a leverage ratio below 3 over the next few years, with $14 billion in debt expected post-Aerojet acquisition [119] Q&A Session Summary Question: Timing and process for Aerojet Rocketdyne acquisition [57] - The company is gathering data for the FTC's second request, with a submission expected by June [58] - Management is confident in the deal closing in the second half of 2023, citing no competition with Aerojet Rocketdyne [36][61] Question: Supply chain improvements and potential upside to guidance [27] - The company has introduced 1,300 alternative parts to mitigate supply chain challenges, with improvements tracking as expected [96] - If supply chain improvements accelerate, there could be upside to the full-year guidance [43] Question: Margin improvement drivers for the second half of the year [98] - Margins are expected to improve due to higher-margin product deliveries and easing supply chain constraints [73][74] - Fixed-price backlog impacts, particularly in the ISR business, are stabilizing, which will help margins in the second half [48] Question: Capital allocation and debt management [118] - The company plans to continue share buybacks and dividends, with a focus on reducing debt to maintain an investment-grade credit rating [119][134] - Post-Aerojet acquisition, the company aims to bring its leverage ratio below 3 over the next few years [119] Question: International growth and space business opportunities [26] - The space business is seeing strong international growth, with 50% of the $1.5 billion in bookings coming from international markets [40] - The company is well-positioned in the space domain, with 33 satellites in backlog and significant growth opportunities [39][66]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______________ to ______________ Commission File Number 1-3863 L3HARRIS TECHNOLOGIES, INC. (Exact name of registrant as specified in its charter) (State or o ...

```json { "report_title": "L3Harris Technologies, Inc. - Annual Report Analysis", "sections": [ { "level": 1, "title": "Part I", "item_id": "Part%20I", "summary": null, "children": [ { "level": 2, "title": "Business Overview", "item_id": "ITEM%201.%20Business", "page_link": "[Business Overview](index=4&type=section&id=ITEM%201.%20Business)", "summary": "L3Harris is a global aerospace and defense technology company with three segments, emphasizing strategic acquisitions, R&D, and human capital development", "key_points": [ { "type": "insight", "content": "L3Harris is a **'Trusted Disruptor'** in aerospace and defense, providing end-to-end technology solutions to government and commercial customers in over **100 countries**, with the U.S. Government as its largest customer" }, { "type": "insight", "content": "Effective January 1, 2022, the company streamlined its business segments from four to **three**: Integrated Mission Systems (IMS), Space & Airborne Systems (SAS), and Communication Systems (CS)" }, { "type": "insight", "content": "L3Harris acquired Viasat's TDL product line for approximately **$1.96 billion** on January 3, 2023, and has a pending agreement to acquire Aerojet Rocketdyne (AJRD) for approximately **$4.7 billion**, expected to close in fiscal 2023" }, { "type": "table", "title": "Fiscal Year 2022 Segment Revenue", "content": "| Segment | Revenue (in billions) |\n| :------------------------ | :-------------------- |\n| Integrated Mission Systems | $6.9 |\n| Space & Airborne Systems | $6.1 |\n| Communication Systems | $4.2 |" }, { "type": "table", "title": "International Revenue (Fiscal Years 2020-2022)", "content": "| Fiscal Year | International Revenue (in billions) | % of Total Revenue |\n| :---------- | :---------------------------------- | :----------------- |\n| 2022 | $3.9 | 23% |\n| 2021 | $3.9 | 22% |\n| 2020 | $3.7 | 20% |" }, { "type": "insight", "content": "Revenue from U.S. Government customers, including foreign military sales, was **74%** in fiscal 2022, **75%** in fiscal 2021, and **78%** in fiscal 2020, indicating high dependency on government contracts" }, { "type": "table", "title": "Company-wide Backlog (Fiscal Years 2021-2022)", "content": "| Metric | December 30, 2022 (in billions) | December 31, 2021 (in billions) |\n| :------------ | :------------------------------ | :------------------------------ |\n| Total Backlog | $22.3 | $21.1 |\n| Funded Backlog | $16.2 | $15.2 |" }, { "type": "table", "title": "Company-sponsored R&D Costs (Fiscal Years 2020-2022)", "content": "| Fiscal Year | R&D Costs (in millions) |\n| :---------- | :---------------------- |\n| 2022 | $603 |\n| 2021 | $692 |\n| 2020 | $684 |" }, { "type": "insight", "content": "The company holds approximately **2,300 U.S. patents** and **1,800 foreign patents**, with **300 U.S.** and **300 foreign patent applications** pending, indicating a significant intellectual property portfolio" }, { "type": "insight", "content": "L3Harris is committed to environmental sustainability, exceeding its **2022 greenhouse gas (GHG) emissions reduction target** and meeting its water use reduction target" }, { "type": "insight", "content": "The company had approximately **46,000 employees** at December 30, 2022, including **20,000 engineers and scientists**, with **88%** located in the U.S" }, { "type": "table", "title": "Workforce Demographics (Fiscal 2022)", "content": "| Category | Overall | Executive |\n| :----------------------- | :------ | :-------- |\n| Persons of color | 28% | 20% |\n| Female population | 25% | 36% |\n| Veterans | 17% | 17% |\n| Persons with disabilities | 9% | 8% |\n| Boomers (1945-1964) | 23% | 25% |\n| Generation X (1965-1980) | 35% | 58% |\n| Millennials (1981-1996) | 35% | 17% |\n| Generation Z (after 1996) | 7% | —% |" } ] }, { "level": 2, "title": "Risk Factors", "item_id": "ITEM%201A.%20Risk%20Factors", "page_link": "[Risk Factors](index=14&type=section&id=ITEM%201A.%20Risk%20Factors)", "summary": "The company faces significant risks from U.S. Government contract dependency, economic uncertainties, supply chain disruptions, operational challenges, and strategic transaction complexities", "key_points": [ { "type": "insight", "content": "L3Harris is highly dependent on U.S. Government customers, with **74%** of its revenue in fiscal 2022 derived from these sales, making it vulnerable to funding reductions or shifts in spending priorities" }, { "type": "insight", "content": "Fixed-price contracts, constituting **73%** of revenue in fiscal 2022, expose the company to losses from cost overruns, increased inflation, or unexpected delays" }, { "type": "insight", "content": "U.S. Government contracts are subject to partial funding, termination for convenience, and stringent regulation, potentially leading to revenue loss, increased costs, fines, or debarment" }, { "type": "insight", "content": "Significant risks include the inability to attract and retain key technical personnel, especially those with U.S. Government security clearances, and persistent cybersecurity threats to IT networks and systems" }, { "type": "table", "title": "Debt and Pension Liabilities (December 30, 2022)", "content": "| Metric | Amount (in billions) |\n| :----------------------------------- | :------------------- |\n| Aggregate Principal Amount of Debt | $7.0 |\n| Unfunded Defined Benefit Plans Liability | $0.262 |" }, { "type": "insight", "content": "The pending acquisition of Aerojet Rocketdyne (AJRD) involves significant risks, including regulatory approval uncertainties (with a **$406.3 million termination fee**), potential business disruption, and a substantial increase in indebtedness to fund the **$4.7 billion** purchase price" }, { "type": "insight", "content": "Changes in business or market conditions could lead to impairment of goodwill and other long-term assets, resulting in substantial losses; as of December 30, 2022, goodwill was **$17.3 billion**, with several reporting units at increased risk of impairment" } ] }, { "level": 2, "title": "Unresolved Staff Comments", "item_id": "ITEM%201B.%2E%20Unresolved%20Staff%20Comments", "page_link": "[Unresolved Staff Comments](index=27&type=section&id=ITEM%201B.%2E%20Unresolved%20Staff%20Comments)", "summary": "This item confirms no unresolved staff comments from the SEC", "key_points": [] }, { "level": 2, "title": "Properties", "item_id": "ITEM%202.%20Properties", "page_link": "[Properties](index=27&type=section&id=ITEM%202.%20Properties)", "summary": "L3Harris maintains principal offices in Melbourne, Florida, operating approximately **300 global locations** totaling **22 million square feet**, with **9 million owned** and **13 million leased**", "key_points": [ { "type": "insight", "content": "The company's principal executive offices are in Melbourne, Florida, operating approximately **300 global locations** totaling **22 million square feet**, with **9 million owned** and **13 million leased**" }, { "type": "table", "title": "Approximate Floor Space by Segment (December 30, 2022)", "content": "| Segment | Owned (million sq ft) | Leased (million sq ft) | Total (million sq ft) |\n| :------------------------- | :-------------------- | :--------------------- | :-------------------- |\n| Integrated Mission Systems | 2.5 | 8.0 | 10.5 |\n| Space & Airborne Systems | 4.8 | 2.9 | 7.7 |\n| Communication Systems | 1.7 | 1.7 | 3.4 |\n| Corporate | 0.3 | 0.1 | 0.4 |\n| **Total** | **9.3** | **12.7** | **22.0** |" } ] }, { "level": 2, "title": "Legal Proceedings", "item_id": "ITEM%203.%20Legal%20Proceedings", "page_link": "[Legal Proceedings](index=27&type=section&id=ITEM%203.%

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______________ to ______________ Commission File Number 1-3863 L3HARRIS TECHNOLOGIES, INC. (Exact name of registrant as specified in its charter) (State ...

L3Harris Technologies, Inc. (NYSE:LHX) Q3 2022 Earnings Conference Call October 28, 2022 8:30 AM ET Company Participants Rajeev Lalwani - Vice President, Investor Relations Chris Kubasik - Chief Executive Officer Michelle Turner - Chief Financial Officer Conference Call Participants Sheila Kahyaoglu - Jefferies Robert Stallard - Vertical Research Partners Richard Safran - Seaport Research Partners Doug Harned - Bernstein Scott Deuschle - Credit Suisse David Strauss - Barclays Gautam Khanna - Cowen Peter Arm ...

L3harris Technologies, Inc. (NYSE:LHX) Q2 2022 Earnings Conference Call July 29, 2022 8:30 AM ET Company Participants Rajeev Lalwani - VP, IR Christopher Kubasik - Chairman & CEO Michelle Turner - SVP & CFO Conference Call Participants David Strauss - Barclays Bank Sheila Kahyaoglu - Jefferies Richard Safran - Seaport Research Partners George Shapiro - Shapiro Research Peter Skibitski - Alembic Global Advisors Noah Poponak - Goldman Sachs Group Kristine Liwag - Morgan Stanley Michael Ciarmoli - Truist Secur ...