L3Harris(LHX) - 2025 Q4 - Annual Report

Financial Performance - Company-wide total backlog was $34.2 billion as of January 3, 2025, up from $32.7 billion on December 29, 2023, with expectations to recognize approximately 45% of this backlog revenue by the end of fiscal 2025 and 75% by the end of fiscal 2026 [31]. - In fiscal 2024, 76% of the company's revenue was derived from sales to U.S. Government customers, with no other customer accounting for more than 5% of total revenue [35]. Workforce and Talent Management - The company hired approximately 4,500 new employees in fiscal 2024, focusing on attracting and retaining skilled talent, particularly in technical and engineering fields [48]. Environmental Sustainability - The company plans to reduce its Scope 1 and Scope 2 greenhouse gas emissions by 60% and water usage by 20% by 2030, compared to 2021 levels [49]. Debt and Financial Risk - At January 3, 2025, the company had long-term debt with a carrying value of $11,530 million, all of which is fixed-rate debt [269]. - The cumulative impact of translating foreign subsidiary assets and liabilities to U.S. dollars resulted in a $265 million loss as of January 3, 2025 [266]. - The company has open foreign currency forward contracts with an aggregate notional amount of $201 million to hedge against currency risk [267]. - Approximately 10% of the company's business was transacted in local currency environments in fiscal 2024 [266]. - As of January 3, 2025, the company had $515 million in short-term variable-rate debt outstanding under its CP Program [270]. - The fair value of the short-term debt approximates the carrying value due to its short-term nature [270]. - The outstanding notes under the CP Program bear interest that is variable based on certain short-term indices, exposing the company to interest-rate risk [270]. - A hypothetical 10% change in interest rates on short-term debt obligations would not have had a material impact on the company's results of operations or cash flows [270]. - The company cannot assure that interest rates will not change significantly or have a material effect on the fair value of its debt obligations over the next twelve months [271]. - Information regarding the maturities of the company's fixed-rate debt obligations and CP program can be found in Note 8: Debt and Credit Arrangements [271]. Strategic Partnerships and Innovation - The company collaborates with strategic partners like Palantir Technologies and Shield Capital to enhance technological capabilities and meet customer demands [30]. Safety and Risk Management - The company maintains a proactive safety culture and implements programs to reduce workplace incidents and risks [46].