L3Harris(LHX)2025-04-24 13:15Financial Performance - Total revenue for the first quarter of 2025 was $5,132 million, a decrease of 1.5% from $5,211 million in the first quarter of 2024[90]. - The operating income for the first quarter of 2025 was $525 million, an increase from $378 million in the first quarter of 2024[90]. - Net EAC adjustments for the first quarter of 2025 resulted in a loss of $21 million before income taxes, compared to a gain of $19 million in the same period of 2024[79]. - The company completed the sale of its CAS disposal group for cash proceeds of $831 million, with a pre-tax loss of $17 million recognized in the first quarter of 2025[83][85]. - Capital expenditures for the first quarter of 2025 totaled $59 million, significantly lower than $115 million in the first quarter of 2024[100]. - The company reported a total of $301 million in depreciation and amortization for the first quarter of 2025, down from $320 million in the same period of 2024[100]. - The CS segment generated revenue of $1,352 million in the first quarter of 2025, up from $1,294 million in the first quarter of 2024[90]. - The IMS segment reported revenue of $1,592 million in the first quarter of 2025, a decrease from $1,627 million in the first quarter of 2024[90]. Environmental Liabilities - As of March 28, 2025, the estimated environmental liability under applicable statutes and regulations for identified sites was $637 million[105]. - The recoverable portion of environmental costs from the U.S. Government was recorded as $463 million as of March 28, 2025[106]. - The current and non-current portions of the estimated environmental liability are included in "Other current liabilities" and "Other long-term liabilities" on the balance sheet[105]. - The current and non-current portions of the recoverable costs are included in "Other current assets" and "Other non-current assets" on the balance sheet[106]. - The company is identified as a potentially responsible party under various environmental laws, with uncertainties regarding liability and cost sharing[104]. - The company is subject to numerous environmental laws and regulations, with some liabilities considered de minimis[104]. Legal Matters - The company is involved in various legal proceedings, but as of March 28, 2025, the accrual for potential unfavorable resolutions was not material[103]. - The company has recorded accruals for losses related to legal matters that are considered probable and can be reasonably estimated[103]. - The company’s management believes that any probable settlements or judgments will not have a material adverse effect on its financial condition[103]. Strategic Initiatives - The company is undergoing the LHX NeXt initiative, expected to continue through 2026, aimed at transforming multiple functions and increasing competitiveness[94]. Market Risk - There were no material changes in market risk exposure during the first quarter of 2025 compared to the previous fiscal year[176]. Backlog - As of March 28, 2025, the company's ending backlog was $33.2 billion, with an expectation to recognize approximately 50% of this revenue over the next twelve months[82].