About L3harris Technologies, Inc.
L3Harris Technologies (formerly Harris Corp. and L3 Technologies) develops communications, electronics, space, and aviation equipment for government and commercial customers in more than 100 countries. It makes radio and satellite communications and other wireless network transmission equipment; air traffic control systems; and intelligence, surveillance, and reconnaissance systems. Although about three-quarters of L3Harris' revenue comes from US government agencies, particularly the Department of Defense, it also has customers in the commercial sector. In 2019, the former Harris Corp. and L3 Technologies combined to form L3Harris Technologies, the sixth largest defense contractor in the US.
Change in Company Type
Harris Corp. in 2019 merged with L3 Technologies to form L3Harris Technologies, a company with $17 billion in revenue. The combined company has complementary products and services and deeper resources that enable it to bid on large-scale Department of Defense projects. The all-stock deal resulted in Harris shareholders owning 54% of the company and L3 shareholders owning the rest. The company falls in line behind Lockheed Martin, Boeing, General Dynamics, and Northrop Grumman as one of the biggest defense contractors in the US and in the top 10 internationally.
Harris, before the merger, operated in three business segments.
The Electronic Systems segment, nearly 40% of revenue, provides electronic warfare, avionics; command, control, communications, computers and intelligence, surveillance and reconnaissance equipment for the defense industry. It also makes communication systems for civil and military aviation.
Its Communication Systems segment, more than 30% of revenue, develops and makes tactical communications and defense products, including tactical ground and airborne radio communications equipment and night vision technology, and equipment for public safety networks.
The Space and Intelligence Systems segment, about 30% of revenue, provides intelligence, space protection, geospatial, complete Earth observation, universe exploration, positioning, navigation, and timing, and environmental equipment for national security, defense, civil, and commercial customers. Among its products are advanced sensors, antennas, and payloads as well as ground processing and information analytics.
L3Harris operates some 170 locations in Canada, Europe, the Middle East, Central and South America, Africa, Asia, and the US. Customers in the US account for some 95% of revenue.
Sales and Marketing
L3Harris relies on US government agencies for most of its revenue. US government-related revenue, including prime contractors and supported foreign defense organizations, accounts for more than 75% of sales.
Financials are for Harris Corp. before the merger with L3 Technologies, which became effective June 29, 2019.
Revenue rose 10% to $6.8 billion in 2019 (ended June) from 2018 on higher Department of Defense tactical radio sales in the Communication Systems segment, reflecting a ramp up in DoD modernization programs. It also reported higher Avionics and Electronic Warfare revenue from long-term avionics platforms, including the F-35, F/A-18 and F-16, in the Electronic Systems Segment. The company saw increased sales from classified programs in the Space and Intelligence Systems segment.
Net income rose about $250 million to $949 million in 2019 from 2018, boosted by higher sales and lower income taxes due to lower tax rates that were part of the US Tax Cuts and Jobs Act of 2017.
The company's coffers held $530 million in cash in 2019 compared to $288 million the year before. In 2019, operations generated $1.2 billion, while investing activities used $159 million and financing activities used $781 million.
Harris had $3.4 billion in debt and about $1.2 billion of unfunded defined benefit plans liability at the end of 2019. It also took on $3.4 billion in debt in connection with the L3Harris merger. Paying off its obligations could reduce the money that could be used for operating activities and capital expenditures.
Bigger and more comprehensive is better and more lucrative is the thinking behind the merger that produced L3Harris Technologies. The combined company has a wider and deeper set of products and services to offer to a wider array of government and military customers. L3Harris' goal is to nab contracts for work that neither could get on its own.
The size of the company grew with the merger to some $17 billion in revenue and 50,000 employees around the world.
The company has divested services businesses to narrow its focus on technology and it has reorganized to take advantage of similar functions among its businesses. The new segments are Integrated Mission Systems, Space and Airborne Systems, Communication Systems, and Aviation Systems.
L3Harris plans to reduce costs by about $500 million eliminating duplication, combining processes, and other methods.
While its plans to partner with other defense contractors to get parts of contracts, its scope should enable the company to move into a prime contracting role in some of its areas of expertise such as communications, networking, and electronics.
1025 W NASA BLVD
Melbourne, FL 32919-0001
Phone: 1 (321) 727-9100
Employer Type: Publicly Owned
Stock Symbol: LHX
Stock Exchange: , NYSE
Chairman, President, and CEO: William M. Brown
CIO: Henry Debnam
SVP and CFO: Rahul Ghai
Employees (This Location): 269
Employees (All Locations): 18,200
Los Angeles, CA
San Diego, CA
Thousand Oaks, CA
Vandenberg Afb, CA
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Colorado Springs, CO
Palm Bay, FL
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Warner Robins, GA
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Fort Wayne, IN
Annapolis Junction, MD
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Beavercreek Township, OH
Mount Pleasant, SC
Salt Lake City, UT
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Agrate Brianza, Italy
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Thames Ditton, England