202058--8/30/2010--HARRIS_CORP

related topics

{condition, economic, financial}

{system, service, information}

{product, candidate, development}

{financial, litigation, operation}

{operation, international, foreign}

{cost, contract, operation}

{operation, natural, condition}

{regulation, government, change}

{property, intellectual, protect}

{acquisition, growth, future}

{product, market, service}

{product, liability, claim}

{tax, income, asset}

We depend significantly on U.S. Government contracts, which often are only partially funded, subject to immediate termination, and heavily regulated and audited. The termination or failure to fund one or more of these contracts could have an adverse impact on our business. We enter into fixed-price contracts that could subject us to losses in the event of cost overruns or a significant increase in inflation. We derive a significant portion of our revenue from international operations and are subject to the risks of doing business internationally, including fluctuations in currency exchange rates. Our reputation and ability to do business may be impacted by the improper conduct of our employees, agents or business partners. We may not be successful in obtaining the necessary export licenses to conduct certain operations abroad, and Congress may prevent proposed sales to certain foreign governments. Our future success will depend on our ability to develop new products and technologies that achieve market acceptance in our current and future markets. We participate in markets that are often subject to uncertain economic conditions, which makes it difficult to estimate growth in our markets and, as a result, future income and expenditures. We cannot predict the consequences of future geo-political events, but they may adversely affect the markets in which we operate, our ability to insure against risks, our operations or our profitability. We have made, and may continue to make, strategic acquisitions that involve significant risks and uncertainties. Disputes with our subcontractors and the inability of our subcontractors to perform, or our key suppliers to timely deliver our components, parts or services, could cause our products or services to be produced or delivered in an untimely or unsatisfactory manner. Third parties have claimed in the past and may claim in the future that we are infringing directly or indirectly upon their intellectual property rights, and third parties may infringe upon our intellectual property rights. The outcome of litigation or arbitration in which we are involved is unpredictable and an adverse decision in any such matter could have a material adverse effect on our financial condition and results of operations. We face certain significant risk exposures and potential liabilities that may not be covered adequately by insurance or indemnity. Changes in our effective tax rate may have an adverse effect on our results of operations. The effects of the recent recession in the United States and general downturn in the global economy could have an adverse impact on our business, operating results or financial condition. We have significant operations in Florida and other locations that could be materially and adversely impacted in the event of a natural disaster or other significant disruption. We could be negatively impacted by a security breach, through cyber attack, cyber intrusion or otherwise, or other significant disruption of our IT networks and related systems or of those we operate for certain of our customers. We rely on third parties to provide satellite bandwidth for our managed satellite communications services, and any bandwidth constraints could harm our business, financial condition and results of operations.

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202058--8/30/2010--HARRIS_CORP_/DE/