202058--8/31/2009--HARRIS_CORP

related topics

{condition, economic, financial}

{product, candidate, development}

{tax, income, asset}

{operation, international, foreign}

{cost, contract, operation}

{regulation, government, change}

{financial, litigation, operation}

{operation, natural, condition}

{property, intellectual, protect}

{acquisition, growth, future}

{product, market, service}

{product, liability, claim}

We depend significantly on our 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 substantial portion of our revenue from international operations and are subject to the risks of doing business internationally, including fluctuations in currency exchange rates. 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 or parts, could cause our products to be produced 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 are subject to customer credit risk. 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 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. Changes in future business conditions could cause business investments and/or recorded goodwill to become impaired, resulting in substantial losses and write-downs that would reduce our results of operations.

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202058--8/31/2009--HARRIS_CORP_/DE/