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Business Segments
9 Months Ended
Mar. 30, 2012
Business Segments [Abstract]  
Business Segments

Note Q Business Segments

 

We structure our operations primarily around the products and services we sell and the markets we serve, and we report the financial results of our continuing operations in the following three reportable operating or business segments — RF Communications, Integrated Network Solutions and Government Communications Systems. Our RF Communications segment is a global supplier of secure tactical radio communications and embedded high-grade encryption solutions for military, government and commercial organizations and also of secure communications systems and equipment for public safety, utility and transportation markets. Our Integrated Network Solutions segment provides mission-critical end-to-end information technology (“IT”) services; managed satellite and terrestrial communications solutions; standards-based healthcare interoperability and image management solutions; and digital media management solutions to support government, energy, healthcare, enterprise and broadcast customers. Our Government Communications Systems segment conducts advanced research and produces, integrates and supports highly reliable, net-centric communications and information technology that solve the mission-critical challenges of our civilian, defense and intelligence government customers, primarily the U.S. Government. Each business segment is comprised of multiple program areas and product and service lines that aggregate into such business segment.

 

The accounting policies of our business segments are the same as those described in Note 1: “Significant Accounting Policies” in our Fiscal 2011 Form 10-K. We evaluate each segment's performance based on its “operating income (loss),” which we define as profit or loss from operations before income taxes excluding interest income and expense, royalties and related intellectual property expenses, equity investment income and gains or losses from securities and other investments. Intersegment sales are generally transferred at cost to the buying segment and the sourcing segment recognizes a profit that is eliminated. The “Corporate eliminations” line item in the tables below represents the elimination of intersegment sales and their related profits. The “Unallocated corporate expense” line item in the tables below represents the portion of corporate expenses not allocated to our business segments.

 

Total assets by business segment are summarized below:

 March 30, July 1,
 2012 2011
      
 (In millions)
Total Assets     
RF Communications$ 1,372.4 $ 1,378.7
Integrated Network Solutions  2,504.7   2,902.5
Government Communications Systems  1,011.3   956.4
Corporate  711.5   769.0
Discontinued operations  49.0   166.2
 $ 5,648.9 $ 6,172.8

Segment revenue, segment operating income (loss) and a reconciliation of segment operating income (loss) to total income (loss) from continuing operations before income taxes follow:

  Quarter Ended  Three Quarters Ended
  March 30, April 1, March 30, April 1,
  2012 2011 2012 2011
             
  (In millions)
Revenue           
RF Communications$ 537.7 $ 550.0 $ 1,560.5 $ 1,661.2
Integrated Network Solutions  499.6   462.4   1,569.8   1,398.6
Government Communications Systems  470.5   431.2   1,336.6   1,277.0
Corporate eliminations  (31.8)   (30.8)   (94.6)   (81.4)
  $ 1,476.0 $ 1,412.8 $ 4,372.3 $ 4,255.4
Income (Loss) From Continuing Operations Before Income Taxes           
Segment Operating Income (Loss)           
 RF Communications$ 181.6 $ 178.5 $ 508.0 $ 596.3
 Integrated Network Solutions (1)  (406.0)   24.5   (365.6)   79.7
 Government Communications Systems   64.1   59.8   190.1   163.8
Unallocated corporate expense  (18.6)   (19.8)   (59.2)   (67.5)
Corporate eliminations  (4.6)   (7.8)   (12.4)   (17.1)
Non-operating income (loss) (2)  8.1   (0.3)   11.7   (1.6)
Net interest expense  (27.5)   (25.8)   (83.6)   (64.1)
  $ (202.9) $ 209.1 $ 189.0 $ 689.5
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