Business Segments

3 Months Ended

Sep. 27, 2013

Business Segments [Abstract]

Business Segments

Note O— 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 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 customers and also of secure communications systems and equipment for public safety, utility and transportation organizations. Our Integrated Network Solutions segment provides government, energy, maritime and healthcare customers with integrated communications and information technology and services, including mission-critical end-to-end IT services, managed satellite and terrestrial communications solutions and standards-based healthcare interoperability solutions. Our Government Communications Systems segment conducts advanced research and develops, produces, integrates and supports advanced communications and information systems that solve the mission-critical challenges of our civilian, intelligence and defense government customers worldwide, 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.

See Note B — Discontinued Operationsfor information regarding discontinued operations.Except for disclosures related to our cash flows, or unless otherwise specified, disclosures in this Report relate solely to our continuing operations.

Asdiscussed inNote A — Significant Accounting Policies and Recent Accounting Standards, at the beginning of the first quarter of fiscal 2014, we changed our structure to manage our cyber security network testing operation (formerly part of our Government Communications Systems segment) as part of our Integrated Network Solutions segment in order to leverage the breadth of our IT enterprise network and information assurance capabilities for the IT Services market. The historical results, discussion and presentation of our business segments as set forth in this Report have been adjusted to reflect the impact of this change to our business segment reporting structure for all periods presented in this Report.

The accounting policies of our business segments are the same as those described in Note 1: “Significant Accounting Policies” in our Notes to Consolidated Financial Statements in our Fiscal 2013 Form 10-K and in Note N — Changes in Estimates. We evaluate each segment's performance based on its operating income or loss, which we define as profit or loss fromoperations before income taxes excluding interest income and expense, royalties and related intellectual property expenses, equity method investment income or loss 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:

	September 27,		June 28,
	2013		2013
	(In millions)
Total Assets
RF Communications	$	1,286.4	$	1,337.2
Integrated Network Solutions		1,758.5		1,747.6
Government Communications Systems		987.1		991.4
Corporate		748.7		755.2
Discontinued operations		―		27.0
	$	4,780.7	$	4,858.4

Segment revenue, segment operating incomeand a reconciliation of segment operating incometo total income from continuing operations before income taxes follow:

		Quarter Ended
		September 27,		September 28,
		2013		2012
		(In millions)
Revenue
RF Communications		$	423.0	$	444.7
Integrated Network Solutions			375.6		385.5
Government Communications Systems			411.6		454.5
Corporate eliminations			(18.3)		(23.2)
		$	1,191.9	$	1,261.5
Income From Continuing Operations Before Income Taxes
Segment Operating Income:
	RF Communications	$	135.2	$	134.1
	Integrated Network Solutions		29.7		33.1
	Government Communications Systems		64.0		66.4
Unallocated corporate expense			(16.0)		(16.7)
Corporate eliminations			(3.3)		(1.9)
Non-operating income (1)			1.3		―
Net interest expense			(23.1)		(27.4)
		$	187.8	$	187.6
____________

(1)       “Non-operating income” includes equity method investment income (loss); royalties and related intellectual property expenses; gains and losses on sales of investments and securities available-for-sale; and impairments of investments and securities available-for-sale. Additional information regarding non-operating incomeis set forth in Note J — Non-Operating Income.