Business Segments

3 Months Ended

Sep. 26, 2014

Business Segments [Abstract]

Business Segments

Note N— 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, Government Communications Systems and Integrated Network Solutions. Our RF Communications segment is a global supplier of secure tactical radio communications and high-grade encryption solutions for military, government and commercial customers and also of secure communications systems and equipment for public safety, utility and transportation customers. 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. Our Integrated Network Solutions segment provides government, energy, maritime and healthcare customers with integrated communications and information technology (“IT”) and services, including mission-critical end-to-end IT services, managed satellite and terrestrialcommunications solutions and standards-based healthcare interoperability solutions. 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 Notes to Consolidated Financial Statements in our Fiscal 2014 Form 10-K. 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 items in the tables below represent 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 26,		June 27,
	2014		2014
	(In millions)
Total Assets
RF Communications	$	1,301.3	$	1,253.9
Government Communications Systems		1,007.6		975.4
Integrated Network Solutions		1,707.0		1,746.5
Corporate		820.7		955.4
	$	4,836.6	$	4,931.2

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

		Quarter Ended
		September 26,		September 27,
		2014		2013
		(In millions)
Revenue
RF Communications		$	387.1	$	423.0
Government Communications Systems			460.7		411.6
Integrated Network Solutions			325.7		375.6
Corporate eliminations			(18.1)		(18.3)
		$	1,155.4	$	1,191.9
Income From Continuing Operations Before Income Taxes
Segment Operating Income:
	RF Communications	$	116.7	$	135.2
	Government Communications Systems		73.9		64.0
	Integrated Network Solutions		23.1		29.7
Unallocated corporate expense			(13.9)		(16.0)
Corporate eliminations			(2.2)		(3.3)
Non-operating income (1)			―		1.3
Net interest expense			(22.1)		(23.1)
		$	175.5	$	187.8
____________

(1)“Non-operating income” includes equity method investment income (loss); income (expense) related to intellectual property matters; gains and losses on sales of investments, securities available-for-sale and prepayment of long-term debt; and impairments of investments and securities available-for-sale.