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BUSINESS COMBINIATION (Tables) | 6 Months Ended
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Jan. 03, 2020
Business Combinations [Abstract] |
Schedule of Calculation of Consideration Transferred | Our calculation of consideration transferred is as follows:
(In millions, except exchange ratio and per share amounts) | June 29, 2019
Outstanding shares of L3 common stock as of June 28, 2019 | 79.63 |
L3 restricted stock unit awards settled in shares of L3Harris common stock | 0.41 |
L3 performance unit awards settled in shares of L3Harris common stock | 0.04 |
| 80.08 |
Exchange Ratio | 1.30 |
Shares of L3Harris common stock issued for L3 outstanding common stock | 104.10 |
Price per share of L3Harris common stock as of June 28, 2019 | $ | 189.13 |
Fair value of L3Harris common stock issued for L3 outstanding common stock | $ | 19,689 |
Fair value of replacement RSUs attributable to merger consideration | 10 |
Fair value of L3Harris stock options issued for L3 outstanding stock options | 101 |
Withholding tax liability incurred for converted L3 share-based awards | 45 |
Fair value of replacement award consideration | 156 |
Fair value of total consideration | 19,845 |
Less cash acquired | (1,195 | )
Total net consideration transferred | $ | 18,650 |
Schedule of Preliminary Measurement of Assets Acquired, Liabilities Assumed and Non Controlling Interest | Our preliminary measurement of assets acquired, liabilities assumed and noncontrolling interests as of the Closing Date and measurement period adjustments during the two quarters ended January 3, 2020, are as follows:
| Preliminary Fair Value |  | Measurement Period Adjustments |  | Adjusted Fair Value
| (In millions)
Receivables | $ | 849 |  |  | $ | (15 | ) |  | $ | 834 |
Contract assets | 1,708 |  |  | (41 | ) |  | 1,667 |
Inventories | 1,056 |  |  | (37 | ) |  | 1,019 |
Other current assets | 517 |  |  | (20 | ) |  | 497 |
Property, plant and equipment | 1,176 |  |  | 39 |  |  | 1,215 |
Operating lease right-of-use assets | 704 |  |  | — |  |  | 704 |
Goodwill | 15,423 |  |  | (774 | ) |  | 14,649 |
Other intangible assets | 6,768 |  |  | 1,109 |  |  | 7,877 |
Other non-current assets | 327 |  |  | (6 | ) |  | 321 |
Total assets acquired | $ | 28,528 |  |  | $ | 255 |  |  | $ | 28,783 |
Accounts payable | $ | 898 |  |  | $ | (14 | ) |  | $ | 884 |
Contract liabilities | 722 |  |  | (4 | ) |  | 718 |
Other current liabilities | 772 |  |  | 60 |  |  | 832 |
Operating lease liabilities | 715 |  |  | — |  |  | 715 |
Defined benefit plans | 1,411 |  |  | — |  |  | 1,411 |
Long-term debt, net | 3,548 |  |  | — |  |  | 3,548 |
Other long-term liabilities | 1,661 |  |  | 209 |  |  | 1,870 |
Total liabilities assumed | 9,727 |  |  | 251 |  |  | 9,978 |
Net assets acquired | 18,801 |  |  | 4 |  |  | 18,805 |
Noncontrolling interests | (151 | ) |  | (4 | ) |  | (155 | )
Total net consideration transferred | $ | 18,650 |  |  | $ | — |  |  | $ | 18,650 |
Schedule of Identifiable Intangible Assets Acquired | The following table provides further detail of the fair value and weighted-average amortization period of identified intangible assets acquired by major intangible asset class:
| Weighted Average Amortization Period |  | Total
| (In years) |  | (In millions)
Identifiable intangible assets acquired: |  |  |
Customer relationships (Government) | 15 |  | $ | 4,677 |
Customer relationships (Commercial) | 15 |  | 643 |
Trade names — Divisions | 9 |  | 123 |
Developed technology | 7 |  | 562 |
Total identifiable intangible assets subject to amortization | 14 |  | 6,005 |
Trade names — Corporate | indefinite |  | 1,803 |
In-process research and development | n/a |  | 69 |
Total identifiable intangible assets |  |  | $ | 7,877 |
Schedule of Pro Forma Results | The following summary, prepared on a pro forma basis, presents our unaudited consolidated results of operations for the comparable period ended December 28, 2018 as if the L3Harris Merger had been completed on June 29, 2018, the beginning of the comparable period ended December 28, 2018, after including any post-merger adjustments directly attributable to the L3Harris Merger, such as the sale of the Harris Night Vision business, and after including the impact of adjustments such as amortization of intangible assets as well as the related income tax effects. This pro forma presentation does not include any impact of transaction synergies. The pro forma results are not necessarily indicative of our results of operations that actually would have been obtained had the L3Harris Merger been completed on the assumed date or for the period presented, or which may be realized in the future.
| Two Quarters Ended
| December 28, 2018
| (In millions)
Revenue from product sales and services — as reported | $ | 3,208 |
Revenue from product sales and services — pro forma | $ | 8,404 |
Income from continuing operations — as reported | $ | 441 |
Income from continuing operations — pro forma | $ | 760 |

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