Harris Corporation Announces Tax Reform Investment Plans
- Expecting to contribute additional $300 million to employee pension fund
- Adding $20 million investment in innovation
- Granting non-executive employees approximately $24 million in stock awards
Harris Corporation (NYSE:HRS) today announced that, as a result of the passage of the tax reform bill, the company anticipates making an additional contribution to its employee pension fund, increasing its investment in research and development, and providing a one-time stock grant to all of its non-executive employees. The actions are expected to occur within the company’s fiscal 2018.
To increase current and former employee retirement stability, Harris anticipates contributing an additional $300 million into the company’s employee pension fund.
The company also will invest an incremental $20 million in technologies to accelerate innovation and affordability initiatives for its customers. This investment in research and development will leverage and enhance the company’s strong engineering talent, strengthen Harris’ position and help it capture new market opportunities in areas such as small satellites, software defined electronic warfare systems, open systems avionics, robotics and air traffic management solutions.
In addition, the company will grant each of its approximately 17,000 non-executive employees 10 shares of Harris common stock that will vest over two years. The grants have a current market value of about $1,470 each, or approximately $24 million in total.
“We are pleased to share the benefits of our strong performance and the recent tax reform legislation with our employees,” said William M. Brown, chairman, president and chief executive officer. “This represents an investment in Harris’ greatest asset and differentiator – our talented employees. Coupled with our innovation and technology investment, we are using this opportunity to further strengthen the company and position Harris for future success.”
About Harris Corporation
Harris Corporation is a leading technology innovator, solving customers’ toughest mission-critical challenges by providing solutions that connect, inform and protect. Harris supports government and commercial customers in more than 100 countries and has approximately $6 billion in annual revenue. The company is organized into three business segments: Communication Systems, Electronic Systems and Space and Intelligence Systems. Learn more at harris.com.
This press release contains forward-looking statements that reflect management's current expectations, assumptions and estimates of future performance and economic conditions. Such statements are made in reliance upon the safe harbor provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. The company cautions investors that any forward-looking statements are subject to risks and uncertainties that may cause actual results and future trends to differ materially from those matters expressed in or implied by such forward-looking statements. Statements regarding anticipated pension contributions, research and development investments and the company’s future success are forward-looking and involve risk and uncertainties. Harris disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.