<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_______________________
FORM 11-K
_______________________
(Mark One)
[X] ANNUAL REPORT PURSUANT TO SECTION 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended June 30, 1997
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from _______ to _______
Commission file number 1-3863
A. Full title of the plan and the address of the plan, if different
from that of the issuer named below:
Harris Corporation Retirement Plan
B. Name of issuer of the securities held pursuant to the plan and the
address of its principal executive office:
Harris Corporation
1025 W. NASA Blvd.
Melbourne, Florida 32919
<PAGE> 2
HARRIS CORPORATION
RETIREMENT PLAN
Financial Statements
June 30, 1997
<PAGE> 3
<TABLE>
HARRIS CORPORATION RETIREMENT PLAN
Table of Contents
<CAPTION>
June 30, 1997 PAGE
- -------------------------------------------------------------------------------------------------------------------
<S> <C>
INDEPENDENT AUDITOR'S REPORT...........................................................................1
FINANCIAL STATEMENTS:
Statements of Net Assets Available for Benefits...................................................2-5
Statement of Changes in Net Assets Available for Benefits.........................................6-7
Notes to Financial Statements....................................................................8-11
</TABLE>
<PAGE> 4
[LOGO] BRAY, BECK & KOETTER 410 Indian River Avenue, Suite A
CERTIFIED PUBLIC ACCOUNTANTS, P.A. Post Office Box 6583
Titusville, Florida 32782-6583
(407) 269-0732
FAX (407) 264-0925
39 South Atlantic Avenue, Suite A
Post Office Box 321057
Cocoa Beach, Florida 32932-1057
(407) 783-8321
FAX (407) 799-0925
1901 South Harbor City Blvd
One Harbor Place Suite 500A
Post Office Box 249
Melbourne, Florida 32902-0249
(407) 676-1440
FAX (407) 984-8018
INDEPENDENT AUDITOR'S REPORT
Investment Committee
Harris Corporation Retirement Plan
Melbourne, Florida
We have audited the accompanying statements of net assets available for
benefits of the Harris Corporation Retirement Plan (the "Plan") as of June
30, 1997 and 1996, and the related statement of changes in net assets
available for benefits for the year ended June 30, 1997. These financial
statements are the responsibility of the Plan's management. Our
responsibility is to express an opinion on these financial statements based
on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audits to
obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audits
provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly,
in all material respects, the net assets available for benefits of the Plan
at June 30, 1997 and 1996, and the changes in its net assets available for
benefits for the year ended June 30, 1997, in conformity with generally
accepted accounting principles.
/s/ Bray, Beck & Koetter
Melbourne, Florida
October 10, 1997
1
<PAGE> 5
FINANCIAL STATEMENTS
<PAGE> 6
<TABLE>
HARRIS CORPORATION RETIREMENT PLAN
Statements of Net Assets Available for Benefits
June 30, 1997 and 1996
- ---------------------------------------------------------------------------------------------------------
<CAPTION>
June 30, 1997
--------------------------------------------------------------
Money Equity
Balanced Short-Term Market Income
Fund Bond Fund Fund Fund
-------- ----------- ----------- ------------
<S> <C> <C> <C> <C>
ASSETS
INVESTMENTS (Note 3):
Plan interest in Harris
Corporation Master Trust $842,355,735 $88,282,514 $17,569,886 $359,393,992
Participant loans -- -- -- --
------------ ----------- ----------- ------------
Total investments 842,355,735 88,282,514 17,569,886 359,393,992
RECEIVABLES:
Contributions receivable:
Harris Corporation 25,410,442 -- -- --
Participants 353,634 -- -- --
Accrued interest and dividends 3,703,948 1,047,854 126,481 1,010,240
Securities sold 5,713,838 6,084,673 -- 43,322
------------ ----------- ----------- ------------
Total receivables 35,181,862 7,132,527 126,481 1,053,562
CASH AND CASH EQUIVALENTS (Note 2) 33,274,836 938,845 936,748 15,503,916
------------ ----------- ----------- ------------
Total assets 910,812,433 96,353,886 18,633,115 375,951,470
LIABILITIES
Accrued expenses 507,911 26,231 22,814 6,835
Securities purchased 7,900,009 2,367,446 1,473,485 986,728
Outstanding options 2,386,053 -- -- --
------------ ----------- ----------- ------------
Total liabilities 10,793,973 2,393,677 1,496,299 993,563
------------ ----------- ----------- ------------
NET ASSETS AVAILABLE FOR BENEFITS $900,018,460 $93,960,209 $17,136,816 $374,957,907
============ =========== =========== ============
</TABLE>
2
<PAGE> 7
<TABLE>
- ------------------------------------------------------------------------------------------------------
<CAPTION>
- ------------------------------------------------------------------------------------------------------
Equity Stable Harris
Index Value Growth Corporation Loan
Fund Fund Fund Stock Fund Fund Total
- ------------ ------------ ------------ ------------ ----------- --------------
<S> <C> <C> <C> <C> <C>
$217,472,229 $199,527,706 $127,096,531 $24,629,914 $ -- $1,876,328,507
-- -- -- -- 32,850,494 32,850,494
- ------------ ------------ ------------ ----------- ----------- --------------
217,472,229 199,527,706 127,096,531 24,629,914 32,850,494 1,909,179,001
-- -- -- -- -- 25,410,442
-- -- -- -- -- 353,634
3,331 1,116,141 67,833 3,532 -- 7,079,360
-- 1,922 259,223 110,562 -- 12,213,540
- ------------ ------------ ------------ ----------- ----------- --------------
3,331 1,118,063 327,056 114,094 -- 45,056,976
7,151,057 7,069,159 2,030,057 720,775 -- 67,625,393
- ------------ ------------ ------------ ----------- ----------- --------------
224,626,617 207,714,928 129,453,644 25,464,783 32,850,494 2,021,861,370
4,665 55,717 99,951 -- -- 724,124
-- -- 272,414 713,522 -- 13,713,604
-- -- -- -- -- 2,386,053
- ------------ ------------ ------------ ----------- ----------- --------------
4,665 55,717 372,365 713,522 -- 16,823,781
- ------------ ------------ ------------ ----------- ----------- --------------
$224,621,952 $207,659,211 $129,081,279 $24,751,261 $32,850,494 $2,005,037,589
============ ============ ============ =========== =========== ==============
</TABLE>
Continued 3
<PAGE> 8
<TABLE>
HARRIS CORPORATION RETIREMENT PLAN
Statements of Net Assets Available for Benefits - Continued
June 30, 1997 and 1996
- ----------------------------------------------------------------------------------------------------------
<CAPTION>
June 30, 1996
- ----------------------------------------------------------------------------------------------------------
Money Equity
Balanced Short-Term Market Income
Fund Bond Fund Fund Fund
------------ ------------ ----------- ------------
<S> <C> <C> <C> <C>
ASSETS
INVESTMENTS (Note 3):
Plan interest in Harris
Corporation Master Trust $736,649,161 $ 99,748,323 $ 494,442 $248,831,079
Participant loans -- -- -- --
------------ ------------ ----------- ------------
Total investments 736,649,161 99,748,323 494,442 248,831,079
RECEIVABLES:
Contributions receivable from
Harris Corporation 23,214,104 -- -- --
Contributions receivable from
participants 553,478 -- -- --
Accrued interest and dividends 3,736,081 1,077,475 63,063 964,451
Securities sold 6,237,577 -- -- 270,811
------------ ------------ ----------- ------------
Total receivables 33,741,240 1,077,475 63,063 1,235,262
CASH AND CASH EQUIVALENTS (Note 2) 8,453,776 1,100,595 13,706,671 23,777,377
------------ ------------ ----------- ------------
Total assets 778,844,177 101,926,393 14,264,176 273,843,718
LIABILITIES
Accrued expenses 64,792 -- -- --
Securities purchased 9,768,804 1,479,759 -- 1,822,173
------------ ------------ ----------- ------------
Total liabilities 9,833,596 1,479,759 -- 1,822,173
------------ ------------ ----------- ------------
NET ASSETS AVAILABLE FOR BENEFITS $769,010,581 $100,446,634 $14,264,176 $272,021,545
============ ============ =========== ============
</TABLE>
See accompanying notes to financial statements. 4
<PAGE> 9
<TABLE>
- ----------------------------------------------------------------------------------------------------------
<CAPTION>
- ----------------------------------------------------------------------------------------------------------
Equity Stable Harris
Index Value Growth Corporation Loan
Fund Fund Fund Stock Fund Fund Total
- ------------ ------------ ------------ ------------ ------------ ---------------
<S> <C> <C> <C> <C> <C>
$140,830,363 $190,471,822 $129,102,909 $ 12,950,548 $ -- $1,559,078,647
-- -- -- -- 33,790,689 33,790,689
- ------------ ------------ ------------ ------------ ----------- --------------
140,830,363 190,471,822 129,102,909 12,950,548 33,790,689 1,592,869,336
-- -- -- -- -- 23,214,104
-- -- -- -- -- 553,478
212,987 1,017,040 65,872 2,066 -- 7,139,035
12,066 -- 152,371 -- -- 6,672,825
- ------------ ------------ ------------ ------------ ----------- --------------
225,053 1,017,040 218,243 2,066 -- 37,579,442
4,431,651 824,616 1,652,527 310,248 -- 54,257,461
- ------------ ------------ ------------ ------------ ----------- --------------
145,487,067 192,313,478 130,973,679 13,262,862 33,790,689 1,684,706,239
217,912 -- -- -- -- 282,704
-- -- 251,528 -- -- 13,322,264
- ------------ ------------ ------------ ------------ ----------- --------------
217,912 -- 251,528 -- -- 13,604,968
- ------------ ------------ ------------ ------------ ----------- --------------
$145,269,155 $192,313,478 $130,722,151 $13,262,862 $33,790,689 $1,671,101,271
============ ============ ============ =========== =========== ==============
</TABLE>
5
<PAGE> 10
<TABLE>
HARRIS CORPORATION RETIREMENT PLAN
Statement of Changes in Net Assets Available for Benefits
Year Ended June 30, 1997
- -------------------------------------------------------------------------------------------------------------------
<CAPTION>
Money Equity
Balanced Short-Term Market Income
Fund Bond Fund Fund Fund
------------- ------------- ----------- ------------
<S> <C> <C> <C> <C>
INCREASES:
Plan interest in Harris Corporation
Master Trust investment income $ 147,877,887 $ 6,186,366 $ 940,216 $ 79,343,041
Interest income -- -- -- --
Cash contributions from Harris
Corporation under profit-
sharing program 24,670,618 -- -- --
Cash contributions under
deferred income program:
From Harris Corporation 5,820,959 2,040,568 354,727 5,982,722
From plan participants 12,696,458 3,113,788 960,725 11,895,812
------------- ------------- ----------- ------------
191,065,922 11,340,722 2,255,668 97,221,575
NET PARTICIPANTS' TRANSFERS
BETWEEN FUNDS (19,601,893) (11,734,942) 4,789,502 21,099,415
DECREASES:
Benefits paid directly to
participants 37,176,890 5,839,202 4,113,244 14,000,690
Administrative expenses 3,279,260 253,003 59,286 1,383,938
------------- ----------- ------------
40,456,150 6,092,205 4,172,530 15,384,628
------------- ------------- ----------- ------------
NET INCREASE (DECREASE) IN NET
ASSETS AVAILABLE FOR BENEFITS 131,007,879 (6,486,425) 2,872,640 102,936,362
NET ASSETS AVAILABLE FOR BENEFITS:
Beginning of year 769,010,581 100,446,634 14,264,176 272,021,545
------------- ------------- ----------- ------------
END OF YEAR $ 900,018,460 $ 93,960,209 $17,136,816 $374,957,907
============= ============= =========== ============
</TABLE>
See accompanying notes to financial statements. 6
<PAGE> 11
<TABLE>
- ------------------------------------------------------------------------------------------------------------
<CAPTION>
Equity Stable Harris
Index Value Growth Corporation Loan
Fund Fund Fund Stock Fund Fund Total
- ------------- ------------- ------------- ------------- ------------ --------------
<S> <C> <C> <C> <C> <C>
$ 53,697,740 $ 12,733,267 $ 16,397,927 $ 6,493,289 $ -- $323,669,733
-- -- -- -- 2,394,589 2,394,589
-- -- -- -- -- 24,670,618
4,025,428 2,747,539 4,092,418 3,953,449 -- 29,017,810
8,400,111 4,565,522 9,082,997 2,446,099 -- 53,161,512
- ------------ ------------ ------------- ------------ ------------ --------------
66,123,279 20,046,328 29,573,342 12,892,837 2,394,589 432,914,262
21,200,876 10,144,977 (23,645,260) (731,821) (1,520,854) --
7,843,926 14,545,993 7,088,596 672,416 1,813,930 93,094,887
127,432 299,579 480,358 201 -- 5,883,057
- ------------ ------------ ------------- ------------ ------------ --------------
7,971,358 14,845,572 7,568,954 672,617 1,813,930 98,977,944
- ------------ ------------ ------------- ------------ ------------ --------------
79,352,797 15,345,733 (1,640,872) 11,488,399 (940,195) 333,936,318
145,269,155 192,313,478 130,722,151 13,262,862 33,790,689 1,671,101,271
- ------------ ------------ ------------- ------------ ------------ --------------
$224,621,952 $207,659,211 $ 129,081,279 $ 24,751,261 $ 32,850,494 $2,005,037,589
============ ============ ============= ============ ============ ==============
</TABLE>
7
<PAGE> 12
HARRIS CORPORATION RETIREMENT PLAN
Notes to Financial Statements
June 30, 1997 and 1996
- --------------------------------------------------------------------------------
1. DESCRIPTION OF THE PLAN AND SIGNIFICANT ACCOUNTING POLICIES
The Harris Corporation Retirement Plan includes substantially all
domestic employees of Harris Corporation who are not covered by a
collective bargaining agreement.
The Harris Corporation Retirement Plan and the Harris Corporation
Union Retirement Plan share a common Profit-Sharing Program and
Deferred Income Savings Program. The Corporation's annual
contribution to the Balanced Fund under the Profit-Sharing Program is
equal to 11.5% of the Corporation's adjusted and consolidated net
income as defined under the plan documents, plus any discretionary
amount determined by the Board of Directors of the Corporation. The
Profit-Sharing contribution is allocated, in the subsequent Plan
year, among participating employees' individual account balances
based on eligible compensation. The Deferred Income Savings Program
was designed to take advantage of Internal Revenue Code Section
401(k). Under the Deferred Income Savings Program, participants may
contribute up to 12% of their regular eligible compensation to the
Plan in 1% increments. The contributions can be in pre-tax or
after-tax dollars at the participant's election. The employer
contributes a matching amount equal to 100% of the participant's
contributions, to a maximum of 6.857% of eligible compensation.
Participants are eligible to make elective contributions on a pre-tax
or after-tax basis during the first year of service. Participants
become eligible to receive allocations under the Profit-Sharing
Program and matching contributions under the Deferred Income Savings
Program after completing one year of credited service.
Distributions from the Plans can be made in the event of death,
disability, termination of employment or financial hardship.
The loan program permits employees to borrow against their 401(k)
plan contributions. Employees may borrow in increments of $100 from a
minimum of $500 to a maximum of $50,000, within certain limitations
established by the Plans. Payback periods range from one to 4 1/2
years at the option of the participant. Interest rates are
established by the Corporation based on market rates. The outstanding
loans have been established as a separate fund. Principal and
interest paid on the loans are allocated to the funds consistent with
the allocation of their 401(k) plan contributions.
A participant's right to profit-sharing funds and employer matched
deferred income contributions becomes vested using a formula based
upon service, with 30% vesting after three years of credited service,
an additional 10% vesting for the fourth year, and an additional 20%
vesting for each of the three following years of credited service. At
the time of retirement, death, or termination of employment, a
participant's vested share of the Plans assets, net of any
participant loans outstanding, becomes distributable in a lump-sum
payment or through installments over a period of time as requested by
the participant and approved by the Corporate Administrative
Committee.
A participant who terminates employment for reasons other than
retirement or other specified circumstances and is not 100% vested,
will forfeit the non-vested portion of the Corporation's
contributions unless the participant returns to employment within
five years. The forfeited contributions reduce the cash contributions
from the Corporation.
8
<PAGE> 13
HARRIS CORPORATION RETIREMENT PLAN
Notes to Financial Statements
June 30, 1997 and 1996
- --------------------------------------------------------------------------------
1. DESCRIPTION OF THE PLAN AND SIGNIFICANT ACCOUNTING POLICIES,
CONTINUED
In the event of termination of the Plan, the net assets of the Plan
are to be converted into cash and distributed in a lump sum to each
participant or beneficiary of a deceased participant based upon their
beneficial interest in the Plans, net of any participant loans
outstanding.
Upon enrollment into the Plan, a participant may direct employer and
employee contributions in any of eight investment options. The
investment options are fully described in the "Employer Summary Plan
Description". Elections to change funds can be made once every month;
however, amounts in the Stable Value Fund, which is comprised of
unallocated insurance contracts, cannot be transferred directly to
the Short-Term Bond Fund or the Money Market Fund.
The accounting records of the Plan are maintained on the accrual
basis.
The fair value of the Plan's interest in the Harris Corporation
Master Trust (the "Master Trust") is based on the beginning of year
value of the Plan's interest in the trust plus actual contributions
and allocated investment income less actual distributions and
allocated administrative expenses. Quoted market prices are used when
available, to value investments in the Master Trust. Investments for
which a quoted market value is not available are stated at fair
values reported by the trustee or investee company. Investments in
unallocated insurance contracts are stated at contract value.
Participant loans are stated at cost.
Purchases and sales of securities are recorded on a trade-date basis.
Interest income is recorded on the accrual basis. Dividends are
recorded on the ex-dividend date. The net appreciation (depreciation)
in fair value of investments represents the sum of the unrealized
appreciation or depreciation in aggregate fair value of investments
and the realized gain or loss on sale of investments.
Unless otherwise elected by Harris Corporation, all ordinary and
extraordinary charges and expenses incurred by the Trustee in
connection with the administration of the Plan are paid by the
Trustee from the assets of the Master Trust. In both fiscal 1997 and
1996, Harris Corporation elected to pay administrative expenses such
as legal fees, tax counsel and accounting fees. Trustee, investment
manager fees and certain administrative expenses were paid by the
Plan.
The preparation of financial statements in conformity with generally
accepted accounting principles requires the plan administrator to
make estimates and assumptions that affect certain reported amounts
and disclosures. Accordingly, actual results may differ from those
estimates.
2. TRANSACTIONS WITH PARTIES-IN-INTEREST
Under Department of Labor regulations for reporting and disclosure,
an employee benefit plan is required to report investment
transactions and compensation paid to a "party-in-interest".
The term "party-in-interest" is broadly defined but would include
Harris Corporation as the Plan Sponsor; Bankers Trust Company as
Trustee; and any person or corporation that renders services to the
Plan.
9
<PAGE> 14
HARRIS CORPORATION RETIREMENT PLAN
Notes to Financial Statements
June 30, 1997 and 1996
- --------------------------------------------------------------------------------
2. TRANSACTIONS WITH PARTIES-IN-INTEREST, CONTINUED
Included in cash and cash equivalents at June 30, 1997 and 1996 are
67,070,853 and 31,669,199, shares respectively, of BT Pyramid
Directed Account Cash Fund, with a fair value of $67,070,853 and
$31,669,199. Investments of the Master Trust include 48,102 shares of
Bankers Trust Small Capitalization Fund with a fair value of
$27,568,416 at June 30, 1996.
At June 30, 1997 and 1996, 306,916 and 222,053 shares with a fair
market value of $25,780,944 and $13,545,233, respectively, of Harris
Corporation common stock were included in investments of the Harris
Corporation Master Trust.
3. INTEREST IN HARRIS CORPORATION MASTER TRUST
The Harris Corporation Master Trust was established for the
investment of assets of the Plan and the Harris Corporation Union
Retirement Plan. Each participating retirement plan has an undivided
interest in the Master Trust. The assets of the Master Trust are held
by Bankers Trust Company (Trustee). At June 30, 1997 and 1996, the
Plan's interest in the net assets of the Master Trust was
approximately 97.24% and 97.33%, respectively. Investment income and
administrative expenses relating to the Master Trust are allocated to
the individual plans based upon average monthly balances invested by
each plan.
Investments of the Master Trust are as follows:
<TABLE>
<CAPTION>
1997 1996
--------------- ---------------
<S> <C> <C>
Fair value as determined by quoted market prices:
U.S. government securities $ 193,034,127 $ 238,229,856
Corporate debt securities 230,525,352 128,320,993
Foreign debt securities 10,191,484 17,869,790
Corporate equity securities 787,014,217 625,099,108
Morgan Stanley International Magnum Fund 60,206,396 50,021,031
Bankers Trust Pyramid Small Capitalization Fund - 27,568,416
Wells Fargo Bank Index Fund 316,512,010 174,934,990
Putnam New Opportunities Fund 94,828,345 114,490,640
--------------- ---------------
1,692,311,931 1,376,534,824
Fair value as determined by investee company:
J.P. Morgan Real Estate Fund 32,065,098 29,203,028
Contract value:
Unallocated insurance contracts 205,927,404 196,103,471
---------------- ----------------
$ 1,930,304,433 $ 1,601,841,323
================ ================
</TABLE>
10
<PAGE> 15
HARRIS CORPORATION RETIREMENT PLAN
Notes to Financial Statements
June 30, 1997 and 1996
- --------------------------------------------------------------------------------
3. INTEREST IN HARRIS CORPORATION MASTER TRUST, CONTINUED
Investment income of the Master Trust for the year ended June 30,
1997 is as follows:
<TABLE>
<S> <C>
Net appreciation (depreciation) in fair value as
determined by quoted market price:
U.S. government securities $ 3,056,900
Corporate debt securities 563,844
Foreign debt securities 1,056,480
Corporate equity securities 185,055,922
Morgan Stanley International Magnum Fund 9,385,047
Bankers Trust Pyramid Small Capitalization Fund (5,459,509)
Wells Fargo Bank Index Fund 68,798,654
Putnam New Opportunities Fund 3,539,599
-------------
265,996,937
Net appreciation (depreciation) in fair value as
determined by investee company:
J.P. Morgan Real Estate Fund 666,887
-------------
266,663,824
Interest and dividends 64,503,167
-------------
$ 331,166,991
=============
</TABLE>
4. INCOME TAX STATUS
The plan obtained its latest determination letter on April 13, 1995,
in which the Internal Revenue Service stated that the plan, as then
designed, was in compliance with the applicable requirements of the
Internal Revenue Code. The plan has been amended since receiving the
determination letter. However, the plan administrator and the plan's
tax counsel believe that the plan is currently designed and being
operated in compliance with the applicable requirements of the
Internal Revenue Code. Therefore, they believe that the plan was
qualified and the related trust was tax-exempt as of the financial
statement date.
11
<PAGE> 16
SIGNATURES
The Harris Corporation Retirement Plan. Pursuant to the requirements of the
Securities Exchange Act of 1934, the trustees (or other persons who administer
the employee benefit plan) have duly caused this annual report to be signed on
their behalf by the undersigned hereunto duly authorized.
Harris Corporation
Retirement Plan
/s/ Edward T. Golitko
-------------------------
Edward T. Golitko
Plan Administrator
Date: December 17, 1996
<PAGE> 1
EXHIBIT 23
CONSENT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
We consent to the incorporation by reference in the following registration
statement of the Harris Corporation Retirement Plan of our report dated October
10, 1997, with respect to the financial statements of the Harris Corporation
Retirement Plan included in this Annual Report (Form 11-K) for the year ended
June 30, 1997.
Form S-8 No. 33-50169 Harris Corporation Retirement Plan
Bray, Beck & Koetter
Melbourne, Florida
December 18, 1997
