<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 Union 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
UNION RETIREMENT PLAN
Financial Statements
June 30, 1997
<PAGE> 3
HARRIS CORPORATION UNION RETIREMENT PLAN
Table of Contents
June 30, 1997 PAGE
- -----------------------------------------------------------------------------
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
<PAGE> 4
[LOGO] BRAY, BECK & KOETTER
CERTIFIED PUBLIC ACCOUNTANTS, P.A.
410 Indian River Avenue, Suite 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 Union Retirement Plan
Melbourne, Florida
We have audited the accompanying statements of net assets available for
benefits of the Harris Corporation Union 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
HARRIS CORPORATION UNION RETIREMENT PLAN
Statements of Net Assets Available for Benefits
June 30, 1997 and 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
June 30, 1997
-----------------------------------------------------------------------
Money Equity
Balanced Short-Term Market Income
Fund Bond Fund Fund Fund
----------- ----------- ----------- -----------
ASSETS
<S> <C> <C> <C> <C>
INVESTMENTS (Note 3):
Plan interest in Harris
Corporation Master Trust $21,677,882 $ 9,612,177 $ 316,164 $ 8,336,928
Participant loans -- -- -- --
----------- ----------- ----------- -----------
Total investments 21,677,882 9,612,177 316,164 8,336,928
RECEIVABLES:
Contributions receivable from
Harris Corporation 1,532,194 -- -- --
Accrued interest and dividends 95,066 114,090 2,276 23,435
Securities sold 130,923 662,498 -- 1,005
----------- ----------- ----------- -----------
Total receivables 1,758,183 776,588 2,276 24,440
CASH AND CASH EQUIVALENTS (Note 2) 216,538 102,182 16,783 359,803
----------- ----------- ----------- -----------
Total assets 23,652,603 10,490,947 335,223 8,721,171
LIABILITIES
Accrued expenses 10,580 2,817 338 315
Securities purchased 203,305 257,767 26,515 22,889
Outstanding options 61,405 -- -- --
----------- ----------- ----------- -----------
Total liabilities 275,290 260,584 26,853 23,204
----------- ----------- ----------- -----------
NET ASSETS AVAILABLE FOR BENEFITS $23,377,313 $10,230,363 $ 308,370 $ 8,697,967
=========== =========== =========== ===========
</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>
$ 3,477,539 $ 6,399,698 $ 3,004,508 $ 1,151,030 $ -- $53,975,926
-- -- -- -- 1,862,671 1,862,671
------------ ----------- ----------- ----------- ---------- -----------
3,477,539 6,399,698 3,004,508 1,151,030 1,862,671 55,838,597
-- -- -- -- -- 1,532,194
53 35,799 1,604 165 -- 272,488
-- 62 6,128 5,167 -- 805,783
------------ ----------- ----------- ----------- ---------- -----------
53 35,861 7,732 5,332 -- 2,610,465
114,442 226,889 48,057 33,684 -- 1,118,378
------------ ----------- ----------- ----------- ---------- -----------
3,592,034 6,662,448 3,060,297 1,190,046 1,862,671 59,567,440
166 1,938 2,429 -- -- 18,583
-- -- 6,440 33,345 -- 550,261
-- -- -- -- -- 61,405
------------ ----------- ----------- ----------- ---------- -----------
166 1,938 8,869 33,345 -- 630,249
------------ ----------- ----------- ----------- ---------- -----------
$ 3,591,868 $ 6,660,510 $ 3,051,428 $ 1,156,701 $ 1,862,671 $58,937,191
============ =========== =========== =========== =========== ===========
</TABLE>
Continued
3
<PAGE> 8
HARRIS CORPORATION UNION RETIREMENT PLAN
Statements of Net Assets Available for Benefits - Continued
June 30, 1997 and 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
June 30, 1996
-----------------------------------------------------------------------
Money Equity
Balanced Short-Term Market Income
Fund Bond Fund Fund Fund
----------- ----------- ----------- -----------
ASSETS
<S> <C> <C> <C> <C>
INVESTMENTS (NOTE 3):
Plan interest in Harris
Corporation Master Trust $16,390,846 $10,317,935 $ 4,803 $ 5,468,465
Participant loans -- -- -- --
----------- ----------- ----------- -----------
Total investments 16,390,846 10,317,935 4,803 5,468,465
RECEIVABLES:
Contributions receivable from
Harris Corporation 1,444,426 -- -- --
Accrued interest and dividends 83,306 111,454 612 21,195
Securities sold 138,790 -- -- 5,951
----------- ----------- ----------- -----------
Total receivables 1,666,522 111,454 612 27,146
CASH AND CASH EQUIVALENTS (NOTE 2) 203,510 113,845 133,138 522,546
----------- ----------- ----------- -----------
Total assets 18,260,878 10,543,234 138,553 6,018,157
LIABILITIES
Accrued expenses 1,442 -- -- --
Securities purchased 217,361 153,066 -- 40,045
----------- ----------- ----------- -----------
Total liabilities 218,803 153,066 -- 40,045
----------- ----------- ----------- -----------
NET ASSETS AVAILABLE FOR BENEFITS $18,042,075 $10,390,168 $ 138,553 $ 5,978,112
=========== =========== =========== ===========
</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
- ----------- ----------- ----------- ----------- ----------- -----------
<C> <C> <C> <C> <C> <C>
$ 1,664,315 $ 5,631,649 $ 2,689,978 $ 594,685 $ -- $42,762,676
-- -- -- -- 1,378,738 1,378,738
- ----------- ----------- ----------- ----------- ----------- -----------
1,664,315 5,631,649 2,689,978 594,685 1,378,738 44,141,414
-- -- -- -- -- 1,444,426
2,517 30,071 1,373 95 -- 250,623
143 -- 3,174 -- -- 148,058
- ----------- ----------- ----------- ----------- ----------- -----------
2,660 30,071 4,547 95 -- 1,843,107
52,373 24,381 34,432 14,247 -- 1,098,472
- ----------- ----------- ----------- ----------- ----------- -----------
1,719,348 5,686,101 2,728,957 609,027 1,378,738 47,082,993
2,575 -- -- -- -- 4,017
-- -- 5,241 -- -- 415,713
- ----------- ----------- ----------- ----------- ----------- -----------
2,575 -- 5,241 -- -- 419,730
- ----------- ----------- ----------- ----------- ----------- -----------
$ 1,716,773 $ 5,686,101 $ 2,723,716 $ 609,027 $ 1,378,738 $46,663,263
=========== =========== =========== =========== =========== ===========
</TABLE>
5
<PAGE> 10
HARRIS CORPORATION UNION RETIREMENT PLAN
Statement of Changes in Net Assets Available for Benefits
Year Ended June 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Money Equity
Balanced Short-Term Market Income
Fund Bond Fund Fund Fund
------------ ------------ ------------ ------------
INCREASES:
<S> <C> <C> <C> <C>
Plan interest in Harris Corporation
Master Trust investment income $ 3,545,199 $ 649,639 $ 10,151 $ 1,808,091
Interest income -- -- -- --
Cash contributions from Harris
Corporation under profit-
sharing program 1,532,194 -- -- --
Cash contributions under
deferred income program:
From Harris Corporation 373,796 431,021 7,302 305,855
From plan participants 933,272 581,831 28,523 663,712
------------ ------------ ------------ ------------
6,384,461 1,662,491 45,976 2,777,658
NET PARTICIPANTS' TRANSFERS
BETWEEN FUNDS (252,299) (1,284,399) 165,105 366,541
DECREASES:
Benefits paid directly to
participants 718,737 508,464 40,422 334,400
Administrative expenses 78,187 29,433 842 89,944
------------ ------------ ------------ ------------
796,924 537,897 41,264 424,344
------------ ------------ ------------ ------------
NET INCREASE IN NET
ASSETS AVAILABLE FOR BENEFITS 5,335,238 (159,805) 169,817 2,719,855
NET ASSETS AVAILABLE FOR BENEFITS:
Beginning of year 18,042,075 10,390,168 138,553 5,978,112
------------ ------------ ------------ ------------
END OF YEAR $ 23,377,313 $ 10,230,363 $ 308,370 $ 8,697,967
============ ============ ============ ============
</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
- ----------- ----------- ----------- ----------- ----------- -----------
<C> <C> <C> <C> <C> <C>
$ 785,145 $ 387,206 $ 362,350 $ 292,830 $ -- $ 7,840,611
-- -- -- -- 118,140 118,140
-- -- -- -- -- 1,532,194
166,535 216,043 158,488 186,866 -- 1,845,906
311,972 505,184 300,420 106,422 -- 3,431,336
- ----------- ----------- ----------- ----------- ----------- -----------
1,263,652 1,108,433 821,258 586,118 118,140 14,768,187
644,118 457,699 (464,650) (27,803) 395,688 --
30,053 580,583 17,399 10,641 29,895 2,270,594
2,622 11,140 11,497 -- -- 223,665
- ----------- ----------- ----------- ----------- ----------- -----------
32,675 591,723 28,896 10,641 29,895 2,494,259
- ----------- ----------- ----------- ----------- ----------- -----------
1,875,095 974,409 327,712 547,674 483,933 12,273,928
1,716,773 5,686,101 2,723,716 609,027 1,378,738 46,663,263
- ----------- ----------- ----------- ----------- ----------- -----------
$ 3,591,868 $ 6,660,510 $ 3,051,428 $ 1,156,701 $ 1,862,671 $58,937,191
=========== =========== =========== =========== =========== ===========
</TABLE>
7
<PAGE> 12
HARRIS CORPORATION UNION RETIREMENT PLAN
Notes to Financial Statements
June 30, 1997 and 1996
- -------------------------------------------------------------------------------
1. DESCRIPTION OF THE PLAN AND SIGNIFICANT ACCOUNTING POLICIES
The Harris Corporation Union Retirement Plan includes all domestic
employees of Harris Corporation covered by a collective bargaining
agreement.
The Harris Corporation Union Retirement Plan and the Harris Corporation
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 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.
Participants are eligible to make elective contributions on a pre-tax or
after-tax basis during the first year of service.
Distributions from the Plan 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 Plan. 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 Plan 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 UNION 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 Plan, 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 distribution 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 Trust fund. 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 UNION 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
1,118,378 and 858,738 shares, respectively, of BT Pyramid Directed
Account Cash Fund, with a fair value of $1,118,378 and $858,738,
respectively. 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 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.
At June 30, 1997 and 1996, the Plan's interest in the net assets of the
Master Trust was approximately 2.76% and 2.67%, 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 UNION RETIREMENT PLAN
Notes to Financial Statements
June 30, 1997 and 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
3. INTEREST IN HARRIS CORPORATION MASTER TRUST, CONTINUED
Investment income of the Master Trust for the year ended June 30, 1997
is as follows:
<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 February 3, 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 Coporation Union 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
Union 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 Union Retirement Plan of our report dated
October 10, 1997, with respect to the financial statements of the Harris
Corporation Union Retirement Plan included in this Annual Report (Form 11-K)
for the year ended June 30, 1997.
Form S-8 No. 33-50167 Harris Corporation Union Retirement Plan
Bray, Beck & Koetter
Melbourne, Florida
December 18, 1997
