CEO MESSAGE
Letter to Shareholders
COMPANY HIGHLIGHTS
Leadership
SUSTAINABILITY PROGRAM
OUR CULTURE OF COMMUNITY
2020 Annual Report
FINANCIAL HIGHLIGHTS
Information for shareholders
Sustainability Program
Company Highlights
DOWNLOAD AS .PDF
LETTER TO SHAREHOLDERS
INFORMATION For SHAREHOLDERS
DOWNLOAD FULL ANNUAL REPORT AS A PDF
Non-gaap earnings per share
$10.26
2019
$11.60
2020
$2,095
Adjusted Free Cash Flow
(In Millions)
1.8
1.6
net debt/EBITDA
Total backlog
$20,146
$21,670
L3Harris Technologies is an agile global aerospace and defense technology innovator, delivering end-to-end solutions that meet customers’ mission-critical needs. The company provides advanced defense and commercial technologies across air, land, sea, space and cyber domains. L3Harris has approximately $18 billion in annual revenue and 48,000 employees, with customers in more than 100 countries.
Organic Revenue*
Capital Returns Dividends Share Repurchases
Non-GAAP EBIT*
Non-GAAP EBIT Margin*
$17,677
$ in Millions
$18,194
$3,039
$3,280
16.8%
18.0%
$499 $1,500
$725 $2,290
*Includes or reflects non–GAAP financial measures (NGFMs) and/or pro forma financial measures; refer to disclosures and NGFM reconciliations in “Non-GAAP and Pro Forma Financial Measures” section in the downloadable PDF.
FIVE-year Cumulative total return
About L3Harris Technologies
Financial
HIGHLIGHTS*
FY15
FY16
FY17
FY18
FY19
FY20
1/3/2020
S&P UP
SINCE FY15
102%
LHX UP
170%
S&P 500
LHX
$100
$109
$147
$198
$263
$295
$270
Information FOR shareholders
Sustainability program
Letter to shareholders
QUICK LINKS
Letter FOR shareholders
Integrating a merger of equals while meeting stakeholder commitments is challenging even under ideal circumstances. 2020 was anything but ideal. Global health, economic and social crises tested the very fabric of our merger vision – to create a company with the scale, resources and capabilities to provide affordable, innovative and rapidly fielded solutions that address our customers’ mission critical needs. But, it was the strength of that vision – combined with the heroic efforts of our employees, suppliers and customers – that enabled L3Harris to not only succeed, but emerge stronger than we imagined when we set out on this journey over two years ago. OUR HEROES Our 48,000 employees succeeded amid some of the most challenging circumstances imaginable. With an equal number working remotely and onsite, employees adhered to strict health and safety protocols while continuing to design and deliver innovative new technologies to meet our customer commitments. They accomplished this while donating time to support first responders, healthcare workers, educators and community organizations’ COVID-19 and economic relief efforts. L3Harris’ 7,000-plus suppliers – many small businesses – were forced to overcome their own staffing, resource and material constraints. We supported them by accelerating payments and sharing best practices, and they responded by delivering the products and services we required to operate without interruption. Through shared adversity we also tightened the bonds with our customers and changed the way we do business. Together we created more efficient problem-solving approaches that will pay benefits well into the future, such as using remote communication tools to increase dialogue, collaboration and even virtual inspections. FINANCIAL RESULTS* Despite 2020’s challenges, L3Harris delivered solid results in its first full year of operation as a combined company – exceeding initial pre-pandemic guidance on margins, EPS and free cash flow. Non-GAAP earnings per share grew 13% to $11.60, with revenue up 3% organically and margin increasing 120 bps to 18%. Adjusted free cash flow rose 28%, and we reported solid orders and a book-to-bill above 1. MERGER INTEGRATION In a short period, we’ve made tremendous progress integrating two large organizations into a single high-performance, technology-focused operating company – and positioning L3Harris as a full, end-to-end mission solutions prime. Since the merger close, we’ve established a culture of integrity, excellence and respect and issued our first Diversity & Inclusion report and Sustainability report. We made great strides maturing our culture of continuous improvement by institutionalizing the company’s e3 (excellence, everywhere, every day) operating model – embedding metrics into our business processes and providing employees with tools and training. We also leveraged functional efficiencies and shared services, empowering the company to harmonize benefits, rationalize our geographic footprint and consolidate our supply chain, among other cost-saving improvements.
SHAREHOLDERS
Letter to
OUTLOOK We have laid the important building blocks for our new company. Entering 2021, we are well positioned with a strong organization and technologies that align with our customers’ budgets and national defense priorities to counter near-peer threats. We will continue to execute on our strategic priorities – focusing on growing the top-line, completing the integration, expanding margins through flawless execution and continuous improvement, reshaping our portfolio and maximizing cash flow to support capital returns. As established by the merger agreement, we will complete a leadership transition on June 29, 2021, with Bill serving as Executive Chair of the Board and Chris becoming CEO. We developed the L3Harris vision together, have partnered throughout the integration and are committed to continuing to execute the strategy established at the merger close. We are proud of the progress we have made so far, which has garnered third-party recognition including being named to FORTUNE’s Most Admired Companies’ list, Bloomberg’s Gender Equality Index and the Human Rights Campaign’s Best Places to Work for LGBTQ Equality Index. Integrating the two companies and overcoming this past year’s challenges would not have been possible without the support of our Board of Directors, leadership team and company’s 48,000 employees. Our company’s success is a testament to their resilience and dedication.
William M. Brown
Christopher E. Kubasik
William M. Brown Chair and CEO
Christopher E. Kubasik Vice Chair, President and COO
HIGHLIGHTS
COMPANY
$18B
~4%
48K
ANNUAL REVENUE
INDUSTRY-LEADING INTERNAL R&D INVESTMENT
EMPLOYEES
~19K
ENGINEERS & SCIENTISTS
CUSTOMERS IN MORE THAN 100 COUNTRIES
INTEGRATED MISSION SYSTEMS
SPACE AND AIRBORNE SYSTEMS
COMMUNICATION SYSTEMS
AVIATION SYSTEMS
$5.5B
$4.9B
$4.4B
$3.4B
Leading technology integrator to U.S. and international militaries for complex ISR, airborne, maritime and space platforms ISR | Maritime | Electro-Optical
Mission solutions for space and airborne domains with defense, intelligence and commercial applications Space | Intel and Cyber | Avionics | Electronic Warfare
Secure ground and airborne communications and network systems for U.S. military, international forces and commercial customers Tactical Communications | Broadband Communications | Integrated Vision Solutions | Public Safety
Commercial and military aviation solutions, systems, networks and pilot training Defense Aviation | Commercial Aviation | Commercial & Military Training | Mission Networks
LEADERSHIP
L3Harris
BOARD OF DIRECTORS > William M. Brown Chair and CEO > Christopher E. Kubasik Vice Chair, President and COO > Sallie B. Bailey Former EVP and CFO, Louisiana-Pacific > Peter W. Chiarelli General, U.S. Army(Retired) > Thomas A. Corcoran Former President and CEO, Allegheny Teledyne > Thomas A. Dattilo Former Chairman, CEO and President, Cooper Tire & Rubber > Roger B. Fradin Former Vice Chairman, Honeywell > Lewis Hay III Former Chairman and CEO, NextEra Energy > Lewis Kramer Retired Partner, Ernst & Young > Rita S. Lane Former Vice President, Operations, Apple > Robert B. Millard Chair Emeritus, MIT Corporation > Lloyd W. Newton General, U.S. Air Force (Retired)
EXECUTIVE OFFICERS > William M. Brown Chair and CEO > Christopher E. Kubasik Vice Chair, President and COO > Jesus “Jay” Malave Jr. Senior Vice President and Chief Financial Officer > Todd W. Gautier President, Aviation Systems > James P. Girard Vice President and Chief Human Resources Officer > Dana A. Mehnert President, Communication Systems > Scott T. Mikuen Senior Vice President, General Counsel and Secretary > Sean J. Stackley President, Integrated Mission Systems > Todd A. Taylor Vice President, Principal Accounting Officer > Edward J. Zoiss President, Space & Airborne Systems
program
SuStainability
L3Harris is committed to creating a more sustainable future for our society. The company will issue its first Sustainability Report in 2021, which will provide information about the company’s strategy and metrics on environmental, social and governance initiatives.
ENVIRONMENTAL
L3Harris has invested in energy efficiency and carbon-reduction projects while enhancing management of energy and water usage, greenhouse gas (GHG) emissions and solid waste generation. The company signed a virtual renewable energy power purchase agreement – ~110,000 metric tons of avoided GHG emissions annually through L3Harris’ agreement, equivalent to removing 24,000 cars from the road every year.
Our current Environmental Sustainability Program 2026 Goals include:
GHG EMISSIONS REDUCTION
30%
*GHG and water use reduction compared to 2019 baseline.
WATER USE REDUCTION
20%
SOLID WASTE DIVERSION
75%
L3Harris invests heavily in our employees’ safety, training and career success – and took key steps early to keep employees safe throughout the COVID-19 pandemic. In addition, we support communities where we work and live, focusing our philanthropy and employee volunteerism in STEM, mission-aligned and community initiatives. Our L3Harris Investing For Tomorrow (LIFT) employee volunteerism program empowered employees to support approximately 530 virtual and other community service projects in 2020. In the wake of social unrest, L3Harris promoted dialogue around the topic of Diversity and Inclusion (D&I), particularly through our D&I council and our Employee Resource Groups (ERGs), while also committing to new diversity goals.
L3Harris EMPLOYEE RESOURCE GROUPS
SOCIAL
APEX (Asian Professionals for Excellence) ECP (Early Career Professionals) HOLA (Hispanic/Latino Organization for Leadership & Advancement) INTRAPRENEURS (Technology & Innovation Resource Group) LEAD (L3Harris Employees of African Descent) PRIDE (LGBTQ+ Resource Group) SERVE (Supporting Emergency Responders and Veterans Engagement) WE3 (Women Who Strive for Empowering, Enhancing, & Encouraging Other Women) WILA (Willing & Able)
REPRESENTATION
WOMEN GLOBALLY
50%
PERSONS OF COLOR IN THE U.S.
33%
L3Harris is committed to responsible and effective corporate governance to ensure sustainable, long-term shareholder value, and to be accountable and responsive to all stakeholders. The Board is elected annually by shareholders and is comprised of independent directors except for two employee directors – the CEO and COO. The ESG Steering Committee is led by our CEO and consists of key executives and an executive sponsor for each of the three main pillars: Environmental, Social and Governance.
GOVERNANCE
COMPANY VALUES
> Accountable > Ethical > Honest
INTEGRITY
EXCELLENCE
> Flawless Execution > Customer-Focused > Innovative
RESPECT
> Safe & Sustainable > Community-Minded > Inclusive
Accountable
Ethical
Honest
Flawless Execution
Customer Focused
Innovative
Safe & Sustainable
Community-Minded
Diverse & Inclusive
>
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INFORMATION FOR
CORPORATE HEADQUARTERS L3Harris Technologies 1025 West NASA Boulevard Melbourne, FL 32919–0001 1–321–727–9100 L3Harris.com
STOCK EXCHANGE L3Harris stock is listed and traded on the New York Stock Exchange. Ticker Symbol: LHX
TRANSFER AGENT AND REGISTRAR Computershare 462 South 4th Street, Suite 1600 Louisville, KY 40202 1–888–261–6777 | Outside the U.S., please dial 1–201–680–6578 www.computershare.com/investor SHAREHOLDER SERVICES Computershare maintains the records for our registered shareholders and can assist you with a variety of shareholder–related services at no charge. The Computershare automated telephone voice response system, at 1–888–261–6777, is available 24 hours a day, 7 days a week, to conduct a wide variety of secure transactions. Electronic access to your financial statements and shareholder communications is available 24 hours a day, 7 days a week, via Computershare’s website, computershare.com/investor. Visit this website to view and print Investment Plan Statements, Investor Activity Reports, 1099 tax documents, notification of ACH transmissions, transaction activities, annual meeting materials and other selected correspondence. You also can send mail to Computershare at:
Computershare P.O. Box 505000 Louisville, KY 40233-5000 (U.S. mail only)
Computershare 462 South 4th Street, Suite 1600 Louisville, KY 40202 (Overnight delivery only)
ANNUAL MEETING The annual meeting of shareholders will be held virtually on April 23, 2021 starting at 9:00 a.m. ET. INDEPENDENT ACCOUNTANTS Ernst & Young LLP | Orlando, Florida
Share your Annual Report feedback: annualreport@L3Harris.com
TELL US WHAT YOU THINK!
FORWARD–LOOKING STATEMENTS This report, including the letter to shareholders, contains forward–looking statements that are based on the views of management regarding future events at the time of publication of this report. These forward–looking statements, which include, but are not limited to: our plans, strategies and objectives for future operations; new products, services or developments; future economic conditions; outlook; the value of contract and program awards; the effect of the merger on our business; our growth potential; and the potential of the industries and markets we serve, are subject to known and unknown risks, uncertainties and other factors that may cause our actual results to be materially different from those expressed in or implied by each forward–looking statement. These risks, uncertainties and other factors are discussed in our Form 10–K for the fiscal year ended. ANNUAL CERTIFICATIONS The most recent certifications by our Chief Executive Officer and Chief Financial Officer pursuant to sections 302 and 906 of the Sarbanes–Oxley Act of 2002 were filed as exhibits to our Form 10–K for the fiscal year ended January 1, 2021. Our most recent annual CEO certification regarding L3Harris compliance with corporate governance listing standards was submitted to the New York Stock Exchange in May 2020.
L3HARRIS TECHNOLOGIES 1025 West NASA Boulevard Melbourne, Florida 32919-0001 U.S.: 1–800–442–7747 International: 1–321–727–9100 L3Harris.com
DIVERSiTY AND INCLUSION
Information FOR SHAREHOLDERS
A MESSAGE FROM OUR CEO
financial
We are investing in an inclusive and diverse workforce by supporting a variety of STEM initiatives focused on underserved communities. We believe these efforts will help encourage a broader range of students to consider careers in engineering and science – and inspire the next generation of innovators. Today 41% of our executives, 42% of our employee base and 56% of our new college graduates are drawn from underrepresented groups. I am proud of the progress we have made towards greater diversity and inclusion, but the pace of technology innovation and the demand for talent make this imperative more urgent than ever before. This Diversity and Inclusion Annual Report is an important step in our journey and reasserts our commitment to these goals. I am proud of the actions we have taken, and I look forward to sharing our progress in future reports. I am confident that we can be part of the solution to create a society that truly provides equal opportunity for all. William M. Brown Chairman and Chief Executive Officer
To attract the best and brightest, we must sustain a culture in which individuals of all backgrounds have an equal opportunity to contribute to the best of their abilities every day.
To hold ourselves accountable, we have set two clear goals: half our workforce will be women and at least a third will be persons of color.
OUR DIVERSITY COUNCIL
OUR CULTURE OF INCLUSION
ABOUT OUR PEOPLE
ABOUT OUR COMPANY
We established L3Harris just over a year ago to create a new company with the size and agility to transform the aerospace and defense industry. And we set the pace for achieving that goal with our new tagline – Fast. Forward. Despite an extraordinarily challenging environment, we have made tremendous progress towards that vision. We are a strong, global company with 48,000 dedicated employees who are passionate about delivering the technical innovation and operational excellence that is crucial to our customers’ missions. Our future success depends on our ability to continue to innovate, imagine, invent and apply new solutions to solve our customers’ most critical challenges. In my experience, innovation often results from the confluence of bright minds bringing new ideas and different perspectives to tough problems. Innovation happens when teams with different reference points – whether education, experience, understanding of the problem, or the ability to connect dots and anticipate trends – come together to reframe problems and create transformational solutions. And that’s the intangible value that diversity and inclusion bring to the workplace. We have seen again and again that when everyone feels welcome to share their thoughts and empowered to do their best work, we thrive and achieve better results. Diversity alone is not enough. We must create an inclusive environment where all voices are heard and everyone is confident in contributing their ideas. Our drive to build a diverse and inclusive workforce goes beyond the financial and technological benefits. We are inspired to create a strong company that our employees, communities, customers, suppliers and investors are proud to be associated with.
L3Harris Technologies is an agile global aerospace and defense technology innovator, delivering end-to-end solutions that meet customers’ mission-critical needs. The company provides advanced defense and commercial technologies across air, land, sea, space and cyber domains.
~48K
~20K
~100
ANNUAL
REVENUE
L3HARRIS
SCIENTISTS
& ENGINEERS
COUNTRIES WITH
CUSTOMERS
SPACE & AIRBORNE SYSTEMS
Leading technology integrator to U.S. and international militaries for complex ISR, airborne, maritime and space platforms.
Mission solutions for space and airborne domains with defense, intelligence and commercial applications.
ISR | Maritime | Electro-Optical
Space | Intel and Cyber | Avionics | Electronic Warfare
Secure ground and airborne communications and network systems for U.S. military, international forces and commercial customers.
Tactical Communications | Broadband Communications | Integrated Vision Solutions | Public Safety
Defense Aviation | Commercial Aviation | Commercial & Military Training | Mission Networks
Commercial and military aviation solutions, systems, networks and pilot training.
OUR VALUES
OUR VALUES IN ACTION
Ethics is an integral part of who we are and what drives our actions every day. Ensuring all employees have access to the appropriate resources and trainings to support them in doing the right thing is essential to maintaining the integrity of our business.
(LEFT - RIGHT) BILL BROWN (CHAIRMAN AND CEO), LEWIS KRAMER (BOARD DIRECTOR), LLOYD W. NEWTON (BOARD DIRECTOR)
ANONYMOUS ETHICS HELPLINE
SUPERVISOR AND MANAGERS
ETHICS ADVISORS AND COMPLIANCE STAFF
FUNCTIONAL SUBJECT MATTER EXPERTS WHO SPECIALIZE IN ETHICS
Our training and learning efforts provide concrete ways for employees to engage in respectful interactions in the workplace and drive a more inclusive culture. Earlier this year, L3Harris deployed Unconscious Bias training to all U.S. employees and hosted senior leader workshops to explore how biases show up in day-to-day decision-making and the impact it can have. Our goal is to help employees at all levels discover conscious techniques to remove any biases from decisions to create a more productive workplace. L3Harris also rolled out Front Line Leader training with a module focused on Inclusion.
INCLUSIVE LEARNING
UNCONSCIOUS BIAS TRAINING
EXECUTIVE
LEADER AND EMPLOYEE
MONTHLY COMMUNICATIONS
required for all U.S. employees in 2020
workshops
resources and trainings
campaigns
EMPLOYEE EXPERIENCE
Delivering a rewarding employee experience is important to us. Our employees are united in their dedication to our customers’ missions and desire for professional growth. We are proud to offer current and prospective employees a work environment that is designed to empower people and promote success in work and life.
HIGH-TECH
HIGH-PERFORMANCE
HIGH-ENERGY
HIGH-RETURN
L3Harris competes at the leading edge by investing nearly 4% of its revenue in internal research and development. We embrace open architecture and software defined systems to rapidly field and test mission-critical solutions. We have earned more than 3,000 patents, deliver 15 million lines of code annually, and our engineers and scientists push boundaries through more than 100 innovation projects each year.
From ocean to orbit, our work plays a critical role in national security, civil service and transportation safety. With more than 800 years of on-orbit operations, air traffic modernization solutions that have reduced communications-related air traffic delays by 99%, and more than 300 autonomous unmanned undersea vehicles supporting search and response missions – we strive for excellence in every domain.
L3Harris has a suite of total rewards uniquely designed to support our employees’ work-life balance and development through different stages of their careers, such as paid parental leave, educational assistance, back-up care, discretionary paid time off and dress for your day.
L3Harris cultivates an inclusive culture that values diversity of thought and drives impactful support to the communities in which we work and live through Employee Resource Groups, employee and leader training, and listening sessions.
*Includes or reflects non–GAAP financial measures (NGFMs) and/or pro forma financial measures; refer to disclosures and NGFM reconciliations in “Non-GAAP and Pro Forma Financial Measures” section on pages 5-6.
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L3Harris supports K-12 STEM education through mentorship programs, STEM kits, robotics programs, STEM challenges and innovation games. We have also provided grants to 19 universities, including the University of Puerto Rico at Mayagüez and historically black colleges and universities like Prairie View A&M University in Texas.
Partnerships
Community engagement is at the heart of L3Harris. We are making an impact on the vibrant and diverse communities where we live and work through grants, gift matching, sponsorships and our employee volunteer program, LIFT.
STEM
OUR CORPORATE GIVING FOCUSES ON THREE STRATEGIC AREAS
MISSION-ALIGNED
COMMUNITY
Employee volunteers participate in letter writing campaigns and care kit building for active-duty military, veterans and first responders, and we also support organizations such as the Special Operations Warrior Foundation, the National Organization of Black Law Enforcement Executives and the Iraqi Children’s Foundation.
We actively encourage and support our employees’ engagement in their local communities. Some of our most successful activities have included Pride events, cultural festivals, United Way campaigns, COVID-19 relief efforts and support of organizations leading the fight for social justice.
LIFT is our employee-led volunteer program, currently active in 26 states. As part of the program, employees identify activities aligned with our three strategic giving areas and organize participation with funding from the company. In the past year, L3Harris completed more than 650 projects and registered more than 32,000 volunteer hours as part of LIFT.
L3HARRIS INVESTING FOR TOMORROW (LIFT)
L3Harris provides dollar-for-dollar gift matching in support of causes and organizations that matter most to our employees. In response to COVID-19, we doubled gift matching from April to June to organizations on the frontlines of the pandemic.
GIFT MATCHING
We established L3Harris Cares to help employees in times of financial need following a declared disaster. With the support of the L3Harris Foundation and individual donations from employees, we have been able to provide assistance to colleagues who faced hardships due to hurricanes and as a result of COVID-19.
L3HARRIS CARES
COMMUNITY IMPACT SPOTLIGHT: INROADS
L3Harris is making a commitment to future innovators, scientists and mathematicians with a $2 million investment in INROADS College Links. College Links is an innovative program that seeks to close the knowledge and skills gap that often plagues talented and underserved youth, particularly from racial minority communities.
JAY MALAVE, SVP & CFO WITH FINANCE TEAM MEMBERS
(LEFT - RIGHT) BILL BROWN, CHAIRMAN AND CEO, L3HARRIS AND FOREST HARPER, CEO, INROADS
L3Harris understands that now, more than ever, is a time for us to wrap our arms around our youth. The company’s support will help impact more than 11,000 College Links families over three years.
L3Harris Software Engineer
DEASIA LITTLE
INROADS opened doors for me while giving me the necessary education and tools to succeed. This program molds students into leaders and professionals that we need to make a socioeconomic impact in the future. As an alumna, this gift is greatly appreciated. It will make a huge difference in the lives of many students.
"
Director, Finance Melbourne, Florida
forest harper
INROADS CEO
FOREST HARPER
Information to Shareholders
NON-GAAP AND PRO FORMA FINANCIAL MEASURES
10K
non-gaap and pro forma financial measures
CORPORATE AWARDS
We believe that everyone – regardless of race, gender, belief system, background or identity – should feel empowered, valued and treated fairly. To do this, we hold ourselves and one another accountable, we face our biases, and we take proactive steps to equip our leaders and employees with the tools and training to maintain an inclusive work environment.
Our lived experiences are what make every individual unique. They influence how we think, what we value and how we behave in the workplace. Collectively, the diverse experiences, ideas, perspectives, and backgrounds our employees bring to the company are what drive innovation and excellence – imperatives for remaining an industry leader. So, to us, diversity and inclusion is far more than a business metric. It is a key driver of our business success. When we came together as L3Harris in 2019, we recognized that it was our people who make us an industry leader. We made a commitment to create a company in which everyone could thrive because we know that when our employees are at their best, L3Harris is at its best. We have taken very intentional steps to create an environment in which all of our colleagues feel valued and respected – and where everyone has an equal opportunity to reach their potential while being their true selves at work. These steps drive how we govern our business, make strategic decisions, educate and develop leaders, and engage and empower our employees. Kirsten Wilkers Vice President, Talent & Inclusion
Throughout this report, we highlight some of the actions we are taking to champion diversity and inclusion both within our company and the world around us. While we are pleased with the progress we have made, we continue to set higher goals and expectations for our company because our commitment is not just for a moment. It is what will help us ensure that every employee has a consistently positive experience throughout their career at L3Harris now and in the future.
TOP: (LEFT - RIGHT) BILL BROWN (CHAIRMAN AND CEO), CRYSTAL PECK (SENIOR DIRECTOR, HUMAN RESOURCES), JIM GIRARD (VP AND CHRO). BOTTOM: (LEFT - RIGHT) MICHELE ST. MARY (VP, GENERAL COUNSEL), BYRON GREEN (VP, GLOBAL OPERATIONS).
As a company, we have policies, practices and processes that help drive diversity, equity and inclusion. We are rigorous in tracking and measuring our execution in alignment with our culture of continuous improvement.
HOW WE WORK
Leadership sets the tone that reverberates through the company. Leaders are expected to make decisions and model behaviors to ensure consistent performance. We believe it starts at the top and permeates down into the organization – with every leader at every level.
HOW WE LEAD
Every individual is responsible for aligning with our L3Harris Values, Code of Conduct and Mission. In its simplest form, this means act with integrity, perform with excellence and respect one another at all times and in all interactions.
HOW WE CONDUCT OURSELVES
We are committed to listening, learning and advancing our diversity and inclusion efforts, so we have formed strategic partnerships with a breadth of organizations and thought leaders to benchmark and implement best practices.
PARTNERSHIPS
WOMEN LEADING
EVENTS
Our long-term goal is to achieve gender parity in our global workforce. This requires us to create an inclusive environment in which women see a clear opportunity to further their careers at L3Harris.
(LEFT - RIGHT) L3HARRIS BOARD DIRECTORS SALLIE BAILEY AND RITA LANE
L3HARRIS WOMEN'S LEADERSHIP CONFERENCE
In November 2019, 150 female L3Harris leaders convened in Melbourne, Florida, for the L3Harris Women’s Leadership Conference. The event, themed “Inclusion starts with I,” featured networking events and guest speakers, including L3Harris Directors Sallie Bailey and Rita Lane.
August 2019 | Greenville, Texas November 2019 | Nashville, Tennessee November 2019 | Clifton, New Jersey and Amityville, New York January 2020 | Colorado Springs, Colorado March 2020 | Salt Lake City, Utah October 2020 | Virtual
Why Workshop Time to Get your Defense On! Women’s Networking Event L3Harris Moving Mountains International Women’s Day Event Women’s Tech Conference
We maintain a diverse hiring slate and have put rigor into setting, measuring and reporting progress against our diversity metrics through the highest levels of the organization.
TANIA HANNA (VICE PRESIDENT, GOVERNMENT RELATIONS)
A DIVERSE TALENT PIPELINE
A diverse talent pipeline leads to a diverse workforce. L3Harris is actively creating employment opportunities, and we have partnered with some of the country’s leading professional organizations to attract top talent, particularly in STEM roles.
L3Harris joined female engineers and technologists from around the world at the Anita Borg 2019 Grace Hopper Celebration in Orlando, Florida, and the Society of Women Engineers 2019 Conference in Anaheim, California. At the events, L3Harris engineers met with approximately 500 job candidates and engaged with hundreds of students interested in learning about STEM opportunities with our company.
GRACE HOPPER & SOCIETY OF WOMEN ENGINEERS (SWE)
As a Board of Corporate Affiliates (BCA) member for NSBE, L3Harris leaders attend NSBE events throughout the year to recruit talent at all levels and establish relationships with students early in their careers. We also partner through giving at both a national level and locally through partner universities.
NATIONAL SOCIETY OF BLACK ENGINEERS (NSBE)
EMPLOYEE ENGAGEMENT AND SATISFACTION
Inclusion drives engagement, and we believe it all starts with listening to the diverse perspectives, experiences and feedback from our employees. L3Harris established a listening strategy to help us best understand the total employee experience – both what makes this an excellent place to work as well as areas in which we can improve. Through a series of checkpoints, such as our annual engagement survey, we welcome employees to let us know what truly matters to them, share how our company can consistently provide an excellent experience and suggest ways in which we can improve company-wide and locally. Our listening strategy helps us continuously improve so our employees feel more included and engaged.
New hire survey
Onboarding survey
Engagement survey
Engagement 1:1s
Exit survey
Alumni survey
Listening strategy components we are implementing include the following:
PARENTAL LEAVE
ASSISTANCE PROGRAM
EMPLOYEE RECOGNITION PROGRAM
PAID TIME OFF
PAID
EDUCATIONAL
R.I.S.E.
DISCRETIONARY
FOR YOUR DAY
DRESS
(4 weeks)
L3Harris offers a variety of benefits and resources to help employees reach their personal and professional goals.
BENEFITS
In July 2020, L3Harris launched its Employee Engagement Survey, a checkpoint in our listening strategy. 82% of employees participated, exceeding the benchmark of 75%.
YOUR VOICE MATTERS
SUPPLIER DIVERSITY
Our suppliers gain access to L3Harris resources, which provides a pathway to mature new technologies. L3Harris has successfully collaborated with small businesses on innovation projects that include Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) efforts. The L3Harris SBIR Program website is a place where subcontractors can evaluate Department of Defense (DOD) SBIR topics and express an interest in partnering.
ENABLING SUCCESS
Our diversity and inclusion efforts extend to those we work with as well. L3Harris has a robust and highly successful Supplier Diversity program that provides small businesses and other diverse organizations with maximum opportunies to contribute to high-tech programs that support the warfighter and engage in technological advances in aerospace and defense. Our U.S.-wide Supplier Diversity offices, which ensure small business participation and compliance, have dedicated support teams that facilitate subcontracting opportunities with diverse organizations that will enhance our industrial base. Together, our work positions L3Harris to better meet customer needs and requirements while also providing an avenue for us to foster growth and innovation in small businesses.
During the U.S. Government Fiscal Year 2019, L3Harris awarded 43% of its procurements to Small Businesses on Department of Defense (DoD) programs.
L3Harris is a skilled mentor to suppliers, providing developmental assistance focused on technical and business acumen. We have received three Nunn Perry Awards from the DoD in recognition of our mentoring efforts. The Nunn Perry Mentor-Protégé program encourages large contractors, such as L3Harris, to share their technical expertise and knowledge of government contracting with innovative small businesses. The program’s major goal is to positively impact the growth of the defense industry base through partnerships between small, innovative technology companies and major defense industry contractors.
CREATING MORE OPPORTUNITY
The L3Harris Diversity Council, selected and announced in November 2019, is jointly led by our CEO and vice president of talent and inclusion. It comprises Employee Resource Group (ERG) leadership and executives from across the enterprise. The Diversity Council influences and evaluates the strategies, policies and steps the company takes to advance diversity and inclusion and build a high-performance workforce.
Chair Bill Brown Melbourne, FL
Co-Chair Kirsten Wilkers Melbourne, FL
APEX Mitesh Parikh Rochester, NY
ECP Nicole Whitman Melbourne, FL
HOLA Milena Gordon Melbourne, FL
INTRAPRENEURS Jorge Relea-Gonzalez Melbourne, FL
APEX Larry Lohman Palm Bay, FL
ECP Anthony Nigara Palm Bay, FL
HOLA Dan Watt Salt Lake City, UT
INTRAPRENEURS Kristen Lomastro Londonderry, NH
LEAD Justin Cloud Palm Bay, FL
PRIDE Lelia Jenkins Hendon, VA
SERVE Larry Nace Melbourne, FL
We3 Essie McIntire Salt Lake City, UT
LEAD Bill Wade Arlington, VA
PRIDE Kathy Crandall Melbourne, FL
SERVE Bill Irby Greenville, TX
We3 Stephanie Dickman Rochester, NY
ERG CHAIRS
ERG EXECUTIVE SPONSORS
ERGs are voluntary, employee-led groups that bring together employees with similar values. These high-energy groups are a great way to meet new people, network outside the office, support our communities and foster professional development.
WHAT ARE ERGs?
PROFESSIONAL DEVELOPMENT
COMMUNITY OUTREACH
EMPLOYEE ENGAGEMENT
ERG PILLARS
Built on our Values of Integrity, Excellence and Respect, our ERGs are focused on community outreach, providing professional development opportunities for members and driving employee engagement. Our ERG footprint has continuously grown in our first year as L3Harris, with more than 60 local chapters established and approximately 10,000 members worldwide.
APEX is an ERG that taps into the perspectives of our Asian employees to explore, develop and drive customer engagement and talent retention strategies. The ERG also works in partnership with others to develop cultural competency in all employees.
KEY ACCOMPLISHMENTS & SIGNATURE EVENTS
MITESH PARIKH, CHAIR
Director, Engineering Management Rochester, New York
My goal is to facilitate professional development for all employees and promote employee engagement, professional networking, community outreach and cultural awareness.
I also want to strengthen APEX’s impact on L3Harris’ business success. With recent COVID-19 restrictions, the APEX team looked beyond local sites and successfully engaged employees across all segments by hosting several virtual professional development events and panel discussions, promoting employee engagement and inclusion.
As the executive sponsor for APEX, I know we are making a difference by helping employees be a part of a team that is doing something significant. ERGs create a sense of community, making L3Harris a more enjoyable place to work and allowing individuals to do their best work.
Asian American & Pacific Islander Month events, including Executive leadership presentations Heritage dress contest Origami Peace Crane Making for the Hiroshima Peace Memorial Panel discussions on culture, leadership and inclusivity Opened new chapters in Rochester, New York; Sunrise, Florida; and Clifton, New Jersey Launch of cross-ERG employee survey
SAS Vice President, General Counsel Melbourne, Florida
LARRY LOHMAN, EXECUTIVE SPONSOR
ECP aims to enrich the new hire experience through meaningful connections and impactful professional development. We want to empower early career professionals to feel connected to the company and the community while helping retain and grow future leaders of L3Harris.
I want to achieve additional sites, grow our membership and support engagement and inclusion within L3Harris. The events that we plan to put on this year will help early career individuals grow personally
and professionally. I want to build one big network for all ECP members throughout L3Harris.
Virtual networking events LIFT volunteer events Speaker series featuring senior leaders Launch of cross-ERG employee survey
NICOLE WHITMAN, CHAIR
Vice President, Strategy & Business Development Melbourne, Florida
ANTHONY NIGARA, EXECUTIVE SPONSOR
My goal is to foster an engaging community for our early career talent. Having been with L3Harris my entire career, I want to help our early career professionals on their professional journeys by sharing my experiences while also engaging and learning from our community through our planned events.
HOLA brings Hispanic/Latinx employees together to foster an inclusive environment, support career development and support the L3Harris focus on developing, engaging and retaining a high-performing, diverse workforce and ensuring a culture of inclusion in which all employees can achieve their full potential.
development, serve their communities and build networks with leaders across the organization.
Lunch and Learns Speaker series Skills development and professional growth workshops Virtual volunteering through LIFT Panel discussions Launch of cross-ERG employee survey
Senior Director, Audit Melbourne, Florida
MILENA GORDON, CHAIR
Vice President, Program Management Salt Lake City, Utah
DAN WATT, EXECUTIVE SPONSOR
HOLA provides a great platform for employees to strengthen their connections. It also provides development and engagement opportunities with leaders who are allies and support our efforts to celebrate and promote Latinx and Hispanic heritage. It is important for me to see Latinx and Hispanic employees at all levels of L3Harris, getting opportunities to connect with leaders, receive mentoring and get more engaged with L3Harris as a whole. HOLA is an essential organization to enable that.
As part of HOLA, members are able to engage rather than just participate. They add value beyond their current roles by taking leadership positions within HOLA or participating in activities that are designed to promote growth and
My goals are to establish a strong ERG presence across all four segments, grow employee cognizance of L3Harris capabilities, create novel development and growth opportunities and increase idea contributions.
Intrapreneurs is organized around fostering technology and innovation that helps L3Harris and its employees grow. It connects employees to a vast network of resources, engineers, strategists, business developers and more to help them glean insight into how business decisions are made and support them in bringing their own ideas to life.
Engineering Week Innovation Talk Innovation: Turning Ideas into Solutions with Sprints Monthly technical talks Data Visualization Panel Launch of cross-ERG employee survey
Senior Director, Software Engineering and Image Science Palm Bay, Florida
JORGE RELEA-GONZALEZ, CHAIR
Vice President, Program Manager, Night Vision Goggles Londonderry, New Hampshire
KRISTEN LOMASTRO, EXECUTIVE SPONSOR
Diversity recognizes that every person is unique, given our differing ethnicities, experiences and perspectives. With the ERGs, this uniqueness provides us with the ability to grow and learn from one another from a common point of interest, advocacy and passion.
Working with other employee volunteers, LEAD strives to support the local community through service projects that focus on Science, Technology, Engineering and Math outreach. As chair, one of my most important goals is to establish training and
LEAD seeks to build and foster an environment that champions diversity and global inclusion through recruitment and retention initiatives; professional development, networking and career advancement platforms for its members; and community-focused volunteerism and philanthropy.
CEO and corporate leadership panel on inclusion Launch of cross-ERG employee survey Chat with the Chair Black History Month activities LEAD mentoring program
Director, Project Engineering Palm Bay, Florida
JUSTIN CLOUD, CHAIR
Vice President, Global Trade Compliance Arlington, Virginia
BILL WADE, EXECUTIVE SPONSOR
ERG sponsors are in a unique position to provide direction and remove obstacles so that the members of the group can achieve their goals. This results in meaningful experiences and unique opportunities to engage at a company level and a personal level. For L3Harris, this allows us to tap into the energy and creativity of our employees outside of the normal work channels.
workshops and encourage mentoring initiatives to promote professional development. Within LEAD, my focus is to create individual leadership opportunities, experiences and additional recognition for its members.
((LEFT - RIGHT) BRYANT HENSON (PRESIDENT, MISSION AVIONICS), CHRIS KUBASIK (PRESIDENT AND COO), BYRON GREEN (VICE PRESIDENT, GLOBAL OPERATIONS) AND JUSTIN CLOUD (DIRECTOR, PROJECT ENGINEERING)
I continue to be inspired by the great work our PRIDE ERG has accomplished to ensure L3Harris is a place where all individuals can feel valued, respected and included. Our ERG has made a huge impact on our organization over the years. We have amazing PRIDE
ERG leaders and members who truly embody and embrace a culture whereby we all can do our best work.
The mission of the PRIDE ERG is to promote an inclusive, supportive and safe environment for all employees, regardless of sexual orientation, gender identity or gender expression, in support of L3Harris’ commitment to global inclusion.
Pride month celebration, including flying rainbow flag at different locations, social media presence and weekly events throughout the month L3Harris Pride Ally Day Launch of cross-ERG employee survey
Director, Engineering Management Herndon, Virginia
LELIA JENKINS, CHAIR
General Manager, Mission Networks Managed Services Melbourne, Florida
KATHY CRANDALL, EXECUTIVE SPONSOR
One of our company’s core Values is respect. To live that Value means we must have an inclusive mindset. An inclusive mindset creates an environment where everyone, including our LGBTQ+ coworkers, can be who they are and feel like they belong.
I am so very proud and humbled by the culture we celebrate within L3Harris - one that recognizes, supports and promotes our collective diversity. I am honored to be a part of that and to represent our community of current, former and friends of
first responders and veterans as enterprise chair of the SERVE ERG. It is through this celebration that we become better at who we are, what we stand for and what we do for our communities, our families and our company.
SERVE strives to create an environment that champions, supports and celebrates our veterans and emergency responders. SERVE accomplishes this mission by fostering inclusive networks, creating leadership and development opportunities and giving back to the communities in which we live.
Segment president “Fireside Chat” series Military appreciation month activities Launch of cross-ERG employee survey
Director, Engineering Management Melbourne, Florida
LARRY NACE, CHAIR
President, Reconnaissance Mission Systems Greenville, Texas
BILL IRBY, EXECUTIVE SPONSOR
Along with the other leaders of our company, I embrace the perspectives of all employees and the diverse backgrounds and thoughts of each. In fact, this diversity is critical to driving results. As one of several ERGs, SERVE supports emergency responders and veterans by creating a workplace where they can be their true selves, contribute insights and opinions and lead with authenticity.
Our ERGs bring a sense of unity and belonging. They provide a forum for us to bring our diversity of thought. They allow each of us to share our insights and feedback from our diverse employee population, leading to more engaging policies and
behaviors. When we are engaged, we feel a sense of achievement, loyalty and trust to each other and to our company.
WE3 strives to empower, enhance and encourage women professionals through a network that cultivates future leaders, enriches the capability of our workforce and helps ensure L3Harris’ competitive advantage.
Women’s History Month Virtual Zoom face mask making Virtual weekly coffee dates Virtual WE3 book clubs Virtual lunch & learn series United Way cookbook Leadership / guest speaker events Virtual 5K Development workshop
Director, Field Organizations Salt Lake City, Utah
ESSAAF MCINTIRE, CHAIR
Vice President, Strategy and Business Development Rochester, New York
STEPHANIE DICKMAN, EXECUTIVE SPONSOR
The focus of WE3 is three-fold: to support the development of women throughout their career journeys; to create meaningful engagement opportunities for our workforce; and to develop targeted local projects that give back to the communities where we live – all with the ultimate goal of creating a vibrant, inclusive culture that energizes employees and drives company growth.
