Company-wide total backlog increased by 4.6% to $34.2 billion, with approximately 45% expected to be recognized by the end of fiscal 2025 and 75% by the end of fiscal 2026. This signals strong future revenue potential and continued demand for L3Harris's products and services.

The company invested $515 million (2% of total revenue) in company-funded R&D focused on technologies that expand capabilities across domains. This demonstrates a commitment to innovation and future growth.

L3Harris made considerable progress with the LHX NeXt initiative, a targeted three-year program designed to enhance organizational agility and performance by leveraging scale and relationships across segments. This program aims to drive operational efficiency and competitiveness.

The inclusion of a full year of AJRD products revenue, rather than a partial year, contributed significantly to the increase in products revenue for fiscal 2024. This indicates successful integration and operational alignment.

LHX NeXt initiative is driving cost savings, contributing to improved operating income in several segments. This reflects management's focus on operational efficiency and cost management.

The company realigned the Electro Optical and Maritime sectors in IMS to better align businesses, splitting Electro Optical into Global Optical Systems and Defense Electronics. This strategic decision is expected to optimize existing capabilities and enhance efficiency.

The company is highly dependent on revenue from U.S. Government customers, primarily defense-related programs with the DoD and other government agencies. A reduction in U.S. Government funding or a change in spending priorities could have an adverse impact.

In fiscal 2024, 73% of revenue was derived from fixed-price contracts, subjecting the company to potential losses from cost overruns or inflation. This risk is heightened in development programs with complex technical requirements.

The company faces the risk of security breaches, whether through cyber-attacks, insider threats, or disruptions to IT networks. A security breach could disrupt operations, result in unauthorized access to sensitive information, and damage the company's reputation.

The company operates in highly competitive markets sensitive to technological advances. Some competitors are larger and can maintain higher R&D expenditures. The market for sales to U.S. Government customers is highly competitive.

The company collaborates with innovative partners, such as Palantir Technologies and Shield Capital, to develop new capabilities to meet customer demands. Such collaboration is required by modern market dynamics.

As a proven alternative to traditional primes and new entrants, the company's flexible business model allows it to operate as either a prime, merchant supplier, or subcontractor, offering both commercial pricing and traditional government acquisition approaches.

The LHX NeXt initiative, designed to enhance organizational agility and performance, is driving operational efficiency and competitiveness for the enterprise. This program is investing in enterprise tools and optimized processes to unlock further margin expansion.

Global supply chains, including L3Harris's, have experienced significant disruption from material availability and supplier performance. These disruptions may lead to untimely delivery or unsatisfactory quality of products and services.

The company's success depends on its skilled workforce. Attracting, developing, motivating, and retaining highly-skilled people is critical to executing strategic priorities.

The company invested $515 million in company-funded R&D focused on technologies that expand capabilities across domains. This demonstrates a commitment to innovation.

The company's businesses are characterized by rapidly changing technologies and evolving industry standards. To remain competitive, the company needs to continue to design, develop, manufacture, assemble, test, market, and support new products and services.

To remain competitive, the company needs to continue to design, develop, manufacture, assemble, test, market and support new products and services, which will require the investment of significant financial resources in new technologies such as AI.

The company's primary capital deployment priorities involve a focus on funding the business, including investing in training, facilities and digital infrastructure, debt repayment and returning cash to shareholders through dividends and share repurchases.

During fiscal 2024, the company repurchased 2.5 million shares of common stock under its share repurchase program for $554 million. At January 3, 2025, the company had a remaining unused authorization under its repurchase program of $3,381 million.

During fiscal 2024, 2023 and 2022, the company paid quarterly per share cash dividends on its common stock of $1.16, $1.14 and $1.12, respectively. The company currently expects to continue paying cash dividends in the near future.

The company prioritizes the safety of its employees through maintaining a proactive safety culture and implementing programs designed to eliminate workplace incidents, risks and hazards.

The company is focused on ensuring it maintains a balanced talent portfolio. Attracting new perspectives, ideas and capabilities, recognizing and rewarding performance, offering professional development and career growth opportunities, and providing an engaging employee experience that retains talent are strategic priorities.

During fiscal 2024, the company updated its environmental sustainability goals: by 2030 it plans to reduce its Scope 1 and Scope 2 greenhouse gas ('GHG') emissions by 60%, water usage by 20%, solid waste by 10% from 2021 levels and source 40% of its electricity from renewable sources.

The macroeconomic environment continues to present challenges, which have impacted the company's business and may continue to impact its future results. The ongoing uncertainty relates to the impacts of inflation, interest rates and ongoing federal deficits.

The company cannot predict the consequences of future geo-political events, but they may adversely affect the markets in which it operates, its ability to insure against risks, its operations or its profitability. Ongoing instability and current conflicts in global markets, including in the Ukraine and Eastern Europe, the Middle East and Asia, and the potential for other conflicts and future terrorist activities and geo-political events throughout the world, including new or increased economic and trade sanctions, including tariffs, have created and may continue to create economic and political uncertainties and impacts.

The company is subject to government investigations, which could have a material adverse effect on its business, financial condition, results of operations, cash flows and equity. U.S. Government contractors are subject to extensive legal and regulatory requirements.