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| HRS > SEC Filings for HRS > Form 8-K on 7-Jan-2009 | All Recent SEC Filings |
7-Jan-2009
Material Impairments
On January 7, 2009, Harris Stratex Networks, Inc. ("Harris Stratex Networks"), a majority-owned subsidiary of Harris Corporation ("Harris" or the "Company"), determined that based on the current global economic environment and the decline of the market capitalization of Harris Stratex Networks, it is likely that the fair value of one or more of Harris Stratex Networks' reporting units has been reduced below its carrying value. As a result, Harris Stratex Networks has commenced an interim review of goodwill and other indefinite-lived assets for impairment and expects to record a non-cash charge to write down a significant portion of these assets as of the end of its fiscal quarter ended January 2, 2009. The balance of goodwill and other indefinite-lived intangible assets reflected on the balance sheet of Harris Stratex Networks as of September 28, 2008 was $316 million, and relates primarily to the goodwill recorded in connection with the combination of Stratex Networks, Inc. and the Microwave Communications Division of the Company in January 2007.
Though the goodwill impairment testing is not yet completed, it is the view of Harris Stratex Networks' management that a significant portion of the $316 million of goodwill and other indefinite-lived assets on Harris Stratex Networks' balance sheet will be impaired as of the end of its fiscal quarter ended January 2, 2009. The Company has also commenced an interim impairment review of the goodwill and other indefinite-lived assets of its Harris Stratex Networks segment and concurs with the preliminary findings of Harris Stratex Networks.
As of the time of this filing, the impairment review has not been completed, and therefore the Company is unable in good faith to make a determination of an estimate of the amount or range of amounts of the impairment charge. The Company will disclose such an estimate in a future filing with the Securities and Exchange Commission. Such impairment of goodwill and other indefinite-lived assets of the Company's Harris Stratex Networks segment will be included in the Company's consolidated financial results as of and for the fiscal quarter ended January 2, 2009, with an elimination of the minority interest. Neither the Company nor Harris Stratex Networks will be required to make any current or future cash expenditures as a result of these impairments.
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