The accompanying Condensed Consolidated Financial Statements include the accounts of L3Harris Technologies, Inc. and its consolidated subsidiaries. As used in these notes to the Condensed Consolidated Financial Statements (these “Notes”), the terms “L3Harris,” “Company,” “we,” “our” and “us” refer to L3Harris Technologies, Inc. and its consolidated subsidiaries. Intercompany transactions and accounts have been eliminated.

The accompanying Condensed Consolidated Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). Accordingly, such interim financial statements do not include all information and footnotes necessary for a complete presentation of financial condition, results of operations, cash flows and equity in conformity with GAAP for annual financial statements and are not necessarily indicative of the results that may be expected for the full fiscal year or any subsequent period.

In the opinion of management, these interim financial statements reflect all adjustments (including normal recurring adjustments) considered necessary for a fair presentation of our financial condition, results of operations, cash flows and equity for the periods presented. The accompanying Condensed Consolidated Financial Statements should be read in conjunction with our Annual Report on Form 10-K for the fiscal year ended January 2, 2026 (our “Fiscal 2025 Form 10-K”). The accompanying Condensed Consolidated Balance Sheet as of January 2, 2026 has been derived from our audited financial statements in Fiscal 2025 Form 10-K.

Our fiscal year is based on a 52- or 53-week period ending on the Friday nearest December 31. The fiscal quarters ended July 3, 2026 (“second quarter 2026”) and June 27, 2025 (“second quarter 2025”) both include thirteen weeks. The year-to-date periods ended July 3, 2026 (“year to date 2026”) and June 27, 2025 (“year to date 2025”) include twenty-six and twenty-five weeks, respectively.

Effective in fiscal 2026, we streamlined our operating segments, which are also our reportable segments or business segments, from four segments to three segments, more closely aligning common capabilities and business models. We report our financial results in the following three reportable segments, consistent with the manner in which our chief operating decision maker manages the business, evaluates performance, and allocates resources:

Information on the reallocation of goodwill in connection with the segment reorganization can be found under the “Reallocation of Goodwill in Segment Reorganization” heading in Note E: Goodwill and Intangible Assets Form 10-Q for first quarter 2026, which is incorporated herein by reference.

The historical results, discussion and presentation of our business segments as set forth in the accompanying Condensed Consolidated Financial Statements and these Notes reflect the impact of these changes for all periods presented in order to present segment information on a comparable basis. There is no impact on our previously reported consolidated statements of operations, balance sheets, statements of cash flows or statements of equity resulting from these changes.

The preparation of financial statements in accordance with GAAP requires us to make estimates and assumptions that affect the amounts reported in the accompanying Condensed Consolidated Financial Statements and these Notes and related disclosures. These estimates and assumptions are based on experience and other information available prior to issuance of the accompanying Condensed Consolidated Financial Statements and these Notes. Materially different results can occur as circumstances change and additional information becomes known.

We hold certain investments in companies that align with our strategic business objectives, including advancing capabilities, market access, and technology development. These investments, consisting of equity method investments and equity interest investments, are included as a component of the “Other non-current assets” line item in our Condensed Consolidated Balance Sheet. See Note 1: Significant Accounting Policies in our Fiscal 2025 Form 10-K for further information on accounting policies for our investments.

Net Investment Gains. We recognized net investment gains of $73 million and $77 million for second quarter and year to date 2026, respectively, and $6 million and $4 million in second quarter and year to date 2025, respectively. The second quarter and year to date 2026 net investment gains primarily reflect changes in observable inputs on some of our equity interest investments and higher equity in net earnings of investees driven by strong performance on some of our equity method investments. These gains are net of $21 million and $23 million in impairment charges for second quarter and year to date 2026, respectively, which reflects our evaluation of the recoverability of the carrying amounts of these assets. Gains and losses, net of impairments, from investments that are operationally aligned with our business segments were $39 million for both second quarter and year to date 2026 and are included as a component of segment operating income. Equity in net earnings of investees that are not aligned with a business segment were $34 million and $38 million for second quarter and year to date, respectively, and are presented within Corporate non‑operating results. Net investment gains are included in the “Non-service FAS pension income and other, net” line item in our Condensed Consolidated Statement of Operations in second quarter and year to date 2026. See Note Q: Business Segment Information in these Notes for further information.

Accounting pronouncements issued during second quarter 2026, but not yet adopted, are under evaluation for their potential impact on our operating results, financial position, or cash flows. For information on accounting pronouncements issued prior to fiscal 2026, see Note 1: Significant Accounting Policies in our Fiscal 2025 Form 10-K.