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Will
there be changes to the L3 Master Savings Plan (MSP) and the ACSS 401(k) Plan?
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Your 401(k) match and plan administration at Fidelity will remain in place through calendar year 2019. As the integration process moves forward, we will partner with
Harris to determine how to harmonize 401(k) plans at the combined company, and will communicate with everyone at that time.
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Will
I be able to move my 401(k) plan balance to another qualified retirement account, such as an IRA, as a result of the proposed merger?
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No. Your 401(k) balance will continue to be governed by the terms and conditions of the plan.
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I am
currently employed by L3 but was formerly employed by Harris. Following the proposed merger closing, will my former Harris service be counted as service?
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Service recognition is one of the many integration-related items that will require careful thought. We do not have answers just yet, but will share more information on
this and other integration considerations as soon as possible.
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With
the larger employee base, do you expect the merger to reduce the cost of benefits to employees?
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As the integration process moves forward, we will assess whether cost saving opportunities exist. Some benefits, such as healthcare and pharmacy expenses, are already
largely self-insured by L3 and Harris—our companies pay for the full costs of the programs themselves, supplemented with employee premiums, co-payments and co-insurance – with costs primarily dictated by employee utilization. Other
benefits, such as disability, life and accident coverage, and voluntary benefits (identify theft protection, group legal plan, hospital indemnity insurance, etc.) are provided by third parties and may be more efficiently purchased by
the larger combined company.
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Once the transaction closes, the balances held in the L3 Stock Fund in the L3 Master Savings Plan (MSP) and the ACSS 401(k) savings plan will convert to the new L3
Harris Technologies Stock Fund. The conversion ratio will be 1.3 shares of L3 Harris stock for every one share of L3 stock.
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It is important to note that while the conversion ratio will be the same, the L3 Stock Fund in the 401(k) savings plans is currently recorded as units, not shares
of L3 Stock.
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A prospectus for the new L3 Harris Stock Fund will be distributed to all MSP and ACSS 401(k) plan participants as soon as administratively possible following the
anticipated closing of the merger in mid-2019.
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Earlier this year, a communication was distributed to employees participating in a non-bargained L3 sponsored pension plan. These changes will continue as planned.
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Participation in the L3 sponsored pension plan for bargained employees will continue according to the terms of the Collective Bargaining Agreement.
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At this point in time, there has been no discussion to further amend or freeze future benefit accruals in the non-bargained pension plans.
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As of now, no decisions have been made, and both businesses will continue to operate as separate entities until the transaction closes.
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Both L3 and Harris currently maintain severance policies and plans for eligible employees and we will partner with Harris on this in the weeks ahead as part of
integration planning.
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We will provide additional details regarding severance eligibility and terms as available.
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Are there any anticipated changes to Management Incentive Bonus (MIB)?
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At this point, we anticipate no changes to MIB in 2019. We will explore harmonization opportunities as part of the merger integration planning efforts.
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Both businesses will continue to operate as separate entities until the close of the transaction and your compensation and benefits will generally remain the same
other than normal changes as part of our annual open enrollment and annual merit cycle. The integration team will examine various disparate benefit programs and make recommendations on opportunities to ensure employees continue
to have competitive salaries and high-quality benefits. We are committed to communicating in a timely and transparent manner as we move forward and decisions are made.
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Until the merger closes, which is expected in mid-2019, your health plan and other benefits will generally remain the same, subject to routine updates as part of
our annual benefit review.
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We are not planning any material changes to L3 employee health plan benefits at this time, and employees should continue to follow normal enrollment procedures.
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If there is migration to the other party’s plans after the merger closes, both L3 and Harris have generally agreed to give the other party’s employees service
credit for eligibility, vesting and accrual purposes (except for benefit accruals under pension plans).
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Can I begin applying for Harris jobs now? Are there any hiring restrictions between now and close?
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L3 and Harris remain separate, independent companies, and there are no restrictions on you applying for positions with other companies, including Harris, at any
time.
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Once the proposed merger closes, we expect that the larger combined company will offer even more opportunities for career development.
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Does the pending merger prevent me from applying for open internal positions at L3?
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No. It is business as usual.
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Does this merger prevent us from filling open positions we currently have posted at L3?
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No. It is business as usual.
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What should I share about the merger with external parties, including trade show participants, suppliers, candidates and college students who have accepted an offer for positions that begin at a later date?
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Please review the Speaking Points for Suppliers, Candidates and Trade Shows on the L3 Intranet.
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Will there be any changes to our IT or HR systems, workflow tools, etc.?
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It is too soon to know what changes may occur as a result of the harmonization of our IT or HR systems and processes.
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Will there be restructuring resulting in job losses?
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Our Merger of Equals with Harris is a highly-complementary strategic fit with very little program
overlap. Synergies are likely to be concentrated in the supply chain (direct and indirect spend), systems (harmonization and rationalization), benefit vendor consolidation and possible insurance cost reductions due to scale.
There may be restructuring resulting from the consolidation into one operating model, but we are still at the early stages of planning and these actions will take place over time.
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If the merger is approved, what will the organizational structure of the combined enterprise look like?
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It is too soon to say exactly how the combined company will be organized, but the L3-Harris Integration Management Office (IMO) is working on this. We will
communicate with employees as soon as we have more to share.
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Will we combine L3 and Harris facilities in similar locations?
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L3 and Harris have some facilities that are close to each other, and the integration process will include an assessment of opportunities to co-locate employees
where appropriate.
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Once the merger is complete, can I transfer to one of Harris’s facilities?
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It is too soon to answer this question, but we expect that the larger combined company will offer even more opportunities for career development. If you are
interested in transferring to a new role or location, you can speak with your manager or HR Business Partner after the close of the transaction.
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Will 9/80 work schedules remain in place at locations that have them now?
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While it is too early to know, we do not anticipate that current work schedules will materially change. However, we will consider business needs, for example with
co-located facilities. If any changes are made, we will notify employees in advance.
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Will L3 and Harris harmonize systems and processes?
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Both companies share a philosophy of reducing complexity as well as simplifying and harmonizing systems and processes. We are early in the planning process and
will communicate with everyone as decisions are made.
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We are merging with Harris because we believe, and the Board agrees, this is in the best interests of our employees, customers and our shareholders.
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The combination of L3 and Harris will create the non-traditional 6th Prime that we have been working towards and our customers have been waiting for.
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As a result of the merger, we will greatly accelerate our growth strategy and diversify our capabilities.
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The combined company will have increased scale, while remaining agile, innovative and mission-focused.
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Together we will have over $16 billion in revenue, approximately 48,000 employees and will serve more than 100 countries worldwide.
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Harris is a leading technology innovator, solving customers’ toughest mission-critical challenges by providing solutions that connect, inform and protect.
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Harris has a reputation for quality and integrity, and shares our dedication to innovation. L3 and Harris’ vision, mission and values are closely aligned.
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The company is headquartered in Melbourne, Florida and has approximately 17,000 employees operating across three business segments: Communication Systems,
Electronic Systems, and Space & Intelligence Systems.
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This is an exciting opportunity for employees to become part of a larger, more diversified global technology company serving the defense and commercial aerospace
markets.
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The new company will maintain L3’s entrepreneurial spirit with stronger capabilities and broader scale.
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L3 employees will be part of an even stronger, healthier company with the enhanced resources to support next-gen R&D and better serve our customers.
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Our highly-engaged workforces are critical to the success of L3 and Harris, and will be the foundation of our long-term success as a combined company.
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Our new company will be named L3 Harris Technologies, Inc., and will be a true partnership of two well-respected, technologically advanced and highly innovative
organizations.
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The company will be headquartered in Melbourne, Florida.
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We have taken a very deliberate and thoughtful approach to succession planning.
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Bill Brown, the current President and CEO at Harris, will serve as CEO of the combined company for the first two years after the deal closes, during which time
Chris will serve as President and Chief Operating Officer.
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After the first two years, Chris Kubasik will become President and CEO.
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The company’s 12-member board of directors will be comprised of six representatives from each company’s current board.
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The transaction is expected to close in mid-2019. L3 and Harris will continue to operate as separate companies until the merger closes.
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During this time, it is critical that we all stay focused on our day-to-day responsibilities and serving our customers.
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Chris and Bill will co-head the integration planning process to bring together the best people, capabilities and technologies.
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We will be communicating with everyone in the coming weeks and months as the integration planning process moves forward.
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For legal reasons, we must all be careful not to discuss private or sensitive information with Harris employees during the integration period unless directed to do
so.
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If you have questions about our company policy for interacting with Harris employees during the integration planning process, please refer to the Employee Protocols
& Guidelines checklist available on the L3 Intranet.
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As of now, no decisions have been made and both businesses will continue to operate as separate entities until the close of the transaction.
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As part of the integration review process, we will examine the employee workforce and facilities of both companies to determine where it may be appropriate to
consolidate operations.
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We are committed to communicating in a timely and transparent manner as we move forward and decisions are made.
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Over the coming weeks and months as decisions are made, we will communicate openly and transparently along the way.
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For now, we should all remain focused on our day-to-day responsibilities and delivering high quality products and services to customers.
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As of now, nothing changes and both businesses will continue to operate as separate entities until the transaction closes. This includes maintaining current
vacation policies for L3 and Harris.
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For now, nothing will change.
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We encourage all employees to remain focused on delivering the highest quality products and services our customers have come to expect.
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Additional information has been posted on the L3 Intranet, as well as to our corporate
website.
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We have created a transaction microsite to provide additional details and we encourage you to visit the Merger Transaction Website.
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We will keep you informed and provide relevant updates on the L3 Intranet and microsite as developments occur.
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