You are given a text that consists of multiple sentences. Your task is to perform abstractive summarization on this text. Use your understanding of the content to express the main ideas and crucial details in a shorter, coherent, and natural sounding text. 
Text: We are executing the integration plan and have exceeded many of our targets despite challenges such as the pandemic.
The high-performance culture and leadership team we've created are set to carry this momentum forward, which is elected in today's results.
We reported a strong second quarter.
Organic revenue was up over 6%, with growth across our key end markets and all four business segments.
Funded book-to-bill was 1.0 for the quarter and 1.05 year-to-date.
Margins increased to 18.6%, resulting in earnings per share of $3.26, up 15%.
We had solid free cash flow of $685 million, which contributed to shareholder returns above $1 billion, including repurchases of $850 million in the quarter and over $1.5 billion year-to-date.
Our first half performance, coupled with our expectations for continued execution in the back half, more than offset the divestiture headwinds and supports another raise to our earnings per share guidance, which Jay will cover.
Execution against our strategic priorities, that are on Slide three, continue to deliver results and create value for the company's stakeholders as we make progress and build momentum with top line opportunities, operational performance, announcing and closing divestitures and delivering on our capital return commitments.
In terms of the top line, we had our best quarter since the start of the pandemic, with progress against our key end market growth objectives, while seeing data points that validate our focused R&D strategy.
Our government businesses were up 6% in the second quarter, driven by double-digit growth internationally.
Our international revenue benefited from increased aircraft ISR and radio sales to regions in the Asia Pacific and Europe.
And on the domestic front, the growth was broad-based with our responsive space and maritime programs as well as land modernization for night vision and SATCOM products leading the way.
Our strategy to deliver end-to-end mission solutions utilizing the capabilities and scale across the broader organization continues to gain momentum.
Our space business strategy is working as we grew 10% in the quarter, capturing classified awards totaling over $300 million for ground and responsive satellite solutions.
These awards are also part of the revenue synergy capture efforts and bring awards to date to over $700 million on a win rate of 70% from our growing $7 billion-plus pipeline.
Turning to our Commercial Aerospace and Public Safety businesses, they were up over 5% in aggregate and were led by our Commercial Aerospace business up double digits off a low base and from strength in product sales.
On the Public Safety side, there was a modest decline, but with sequential improvement and increased bid and proposal activity from a more stable backdrop.
Our solid top line was accompanied by backlog growth as we continue to win strategic programs that includes several prime roles.
Backlog increased 7% organically year-over-year to over $20 billion, with notable award activity across all domains.
On the space side, our revenue synergy awards came from combining electronics and optics capabilities across the company to deliver solutions for an increasingly contested environment.
These are incremental to the pathfinder programs we previously won, which have billions of dollars of potential over time.
Customers are viewing L3Harris as a trusted disruptor.
They see us as a company that understands the complexity of the mission and can offer fresh and creative solutions.
With a three year space pipeline of nearly $20 billion, there's more opportunity for continued growth.
Within the air domain, we strengthened our existing F-35 franchise with initial production awards for the Aircraft Memory System and the Panoramic Cockpit Display Electronic Unit under the TR3 program.
This brings total orders year-to-date on the platform to about $500 million.
We're progressing on all three TR3 systems through integration and qualification this year, and in support of the planned lot 15 cut in of the production hardware.
We are also secured a roughly $100 million IDIQ with SOCOM for infrared EO sensors on rotary platforms furthering our modernization opportunities across L3Harris.
Moving over to the land side.
We signed several key contracts that touch both international and domestic markets.
First, we received a $3.3 billion five year IDIQ for foreign military sales to a range of partner countries from our new broader portfolio of products, including radios and SATCOM terminals.
This replaces our prior five year $1.7 billion contract, which supports and validates the continued modernization across geographies and expands our product scope.
Second, in the U.K., we received a logistic support contract covering legacy Bowman and future Morpheus radios, positioning us well for a $1 billion modernization opportunity in that country.
And third, we won a competitive 10-year IDIQ to supply the U.S. Air Force with our T7 multi-mission robots, further expanding our customer reach.
After launching the T7 with the U.K. a few years back, we're now pursuing other international opportunities in the robotic area.
Within the C domain, our team was successful in extending its leading prime position in undersea sensor systems and warfare training for a range of the U.S. Navy platforms and support of distributed maritime operations.
This undersea warfare training range program, called U.S. litter, has an award value of nearly $400 million and further builds our credibility to pursue additional domestic international opportunities.
In the cyber domain, while limited to what we can say due to the classified nature, our $1 billion Intel & Cyber business received over 250 million in orders for complex mission solutions and specialized communications for both domestic and international markets, leading to another quarter of book-to-bill above 1.0 for this business.
We also had a key award in an adjacent market with our Public Safety business with a 15-year $450 million contract from the state of Florida to upgrade and continue operating its law enforcement system for first responders.
Moving over to the budgets.
While the process is ongoing and we await a fight up, we were pleased with the initial request for the FY 2022 budget as a support stability in the DoD, NASA and FAA spending and is aligned with our capabilities and investment priorities.
For the DoD, it's focused on continuing to revolve around and address near-peer threats through high-value technology, which Congress is revealing.
And when we look at the portfolio and the relevant line items, our programs are well supported.
This builds on the trend we've seen in international markets where there's a broad stability in military spending, including key countries such as the U.K., Australia, Canada, Japan, among others.
We're also seeing growing demand for the type of defensive systems we offer for our alignment with the U.S. export policies to ensure partner security.
Our most significant opportunities remain for ISR aircraft missionization and other upgrades, land force modernization and enhanced maritime systems.
All in all, as we consider the trajectory of our top line over the coming years, we remain confident in our ability to outgrow the budget and deliver reasonable growth through our domestic positioning, revenue synergies and international expansion that drive a large pipeline of opportunities underpinned by our leading R&D investments.
Shifting to operational performance.
We continue to surpass milestones for priority programs.
For example, at SAS, the team completed a successful preliminary design review for an advanced EW solution called Viper Shield that can deliver self-protection capability for Block 70 F-16s.
At IMS, we advanced our unmanned maritime strategy with several customer engagements and demonstrations, highlighting differentiators in predictive autonomy on USVs as well as a submerged Torpedo tube launch and recovery for our small UUVs.
We also successfully completed a prototype demonstration for SOCOM multi-role aircraft in a variety of challenging conditions, while utilizing the breadth of L3Harris offerings.
And financially, we had another quarter of strong margins as the team continues to offset mix impacts from early stage programs with three key initiatives, including program excellence and factory productivity, allowing us to flow through cost synergies totaling an incremental $27 million in the quarter.
In addition, the first half synergy run rate is now $350 million, driven by progress on facilities, consolidation and IT efficiencies.
We see this as the minimum level we'll deliver on this year, up from the $320 million to $350 million range we discussed in April and still a year ahead of schedule.
Any upside from here will be incorporated in our E3 program, with our integration blending into operational excellence initiatives.
On margins for the year, this leaves us at about 18.5% for the top end of the prior guide and a level we'll look to build on in the years ahead.
Next, on capital allocation.
Today, we announced the sale of two small businesses within our Aviation Systems segment for $185 million in cash, and these should close before year-end.
When combined with the roughly $2.5 billion divested under our portfolio shaping initiative, total gross proceeds are set to be $2.7 billion.
We have now divested nearly 10% of our revenues.
And with the completion of a few others in process, our portfolio shaping program announced in 2019 is largely complete.
Proceeds from divestitures, including those from the recently completed military training and combat propulsion businesses, will be part of our capital returns program consistent with our shareholder-friendly capital allocation approach.
Our expectation now is for buybacks to be roughly $3.4 billion this year, up versus our prior guide of $2.3 billion.
When combined with dividends, capital returns will be about $4.2 billion in 2021.
So to wrap up, I'm pleased with the execution against our strategic priorities, confident in our ability to consistently deliver double-digit earnings per share and double-digit free cash flow per share growth, and I'm excited about the next phase for L3Harris.
With that, I'll hand it over to Jay.
First, I'll provide more color on the quarter.
I'll cover also the segment results and finish with our updated outlook.
Starting with the second quarter.
Organic revenue was up 6.2%, with a return to growth in all four segments.
IMS led the way up 12%, followed by a return to growth at AS of 4.7%.
Margins expanded 40 basis points to 18.6%, primarily from E3 productivity, program performance and integration benefits, partially offset by higher R&D.
The sequential decline in margin was also due to timing of R&D as expected.
These drivers, along with our share repurchases, led to earnings per share being up 15% or $0.43 to $3.26, as shown on Slide five.
Of this growth, volume, synergies and operations contributed $0.18, a lower share count contributed another $0.18 and pension, tax and interest accounted for the remaining $0.07.
Free cash flow was $685 million, while working capital days stood at 57 due to receivables timing.
And shareholder returns of over $1 billion were comprised of $850 million in share repurchases and $207 million in dividends.
Of note, our last 12 months of share repurchases have totaled over $3 billion at an average price of $195 per share, well below our current share price.
Now turning to the quarterly segment results on Slide six.
Integrated Mission Systems revenue was up 12%, led by double-digit growth in ISR aircraft missionization on a recently awarded NATO program.
In addition to mid-single-digit growth in Maritime from a ramp on key platforms, including the Virginia-class submarine and constellation class frigate.
This more than offset the low single-digit decline in our Electro Optical business that was due to the timing of WESCAM turret deliveries, which we expect to increase in the back half.
Operating income was up 2%, while margins contracted 150 basis points to 15.3%, reflecting expected mix impacts, including a ramp on growth platforms and programs.
Pointed book-to-bill was 0.81 in the quarter and 1.06 for the first half with strength across the segment.
In Space and Airborne Systems, organic revenue increased 3.2% from our missile defense and other responsive programs, driving 10% growth in space, along with mid-single-digit classified growth in Intel & Cyber.
This strength outweighed the impact from modernization program transitions in our airborne businesses, the F-35 Tech Refresh three program within Mission Avionics and F-16 Viper Shield advanced electronic warfare system.
Operating income was up 7.7%, and margins expanded 90 basis points to 19.7% as operational excellence, including program performance, increased pension income and integration benefits more than offset higher R&D investments.
And funded book-to-bill was over one for both the quarter and first half, driven by space.
Next, Communication Systems' organic revenue was up 3.2% with mid-single-digit growth in Tactical Communications that included international up double digits, driven primarily by modernization demand from Asia Pacific and Europe and an anticipated decline in DoD from last year's second quarter 40%-plus growth.
USD -- U.S. DoD modernization continued to benefit the integrated vision and global communication businesses, leading to high single-digit and double-digit growth, respectively.
Conversely, broadband was down low single digits on lower volume for legacy unmanned platforms due to the transition from permissive to contested operating environments, as expected.
And public safety was down 7% from residual pandemic-related impacts.
Operating income was up 8.3% and margins expanded 170 basis points to 25.5% from higher volume, operational excellence and integration benefits.
And funded book-to-bill in the quarter and first half were about 1.3% and 1.1%, respectively.
Finally, in Aviation Systems, organic revenue increased 4.7%, driven primarily by our commercial aerospace business that was up 20% from recovering training and air transport OEM product sales.
We also saw mid-single-digit growth in Defense Aviation from a ramp on fusing inornate programs and emission networks from higher FAA volume.
Operating income was up 17% and margins expanded 200 basis points to 14.5% from operational excellence, integration benefits and higher volume.
Funded book-to-bill was about 0.9 for the quarter and first half.
Shifting over to our 2021 outlook.
Overall, organic revenue growth is unchanged at 3% to 5%, with our top line trending as expected at 4% for the first half and supported by a 1.05 funded book-to-bill year-to-date.
Our U.S. government businesses are expected to accelerate in the back half, driven by space, tactical communications, integrated vision solutions and classified growth within Intel & Cyber and Defense Aviation.
On the international side, we continue to expect mid-single-digit plus growth for the year as a strong first half, led by aircraft ISR and international tactical radios, moderates.
And lastly, the encouraging results in our commercial businesses in the second quarter build confidence in a flattish outlook for the year, with double-digit growth in the back half.
Consistent with our overall guidance at the consolidated level, we've also maintained our segment sales guide as well.
And as we think about the second half of the year, our key watch items will be the timing of awards, the continued performance of our supply chain and the pace of the commercial recovery.
We have raised our outlook to approximately 18.5%, a 25 basis point increase to the top end of the previous range, due to our strong performance to date and confidence in our ability to execute on cost synergies, E3 and program deliverables.
We do continue to expect margins to move lower in the back half due to higher R&D investment and stronger growth on new earlier-stage programs.
From a segment perspective, we're holding to our prior margin guidance ranges across the board, but we're expecting IMS and SAS to be at the upper end of their ranges, given their strong performance to date and are holding AS and CS steady at their midpoints given divestiture dilution at AS and expected mix pressure at CS.
On EPS, we're raising our full year guide to a range of $12.80 to $13, with the midpoint now toward the upper end of our previous range and reflecting 11% growth from 2020, delivering on our double-digit commitment in spite of dilution from divestitures.
As shown on Slide 11, the increase of $0.05 from the prior midpoint is driven by $0.13 improvement in operations and synergies and $0.19 from a lower share count at 203 million shares, along with a lower tax rate of about 16%, all of which more than offset divested earnings of $0.31.
On a stand-alone basis, we expect about $0.15 of net dilution from divestitures.
Moving to free cash flow.
Our guide of $2.8 billion to $2.9 billion is intact, despite divestiture-related headwinds are roughly $80 million.
It continues to reflect the three day working capital improvement from year-end to around 49 and 50 days.
That's now adjusted for divestitures.
capex is expected to be about $365 million, $10 million lower versus the prior guide due to completed divestitures.
Our guidance also now reflects approximately $3.4 billion in share repurchases, an increase of $1.1 billion from our prior guide to account for net proceeds from recently closed divestitures.
All told, we expect to return about $4.2 billion to shareholders this year.
So let me sum it all up.
We delivered strong performance in the quarter and first half, solid revenue and book-to-bill growth, further expansion of industry-leading margins and consistent cash generation and deployment, all enabling another guide raise as we continue to execute on our strategic priorities and drive double-digit annual growth in earnings and free cash flow per share.

user
q2 revenue $4.7 billion versus refinitiv ibes estimate of $4.63 billion.
qtrly non-gaap earnings per share of $3.26.
sees 2021 non-gaap earnings per share $12.80 - $13.00.
sees 2021 revenue $18.1 billion - $18.5 billion.

assistant