Jason Merriam's  Instablog

Shares of communications & info technology firm Harris Corp. (HRS) got clobbered almost 8% on Monday.  Investors appear to be expecting less than rosy 4th qtr. numbers when the company reports on Tues. Aug. 12th after the market close.

Their exposure to the military and defense sector may have some on edge, particularly with avionic contracts and the perception these budgets will be slashed.  Mr. Obama himself said there was too much pork in several jet-fighter programs, so expect some fiscal hatchet work in the fluffier projects.  

However, given the world we live in (now), the need for advanced communications technology will always be there.  What makes Harris attractive to us though, is its diversity of businesses and high quality patents and intellectual property assets.

Some say the consulting biz is the only biz (to be in), providing the advice given to clients is appropriate, ethical and legal.  In contrast, anything which rose from the ashes of Arthur Anderson might, to some, have the taint of damaged goods...or, at least be viewed dubiously.
The restatement "bombshell" Huron's management dropped on Monday was a shocker indeed.  In a post Sarbanes-Oxley world, who would have thought accountants-who-provide-expertise-to-other-accountants might be so wrong with their own ledgers?
Granted, the audit committee was right to spill the gruel (better late than never), but why now and where the hell was the board?  More importantly, were there any clues in the financial statements leading up to this fiasco which might have flashed warning flags to investors? 
We don't follow this company, but much of the current hubbub involves the treatment of "misreported" costs related to acquisitions.  With that in mind, let's start with Goodwill.
Goodwill is an intangible asset and subject to annual impairment testing.   Determining the value of goodwill is hazy at best, when you consider it's inclusive to patents, brand names, etc. above and beyond book value.  Thus, consider goodwill as the cost of an investment in excess of book value.