We've revised our organic revenue growth expectations to approximately 2% primarily due to delays for these components weighing on the CS segment.
Absent such delays, we would have comfortably been within our prior 3% to 5% range.
And with our broad and diversified portfolio, along with continued execution elsewhere, especially on the margin front, we've increased our range on earnings per share to $12.85 to $13 per share and still expect to deliver free cash flow per share of around $14, up double-digit on both accounts.
Shifting over to the third quarter, following organic revenue growth of 6% in the second quarter, we saw a decline of 1% due to timing associated with supply chain delays at CS and in ISR aircraft award with IMS. While I'm disappointed by the soft top-line results, I'll note that the order momentum remained strong with a book-to-bill of 1.07 and we delivered record-high margins at 19.6%.
EPS was $3.21, up 13% versus the prior year with solid free cash flow of $673 million, that contributed to shareholder returns of $1.5 billion in the quarter.
In the third quarter, the impact was nearly $100 million or approximately 2 points of revenue.
And in the fourth quarter, our expectation is for the backlog of unfilled orders to grow and all told, we foresee a roughly $250 million to $300 million revenue impact for the year, implying another step down in the fourth quarter.
Having said that, we do not anticipate any impact to our bookings nor our win rate and expect the segment to end the year with a book-to-bill well over 1 time.
Second, in IMS we had a follow-on ISR aircraft order with a NATO customer that booked late in the quarter, causing revenues to slip to Q4 representing roughly a 2.5 point shift between quarters.
Within the space domain, on the classified side, we continued to advance our responsive and exquisite satellite business with several earlier stage awards, both with the Intel community and DoD which have follow-on opportunities of nearly $2 billion.
And on the unclassified side following the Imager award in Q2, NOAA is progressing on the recapitalization of its GOES weather satellite system and awarded us a study contract for a sounder payload as part of a $3 billion opportunity over the next decade.
On the B-52, we received a 10-year $1 billion IDIQ that has the potential to expand our scope on the program to include EW hardware upgrades, such as radar warning receivers, building on our existing software sustainment work.
In addition, on the international front, we were awarded an initial $100 million contract to provide capabilities on 12 multi-mission aircraft to the UAE, with the potential to double these amounts, further demonstrating the breadth of our RSR capabilities that range from turboprops to business jets to larger aircraft.
Under the Army HMS program, we received over $200 million in awards for the Manpack and Leader radios taking a majority share on both products.
These were the first full-rate production award out of a multi-billion dollar IDIQ and represents less than 15% of the acquisition objective pointing to considerable runway ahead.
We also won a majority share on the second program of record for the ENVG-B program with $100 million order setting us up to ramp production on the army's next-generation field-ready Goggle.
Operationally, the team delivered power conversion's fleet hardware as part of the Virginia-class Block 5 upgrade and completed qualifications for a portion of the power distribution system on the Columbia class, advancing the US Navy's top priority.
This program is over $300 million opportunity and strengthens L3Harris's long-standing relationship with Australia.
Finally, we received a strategic award on the revenue synergy front as we signed a $130 million contract with the Mid-East customer to provide modernized software-defined radios through a localized joint venture.
And this customer channel synergy award opens the door to a long-term opportunity for up to 50,000 radios.
When combined with other orders in the quarter, revenue synergy awards to date totaled roughly $900 million on the win rate that remains at 70%.
With a pipeline of over $7 billion, these synergies will be a notable contributor to our top line growth.
These wins supported another strong quarter for a book-to-bill of 1.07 and 1.06 times year-to-date, increasing our organic backlog to $21 billion or up 9% from last year and 4% year-to-date.
All in all, as we consider the trajectory of our top line, we remain confident in our ability to deliver sustainable growth through our domestic positioning, revenue synergies and international expansion that stem from a pipeline of opportunities, well in excess of $100 billion.
Pivoting to margin performance, our team delivered a stellar quarter at 19.6%, the best post merger results and an indication of the company's potential over the next couple of years as we further build a culture of operational excellence.
Our performance was the result of delivering another $15 million of incremental cost synergies and we're well on track to hit our $350 million targets.
We continue to manage our overhead costs and drive our E3 program to more than offsetting supply chain headwinds, due primarily to our year-to-date results, we now see margins for 2021, exceeding our prior expectation of 18.5% by 25 basis points.
We're in augmented reality assembly aid that electronically displays and validates our processes, helps reduce cycle time by 25% and higher first-pass yields by several points.
The other half of our opportunity comes from the engineering excellence and supply chain on the former through the deployment of our digital ecosystem, front-loading our program activities, and enhancing training for our roughly 20,000 engineers and 1500 program managers, we're able to increase commonality and better manage cost and schedule across the company.
On supply chain, the global disruption we've highlighted have been largely contained to about 15% of the company and are temporary in nature.
The focus we've had be it on reducing the number of suppliers or leveraging our roughly $7.5 billion spend as an enterprise remain in place with further opportunities in the years ahead.
Moving over to the portfolio, we put a bow on the post-merger shaping activities in the quarter and closed on the Electron Devices divestiture for $185 million while announcing the sale of two small businesses within AS for a combined $130 million, bringing total gross proceeds since the merger to $2.8 billion.
Our expectation now is for buybacks to be roughly $3.6 billion this year versus our prior $3.4 billion.
When combined with dividends, capital returns will be about $4.5 billion in 2021.
In the quarter organic revenue was down 1% lower than our internal expectations by about 4.5 points from the supply chain delays and ISR aircraft award timing.
IMS and CS were down 3% and 5% respectively, and absent these impacts would have been up closer to the mid-single-digit range for both.
The SAS segment was up 3% and led by strong growth in our responsive Space business, while AS was up 1% including the benefit from recovery in commercial aerospace.
Margins expanded 170 basis points to 19.6% with the most notable drivers being from E3 performance and cost management, which more than offset volume-related supply chain headwinds.
We exceeded our internal expectations by more than 100 basis points from favorable mix related to award timing and strong E3 performance.
These drivers along with our share repurchase activity drove earnings per share up 13% or $0.37 to $3.21 as shown on Slide 5.
Of this growth synergies and operations contributed $0.39, lower share count contributed another $0.20 and pension and tax accounted for the remaining $0.08 then more than offset a $0.14 headwind from divested earnings and a $0.16 headwind from supply chain delays.
Free cash flow was $673 million and we ended the quarter steady with working capital days at 56.
This supported robust shareholder returns of $1.5 billion, comprised of $1.3 billion in share repurchases and $202 million in dividends.
Integrated Mission Systems revenue was down 3% driven by follow on ISR aircraft award timing from the NATO customer that would have contributed 8 points of growth for which revenue has now been booked in October.
Operating income was up 4% and margins expanded 110 basis points to 16.6% from operational excellence, integration benefits and pension.
Funded book-to-bill was 1.04 in the quarter and 1.05 year-to-date with strength across the segment.
In Space and Airborne Systems, revenue increased 3% driven by double-digit growth in space, primarily from our ramping missile defense and other responsive programs.
The space growth was more than offset -- from the production transition -- I'm sorry the Space program more than offset headwinds from the production transition of the F-35 Tech Refresh 3 program within Mission Avionics, as well as program timing and electronic warfare, and Intel & Cyber.
Operating income was up 5% and margins expanded 30 basis points to 18.8% as E3 performance, increased pension income and integration benefits more than offset higher R&D investments and mix impacts from growth programs such as in space.
And funded book to bill was about 1 for the quarter and 1.05 year-to-date, driven by responsive and other space awards.
Next, Communication Systems organic revenue was down 5% due primarily to product delivery delays within tactical communications that stemmed from the global electronic component shortages, creating an approximately 8.0 headwind year-over-year and versus expectations, as well as lower volume for our legacy unmanned platforms in broadband due to the transition from permissive to contested operating environments.
Operating income decreased to 1% and margins expanded 130 basis points to 26.3%.
And funded book-to-bill was above 1.1 for both the quarter and year-to-date from strong product bookings within tactical communications and in Integrated Vision for modernization alongside key state-level awards within public safety.
Finally, in Aviation Systems, organic revenue increased 1%, by our commercial aerospace business that was up over 40% from recovering training and air transport OEM product sales.
Operating income decreased 13% primarily due to divestitures while margins expanded 140 basis points to 14.4% and expense management, the commercial aerospace recovery and integration benefits more than offset divestiture related headwinds.
And funded book-to-bill was 1.1 for the quarter and about 0.9 year-to-date.
Organic revenue is now anticipated to be up about 2% with the different versus our prior guide largely attributable to supply chain delays.
At a segment level, we maintained our sales guides but foresee us, where we now anticipate revenue to be down 2.5% to 4.5% versus our prior range of up 2.5% to 4.5%.
This is largely due to the global supply chain disruptions mainly within tactical communications, that will now be down about 10% versus our prior view of up in the low to mid-single digits.
This implies fourth quarter sales growth will be in the 1% to 2% range for the company, which includes CS down in the mid-teens, and our other segments up in the mid to high single-digits on average.
Turning to margins, we've raised our outlook to 18.75% from 18.5%, due to performance to date E3 progress and favorable mix from award timing.
On earnings per share we are raising the lower end of the prior guide by $0.05 to $12.85 to $13 per share, reflecting 11% growth from 2020 at the midpoint.
As shown on Slide 11, the midpoint is now at $12.93 and $0.55 from improvement in operations and other items, including the release of contingencies, offset additional divested earnings about $0.03 and $0.49 from supply chain delays.
As mentioned previously, we continue to expect about $0.15 of net dilution from divestitures.
Moving to free cash flow, our guide of 2.8% to 2.9% remains intact.
However, due to prior divestiture headwinds and now supply chain delays of over $150 million in the aggregate, we'll likely be toward the lower end.
On working capital, we expect to end the year in the low '50s in terms of days, reflecting a three to five-day sequential improvement in the fourth quarter, and capex is now expected to be around $350 million, about $15 million lower versus the prior expectation primarily from completed divestitures.
Lastly, our guidance now reflects approximately $3.6 billion in share repurchases, an increase of $200 million from our prior guide to account for net proceeds from recently closed divestitures.

Summary:
EPS was $3.21, up 13% versus the prior year with solid free cash flow of $673 million, that contributed to shareholder returns of $1.5 billion in the quarter.
When combined with dividends, capital returns will be about $4.5 billion in 2021.
In the quarter organic revenue was down 1% lower than our internal expectations by about 4.5 points from the supply chain delays and ISR aircraft award timing.
These drivers along with our share repurchase activity drove earnings per share up 13% or $0.37 to $3.21 as shown on Slide 5.
Next, Communication Systems organic revenue was down 5% due primarily to product delivery delays within tactical communications that stemmed from the global electronic component shortages, creating an approximately 8.0 headwind year-over-year and versus expectations, as well as lower volume for our legacy unmanned platforms in broadband due to the transition from permissive to contested operating environments.
At a segment level, we maintained our sales guides but foresee us, where we now anticipate revenue to be down 2.5% to 4.5% versus our prior range of up 2.5% to 4.5%.
On earnings per share we are raising the lower end of the prior guide by $0.05 to $12.85 to $13 per share, reflecting 11% growth from 2020 at the midpoint.