Condensed Consolidating Financial Statements

3 Months Ended

Mar. 31, 2019

Consolidating Financial Statements [Abstract]

Condensed Consolidating Financial Statements

CONDENSED CONSOLIDATING FINANCIAL STATEMENTS

The fixed- and floating-rate notes described in Note I are fully and unconditionally guaranteed on an unsecured, joint and several basis by several of our 100%-owned subsidiaries (the guarantors). The following condensed consolidating financial statements illustrate the composition of the parent, the guarantors on a combined basis (each guarantor together with its majority-owned subsidiaries) and all other subsidiaries on a combined basis.

CONDENSED CONSOLIDATING STATEMENT OF EARNINGS (UNAUDITED)

Three Months Ended March 31, 2019	Parent			Guarantors on a Combined Basis			Other Subsidiaries on a Combined Basis			Consolidating Adjustments			Total Consolidated
Revenue	$	—		$	6,945		$	2,316		$	—		$	9,261
Cost of sales	18			(5,726		)	(1,925		)	—			(7,633		)
G&A	(22		)	(419		)	(173		)	—			(614		)
Operating earnings	(4		)	800			218			—			1,014
Interest, net	(107		)	—			(10		)	—			(117		)
Other, net	(8		)	4			22			—			18
Earnings before income tax	(119		)	804			230			—			915
Provision for income tax, net	31			(155		)	(46		)	—			(170		)
Equity in net earnings of subsidiaries	833			—			—			(833		)	—
Net earnings	$	745		$	649		$	184		$	(833	)	$	745
Comprehensive income	$	840		$	652		$	237		$	(889	)	$	840
Three Months Ended April 1, 2018
Revenue	$	—		$	6,484		$	1,051		$	—		$	7,535
Cost of sales	19			(5,202		)	(807		)	—			(5,990		)
G&A	(13		)	(436		)	(88		)	—			(537		)
Operating earnings	6			846			156			—			1,008
Interest, net	(26		)	—			(1		)	—			(27		)
Other, net	(24		)	1			2			—			(21		)
Earnings before income tax	(44		)	847			157			—			960
Provision for income tax, net	42			(165		)	(38		)	—			(161		)
Equity in net earnings of subsidiaries	801			—			—			(801		)	—
Net earnings	$	799		$	682		$	119		$	(801	)	$	799
Comprehensive income	$	866		$	685		$	137		$	(822	)	$	866

CONDENSED CONSOLIDATING BALANCE SHEET (UNAUDITED)

March 31, 2019	Parent			Guarantors on a Combined Basis			Other Subsidiaries on a Combined Basis			Consolidating Adjustments			Total Consolidated
ASSETS
Current assets:
Cash and equivalents	$	329		$	—		$	344		$	—		$	673
Accounts receivable	—			1,253			2,465			—			3,718
Unbilled receivables	—			2,985			4,382			—			7,367
Inventories	—			6,067			118			—			6,185
Other current assets	(43		)	445			522			—			924
Total current assets	286			10,750			7,831			—			18,867
Noncurrent assets:
Property, plant and equipment (PP&E)	288			7,263			1,594			—			9,145
Accumulated depreciation of PP&E	(85		)	(4,138		)	(868		)	—			(5,091		)
Intangible assets, net	—			241			2,277			—			2,518
Goodwill	—			8,036			11,632			—			19,668
Other assets	207			1,052			1,100			—			2,359
Net investment in subsidiaries	27,050			—			—			(27,050		)	—
Total noncurrent assets	27,460			12,454			15,735			(27,050		)	28,599
Total assets	$	27,746		$	23,204		$	23,566		$	(27,050	)	$	47,466
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Short-term debt and current portion of long-term debt	$	1,863		$	—		$	234		$	—		$	2,097
Customer advances and deposits	—			4,245			2,450			—			6,695
Other current liabilities	691			4,000			1,899			—			6,590
Total current liabilities	2,554			8,245			4,583			—			15,382
Noncurrent liabilities:
Long-term debt	11,405			39			7			—			11,451
Other liabilities	1,553			4,656			2,190			—			8,399
Total noncurrent liabilities	12,958			4,695			2,197			—			19,850
Total shareholders’ equity	12,234			10,264			16,786			(27,050		)	12,234
Total liabilities and shareholders’ equity	$	27,746		$	23,204		$	23,566		$	(27,050	)	$	47,466

CONDENSED CONSOLIDATING BALANCE SHEET

December 31, 2018	Parent			Guarantors on a Combined Basis			Other Subsidiaries on a Combined Basis			Consolidating Adjustments			Total Consolidated
ASSETS
Current assets:
Cash and equivalents	$	460		$	—		$	503		$	—		$	963
Accounts receivable	—			1,171			2,588			—			3,759
Unbilled receivables	—			2,758			3,818			—			6,576
Inventories	—			5,855			122			—			5,977
Other current assets	(45		)	441			518			—			914
Total current assets	415			10,225			7,549			—			18,189
Noncurrent assets:
Property, plant and equipment (PP&E)	273			7,177			1,522			—			8,972
Accumulated depreciation of PP&E	(83		)	(4,071		)	(840		)	—			(4,994		)
Intangible assets, net	—			251			2,334			—			2,585
Goodwill	—			8,031			11,563			—			19,594
Other assets	195			274			593			—			1,062
Net investment in subsidiaries	25,313			—			—			(25,313		)	—
Total noncurrent assets	25,698			11,662			15,172			(25,313		)	27,219
Total assets	$	26,113		$	21,887		$	22,721		$	(25,313	)	$	45,408
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Short-term debt and current portion of long-term debt	$	850		$	—		$	123		$	—		$	973
Customer advances and deposits	—			4,541			2,729			—			7,270
Other current liabilities	552			3,944			2,000			—			6,496
Total current liabilities	1,402			8,485			4,852			—			14,739
Noncurrent liabilities:
Long-term debt	11,398			39			7			—			11,444
Other liabilities	1,581			4,073			1,839			—			7,493
Total noncurrent liabilities	12,979			4,112			1,846			—			18,937
Total shareholders’ equity	11,732			9,290			16,023			(25,313		)	11,732
Total liabilities and shareholders’ equity	$	26,113		$	21,887		$	22,721		$	(25,313	)	$	45,408

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (UNAUDITED)

Three Months Ended March 31, 2019	Parent			Guarantors on a Combined Basis			Other Subsidiaries on a Combined Basis			Consolidating Adjustments		Total Consolidated
Net cash (used) provided by operating activities*	$	59		$	(167	)	$	(687	)	$	—	$	(795	)
Cash flows from investing activities:
Capital expenditures	(20		)	(106		)	(55		)	—		(181		)
Other, net	5			1			(12		)	—		(6		)
Net cash used by investing activities	(15		)	(105		)	(67		)	—		(187		)
Cash flows from financing activities:
Proceeds from commercial paper, net	1,010			—			—			—		1,010
Dividends paid	(268		)	—			—			—		(268		)
Purchases of common stock	(133		)	—			—			—		(133		)
Other, net	(5		)	—			93			—		88
Net cash provided by financing activities	604			—			93			—		697
Net cash used by discontinued operations	(5		)	—			—			—		(5		)
Cash sweep/funding by parent	(774		)	272			502			—		—
Net decrease in cash and equivalents	(131		)	—			(159		)	—		(290		)
Cash and equivalents at beginning of period	460			—			503			—		963
Cash and equivalents at end of period	$	329		$	—		$	344		$	—	$	673
Three Months Ended April 1, 2018
Net cash (used) provided by operating activities*	$	80		$	105		$	(681	)	$	—	$	(496	)
Cash flows from investing activities:
Capital expenditures	(7		)	(86		)	(11		)	—		(104		)
Other, net	1			(2		)	—			—		(1		)
Net cash used by investing activities	(6		)	(88		)	(11		)	—		(105		)
Cash flows from financing activities:
Proceeds from commercial paper, net	2,494			—			—			—		2,494
Purchases of common stock	(267		)	—			—			—		(267		)
Dividends paid	(250		)	—			—			—		(250		)
Other, net	(25		)	—			—			—		(25		)
Net cash provided by financing activities	1,952			—			—			—		1,952
Net cash used by discontinued operations	(2		)	—			—			—		(2		)
Cash sweep/funding by parent	(167		)	(17		)	184			—		—
Net increase in cash and equivalents	1,857			—			(508		)	—		1,349
Cash and equivalents at beginning of period	1,930			—			1,053			—		2,983
Cash and equivalents at end of period	$	3,787		$	—		$	545		$	—	$	4,332

* Continuing operations only.