Condensed Consolidating Financial Statements

9 Months Ended

Sep. 28, 2014

Consolidating Financial Statements [Abstract]

Condensed Consolidating Financial Statements

CONDENSED CONSOLIDATING FINANCIAL STATEMENTS

The fixed-rate notes described in Note H are fully and unconditionally guaranteed on an unsecured, joint and several basis by certain of our 100-percent-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 STATEMENTS OF EARNINGS (UNAUDITED)



Three Months Ended September 29, 2013	Parent			Guarantors on a Combined Basis			Other Subsidiaries on a Combined Basis			Consolidating Adjustments			Total Consolidated
Revenues	$	—		$	6,925		$	810		$	—		$	7,735
Cost of sales	2			5,629			646			—			6,277
G&A	19			410			68			—			497
Operating earnings	(21		)	886			96			—			961
Interest, net	(23		)	1			—			—			(22		)
Other, net	1			—			3			—			4
Earnings before income tax	(43		)	887			99			—			943
Provision for income tax, net	(15		)	290			16			—			291
Discontinued operations, net of tax	(1		)	—			—			—			(1		)
Equity in net earnings of subsidiaries	680			—			—			(680		)	—
Net earnings	$	651		$	597		$	83		$	(680	)	$	651
Comprehensive income	$	871		$	611		$	236		$	(847	)	$	871
Three Months Ended September 28, 2014
Revenues	$	—		$	6,761		$	990		$	—		$	7,751
Cost of sales	(1		)	5,512			763			—			6,274
G&A	16			397			65			—			478
Operating earnings	(15		)	852			162			—			999
Interest, net	(21		)	(4		)	4			—			(21		)
Other, net	(2		)	2			1			—			1
Earnings before income tax	(38		)	850			167			—			979
Provision for income tax, net	(8		)	268			25			—			285
Discontinued operations, net of tax	2			—			—			—			2
Equity in net earnings of subsidiaries	724			—			—			(724		)	—
Net earnings	$	696		$	582		$	142		$	(724	)	$	696
Comprehensive income	$	463		$	570		$	(120	)	$	(450	)	$	463

CONDENSED CONSOLIDATING STATEMENTS OF EARNINGS (UNAUDITED)



Nine Months Ended September 29, 2013	Parent			Guarantors on a Combined Basis			Other Subsidiaries on a Combined Basis		Consolidating Adjustments			Total Consolidated
Revenues	$	—		$	20,244		$	2,639	$	—		$	22,883
Cost of sales	10			16,454			2,148		—			18,612
G&A	56			1,229			221		—			1,506
Operating earnings	(66		)	2,561			270		—			2,765
Interest, net	(69		)	4			2		—			(63		)
Other, net	—			—			4		—			4
Earnings before income tax	(135		)	2,565			276		—			2,706
Provision for income tax, net	(35		)	804			75		—			844
Discontinued operations, net of tax	—			—			—		—			—
Equity in net earnings of subsidiaries	1,962			—			—		(1,962		)	—
Net earnings	$	1,862		$	1,761		$	201	$	(1,962	)	$	1,862
Comprehensive income	$	1,968		$	1,794		$	95	$	(1,889	)	$	1,968
Nine Months Ended September 28, 2014
Revenues	$	—		$	19,592		$	2,898	$	—		$	22,490
Cost of sales	8			15,943			2,262		—			18,213
G&A	44			1,165			246		—			1,455
Operating earnings	(52		)	2,484			390		—			2,822
Interest, net	(68		)	(4		)	5		—			(67		)
Other, net	(4		)	5			1		—			2
Earnings before income tax	(124		)	2,485			396		—			2,757
Provision for income tax, net	(31		)	788			64		—			821
Discontinued operations, net of tax	(104		)	—			—		—			(104		)
Equity in net earnings of subsidiaries	2,029			—			—		(2,029		)	—
Net earnings	$	1,832		$	1,697		$	332	$	(2,029	)	$	1,832
Comprehensive income	$	1,680		$	1,680		$	86	$	(1,766	)	$	1,680

CONDENSED CONSOLIDATING BALANCE SHEETS (UNAUDITED)



December 31, 2013	Parent			Guarantors on a Combined Basis			Other Subsidiaries on a Combined Basis			Consolidating Adjustments			Total Consolidated
ASSETS
Current assets:
Cash and equivalents	$	4,179		$	—		$	1,122		$	—		$	5,301
Accounts receivable	—			1,451			2,919			—			4,370
Contracts in process	571			3,124			1,085			—			4,780
Inventories
Work in process	—			1,623			10			—			1,633
Raw materials	—			1,172			38			—			1,210
Finished goods	—			24			5			—			29
Pre-owned aircraft	—			18			—			—			18
Other current assets	424			203			194			—			821
Total current assets	5,174			7,615			5,373			—			18,162
Noncurrent assets:
Property, plant and equipment	156			5,827			1,169			—			7,152
Accumulated depreciation of PP&E	(64		)	(3,062		)	(667		)	—			(3,793		)
Intangible assets	—			1,614			968			—			2,582
Accumulated amortization of intangible assets	—			(1,111		)	(427		)	—			(1,538		)
Goodwill	—			8,041			3,891			—			11,932
Other assets	600			483			398			(484		)	997
Investment in subsidiaries	35,071			—			—			(35,071		)	—
Total noncurrent assets	35,763			11,792			5,332			(35,555		)	17,332
Total assets	$	40,937		$	19,407		$	10,705		$	(35,555	)	$	35,494
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Customer advances and deposits	$	—		$	3,493		$	3,091		$	—		$	6,584
Other current liabilities	868			3,644			1,163			—			5,675
Total current liabilities	868			7,137			4,254			—			12,259
Noncurrent liabilities:
Long-term debt	3,883			25			—			—			3,908
Other liabilities	2,333			2,007			486			—			4,826
Total noncurrent liabilities	6,216			2,032			486			—			8,734
Intercompany	19,352			(19,697		)	345			—			—
Shareholders' equity:
Common stock	482			6			3,570			(3,576		)	482
Other shareholders' equity	14,019			29,929			2,050			(31,979		)	14,019
Total shareholders' equity	14,501			29,935			5,620			(35,555		)	14,501
Total liabilities and shareholders' equity	$	40,937		$	19,407		$	10,705		$	(35,555	)	$	35,494

CONDENSED CONSOLIDATING BALANCE SHEETS (UNAUDITED)



September 28, 2014	Parent			Guarantors on a Combined Basis			Other Subsidiaries on a Combined Basis			Consolidating Adjustments			Total Consolidated
ASSETS
Current assets:
Cash and equivalents	$	2,257		$	—		$	2,848		$	—		$	5,105
Accounts receivable	—			1,404			2,777			—			4,181
Contracts in process	516			2,911			1,009			—			4,436
Inventories
Work in process	—			1,832			11			—			1,843
Raw materials	—			1,212			32			—			1,244
Finished goods	—			15			8			—			23
Pre-owned aircraft	—			29			—			—			29
Other current assets	753			394			161			—			1,308
Total current assets	3,526			7,797			6,846			—			18,169
Noncurrent assets:
Property, plant and equipment	209			5,947			1,151			—			7,307
Accumulated depreciation of PP&E	(69		)	(3,228		)	(688		)	—			(3,985		)
Intangible assets	—			1,452			945			—			2,397
Accumulated amortization of intangible assets	—			(1,019		)	(449		)	—			(1,468		)
Goodwill	—			7,991			3,765			—			11,756
Other assets	474			400			337			(76		)	1,135
Investment in subsidiaries	37,270			—			—			(37,270		)	—
Total noncurrent assets	37,884			11,543			5,061			(37,346		)	17,142
Total assets	$	41,410		$	19,340		$	11,907		$	(37,346	)	$	35,311
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Short-term debt	$	500		$	1		$	—		$	—		$	501
Customer advances and deposits	—			3,614			4,376			—			7,990
Other current liabilities	1,268			3,664			1,247			—			6,179
Total current liabilities	1,768			7,279			5,623			—			14,670
Noncurrent liabilities:
Long-term debt	3,386			24			—			—			3,410
Other liabilities	1,797			1,988			436			—			4,221
Total noncurrent liabilities	5,183			2,012			436			—			7,631
Intercompany	21,449			(21,573		)	124			—			—
Shareholders' equity:
Common stock	482			6			2,043			(2,049		)	482
Other shareholders' equity	12,528			31,616			3,681			(35,297		)	12,528
Total shareholders' equity	13,010			31,622			5,724			(37,346		)	13,010
Total liabilities and shareholders' equity	$	41,410		$	19,340		$	11,907		$	(37,346	)	$	35,311

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS (UNAUDITED)



Nine Months Ended September 29, 2013	Parent			Guarantors on a Combined Basis			Other Subsidiaries on a Combined Basis			Consolidating Adjustments		Total Consolidated
Net cash provided by operating activities *	$	(445	)	$	1,983		$	15		$	—	$	1,553
Net cash used by investing activities *	1			(188		)	(25		)	—		(212		)
Cash flows from financing activities:
Purchases of common stock	(696		)	—			—			—		(696		)
Proceeds from option exercises	484			—			—			—		484
Dividends paid	(394		)	—			—			—		(394		)
Other, net	19			—			27			—		46
Net cash used by financing activities *	(587		)	—			27			—		(560		)
Net cash used by discontinued operations	(12		)	—			—			—		(12		)
Cash sweep/funding by parent	1,801			(1,795		)	(6		)	—		—
Net increase in cash and equivalents	758			—			11			—		769
Cash and equivalents at beginning of period	2,300			—			996			—		3,296
Cash and equivalents at end of period	$	3,058		$	—		$	1,007		$	—	$	4,065
Nine Months Ended September 28, 2014
Net cash provided by operating activities *	$	(237	)	$	2,140		$	1,895		$	—	$	3,798
Cash flows from investing activities:
Purchases of held-to-maturity securities	(500		)	—			—			—		(500		)
Capital expenditures	(54		)	(257		)	(26		)	—		(337		)
Other, net	2			19			(10		)	—		11
Net cash used by investing activities *	(552		)	(238		)	(36		)	—		(826		)
Cash flows from financing activities:
Purchases of common stock	(3,117		)	—			—			—		(3,117		)
Dividends paid	(618		)	—			—			—		(618		)
Proceeds from option exercises	475			—			—			—		475
Other, net	66			—			—			—		66
Net cash used by financing activities *	(3,194		)	—			—			—		(3,194		)
Net cash provided by discontinued operations	26			—			—			—		26
Cash sweep/funding by parent	2,035			(1,902		)	(133		)	—		—
Net decrease in cash and equivalents	(1,922		)	—			1,726			—		(196		)
Cash and equivalents at beginning of period	4,179			—			1,122			—		5,301
Cash and equivalents at end of period	$	2,257		$	—		$	2,848		$	—	$	5,105

* Continuing operations only