Condensed Consolidating Financial Statements

6 Months Ended

Jul. 01, 2018

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 July 1, 2018	Parent			Guarantors on a Combined Basis			Other Subsidiaries on a Combined Basis			Consolidating Adjustments			Total Consolidated
Revenue	$	—		$	6,793		$	2,393		$	—		$	9,186
Cost of sales	9			(5,475		)	(2,043		)	—			(7,509		)
G&A	(45		)	(418		)	(126		)	—			(589		)
Operating earnings	(36		)	900			224			—			1,088
Interest, net	(94		)	(1		)	(8		)	—			(103		)
Other, net	(38		)	4			19			—			(15		)
Earnings before income tax	(168		)	903			235			—			970
Provision for income tax, net	43			(178		)	(49		)	—			(184		)
Equity in net earnings of subsidiaries	911			—			—			(911		)	—
Net earnings	$	786		$	725		$	186		$	(911	)	$	786
Comprehensive income	$	619		$	740		$	(41	)	$	(699	)	$	619
Three Months Ended July 2, 2017
Revenue	$	—		$	6,732		$	943		$	—		$	7,675
Cost of sales	14			(5,413		)	(715		)	—			(6,114		)
G&A	(12		)	(406		)	(76		)	—			(494		)
Operating earnings	2			913			152			—			1,067
Interest, net	(23		)	—			(1		)	—			(24		)
Other, net	(15		)	3			1			—			(11		)
Earnings before income tax	(36		)	916			152			—			1,032
Provision for income tax, net	26			(301		)	(8		)	—			(283		)
Equity in net earnings of subsidiaries	759			—			—			(759		)	—
Net earnings	$	749		$	615		$	144		$	(759	)	$	749
Comprehensive income	$	1,089		$	642		$	427		$	(1,069	)	$	1,089

CONDENSED CONSOLIDATING STATEMENT OF EARNINGS (UNAUDITED)



Six Months Ended July 1, 2018	Parent			Guarantors on a Combined Basis			Other Subsidiaries on a Combined Basis			Consolidating Adjustments			Total Consolidated
Revenue	$	—		$	13,277		$	3,444		$	—		$	16,721
Cost of sales	28			(10,677		)	(2,850		)	—			(13,499		)
G&A	(58		)	(854		)	(214		)	—			(1,126		)
Operating earnings	(30		)	1,746			380			—			2,096
Interest, net	(120		)	(1		)	(9		)	—			(130		)
Other, net	(62		)	5			21			—			(36		)
Earnings before income tax	(212		)	1,750			392			—			1,930
Provision for income tax, net	85			(343		)	(87		)	—			(345		)
Equity in net earnings of subsidiaries	1,712			—			—			(1,712		)	—
Net earnings	$	1,585		$	1,407		$	305		$	(1,712	)	$	1,585
Comprehensive income	$	1,485		$	1,425		$	96		$	(1,521	)	$	1,485
Six Months Ended July 2, 2017
Revenue	$	—		$	13,276		$	1,840		$	—		$	15,116
Cost of sales	31			(10,665		)	(1,403		)	—			(12,037		)
G&A	(22		)	(792		)	(152		)	—			(966		)
Operating earnings	9			1,819			285			—			2,113
Interest, net	(47		)	—			(2		)	—			(49		)
Other, net	(30		)	6			2			—			(22		)
Earnings before income tax	(68		)	1,825			285			—			2,042
Provision for income tax, net	93			(594		)	(29		)	—			(530		)
Equity in net earnings of subsidiaries	1,487			—			—			(1,487		)	—
Net earnings	$	1,512		$	1,231		$	256		$	(1,487	)	$	1,512
Comprehensive income	$	1,977		$	1,259		$	634		$	(1,893	)	$	1,977

CONDENSED CONSOLIDATING BALANCE SHEET (UNAUDITED)



July 1, 2018	Parent			Guarantors on a Combined Basis			Other Subsidiaries on a Combined Basis			Consolidating Adjustments			Total Consolidated

ASSETS
Current assets:
Cash and equivalents	$	1,329		$	—		$	533		$	—		$	1,862
Accounts receivable	—			1,118			2,756			—			3,874
Unbilled receivables	—			2,783			4,342			—			7,125
Inventories	—			5,752			138			—			5,890
Other current assets	132			408			536			—			1,076
Total current assets	1,461			10,061			8,305			—			19,827
Noncurrent assets:
Property, plant and equipment (PP&E)	240			6,973			1,875			—			9,088
Accumulated depreciation of PP&E	(79		)	(4,006		)	(824		)	—			(4,909		)
Intangible assets, net	—			272			2,466			—			2,738
Goodwill	—			8,335			11,403			—			19,738
Other assets	246			236			188			—			670
Investment in subsidiaries	56,387			—			—			(56,387		)	—
Total noncurrent assets	56,794			11,810			15,108			(56,387		)	27,325
Total assets	$	58,255		$	21,871		$	23,413		$	(56,387	)	$	47,152

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Short-term debt and current portion of long-term debt	$	2,789		$	1		$	91		$	—		$	2,881
Customer advances and deposits	—			4,395			2,824			—			7,219
Other current liabilities	581			3,550			2,342			—			6,473
Total current liabilities	3,370			7,946			5,257			—			16,573
Noncurrent liabilities:
Long-term debt	11,385			5			7			—			11,397
Other liabilities	2,293			3,197			1,698			—			7,188
Total noncurrent liabilities	13,678			3,202			1,705			—			18,585
Intercompany	29,213			(28,715		)	(498		)	—			—
Shareholders’ equity:
Common stock	482			6			2,126			(2,132		)	482
Other shareholders’ equity	11,512			39,432			14,823			(54,255		)	11,512
Total shareholders’ equity	11,994			39,438			16,949			(56,387		)	11,994
Total liabilities and shareholders’ equity	$	58,255		$	21,871		$	23,413		$	(56,387	)	$	47,152

CONDENSED CONSOLIDATING BALANCE SHEET



December 31, 2017	Parent			Guarantors on a Combined Basis			Other Subsidiaries on a Combined Basis			Consolidating Adjustments			Total Consolidated

ASSETS
Current assets:
Cash and equivalents	$	1,930		$	—		$	1,053		$	—		$	2,983
Accounts receivable	—			1,259			2,358			—			3,617
Unbilled receivables	—			2,547			2,693			—			5,240
Inventories	—			5,216			87			—			5,303
Other current assets	351			461			373			—			1,185
Total current assets	2,281			9,483			6,564			—			18,328
Noncurrent assets:
PP&E	221			6,779			1,237			—			8,237
Accumulated depreciation of PP&E	(75		)	(3,869		)	(776		)	—			(4,720		)
Intangible assets, net	—			287			415			—			702
Goodwill	—			8,320			3,594			—			11,914
Other assets	199			232			154			—			585
Investment in subsidiaries	44,887			—			—			(44,887		)	—
Total noncurrent assets	45,232			11,749			4,624			(44,887		)	16,718
Total assets	$	47,513		$	21,232		$	11,188		$	(44,887	)	$	35,046

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Short-term debt and current portion of long-term debt	$	—		$	1		$	1		$	—		$	2
Customer advances and deposits	—			4,180			2,812			—			6,992
Other current liabilities	561			3,758			1,786			—			6,105
Total current liabilities	561			7,939			4,599			—			13,099
Noncurrent liabilities:
Long-term debt	3,950			21			9			—			3,980
Other liabilities	2,451			3,473			608			—			6,532
Total noncurrent liabilities	6,401			3,494			617			—			10,512
Intercompany	29,116			(28,494		)	(622		)	—			—
Shareholders’ equity:
Common stock	482			6			2,126			(2,132		)	482
Other shareholders’ equity	10,953			38,287			4,468			(42,755		)	10,953
Total shareholders’ equity	11,435			38,293			6,594			(44,887		)	11,435
Total liabilities and shareholders’ equity	$	47,513		$	21,232		$	11,188		$	(44,887	)	$	35,046

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (UNAUDITED)



Six Months Ended July 1, 2018	Parent			Guarantors on a Combined Basis			Other Subsidiaries on a Combined Basis			Consolidating Adjustments		Total Consolidated
Net cash provided by operating activities*	$	41		$	468		$	(218	)	$	—	$	291
Cash flows from investing activities:
Business acquisitions, net of cash acquired	(9,749		)	(74		)	(216		)	—		(10,039		)
Capital expenditures	(22		)	(215		)	(42		)	—		(279		)
Other, net	2			72			—			—		74
Net cash used by investing activities	(9,769		)	(217		)	(258		)	—		(10,244		)
Cash flows from financing activities:
Proceeds from fixed-rate notes	6,461			—			—			—		6,461
Proceeds from commercial paper, net	2,786			—			—			—		2,786
Proceeds from floating-rate notes	1,000			—			—			—		1,000
Dividends paid	(526		)	—			—			—		(526		)
Repayment of CSRA accounts receivable purchase agreement	—			—			(450		)	—		(450		)
Purchases of common stock	(436		)	—			—			—		(436		)
Other, net	(45		)	—			48			—		3
Net cash provided by financing activities	9,240			—			(402		)	—		8,838
Net cash used by discontinued operations	(6		)	—			—			—		(6		)
Cash sweep/funding by parent	(107		)	(251		)	358			—		—
Net decrease in cash and equivalents	(601		)	—			(520		)	—		(1,121		)
Cash and equivalents at beginning of period	1,930			—			1,053			—		2,983
Cash and equivalents at end of period	$	1,329		$	—		$	533		$	—	$	1,862
Six Months Ended July 2, 2017
Net cash provided by operating activities*	$	214		$	847		$	(51	)	$	—	$	1,010
Cash flows from investing activities:
Capital expenditures	(6		)	(114		)	(33		)	—		(153		)
Other, net	1			8			(51		)	—		(42		)
Net cash used by investing activities	(5		)	(106		)	(84		)	—		(195		)
Cash flows from financing activities:
Purchases of common stock	(901		)	—			—			—		(901		)
Dividends paid	(483		)	—			—			—		(483		)
Other, net	21			(1		)	88			—		108
Net cash used by financing activities	(1,363		)	(1		)	88			—		(1,276		)
Net cash used by discontinued operations	(17		)	—			—			—		(17		)
Cash sweep/funding by parent	764			(740		)	(24		)	—		—
Net decrease in cash and equivalents	(407		)	—			(71		)	—		(478		)
Cash and equivalents at beginning of period	1,254			—			1,080			—		2,334
Cash and equivalents at end of period	$	847		$	—		$	1,009		$	—	$	1,856

* Continuing operations only.