Condensed Consolidating Financial Statements

6 Months Ended

Jun. 29, 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 June 30, 2013	Parent			Guarantors on a Combined Basis		Other Subsidiaries on a Combined Basis			Consolidating Adjustments			Total Consolidated
Revenues	$	—		$	6,932	$	902		$	—		$	7,834
Cost of sales	3			5,604		752			—			6,359
G&A	19			411		84			—			514
Operating earnings	(22		)	917		66			—			961
Interest, net	(23		)	5		—			—			(18		)
Other, net	(1		)	—		1			—			—
Earnings before income taxes	(46		)	922		67			—			943
Provision for income taxes	(11		)	283		31			—			303
Equity in net earnings of subsidiaries	675			—		—			(675		)	—
Net earnings	$	640		$	639	$	36		$	(675	)	$	640
Comprehensive income	$	645		$	637	$	(20	)	$	(617	)	$	645
Three Months Ended June 29, 2014
Revenues	$	—		$	6,437	$	1,037		$	—		$	7,474
Cost of sales	3			5,231		805			—			6,039
G&A	14			401		71			—			486
Operating earnings	(17		)	805		161			—			949
Interest, net	(25		)	—		1			—			(24		)
Other, net	(2		)	4		(2		)	—			—
Earnings before income taxes	(44		)	809		160			—			925
Provision for income taxes	(14		)	270		23			—			279
Discontinued operations, net of taxes	(105		)	—		—			—			(105		)
Equity in net earnings of subsidiaries	676			—		—			(676		)	—
Net earnings	$	541		$	539	$	137		$	(676	)	$	541
Comprehensive income	$	640		$	540	$	200		$	(740	)	$	640

CONDENSED CONSOLIDATING STATEMENTS OF EARNINGS (UNAUDITED)

Six Months Ended June 30, 2013	Parent			Guarantors on a Combined Basis		Other Subsidiaries on a Combined Basis			Consolidating Adjustments			Total Consolidated
Revenues	$	—		$	13,320	$	1,828		$	—		$	15,148
Cost of sales	6			10,830		1,499			—			12,335
G&A	39			816		154			—			1,009
Operating earnings	(45		)	1,674		175			—			1,804
Interest, net	(46		)	4		1			—			(41		)
Other, net	(1		)	1		—			—			—
Earnings before income taxes	(92		)	1,679		176			—			1,763
Provision for income taxes	(20		)	513		60			—			553
Discontinued operations, net of tax	1			—		—						1
Equity in net earnings of subsidiaries	1,282			—		—			(1,282		)	—
Net earnings	$	1,211		$	1,166	$	116		$	(1,282	)	$	1,211
Comprehensive income	$	1,097		$	1,185	$	(143	)	$	(1,042	)	$	1,097
Six Months Ended June 29, 2014
Revenues	$	—		$	12,830	$	1,909		$	—		$	14,739
Cost of sales	9			10,429		1,501			—			11,939
G&A	28			769		180			—			977
Operating earnings	(37		)	1,632		228			—			1,823
Interest, net	(47		)	—		1			—			(46		)
Other, net	(2		)	4		(1		)	—			1
Earnings before income taxes	(86		)	1,636		228			—			1,778
Provision for income taxes	(23		)	520		39			—			536
Discontinued operations, net of taxes	(106		)	—		—			—			(106		)
Equity in net earnings of subsidiaries	1,305			—		—			(1,305		)	—
Net earnings	$	1,136		$	1,116	$	189		$	(1,305	)	$	1,136
Comprehensive income	$	1,217		$	1,111	$	205		$	(1,316	)	$	1,217

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)

June 29, 2014	Parent			Guarantors on a Combined Basis			Other Subsidiaries on a Combined Basis			Consolidating Adjustments			Total Consolidated
ASSETS
Current assets:
Cash and equivalents	$	2,882		$	—		$	959		$	—		$	3,841
Accounts receivable	—			1,340			3,134			—			4,474
Contracts in process	524			2,974			1,436			—			4,934
Inventories
Work in process	—			1,895			11			—			1,906
Raw materials	—			1,148			33			—			1,181
Finished goods	—			17			9			—			26
Pre-owned aircraft	—			45			—			—			45
Other current assets	262			304			210			—			776
Total current assets	3,668			7,723			5,792			—			17,183
Noncurrent assets:
Property, plant and equipment	155			5,944			1,184			—			7,283
Accumulated depreciation of PP&E	(67		)	(3,196		)	(693		)	—			(3,956		)
Intangible assets	—			1,451			968			—			2,419
Accumulated amortization of intangible assets	—			(995		)	(441		)	—			(1,436		)
Goodwill	—			7,992			3,935			—			11,927
Other assets	533			400			330			(351		)	912
Investment in subsidiaries	36,489			—			—			(36,489		)	—
Total noncurrent assets	37,110			11,596			5,283			(36,840		)	17,149
Total assets	$	40,778		$	19,319		$	11,075		$	(36,840	)	$	34,332
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Short-term debt	$	500		$	1		$	—		$	—		$	501
Customer advances and deposits	—			3,503			3,191			—			6,694
Other current liabilities	1,090			3,559			1,378			—			6,027
Total current liabilities	1,590			7,063			4,569			—			13,222
Noncurrent liabilities:
Long-term debt	3,385			24			—			—			3,409
Other liabilities	2,122			2,027			433			—			4,582
Total noncurrent liabilities	5,507			2,051			433			—			7,991
Intercompany	20,562			(20,761		)	199			—			—
Shareholders' equity:
Common stock	482			6			2,043			(2,049		)	482
Other shareholders' equity	12,637			30,960			3,831			(34,791		)	12,637
Total shareholders' equity	13,119			30,966			5,874			(36,840		)	13,119
Total liabilities and shareholders' equity	$	40,778		$	19,319		$	11,075		$	(36,840	)	$	34,332

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS (UNAUDITED)

Six Months Ended June 30, 2013	Parent			Guarantors on a Combined Basis			Other Subsidiaries on a Combined Basis			Consolidating Adjustments		Total Consolidated
Net cash provided by operating activities *	$	(36	)	$	1,182		$	(59	)	$	—	$	1,087
Net cash used by investing activities *	2			(147		)	(16		)	—		(161		)
Cash flows from financing activities:
Purchases of common stock	(485		)	—			—			—		(485		)
Other, net	30			—			—			—		30
Net cash used by financing activities *	(455		)	—			—			—		(455		)
Net cash used by discontinued operations	(10		)	—			—			—		(10		)
Cash sweep/funding by parent	943			(1,035		)	92			—		—
Net increase in cash and equivalents	444			—			17			—		461
Cash and equivalents at beginning of period	2,300			—			996			—		3,296
Cash and equivalents at end of period	$	2,744		$	—		$	1,013		$	—	$	3,757
Six Months Ended June 29, 2014
Net cash provided by operating activities *	$	187		$	1,197		$	(90	)	$	—	$	1,294
Net cash used by investing activities *	1			(132		)	(14		)	—		(145		)
Cash flows from financing activities:
Purchases of common stock	(2,691		)	—			—			—		(2,691		)
Proceeds from option exercises	415			—			—			—		415
Dividends paid	(411		)	—			—			—		(411		)
Other, net	54			—			—			—		54
Net cash used by financing activities *	(2,633		)	—			—			—		(2,633		)
Net cash provided by discontinued operations	24			—			—			—		24
Cash sweep/funding by parent	1,124			(1,065		)	(59		)	—		—
Net decrease in cash and equivalents	(1,297		)	—			(163		)	—		(1,460		)
Cash and equivalents at beginning of period	4,179			—			1,122			—		5,301
Cash and equivalents at end of period	$	2,882		$	—		$	959		$	—	$	3,841

* Continuing operations only