Condensed Consolidating Financial Statements

12 Months Ended

Dec. 31, 2014

Consolidating Financial Statements [Abstract]

Condensed Consolidating Financial Statements

CONDENSED CONSOLIDATING FINANCIAL STATEMENTS

The fixed-rate notes described in Note J 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 (LOSS)

Year Ended December 31, 2014	Parent			Guarantors on a Combined Basis			Other Subsidiaries on a Combined Basis			Consolidating Adjustments			Total Consolidated
Revenues	$	—		$	26,819		$	4,033		$	—		$	30,852
Cost of sales	9			21,792			3,178			—			24,979
G&A	62			1,633			289			—			1,984
Operating earnings	(71		)	3,394			566			—			3,889
Interest, net	(93		)	—			7			—			(86		)
Other, net	—			(2		)	1			—			(1		)
Earnings before income tax	(164		)	3,392			574			—			3,802
Provision for income tax, net	(54		)	1,099			84			—			1,129
Discontinued operations, net of tax	(140		)	—			—			—			(140		)
Equity in net earnings of subsidiaries	2,783			—			—			(2,783		)	—
Net earnings	$	2,533		$	2,293		$	490		$	(2,783	)	$	2,533
Comprehensive income	$	786		$	2,147		$	(125	)	$	(2,022	)	$	786
Year Ended December 31, 2013	Parent			Guarantors on a Combined Basis			Other Subsidiaries on a Combined Basis			Consolidating Adjustments			Total Consolidated
Revenues	$	—		$	27,272		$	3,658		$	—		$	30,930
Cost of sales	20			22,175			3,007			—			25,202
G&A	74			1,664			301			—			2,039
Operating earnings	(94		)	3,433			350			—			3,689
Interest, net	(93		)	1			6			—			(86		)
Other, net	1			6			1			—			8
Earnings before income tax	(186		)	3,440			357			—			3,611
Provision for income tax, net	(51		)	1,058			118			—			1,125
Discontinued operations, net of tax	(129		)	—			—			—			(129		)
Equity in net earnings of subsidiaries	2,621			—			—			(2,621		)	—
Net earnings	$	2,357		$	2,382		$	239		$	(2,621	)	$	2,357
Comprehensive income	$	3,947		$	2,820		$	196		$	(3,016	)	$	3,947
Year Ended December 31, 2012	Parent			Guarantors on a Combined Basis			Other Subsidiaries on a Combined Basis			Consolidating Adjustments			Total Consolidated
Revenues	$	—		$	26,349		$	4,643		$	—		$	30,992
Cost of sales	(19		)	23,614			4,411			—			28,006
G&A	88			1,618			515			—			2,221
Operating earnings	(69		)	1,117			(283		)	—			765
Interest, net	(158		)	(3		)	5			—			(156		)
Other, net	(126		)	(4		)	(6		)	—			(136		)
Earnings before income tax	(353		)	1,110			(284		)	—			473
Provision for income tax, net	(133		)	854			133			—			854
Discontinued operations, net of tax	49			—			—			—			49
Equity in net earnings of subsidiaries	(161		)	—			—			161			—
Net loss	$	(332	)	$	256		$	(417	)	$	161		$	(332	)
Comprehensive loss	$	(795	)	$	21		$	(135	)	$	114		$	(795	)

CONDENSED CONSOLIDATING BALANCE SHEETS

December 31, 2014	Parent			Guarantors on a Combined Basis			Other Subsidiaries on a Combined Basis			Consolidating Adjustments			Total Consolidated
ASSETS
Current assets:
Cash and equivalents	$	2,536		$	—		$	1,852		$	—		$	4,388
Accounts receivable	—			1,379			2,671			—			4,050
Contracts in process	542			2,966			1,083			—			4,591
Inventories
Work in process	—			1,818			10			—			1,828
Raw materials	—			1,260			30			—			1,290
Finished goods	—			20			8			—			28
Pre-owned aircraft	—			75			—			—			75
Other current assets	781			215			161			—			1,157
Total current assets	3,859			7,733			5,815			—			17,407
Noncurrent assets:
Property, plant and equipment	148			6,035			1,109			—			7,292
Accumulated depreciation of PP&E	(52		)	(3,246		)	(665		)	—			(3,963		)
Intangible assets	—			1,484			914			—			2,398
Accumulated amortization of intangible assets	—			(1,042		)	(444		)	—			(1,486		)
Goodwill	—			8,095			3,636			—			11,731
Other assets	1,479			213			284			—			1,976
Investment in subsidiaries	37,449			—			—			(37,449		)	—
Total noncurrent assets	39,024			11,539			4,834			(37,449		)	17,948
Total assets	$	42,883		$	19,272		$	10,649		$	(37,449	)	$	35,355
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Short-term debt	$	500		$	1		$	—		$	—		$	501
Customer advances and deposits	—			3,529			3,806			—			7,335
Other current liabilities	1,298			3,511			1,106			—			5,915
Total current liabilities	1,798			7,041			4,912			—			13,751
Noncurrent liabilities:
Long-term debt	3,386			24			—			—			3,410
Other liabilities	3,514			2,369			482			—			6,365
Total noncurrent liabilities	6,900			2,393			482			—			9,775
Intercompany	22,356			(22,557		)	201			—			—
Shareholders’ equity:
Common stock	482			6			2,043			(2,049		)	482
Other shareholders’ equity	11,347			32,389			3,011			(35,400		)	11,347
Total shareholders’ equity	11,829			32,395			5,054			(37,449		)	11,829
Total liabilities and shareholders’ equity	$	42,883		$	19,272		$	10,649		$	(37,449	)	$	35,355

CONDENSED CONSOLIDATING BALANCE SHEETS

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	460			211			326			—			997
Investment in subsidiaries	35,211			—			—			(35,211		)	—
Total noncurrent assets	35,763			11,520			5,260			(35,211		)	17,332
Total assets	$	40,937		$	19,135		$	10,633		$	(35,211	)	$	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			(19,956		)	604			—			—
Shareholders’ equity:
Common stock	482			6			3,570			(3,576		)	482
Other shareholders’ equity	14,019			29,916			1,719			(31,635		)	14,019
Total shareholders’ equity	14,501			29,922			5,289			(35,211		)	14,501
Total liabilities and shareholders’ equity	$	40,937		$	19,135		$	10,633		$	(35,211	)	$	35,494

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

Year Ended December 31, 2014	Parent			Guarantors on a Combined Basis			Other Subsidiaries on a Combined Basis			Consolidating Adjustments		Total Consolidated
Net cash provided by operating activities*	$	(296	)	$	2,798		$	1,226		$	—	$	3,728
Cash flows from investing activities:
Capital expenditures	(71		)	(409		)	(41		)	—		(521		)
Purchases of held-to-maturity securities	(500		)	—			—			—		(500		)
Other, net	3			(74		)	(10		)	—		(81		)
Net cash used by investing activities	(568		)	(483		)	(51		)	—		(1,102		)
Cash flows from financing activities:
Purchases of common stock	(3,382		)	—			—			—		(3,382		)
Dividends paid	(822		)	—			—			—		(822		)
Proceeds from options exercises	547			—			—			—		547
Other, net	83			(1		)	—			—		82
Net cash used by financing activities	(3,574		)	(1		)	—			—		(3,575		)
Net cash provided by discontinued operations	36			—			—			—		36
Cash sweep/funding by parent	2,759			(2,314		)	(445		)	—		—
Net decrease in cash and equivalents	(1,643		)	—			730			—		(913		)
Cash and equivalents at beginning of year	4,179			—			1,122			—		5,301
Cash and equivalents at end of year	$	2,536		$	—		$	1,852		$	—	$	4,388
Year Ended December 31, 2013	Parent			Guarantors on a Combined Basis			Other Subsidiaries on a Combined Basis			Consolidating Adjustments		Total Consolidated
Net cash provided by operating activities*	$	(454	)	$	2,810		$	755		$	—	$	3,111
Cash flows from investing activities:
Capital expenditures	(1		)	(381		)	(54		)	—		(436		)
Other, net	3			59			11			—		73
Net cash used by investing activities	2			(322		)	(43		)	—		(363		)
Cash flows from financing activities:
Purchases of common stock	(740		)	—			—			—		(740		)
Dividends paid	(591		)	—			—			—		(591		)
Proceeds from option exercises	583			—			—			—		583
Other, net	23			—			—			—		23
Net cash used by financing activities	(725		)	—			—			—		(725		)
Net cash used by discontinued operations	(18		)	—			—			—		(18		)
Cash sweep/funding by parent	3,074			(2,488		)	(586		)	—		—
Net increase in cash and equivalents	1,879			—			126			—		2,005
Cash and equivalents at beginning of year	2,300			—			996			—		3,296
Cash and equivalents at end of year	$	4,179		$	—		$	1,122		$	—	$	5,301

* Continuing operations only.

R. CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

Year Ended December 31, 2012	Parent			Guarantors on a Combined Basis			Other Subsidiaries on a Combined Basis			Consolidating Adjustments		Total Consolidated
Net cash provided by operating activities*	$	(541	)	$	2,850		$	297		$	—	$	2,606
Cash flows from investing activities:
Capital expenditures	(2		)	(390		)	(44		)	—		(436		)
Business acquisitions, net of cash acquired	(121		)	(297		)	(26		)	—		(444		)
Other, net	221			(1		)	18			—		238
Net cash used by investing activities	98			(688		)	(52		)	—		(642		)
Cash flows from financing activities:
Repayment of fixed-rate notes	(2,400		)	—			—			—		(2,400		)
Proceeds from fixed-rate notes	2,382			—			—			—		2,382
Dividends paid	(893		)	—			—			—		(893		)
Purchases of common stock	(602		)	—			—			—		(602		)
Other, net	154			(21		)	(2		)	—		131
Net cash used by financing activities	(1,359		)	(21		)	(2		)	—		(1,382		)
Net cash provided by discontinued operations	65			—			—			—		65
Cash sweep/funding by parent	2,465			(2,141		)	(324		)	—		—
Net increase in cash and equivalents	728			—			(81		)	—		647
Cash and equivalents at beginning of period	1,572			—			1,077			—		2,649
Cash and equivalents at end of period	$	2,300		$	—		$	996		$	—	$	3,296

* Continuing operations only.