Condensed Consolidating Financial Statements

3 Months Ended

Apr. 03, 2016

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 April 3, 2016	Parent			Guarantors on a Combined Basis		Other Subsidiaries on a Combined Basis			Consolidating Adjustments			Total Consolidated
Revenue	$	—		$	6,816	$	908		$	—		$	7,724
Cost of sales	4			5,510		697			—			6,211
G&A	11			378		71			—			460
Operating earnings	(15		)	928		140			—			1,053
Interest, net	(23		)	—		1			—			(22		)
Other, net	10			—		—			—			10
Earnings before income tax	(28		)	928		141			—			1,041
Provision for income tax, net	(12		)	297		26			—			311
Discontinued operations	(13		)	—		—			—			(13		)
Equity in net earnings of subsidiaries	746			—		—			(746		)	—
Net earnings	$	717		$	631	$	115		$	(746	)	$	717
Comprehensive income	$	1,062		$	632	$	429		$	(1,061	)	$	1,062
Three Months Ended April 5, 2015
Revenue	$	—		$	6,768	$	1,016		$	—		$	7,784
Cost of sales	1			5,462		791			—			6,254
G&A	12			416		75			—			503
Operating earnings	(13		)	890		150			—			1,027
Interest, net	(23		)	1		1			—			(21		)
Other, net	1			2		—			—			3
Earnings before income tax	(35		)	893		151			—			1,009
Provision for income tax, net	(25		)	290		28			—			293
Equity in net earnings of subsidiaries	726			—		—			(726		)	—
Net earnings	$	716		$	603	$	123		$	(726	)	$	716
Comprehensive income	$	432		$	606	$	(224	)	$	(382	)	$	432

CONDENSED CONSOLIDATING BALANCE SHEET (UNAUDITED)

April 3, 2016	Parent			Guarantors on a Combined Basis			Other Subsidiaries on a Combined Basis			Consolidating Adjustments			Total Consolidated
ASSETS
Current assets:
Cash and equivalents	$	986		$	—		$	921		$	—		$	1,907
Accounts receivable	—			1,251			2,403			—			3,654
Contracts in process	467			2,957			1,281			—			4,705
Inventories
Work in process	—			2,040			15			—			2,055
Raw materials	—			1,310			36			—			1,346
Finished goods	—			25			7			—			32
Pre-owned aircraft	—			71			—			—			71
Other current assets	9			200			209			—			418
Total current assets	1,462			7,854			4,872			—			14,188
Noncurrent assets:
Property, plant and equipment	191			6,402			1,156			—			7,749
Accumulated depreciation of PP&E	(61		)	(3,494		)	(717		)	—			(4,272		)
Intangible assets	—			1,446			934			—			2,380
Accumulated amortization of intangible assets	—			(1,142		)	(479		)	—			(1,621		)
Goodwill	—			8,041			3,554			—			11,595
Other assets	1,271			240			172			—			1,683
Investment in subsidiaries	41,439			—			—			(41,439		)	—
Total noncurrent assets	42,840			11,493			4,620			(41,439		)	17,514
Total assets	$	44,302		$	19,347		$	9,492		$	(41,439	)	$	31,702
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Short-term debt	$	500		$	1		$	—		$	—		$	501
Customer advances and deposits	—			2,825			2,735			—			5,560
Other current liabilities	1,504			3,453			1,405			—			6,362
Total current liabilities	2,004			6,279			4,140			—			12,423
Noncurrent liabilities:
Long-term debt	2,874			25			—			—			2,899
Other liabilities	3,343			1,947			508			—			5,798
Total noncurrent liabilities	6,217			1,972			508			—			8,697
Intercompany	25,499			(24,188		)	(1,311		)	—			—
Shareholders' equity:
Common stock	482			6			2,354			(2,360		)	482
Other shareholders' equity	10,100			35,278			3,801			(39,079		)	10,100
Total shareholders' equity	10,582			35,284			6,155			(41,439		)	10,582
Total liabilities and shareholders' equity	$	44,302		$	19,347		$	9,492		$	(41,439	)	$	31,702

CONDENSED CONSOLIDATING BALANCE SHEET

December 31, 2015	Parent			Guarantors on a Combined Basis			Other Subsidiaries on a Combined Basis			Consolidating Adjustments			Total Consolidated
ASSETS
Current assets:
Cash and equivalents	$	1,732		$	—		$	1,053		$	—		$	2,785
Accounts receivable	—			1,181			2,265			—			3,446
Contracts in process	514			2,795			1,048			—			4,357
Inventories
Work in process	—			1,882			7			—			1,889
Raw materials	—			1,344			32			—			1,376
Finished goods	—			23			5			—			28
Pre-owned aircraft	—			73			—			—			73
Other current assets	140			213			264			—			617
Total current assets	2,386			7,511			4,674			—			14,571
Noncurrent assets:
Property, plant and equipment	189			6,386			1,101			—			7,676
Accumulated depreciation of PP&E	(59		)	(3,462		)	(689		)	—			(4,210		)
Intangible assets	—			1,445			909			—			2,354
Accumulated amortization of intangible assets	—			(1,122		)	(469		)	—			(1,591		)
Goodwill	—			8,040			3,403			—			11,443
Other assets	1,379			207			168			—			1,754
Investment in subsidiaries	40,062			—			—			(40,062		)	—
Total noncurrent assets	41,571			11,494			4,423			(40,062		)	17,426
Total assets	$	43,957		$	19,005		$	9,097		$	(40,062	)	$	31,997
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Short-term debt	$	500		$	1		$	—		$	—		$	501
Customer advances and deposits	—			3,038			2,636			—			5,674
Other current liabilities	1,331			3,309			1,630			—			6,270
Total current liabilities	1,831			6,348			4,266			—			12,445
Noncurrent liabilities:
Long-term debt	2,874			24			—			—			2,898
Other liabilities	3,417			2,021			478			—			5,916
Total noncurrent liabilities	6,291			2,045			478			—			8,814
Intercompany	25,097			(23,816		)	(1,281		)	—			—
Shareholders' equity:
Common stock	482			6			2,354			(2,360		)	482
Other shareholders' equity	10,256			34,422			3,280			(37,702		)	10,256
Total shareholders' equity	10,738			34,428			5,634			(40,062		)	10,738
Total liabilities and shareholders' equity	$	43,957		$	19,005		$	9,097		$	(40,062	)	$	31,997

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS (UNAUDITED)

Three Months Ended April 3, 2016	Parent			Guarantors on a Combined Basis			Other Subsidiaries on a Combined Basis			Consolidating Adjustments		Total Consolidated
Net cash provided by operating activities*	$	61		$	314		$	64		$	—	$	439
Cash flows from investing activities:
Capital expenditures	(1		)	(58		)	(6		)	—		(65		)
Other, net	6			(21		)	(38		)	—		(53		)
Net cash used by investing activities	5			(79		)	(44		)	—		(118		)
Cash flows from financing activities:
Purchases of common stock	(1,026		)	—			—			—		(1,026		)
Dividends paid	(215		)	—			—			—		(215		)
Proceeds from stock option exercises	33			—			—			—		33
Other, net	15			—			—			—		15
Net cash used by financing activities	(1,193		)	—			—			—		(1,193		)
Net cash used by discontinued operations	(6		)	—			—			—		(6		)
Cash sweep/funding by parent	387			(235		)	(152		)	—		—
Net decrease in cash and equivalents	(746		)	—			(132		)	—		(878		)
Cash and equivalents at beginning of period	1,732			—			1,053			—		2,785
Cash and equivalents at end of period	$	986		$	—		$	921		$	—	$	1,907
Three Months Ended April 5, 2015
Net cash provided by operating activities*	$	(101	)	$	760		$	86		$	—	$	745
Cash flows from investing activities:
Maturities of held-to-maturity securities	500			—			—			—		500
Capital expenditures	(2		)	(89		)	(7		)	—		(98		)
Other, net	1			93			—			—		94
Net cash provided by investing activities	499			4			(7		)	—		496
Cash flows from financing activities:
Purchases of common stock	(620		)	—			—			—		(620		)
Repayment of fixed-rate notes	(500		)	—			—			—		(500		)
Dividends paid	(206		)	—			—			—		(206		)
Proceeds from stock option exercises	87			—			—			—		87
Other, net	30			—			—			—		30
Net cash used by financing activities	(1,209		)	—			—			—		(1,209		)
Net cash used by discontinued operations	(8		)	—			—			—		(8		)
Cash sweep/funding by parent	882			(764		)	(118		)	—		—
Net increase in cash and equivalents	63			—			(39		)	—		24
Cash and equivalents at beginning of period	2,536			—			1,852			—		4,388
Cash and equivalents at end of period	$	2,599		$	—		$	1,813		$	—	$	4,412

* Continuing operations only.