Condensed Consolidating Financial Statements

6 Months Ended

Jul. 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 July 3, 2016	Parent			Guarantors on a Combined Basis			Other Subsidiaries on a Combined Basis		Consolidating Adjustments			Total Consolidated
Revenue	$	—		$	6,693		$	972	$	—		$	7,665
Cost of sales	(2		)	5,360			751		—			6,109
G&A	9			403			74		—			486
Operating earnings	(7		)	930			147		—			1,070
Interest, net	(23		)	—			—		—			(23		)
Other, net	1			—			—		—			1
Earnings before income tax	(29		)	930			147		—			1,048
Provision for income tax, net	(39		)	300			29		—			290
Equity in net earnings of subsidiaries	748			—			—		(748		)	—
Net earnings	$	758		$	630		$	118	$	(748	)	$	758
Comprehensive income	$	734		$	624		$	70	$	(694	)	$	734
Three Months Ended July 5, 2015
Revenue	$	—		$	6,883		$	999	$	—		$	7,882
Cost of sales	(4		)	5,574			764		—			6,334
G&A	12			381			74		—			467
Operating earnings	(8		)	928			161		—			1,081
Interest, net	(20		)	(2		)	2		—			(20		)
Earnings before income tax	(28		)	926			163		—			1,061
Provision for income tax, net	(16		)	298			27		—			309
Equity in net earnings of subsidiaries	764			—			—		(764		)	—
Net earnings	$	752		$	628		$	136	$	(764	)	$	752
Comprehensive income	$	876		$	631		$	198	$	(829	)	$	876

CONDENSED CONSOLIDATING STATEMENTS OF EARNINGS (UNAUDITED)

Six Months Ended July 3, 2016	Parent			Guarantors on a Combined Basis			Other Subsidiaries on a Combined Basis			Consolidating Adjustments			Total Consolidated
Revenue	$	—		$	13,509		$	1,880		$	—		$	15,389
Cost of sales	2			10,870			1,448			—			12,320
G&A	20			781			145			—			946
Operating earnings	(22		)	1,858			287			—			2,123
Interest, net	(46		)	—			1			—			(45		)
Other, net	10			1			—			—			11
Earnings before income tax	(58		)	1,859			288			—			2,089
Provision for income tax, net	(51		)	597			55			—			601
Discontinued operations	(13		)	—			—			—			(13		)
Equity in net earnings of subsidiaries	1,495			—			—			(1,495		)	—
Net earnings	$	1,475		$	1,262		$	233		$	(1,495	)	$	1,475
Comprehensive income	$	1,796		$	1,257		$	499		$	(1,756	)	$	1,796
Six Months Ended July 5, 2015
Revenue	$	—		$	13,651		$	2,015		$	—		$	15,666
Cost of sales	(3		)	11,036			1,555			—			12,588
G&A	24			797			149			—			970
Operating earnings	(21		)	1,818			311			—			2,108
Interest, net	(43		)	(1		)	3			—			(41		)
Other, net	1			2			—			—			3
Earnings before income tax	(63		)	1,819			314			—			2,070
Provision for income tax, net	(41		)	588			55			—			602
Equity in net earnings of subsidiaries	1,490			—			—			(1,490		)	—
Net earnings	$	1,468		$	1,231		$	259		$	(1,490	)	$	1,468
Comprehensive income	$	1,308		$	1,237		$	(26	)	$	(1,211	)	$	1,308

CONDENSED CONSOLIDATING BALANCE SHEET (UNAUDITED)

July 3, 2016	Parent			Guarantors on a Combined Basis			Other Subsidiaries on a Combined Basis			Consolidating Adjustments			Total Consolidated
ASSETS
Current assets:
Cash and equivalents	$	1,011		$	—		$	888		$	—		$	1,899
Accounts receivable	—			1,248			2,291			—			3,539
Contracts in process	409			3,109			1,478			—			4,996
Inventories
Work in process	—			2,066			13			—			2,079
Raw materials	—			1,298			37			—			1,335
Finished goods	—			21			5			—			26
Pre-owned aircraft	—			80			—			—			80
Other current assets	44			196			192			—			432
Total current assets	1,464			8,018			4,904			—			14,386
Noncurrent assets:
Property, plant and equipment (PP&E)	193			6,420			1,158			—			7,771
Accumulated depreciation of PP&E	(63		)	(3,546		)	(722		)	—			(4,331		)
Intangible assets	—			1,447			929			—			2,376
Accumulated amortization of intangible assets	—			(1,159		)	(484		)	—			(1,643		)
Goodwill	—			8,046			3,526			—			11,572
Other assets	1,236			239			163			—			1,638
Investment in subsidiaries	41,865			—			—			(41,865		)	—
Total noncurrent assets	43,231			11,447			4,570			(41,865		)	17,383
Total assets	$	44,695		$	19,465		$	9,474		$	(41,865	)	$	31,769
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Short-term debt	$	500		$	1		$	36		$	—		$	537
Customer advances and deposits	—			2,748			2,617			—			5,365
Other current liabilities	1,377			3,468			1,388			—			6,233
Total current liabilities	1,877			6,217			4,041			—			12,135
Noncurrent liabilities:
Long-term debt	2,876			23			—			—			2,899
Other liabilities	3,276			1,952			512			—			5,740
Total noncurrent liabilities	6,152			1,975			512			—			8,639
Intercompany	25,671			(24,364		)	(1,307		)	—			—
Shareholders' equity:
Common stock	482			6			2,354			(2,360		)	482
Other shareholders' equity	10,513			35,631			3,874			(39,505		)	10,513
Total shareholders' equity	10,995			35,637			6,228			(41,865		)	10,995
Total liabilities and shareholders' equity	$	44,695		$	19,465		$	9,474		$	(41,865	)	$	31,769

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:
PP&E	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)

Six Months Ended July 3, 2016	Parent			Guarantors on a Combined Basis			Other Subsidiaries on a Combined Basis			Consolidating Adjustments		Total Consolidated
Net cash provided by operating activities*	$	280		$	399		$	194		$	—	$	873
Cash flows from investing activities:
Capital expenditures	(3		)	(111		)	(20		)	—		(134		)
Other, net	1			(15		)	(37		)	—		(51		)
Net cash used by investing activities	(2		)	(126		)	(57		)	—		(185		)
Cash flows from financing activities:
Purchases of common stock	(1,189		)	—			—			—		(1,189		)
Dividends paid	(447		)	—			—			—		(447		)
Proceeds from stock option exercises	92			—			—			—		92
Other, net	(31		)	(1		)	36			—		4
Net cash used by financing activities	(1,575		)	(1		)	36			—		(1,540		)
Net cash used by discontinued operations	(34		)	—			—			—		(34		)
Cash sweep/funding by parent	610			(272		)	(338		)	—		—
Net decrease in cash and equivalents	(721		)	—			(165		)	—		(886		)
Cash and equivalents at beginning of period	1,732			—			1,053			—		2,785
Cash and equivalents at end of period	$	1,011		$	—		$	888		$	—	$	1,899
Six Months Ended July 5, 2015
Net cash provided by operating activities*	$	103		$	1,133		$	197		$	—	$	1,433
Cash flows from investing activities:
Maturities of held-to-maturity securities	500			—			—			—		500
Proceeds from sales of assets	162			97			—			—		259
Capital expenditures	(2		)	(180		)	(8		)	—		(190		)
Other, net	2			(20		)	—			—		(18		)
Net cash provided by investing activities	662			(103		)	(8		)	—		551
Cash flows from financing activities:
Purchases of common stock	(1,565		)	—			—			—		(1,565		)
Repayment of fixed-rate notes	(500		)	—			—			—		(500		)
Dividends paid	(432		)	—			—			—		(432		)
Proceeds from stock option exercises	198			—			—			—		198
Other, net	(28		)	3			—			—		(25		)
Net cash used by financing activities	(2,327		)	3			—			—		(2,324		)
Net cash used by discontinued operations	(16		)	—			—			—		(16		)
Cash sweep/funding by parent	1,338			(1,033		)	(305		)	—		—
Net increase in cash and equivalents	(240		)	—			(116		)	—		(356		)
Cash and equivalents at beginning of period	2,536			—			1,852			—		4,388
Cash and equivalents at end of period	$	2,296		$	—		$	1,736		$	—	$	4,032

* Continuing operations only.