Condensed Consolidating Financial Statements

9 Months Ended

Oct. 02, 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 several 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 October 2, 2016	Parent			Guarantors on a Combined Basis			Other Subsidiaries on a Combined Basis			Consolidating Adjustments			Total Consolidated
Revenue	$	—		$	6,782		$	949		$	—		$	7,731
Cost of sales	(2		)	5,479			714			—			6,191
G&A	10			381			80			—			471
Operating earnings	(8		)	922			155			—			1,069
Interest, net	(23		)	(1		)	1			—			(23		)
Other, net	1			(4		)	5			—			2
Earnings before income tax	(30		)	917			161			—			1,048
Provision for income tax, net	(42		)	306			17			—			281
Discontinued operations, net of tax	(84		)	—			—			—			(84		)
Equity in net earnings of subsidiaries	755			—			—			(755		)	—
Net earnings	$	683		$	611		$	144		$	(755	)	$	683
Comprehensive income	$	757		$	608		$	175		$	(783	)	$	757
Three Months Ended October 4, 2015
Revenue	$	—		$	7,037		$	957		$	—		$	7,994
Cost of sales	1			5,729			754			—			6,484
G&A	9			399			68			—			476
Operating earnings	(10		)	909			135			—			1,034
Interest, net	(23		)	(1		)	1			—			(23		)
Other, net	2			—			—			—			2
Earnings before income tax	(31		)	908			136			—			1,013
Provision for income tax, net	(47		)	296			31			—			280
Equity in net earnings of subsidiaries	717			—			—			(717		)	—
Net earnings	$	733		$	612		$	105		$	(717	)	$	733
Comprehensive income	$	640		$	613		$	(33	)	$	(580	)	$	640

CONDENSED CONSOLIDATING STATEMENTS OF EARNINGS (UNAUDITED)

Nine Months Ended October 2, 2016	Parent			Guarantors on a Combined Basis			Other Subsidiaries on a Combined Basis			Consolidating Adjustments			Total Consolidated
Revenue	$	—		$	20,291		$	2,829		$	—		$	23,120
Cost of sales	1			16,348			2,162			—			18,511
G&A	30			1,162			225			—			1,417
Operating earnings	(31		)	2,781			442			—			3,192
Interest, net	(69		)	(1		)	2			—			(68		)
Other, net	11			(3		)	5			—			13
Earnings before income tax	(89		)	2,777			449			—			3,137
Provision for income tax, net	(93		)	903			72			—			882
Discontinued operations, net of tax	(97		)	—			—			—			(97		)
Equity in net earnings of subsidiaries	2,251			—			—			(2,251		)	—
Net earnings	$	2,158		$	1,874		$	377		$	(2,251	)	$	2,158
Comprehensive income	$	2,553		$	1,866		$	674		$	(2,540	)	$	2,553
Nine Months Ended October 4, 2015
Revenue	$	—		$	20,688		$	2,972		$	—		$	23,660
Cost of sales	(2		)	16,765			2,309			—			19,072
G&A	33			1,196			217			—			1,446
Operating earnings	(31		)	2,727			446			—			3,142
Interest, net	(66		)	(2		)	4			—			(64		)
Other, net	3			2			—			—			5
Earnings before income tax	(94		)	2,727			450			—			3,083
Provision for income tax, net	(88		)	884			86			—			882
Equity in net earnings of subsidiaries	2,207			—			—			(2,207		)	—
Net earnings	$	2,201		$	1,843		$	364		$	(2,207	)	$	2,201
Comprehensive income	$	1,948		$	1,850		$	(59	)	$	(1,791	)	$	1,948

CONDENSED CONSOLIDATING BALANCE SHEET (UNAUDITED)

October 2, 2016	Parent			Guarantors on a Combined Basis			Other Subsidiaries on a Combined Basis			Consolidating Adjustments			Total Consolidated
ASSETS
Current assets:
Cash and equivalents	$	1,077		$	—		$	1,226		$	—		$	2,303
Accounts receivable	—			1,235			2,267			—			3,502
Contracts in process	227			3,193			1,793			—			5,213
Inventories
Work in process	—			2,191			13			—			2,204
Raw materials	—			1,347			33			—			1,380
Finished goods	—			22			11			—			33
Pre-owned aircraft	—			40			—			—			40
Other current assets	210			198			214			—			622
Total current assets	1,514			8,226			5,557			—			15,297
Noncurrent assets:
Property, plant and equipment (PP&E)	194			6,501			1,155			—			7,850
Accumulated depreciation of PP&E	(65		)	(3,609		)	(731		)	—			(4,405		)
Intangible assets	—			1,448			932			—			2,380
Accumulated amortization of intangible assets	—			(1,172		)	(493		)	—			(1,665		)
Goodwill	—			8,047			3,534			—			11,581
Other assets	1,256			213			161			—			1,630
Investment in subsidiaries	42,766			—			—			(42,766		)	—
Total noncurrent assets	44,151			11,428			4,558			(42,766		)	17,371
Total assets	$	45,665		$	19,654		$	10,115		$	(42,766	)	$	32,668
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Short-term debt and current portion of long-term debt	$	—		$	1		$	—		$	—		$	1
Customer advances and deposits	—			2,665			2,584			—			5,249
Other current liabilities	1,616			3,584			1,443			—			6,643
Total current liabilities	1,616			6,250			4,027			—			11,893
Noncurrent liabilities:
Long-term debt	3,863			22			—			—			3,885
Other liabilities	3,136			1,923			514			—			5,573
Total noncurrent liabilities	6,999			1,945			514			—			9,458
Intercompany	25,733			(24,962		)	(771		)	—			—
Shareholders' equity:
Common stock	482			6			2,411			(2,417		)	482
Other shareholders' equity	10,835			36,415			3,934			(40,349		)	10,835
Total shareholders' equity	11,317			36,421			6,345			(42,766		)	11,317
Total liabilities and shareholders' equity	$	45,665		$	19,654		$	10,115		$	(42,766	)	$	32,668

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 and current portion of long-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)

Nine Months Ended October 2, 2016	Parent			Guarantors on a Combined Basis			Other Subsidiaries on a Combined Basis			Consolidating Adjustments		Total Consolidated
Net cash provided by operating activities*	$	98		$	1,161		$	113		$	—	$	1,372
Cash flows from investing activities:
Capital expenditures	(5		)	(208		)	(31		)	—		(244		)
Other, net	3			(3		)	(38		)	—		(38		)
Net cash used by investing activities	(2		)	(211		)	(69		)	—		(282		)
Cash flows from financing activities:
Purchases of common stock	(1,514		)	—			—			—		(1,514		)
Proceeds from fixed-rate notes	992			—			—			—		992
Dividends paid	(678		)	—			—			—		(678		)
Repayment of fixed-rate notes	(500		)	—			—			—		(500		)
Proceeds from stock option exercises	211			—			—			—		211
Other, net	(38		)	(1		)	—			—		(39		)
Net cash used by financing activities	(1,527		)	(1		)	—			—		(1,528		)
Net cash used by discontinued operations	(44		)	—			—			—		(44		)
Cash sweep/funding by parent	820			(949		)	129			—		—
Net decrease in cash and equivalents	(655		)	—			173			—		(482		)
Cash and equivalents at beginning of period	1,732			—			1,053			—		2,785
Cash and equivalents at end of period	$	1,077		$	—		$	1,226		$	—	$	2,303
Nine Months Ended October 4, 2015
Net cash provided by operating activities*	$	(230	)	$	1,916		$	584		$	—	$	2,270
Cash flows from investing activities:
Maturities of held-to-maturity securities	500			—			—			—		500
Capital expenditures	(29		)	(314		)	(17		)	—		(360		)
Proceeds from sales of assets	162			128			—			—		290
Other, net	2			(14		)	—			—		(12		)
Net cash provided by investing activities	635			(200		)	(17		)	—		418
Cash flows from financing activities:
Purchases of common stock	(2,729		)	—			—			—		(2,729		)
Dividends paid	(655		)	—			—			—		(655		)
Repayment of fixed-rate notes	(500		)	—			—			—		(500		)
Proceeds from stock option exercises	240			—			—			—		240
Other, net	(31		)	2			—			—		(29		)
Net cash used by financing activities	(3,675		)	2			—			—		(3,673		)
Net cash used by discontinued operations	(31		)	—			—			—		(31		)
Cash sweep/funding by parent	2,049			(1,718		)	(331		)	—		—
Net decrease in cash and equivalents	(1,252		)	—			236			—		(1,016		)
Cash and equivalents at beginning of period	2,536			—			1,852			—		4,388
Cash and equivalents at end of period	$	1,284		$	—		$	2,088		$	—	$	3,372

* Continuing operations only.