Condensed Consolidating Financial Statements

3 Months Ended

Apr. 02, 2017

Consolidating Financial Statements [Abstract]

Condensed Consolidating Financial Statements

CONDENSED CONSOLIDATING FINANCIAL STATEMENTS

The fixed-rate notes described in Note I 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 April 2, 2017	Parent			Guarantors on a Combined Basis		Other Subsidiaries on a Combined Basis			Consolidating Adjustments			Total Consolidated
Revenue	$	—		$	6,544	$	897		$	—		$	7,441
Cost of sales	(3		)	5,241		687			—			5,925
G&A	11			394		76			—			481
Operating earnings	(8		)	909		134			—			1,035
Interest, net	(24		)	—		(1		)	—			(25		)
Earnings before income tax	(32		)	909		133			—			1,010
Provision for income tax, net	(67		)	293		21			—			247
Equity in net earnings of subsidiaries	728			—		—			(728		)	—
Net earnings	$	763		$	616	$	112		$	(728	)	$	763
Comprehensive income	$	888		$	617	$	207		$	(824	)	$	888
Three Months Ended April 3, 2016
Revenue	$	—		$	6,599	$	877		$	—		$	7,476
Cost of sales	4			5,391		696			—			6,091
G&A	11			379		71			—			461
Operating earnings	(15		)	829		110			—			924
Interest, net	(23		)	—		1			—			(22		)
Other, net	10			—		—			—			10
Earnings before income tax	(28		)	829		111			—			912
Provision for income tax, net	(28		)	262		24			—			258
Discontinued operations	(13		)	—		—			—			(13		)
Equity in net earnings of subsidiaries	654			—		—			(654		)	—
Net earnings	$	641		$	567	$	87		$	(654	)	$	641
Comprehensive income	$	985		$	565	$	400		$	(965	)	$	985

CONDENSED CONSOLIDATING BALANCE SHEET (UNAUDITED)

April 2, 2017	Parent		Guarantors on a Combined Basis			Other Subsidiaries on a Combined Basis			Consolidating Adjustments			Total Consolidated
ASSETS
Current assets:
Cash and equivalents	$	1,051	$	—		$	1,117		$	—		$	2,168
Accounts receivable	—		1,156			2,327			—			3,483
Unbilled receivables	—		2,563			1,994			—			4,557
Inventories	238		5,485			99			—			5,822
Other current assets	142		195			247			—			584
Total current assets	1,431		9,399			5,784			—			16,614
Noncurrent assets:
Property, plant and equipment, net	131		2,854			427			—			3,412
Intangible assets, net	—		255			424			—			679
Goodwill	—		8,052			3,480			—			11,532
Other assets	577		244			153			—			974
Investment in subsidiaries	41,618		—			—			(41,618		)	—
Total noncurrent assets	42,326		11,405			4,484			(41,618		)	16,597
Total assets	$	43,757	$	20,804		$	10,268		$	(41,618	)	$	33,211
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Short-term debt and current portion of long-term debt	$	898	$	3		$	—		$	—		$	901
Customer advances and deposits	—		4,053			2,633			—			6,686
Other current liabilities	599		3,406			1,573			—			5,578
Total current liabilities	1,497		7,462			4,206			—			13,165
Noncurrent liabilities:
Long-term debt	2,966		22			—			—			2,988
Other liabilities	2,398		3,475			602			—			6,475
Total noncurrent liabilities	5,364		3,497			602			—			9,463
Intercompany	26,313		(26,259		)	(54		)	—			—
Shareholders’ equity:
Common stock	482		6			2,354			(2,360		)	482
Other shareholders’ equity	10,101		36,098			3,160			(39,258		)	10,101
Total shareholders’ equity	10,583		36,104			5,514			(41,618		)	10,583
Total liabilities and shareholders’ equity	$	43,757	$	20,804		$	10,268		$	(41,618	)	$	33,211

CONDENSED CONSOLIDATING BALANCE SHEET

December 31, 2016	Parent		Guarantors on a Combined Basis			Other Subsidiaries on a Combined Basis			Consolidating Adjustments			Total Consolidated
ASSETS
Current assets:
Cash and equivalents	$	1,254	$	—		$	1,080		$	—		$	2,334
Accounts receivable	—		1,155			2,244			—			3,399
Unbilled receivables	—		2,235			1,977			—			4,212
Inventories	304		5,417			96			—			5,817
Other current assets	330		204			238			—			772
Total current assets	1,888		9,011			5,635			—			16,534
Noncurrent assets:
Property, plant and equipment, net	130		2,933			414			—			3,477
Intangible assets, net	—		265			413			—			678
Goodwill	—		8,050			3,395			—			11,445
Other assets	640		232			166			—			1,038
Investment in subsidiaries	41,956		—			—			(41,956		)	—
Total noncurrent assets	42,726		11,480			4,388			(41,956		)	16,638
Total assets	$	44,614	$	20,491		$	10,023		$	(41,956	)	$	33,172
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Short-term debt and current portion of long-term debt	$	898	$	2		$	—		$	—		$	900
Customer advances and deposits	—		4,339			2,488			—			6,827
Other current liabilities	564		3,465			1,694			—			5,723
Total current liabilities	1,462		7,806			4,182			—			13,450
Noncurrent liabilities:
Long-term debt	2,966		22			—			—			2,988
Other liabilities	3,520		2,330			583			—			6,433
Total noncurrent liabilities	6,486		2,352			583			—			9,421
Intercompany	26,365		(25,827		)	(538		)	—			—
Shareholders’ equity:
Common stock	482		6			2,354			(2,360		)	482
Other shareholders’ equity	9,819		36,154			3,442			(39,596		)	9,819
Total shareholders’ equity	10,301		36,160			5,796			(41,956		)	10,301
Total liabilities and shareholders’ equity	$	44,614	$	20,491		$	10,023		$	(41,956	)	$	33,172

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS (UNAUDITED)

Three Months Ended April 2, 2017	Parent			Guarantors on a Combined Basis			Other Subsidiaries on a Combined Basis			Consolidating Adjustments		Total Consolidated
Net cash provided by operating activities*	$	(9	)	$	442		$	100		$	—	$	533
Cash flows from investing activities:
Capital expenditures	(3		)	(42		)	(17		)	—		(62		)
Other, net	(1		)	29			(51		)	—		(23		)
Net cash used by investing activities	(4		)	(13		)	(68		)	—		(85		)
Cash flows from financing activities:
Purchases of common stock	(354		)	—			—			—		(354		)
Dividends paid	(230		)	—			—			—		(230		)
Other, net	(21		)	(1		)	—			—		(22		)
Net cash used by financing activities	(605		)	(1		)	—			—		(606		)
Net cash used by discontinued operations	(8		)	—			—			—		(8		)
Cash sweep/funding by parent	423			(428		)	5			—		—
Net decrease in cash and equivalents	(203		)	—			37			—		(166		)
Cash and equivalents at beginning of period	1,254			—			1,080			—		2,334
Cash and equivalents at end of period	$	1,051		$	—		$	1,117		$	—	$	2,168
Three Months Ended April 3, 2016
Net cash provided by operating activities*	$	102		$	314		$	64		$	—	$	480
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		)
Other, net	7			—			—			—		7
Net cash used by financing activities	(1,234		)	—			—			—		(1,234		)
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

* Continuing operations only.