Condensed Consolidating Financial Statements

6 Months Ended

Jul. 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%-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 2, 2017	Parent			Guarantors on a Combined Basis		Other Subsidiaries on a Combined Basis			Consolidating Adjustments			Total Consolidated
Revenue	$	—		$	6,732	$	943		$	—		$	7,675
Cost of sales	—			5,400		714			—			6,114
G&A	13			416		76			—			505
Operating earnings	(13		)	916		153			—			1,056
Interest, net	(23		)	—		(1		)	—			(24		)
Earnings before income tax	(36		)	916		152			—			1,032
Provision for income tax, net	(26		)	301		8			—			283
Equity in net earnings of subsidiaries	759			—		—			(759		)	—
Net earnings	$	749		$	615	$	144		$	(759	)	$	749
Comprehensive income	$	1,089		$	642	$	427		$	(1,069	)	$	1,089
Three Months Ended July 3, 2016
Revenue	$	—		$	6,808	$	966		$	—		$	7,774
Cost of sales	(2		)	5,514		750			—			6,262
G&A	9			402		74			—			485
Operating earnings	(7		)	892		142			—			1,027
Interest, net	(23		)	—		—			—			(23		)
Other, net	1			—		—			—			1
Earnings before income tax	(29		)	892		142			—			1,005
Provision for income tax, net	(23		)	287		27			—			291
Equity in net earnings of subsidiaries	720			—		—			(720		)	—
Net earnings	$	714		$	605	$	115		$	(720	)	$	714
Comprehensive income	$	693		$	602	$	69		$	(671	)	$	693

CONDENSED CONSOLIDATING STATEMENTS OF EARNINGS (UNAUDITED)

Six Months Ended July 2, 2017	Parent			Guarantors on a Combined Basis		Other Subsidiaries on a Combined Basis			Consolidating Adjustments			Total Consolidated
Revenue	$	—		$	13,276	$	1,840		$	—		$	15,116
Cost of sales	(3		)	10,641		1,401			—			12,039
G&A	24			810		152			—			986
Operating earnings	(21		)	1,825		287			—			2,091
Interest, net	(47		)	—		(2		)	—			(49		)
Earnings before income tax	(68		)	1,825		285			—			2,042
Provision for income tax, net	(93		)	594		29			—			530
Equity in net earnings of subsidiaries	1,487			—		—			(1,487		)	—
Net earnings	$	1,512		$	1,231	$	256		$	(1,487	)	$	1,512
Comprehensive income	$	1,977		$	1,259	$	634		$	(1,893	)	$	1,977
Six Months Ended July 3, 2016
Revenue	$	—		$	13,407	$	1,843		$	—		$	15,250
Cost of sales	2			10,905		1,446			—			12,353
G&A	20			781		145			—			946
Operating earnings	(22		)	1,721		252			—			1,951
Interest, net	(46		)	—		1			—			(45		)
Other, net	10			1		—			—			11
Earnings before income tax	(58		)	1,722		253			—			1,917
Provision for income tax, net	(51		)	549		51			—			549
Discontinued operations	(13		)	—		—			—			(13		)
Equity in net earnings of subsidiaries	1,375			—		—			(1,375		)	—
Net earnings	$	1,355		$	1,173	$	202		$	(1,375	)	$	1,355
Comprehensive income	$	1,678		$	1,168	$	469		$	(1,637	)	$	1,678

CONDENSED CONSOLIDATING BALANCE SHEET (UNAUDITED)

July 2, 2017	Parent			Guarantors on a Combined Basis			Other Subsidiaries on a Combined Basis			Consolidating Adjustments			Total Consolidated
ASSETS
Current assets:
Cash and equivalents	$	847		$	—		$	1,009		$	—		$	1,856
Accounts receivable	—			1,120			2,570			—			3,690
Unbilled receivables	—			2,633			2,412			—			5,045
Inventories	188			5,558			93			—			5,839
Other current assets	227			195			274			—			696
Total current assets	1,262			9,506			6,358			—			17,126
Noncurrent assets:
Property, plant and equipment (PP&E)	202			6,597			1,211			—			8,010
Accumulated depreciation of PP&E	(70		)	(3,748		)	(768		)	—			(4,586		)
Intangible assets, net	—			252			433			—			685
Goodwill	—			8,081			3,598			—			11,679
Other assets	497			228			154			—			879
Investment in subsidiaries	42,559			—			—			(42,559		)	—
Total noncurrent assets	43,188			11,410			4,628			(42,559		)	16,667
Total assets	$	44,450		$	20,916		$	10,986		$	(42,559	)	$	33,793
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Short-term debt and current portion of long-term debt	$	899		$	2		$	88		$	—		$	989
Customer advances and deposits	—			4,008			2,814			—			6,822
Other current liabilities	601			3,556			1,535			—			5,692
Total current liabilities	1,500			7,566			4,437			—			13,503
Noncurrent liabilities:
Long-term debt	2,968			21			—			—			2,989
Other liabilities	2,344			3,368			637			—			6,349
Total noncurrent liabilities	5,312			3,389			637			—			9,338
Intercompany	26,686			(26,606		)	(80		)	—			—
Shareholders’ equity:
Common stock	482			6			2,126			(2,132		)	482
Other shareholders’ equity	10,470			36,561			3,866			(40,427		)	10,470
Total shareholders’ equity	10,952			36,567			5,992			(42,559		)	10,952
Total liabilities and shareholders’ equity	$	44,450		$	20,916		$	10,986		$	(42,559	)	$	33,793

CONDENSED CONSOLIDATING BALANCE SHEET (UNAUDITED)

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:
PP&E	197			6,586			1,146			—			7,929
Accumulated depreciation of PP&E	(67		)	(3,653		)	(732		)	—			(4,452		)
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)

Six Months Ended July 2, 2017	Parent			Guarantors on a Combined Basis			Other Subsidiaries on a Combined Basis			Consolidating Adjustments		Total Consolidated
Net cash provided by operating activities*	$	215		$	846		$	(51	)	$	—	$	1,010
Cash flows from investing activities:
Capital expenditures	(6		)	(114		)	(33		)	—		(153		)
Other, net	—			9			(51		)	—		(42		)
Net cash used by investing activities	(6		)	(105		)	(84		)	—		(195		)
Cash flows from financing activities:
Purchases of common stock	(901		)	—			—			—		(901		)
Dividends paid	(483		)	—			—			—		(483		)
Other, net	21			(1		)	88			—		108
Net cash used by financing activities	(1,363		)	(1		)	88			—		(1,276		)
Net cash used by discontinued operations	(17		)	—			—			—		(17		)
Cash sweep/funding by parent	764			(740		)	(24		)	—		—
Net decrease in cash and equivalents	(407		)	—			(71		)	—		(478		)
Cash and equivalents at beginning of period	1,254			—			1,080			—		2,334
Cash and equivalents at end of period	$	847		$	—		$	1,009		$	—	$	1,856
Six Months Ended July 3, 2016
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		)
Other, net	61			(1		)	36			—		96
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

* Continuing operations only.