Condensed Consolidating Financial Statements (Tables)

9 Months Ended

Sep. 30, 2018

Consolidating Financial Statements [Abstract]

Condensed Consolidating Statement of Earnings (Unaudited)

CONDENSED CONSOLIDATING STATEMENT OF EARNINGS (UNAUDITED)

Three Months Ended September 30, 2018	Parent			Guarantors on a Combined Basis			Other Subsidiaries on a Combined Basis			Consolidating Adjustments			Total Consolidated
Revenue	$	—		$	6,811		$	2,283		$	—		$	9,094
Cost of sales	26			(5,518		)	(1,915		)	—			(7,407		)
G&A	(15		)	(393		)	(144		)	—			(552		)
Operating earnings	11			900			224			—			1,135
Interest, net	(105		)	(2		)	(7		)	—			(114		)
Other, net	(16		)	3			15			—			2
Earnings before income tax	(110		)	901			232			—			1,023
Provision for income tax, net	12			(132		)	(39		)	—			(159		)
Discontinued operations, net of tax	(13		)	—			—			—			(13		)
Equity in net earnings of subsidiaries	962			—			—			(962		)	—
Net earnings	$	851		$	769		$	193		$	(962	)	$	851
Comprehensive income	$	1,048		$	790		$	322		$	(1,112	)	$	1,048
Three Months Ended October 1, 2017
Revenue	$	—		$	6,556		$	1,024		$	—		$	7,580
Cost of sales	17			(5,226		)	(805		)	—			(6,014		)
G&A	(14		)	(414		)	(75		)	—			(503		)
Operating earnings	3			916			144			—			1,063
Interest, net	(24		)	—			(3		)	—			(27		)
Other, net	(13		)	3			1			—			(9		)
Earnings before income tax	(34		)	919			142			—			1,027
Provision for income tax, net	26			(283		)	(6		)	—			(263		)
Equity in net earnings of subsidiaries	772			—			—			(772		)	—
Net earnings	$	764		$	636		$	136		$	(772	)	$	764
Comprehensive income	$	1,035		$	648		$	371		$	(1,019	)	$	1,035

CONDENSED CONSOLIDATING STATEMENT OF EARNINGS (UNAUDITED)

Nine Months Ended September 30, 2018	Parent			Guarantors on a Combined Basis			Other Subsidiaries on a Combined Basis			Consolidating Adjustments			Total Consolidated
Revenue	$	—		$	20,088		$	5,727		$	—		$	25,815
Cost of sales	54			(16,195		)	(4,742		)	—			(20,883		)
G&A	(73		)	(1,247		)	(381		)	—			(1,701		)
Operating earnings	(19		)	2,646			604			—			3,231
Interest, net	(225		)	(1		)	(18		)	—			(244		)
Other, net	(78		)	8			36			—			(34		)
Earnings before income tax	(322		)	2,653			622			—			2,953
Provision for income tax, net	97			(475		)	(126		)	—			(504		)
Discontinued operations, net of tax	(13		)	—			—			—			(13		)
Equity in net earnings of subsidiaries	2,674			—			—			(2,674		)	—
Net earnings	$	2,436		$	2,178		$	496		$	(2,674	)	$	2,436
Comprehensive income	$	2,533		$	2,217		$	416		$	(2,633	)	$	2,533
Nine Months Ended October 1, 2017
Revenue	$	—		$	19,832		$	2,864		$	—		$	22,696
Cost of sales	48			(15,891		)	(2,208		)	—			(18,051		)
G&A	(36		)	(1,206		)	(227		)	—			(1,469		)
Operating earnings	12			2,735			429			—			3,176
Interest, net	(71		)	—			(5		)	—			(76		)
Other, net	(43		)	9			3			—			(31		)
Earnings before income tax	(102		)	2,744			427			—			3,069
Provision for income tax, net	119			(877		)	(35		)	—			(793		)
Equity in net earnings of subsidiaries	2,259			—			—			(2,259		)	—
Net earnings	$	2,276		$	1,867		$	392		$	(2,259	)	$	2,276
Comprehensive income	$	3,012		$	1,907		$	1,005		$	(2,912	)	$	3,012

Condensed Consolidating Balance Sheet (Unaudited)

CONDENSED CONSOLIDATING BALANCE SHEET (UNAUDITED)

September 30, 2018	Parent			Guarantors on a Combined Basis			Other Subsidiaries on a Combined Basis			Consolidating Adjustments			Total Consolidated
ASSETS
Current assets:
Cash and equivalents	$	649		$	—		$	361		$	—		$	1,010
Accounts receivable	—			1,054			2,682			—			3,736
Unbilled receivables	—			2,848			4,716			—			7,564
Inventories	—			6,094			153			—			6,247
Other current assets	8			877			516			—			1,401
Total current assets	657			10,873			8,428			—			19,958
Noncurrent assets:
Property, plant and equipment (PP&E)	254			7,127			1,893			—			9,274
Accumulated depreciation of PP&E	(81		)	(4,089		)	(860		)	—			(5,030		)
Intangible assets, net	—			266			2,401			—			2,667
Goodwill	—			7,991			11,495			—			19,486
Other assets	201			229			178			—			608
Net investment in subsidiaries	27,308			—			—			(27,308		)	—
Total noncurrent assets	27,682			11,524			15,107			(27,308		)	27,005
Total assets	$	28,339		$	22,397		$	23,535		$	(27,308	)	$	46,963
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Short-term debt and current portion of long-term debt	$	1,671		$	1		$	6		$	—		$	1,678
Customer advances and deposits	—			4,496			2,831			—			7,327
Other current liabilities	586			3,881			2,217			—			6,684
Total current liabilities	2,257			8,378			5,054			—			15,689
Noncurrent liabilities:
Long-term debt	11,391			5			7			—			11,403
Other liabilities	1,936			3,514			1,666			—			7,116
Total noncurrent liabilities	13,327			3,519			1,673			—			18,519
Total shareholders’ equity	12,755			10,500			16,808			(27,308		)	12,755
Total liabilities and shareholders’ equity	$	28,339		$	22,397		$	23,535		$	(27,308	)	$	46,963

CONDENSED CONSOLIDATING BALANCE SHEET

December 31, 2017	Parent			Guarantors on a Combined Basis			Other Subsidiaries on a Combined Basis			Consolidating Adjustments			Total Consolidated
ASSETS
Current assets:
Cash and equivalents	$	1,930		$	—		$	1,053		$	—		$	2,983
Accounts receivable	—			1,259			2,358			—			3,617
Unbilled receivables	—			2,547			2,693			—			5,240
Inventories	—			5,216			87			—			5,303
Other current assets	351			461			373			—			1,185
Total current assets	2,281			9,483			6,564			—			18,328
Noncurrent assets:
PP&E	221			6,779			1,237			—			8,237
Accumulated depreciation of PP&E	(75		)	(3,869		)	(776		)	—			(4,720		)
Intangible assets, net	—			287			415			—			702
Goodwill	—			8,320			3,594			—			11,914
Other assets	199			232			154			—			585
Net investment in subsidiaries	15,771			—			—			(15,771		)	—
Total noncurrent assets	16,116			11,749			4,624			(15,771		)	16,718
Total assets	$	18,397		$	21,232		$	11,188		$	(15,771	)	$	35,046
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Short-term debt and current portion of long-term debt	$	—		$	1		$	1		$	—		$	2
Customer advances and deposits	—			4,180			2,812			—			6,992
Other current liabilities	561			3,758			1,786			—			6,105
Total current liabilities	561			7,939			4,599			—			13,099
Noncurrent liabilities:
Long-term debt	3,950			21			9			—			3,980
Other liabilities	2,451			3,473			608			—			6,532
Total noncurrent liabilities	6,401			3,494			617			—			10,512
Total shareholders’ equity	11,435			9,799			5,972			(15,771		)	11,435
Total liabilities and shareholders’ equity	$	18,397		$	21,232		$	11,188		$	(15,771	)	$	35,046

Condensed Consolidating Statement of Cash Flows (Unaudited)

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (UNAUDITED)

Nine Months Ended September 30, 2018	Parent			Guarantors on a Combined Basis			Other Subsidiaries on a Combined Basis			Consolidating Adjustments		Total Consolidated
Net cash provided by operating activities*	$	(204	)	$	1,561		$	(276	)	$	—	$	1,081
Cash flows from investing activities:
Business acquisitions, net of cash acquired	(9,749		)	(74		)	(216		)	—		(10,039		)
Capital expenditures	(36		)	(331		)	(80		)	—		(447		)
Other, net	93			76			—			—		169
Net cash used by investing activities	(9,692		)	(329		)	(296		)	—		(10,317		)
Cash flows from financing activities:
Proceeds from fixed-rate notes	6,461			—			—			—		6,461
Proceeds from commercial paper, net	1,668			—			—			—		1,668
Proceeds from floating-rate notes	1,000			—			—			—		1,000
Dividends paid	(801		)	—			—			—		(801		)
Purchases of common stock	(533		)	—			—			—		(533		)
Repayment of CSRA accounts receivable purchase agreement	—			—			(450		)	—		(450		)
Other, net	(10		)	—			(58		)	—		(68		)
Net cash provided by financing activities	7,785			—			(508		)	—		7,277
Net cash used by discontinued operations	(14		)	—			—			—		(14		)
Cash sweep/funding by parent	844			(1,232		)	388			—		—
Net decrease in cash and equivalents	(1,281		)	—			(692		)	—		(1,973		)
Cash and equivalents at beginning of period	1,930			—			1,053			—		2,983
Cash and equivalents at end of period	$	649		$	—		$	361		$	—	$	1,010
Nine Months Ended October 1, 2017
Net cash provided by operating activities*	$	145		$	1,503		$	234		$	—	$	1,882
Cash flows from investing activities:
Business acquisitions, net of cash acquired	—			(315		)	(49		)	—		(364		)
Capital expenditures	(23		)	(205		)	(45		)	—		(273		)
Other, net	5			49			(2		)	—		52
Net cash used by investing activities	(18		)	(471		)	(96		)	—		(585		)
Cash flows from financing activities:
Purchases of common stock	(1,172		)	—			—			—		(1,172		)
Proceeds from fixed-rate notes	985			—			—			—		985
Dividends paid	(735		)	—			—			—		(735		)
Other, net	43			(2		)	—			—		41
Net cash used by financing activities	(879		)	(2		)	—			—		(881		)
Net cash used by discontinued operations	(28		)	—			—			—		(28		)
Cash sweep/funding by parent	1,097			(1,030		)	(67		)	—		—
Net increase in cash and equivalents	317			—			71			—		388
Cash and equivalents at beginning of period	1,254			—			1,080			—		2,334
Cash and equivalents at end of period	$	1,571		$	—		$	1,151		$	—	$	2,722

* Continuing operations only.