Condensed Consolidating Financial Statements

6 Months Ended

Jun. 30, 2019

Consolidating Financial Statements [Abstract]

Condensed Consolidating Financial Statements

CONDENSED CONSOLIDATING FINANCIAL STATEMENTS

The fixed- and floating-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 STATEMENT OF EARNINGS (UNAUDITED)

Three Months Ended June 30, 2019	Parent			Guarantors on a Combined Basis			Other Subsidiaries on a Combined Basis			Consolidating Adjustments			Total Consolidated
Revenue	$	—		$	7,437		$	2,118		$	—		$	9,555
Cost of sales	21			(6,111		)	(1,779		)	—			(7,869		)
G&A	(19		)	(428		)	(149		)	—			(596		)
Operating earnings	2			898			190			—			1,090
Interest, net	(110		)	1			(10		)	—			(119		)
Other, net	(10		)	3			19			—			12
Earnings before income tax	(118		)	902			199			—			983
Provision for income tax, net	40			(173		)	(44		)	—			(177		)
Equity in net earnings of subsidiaries	884			—			—			(884		)	—
Net earnings	$	806		$	729		$	155		$	(884	)	$	806
Comprehensive income	$	1,013		$	733		$	315		$	(1,048	)	$	1,013
Three Months Ended July 1, 2018
Revenue	$	—		$	6,793		$	2,393		$	—		$	9,186
Cost of sales	9			(5,475		)	(2,020		)	—			(7,486		)
G&A	(45		)	(418		)	(149		)	—			(612		)
Operating earnings	(36		)	900			224			—			1,088
Interest, net	(94		)	(1		)	(8		)	—			(103		)
Other, net	(38		)	4			19			—			(15		)
Earnings before income tax	(168		)	903			235			—			970
Provision for income tax, net	43			(178		)	(49		)	—			(184		)
Equity in net earnings of subsidiaries	911			—			—			(911		)	—
Net earnings	$	786		$	725		$	186		$	(911	)	$	786
Comprehensive income	$	619		$	740		$	(41	)	$	(699	)	$	619

Six Months Ended June 30, 2019	Parent			Guarantors on a Combined Basis			Other Subsidiaries on a Combined Basis			Consolidating Adjustments			Total Consolidated
Revenue	$	—		$	14,382		$	4,434		$	—		$	18,816
Cost of sales	39			(11,837		)	(3,704		)	—			(15,502		)
G&A	(41		)	(847		)	(322		)	—			(1,210		)
Operating earnings	(2		)	1,698			408			—			2,104
Interest, net	(217		)	1			(20		)	—			(236		)
Other, net	(18		)	7			41			—			30
Earnings before income tax	(237		)	1,706			429			—			1,898
Provision for income tax, net	71			(328		)	(90		)	—			(347		)
Equity in net earnings of subsidiaries	1,717			—			—			(1,717		)	—
Net earnings	$	1,551		$	1,378		$	339		$	(1,717	)	$	1,551
Comprehensive income	$	1,853		$	1,385		$	552		$	(1,937	)	$	1,853
Six Months Ended July 1, 2018
Revenue	$	—		$	13,277		$	3,444		$	—		$	16,721
Cost of sales	28			(10,677		)	(2,827		)	—			(13,476		)
G&A	(58		)	(854		)	(237		)	—			(1,149		)
Operating earnings	(30		)	1,746			380			—			2,096
Interest, net	(120		)	(1		)	(9		)	—			(130		)
Other, net	(62		)	5			21			—			(36		)
Earnings before income tax	(212		)	1,750			392			—			1,930
Provision for income tax, net	85			(343		)	(87		)	—			(345		)
Equity in net earnings of subsidiaries	1,712			—			—			(1,712		)	—
Net earnings	$	1,585		$	1,407		$	305		$	(1,712	)	$	1,585
Comprehensive income	$	1,485		$	1,425		$	96		$	(1,521	)	$	1,485

CONDENSED CONSOLIDATING BALANCE SHEET (UNAUDITED)

June 30, 2019	Parent			Guarantors on a Combined Basis			Other Subsidiaries on a Combined Basis			Consolidating Adjustments			Total Consolidated
ASSETS
Current assets:
Cash and equivalents	$	243		$	—		$	459		$	—		$	702
Accounts receivable	—			1,260			2,413			—			3,673
Unbilled receivables	—			2,864			4,690			—			7,554
Inventories	—			6,350			130			—			6,480
Other current assets	(59		)	648			559			—			1,148
Total current assets	184			11,122			8,251			—			19,557
Noncurrent assets:
Property, plant and equipment (PP&E)	302			7,327			1,609			—			9,238
Accumulated depreciation of PP&E	(87		)	(4,175		)	(885		)	—			(5,147		)
Intangible assets, net	—			230			2,227			—			2,457
Goodwill	—			7,960			11,702			—			19,662
Other assets	194			1,015			1,098			—			2,307
Net investment in subsidiaries	27,981			—			—			(27,981		)	—
Total noncurrent assets	28,390			12,357			15,751			(27,981		)	28,517
Total assets	$	28,574		$	23,479		$	24,002		$	(27,981	)	$	48,074
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Short-term debt and current portion of long-term debt	$	4,741		$	—		$	219		$	—		$	4,960
Customer advances and deposits	—			4,194			2,520			—			6,714
Other current liabilities	564			4,036			1,740			—			6,340
Total current liabilities	5,305			8,230			4,479			—			18,014
Noncurrent liabilities:
Long-term debt	8,918			42			15			—			8,975
Other liabilities	1,474			4,583			2,151			—			8,208
Total noncurrent liabilities	10,392			4,625			2,166			—			17,183
Total shareholders’ equity	12,877			10,624			17,357			(27,981		)	12,877
Total liabilities and shareholders’ equity	$	28,574		$	23,479		$	24,002		$	(27,981	)	$	48,074

CONDENSED CONSOLIDATING BALANCE SHEET

December 31, 2018	Parent			Guarantors on a Combined Basis			Other Subsidiaries on a Combined Basis			Consolidating Adjustments			Total Consolidated
ASSETS
Current assets:
Cash and equivalents	$	460		$	—		$	503		$	—		$	963
Accounts receivable	—			1,171			2,588			—			3,759
Unbilled receivables	—			2,758			3,818			—			6,576
Inventories	—			5,855			122			—			5,977
Other current assets	(45		)	441			518			—			914
Total current assets	415			10,225			7,549			—			18,189
Noncurrent assets:
PP&E	273			7,177			1,522			—			8,972
Accumulated depreciation of PP&E	(83		)	(4,071		)	(840		)	—			(4,994		)
Intangible assets, net	—			251			2,334			—			2,585
Goodwill	—			8,031			11,563			—			19,594
Other assets	195			274			593			—			1,062
Net investment in subsidiaries	25,313			—			—			(25,313		)	—
Total noncurrent assets	25,698			11,662			15,172			(25,313		)	27,219
Total assets	$	26,113		$	21,887		$	22,721		$	(25,313	)	$	45,408
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Short-term debt and current portion of long-term debt	$	850		$	—		$	123		$	—		$	973
Customer advances and deposits	—			4,541			2,729			—			7,270
Other current liabilities	552			3,944			2,000			—			6,496
Total current liabilities	1,402			8,485			4,852			—			14,739
Noncurrent liabilities:
Long-term debt	11,398			39			7			—			11,444
Other liabilities	1,581			4,073			1,839			—			7,493
Total noncurrent liabilities	12,979			4,112			1,846			—			18,937
Total shareholders’ equity	11,732			9,290			16,023			(25,313		)	11,732
Total liabilities and shareholders’ equity	$	26,113		$	21,887		$	22,721		$	(25,313	)	$	45,408

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (UNAUDITED)

Six Months Ended June 30, 2019	Parent			Guarantors on a Combined Basis			Other Subsidiaries on a Combined Basis			Consolidating Adjustments		Total Consolidated
Net cash used by operating activities*	$	64		$	166		$	(734	)	$	—	$	(504	)
Cash flows from investing activities:
Capital expenditures	(27		)	(238		)	(97		)	—		(362		)
Other, net	5			18			(24		)	—		(1		)
Net cash used by investing activities	(22		)	(220		)	(121		)	—		(363		)
Cash flows from financing activities:
Proceeds from commercial paper, net	1,394			—			—			—		1,394
Dividends paid	(563		)	—			—			—		(563		)
Purchases of common stock	(231		)	—			—			—		(231		)
Other, net	(19		)	—			49			—		30
Net cash provided by financing activities	581			—			49			—		630
Net cash used by discontinued operations	(24		)	—			—			—		(24		)
Cash sweep/funding by parent	(816		)	54			762			—		—
Net decrease in cash and equivalents	(217		)	—			(44		)	—		(261		)
Cash and equivalents at beginning of period	460			—			503			—		963
Cash and equivalents at end of period	$	243		$	—		$	459		$	—	$	702
Six Months Ended July 1, 2018
Net cash provided by operating activities*	$	41		$	468		$	(218	)	$	—	$	291
Cash flows from investing activities:
Business acquisitions, net of cash acquired	(9,749		)	(74		)	(216		)	—		(10,039		)
Capital expenditures	(22		)	(215		)	(42		)	—		(279		)
Other, net	2			72			—			—		74
Net cash used by investing activities	(9,769		)	(217		)	(258		)	—		(10,244		)
Cash flows from financing activities:
Proceeds from fixed-rate notes	6,461			—			—			—		6,461
Proceeds from commercial paper, net	2,786			—			—			—		2,786
Proceeds from floating-rate notes	1,000			—			—			—		1,000
Dividends paid	(526		)	—			—			—		(526		)
Repayment of CSRA accounts receivable purchase     agreement	—			—			(450		)	—		(450		)
Purchases of common stock	(436		)	—			—			—		(436		)
Other, net	(45		)	—			48			—		3
Net cash provided by financing activities	9,240			—			(402		)	—		8,838
Net cash used by discontinued operations	(6		)	—			—			—		(6		)
Cash sweep/funding by parent	(107		)	(251		)	358			—		—
Net decrease in cash and equivalents	(601		)	—			(520		)	—		(1,121		)
Cash and equivalents at beginning of period	1,930			—			1,053			—		2,983
Cash and equivalents at end of period	$	1,329		$	—		$	533		$	—	$	1,862

* Continuing operations only.