Condensed Consolidating Financial Statements (Tables)

9 Months Ended

Sep. 29, 2019

Consolidating Financial Statements [Abstract]

Condensed Consolidating Statement of Earnings (Unaudited)

CONDENSED CONSOLIDATING STATEMENT OF EARNINGS (UNAUDITED)

Three Months Ended September 29, 2019	Parent			Guarantors on a Combined Basis			Other Subsidiaries on a Combined Basis			Consolidating Adjustments			Total Consolidated
Revenue	$	—		$	7,660		$	2,101		$	—		$	9,761
Cost of sales	36			(6,257		)	(1,752		)	—			(7,973		)
G&A	(17		)	(415		)	(140		)	—			(572		)
Operating earnings	19			988			209			—			1,216
Interest, net	(105		)	(1		)	(8		)	—			(114		)
Other, net	(6		)	1			(7		)	—			(12		)
Earnings before income tax	(92		)	988			194			—			1,090
Provision for income tax, net	32			(168		)	(41		)	—			(177		)
Equity in net earnings of subsidiaries	973			—			—			(973		)	—
Net earnings	$	913		$	820		$	153		$	(973	)	$	913
Comprehensive income	$	858		$	813		$	53		$	(866	)	$	858
Three Months Ended September 30, 2018
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	4			2			(4		)	—			2
Earnings before income tax	(90		)	900			213			—			1,023
Provision for income tax, net	8			(132		)	(35		)	—			(159		)
Discontinued operations, net of tax	(13		)	—			—			—			(13		)
Equity in net earnings of subsidiaries	946			—			—			(946		)	—
Net earnings	$	851		$	768		$	178		$	(946	)	$	851
Comprehensive income	$	1,048		$	769		$	307		$	(1,076	)	$	1,048

CONDENSED CONSOLIDATING STATEMENT OF EARNINGS (UNAUDITED)

Nine Months Ended September 29, 2019	Parent			Guarantors on a Combined Basis			Other Subsidiaries on a Combined Basis			Consolidating Adjustments			Total Consolidated
Revenue	$	—		$	22,042		$	6,535		$	—		$	28,577
Cost of sales	75			(18,094		)	(5,456		)	—			(23,475		)
G&A	(58		)	(1,262		)	(462		)	—			(1,782		)
Operating earnings	17			2,686			617			—			3,320
Interest, net	(322		)	—			(28		)	—			(350		)
Other, net	17			4			(3		)	—			18
Earnings before income tax	(288		)	2,690			586			—			2,988
Provision for income tax, net	94			(495		)	(123		)	—			(524		)
Equity in net earnings of subsidiaries	2,658			—			—			(2,658		)	—
Net earnings	$	2,464		$	2,195		$	463		$	(2,658	)	$	2,464
Comprehensive income	$	2,711		$	2,182		$	576		$	(2,758	)	$	2,711
Nine Months Ended September 30, 2018
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	(38		)	6			(2		)	—			(34		)
Earnings before income tax	(282		)	2,651			584			—			2,953
Provision for income tax, net	89			(475		)	(118		)	—			(504		)
Discontinued operations, net of tax	(13		)	—			—			—			(13		)
Equity in net earnings of subsidiaries	2,642			—			—			(2,642		)	—
Net earnings	$	2,436		$	2,176		$	466		$	(2,642	)	$	2,436
Comprehensive income	$	2,533		$	2,154		$	386		$	(2,540	)	$	2,533

Condensed Consolidating Balance Sheet (Unaudited)

CONDENSED CONSOLIDATING BALANCE SHEET (UNAUDITED)

September 29, 2019	Parent*			Guarantors on a Combined Basis			Other Subsidiaries on a Combined Basis			Consolidating Adjustments			Total Consolidated
ASSETS
Current assets:
Cash and equivalents	$	412		$	—		$	562		—			$	974
Accounts receivable	—			1,083			2,406			—			3,489
Unbilled receivables	—			3,268			4,809			—			8,077
Inventories	—			6,419			154			—			6,573
Other current assets	(404		)	920			522			—			1,038
Total current assets	8			11,690			8,453			—			20,151
Noncurrent assets:
Property, plant and equipment (PP&E)	341			7,486			1,630			—			9,457
Accumulated depreciation of PP&E	(88		)	(4,238		)	(914		)	—			(5,240		)
Intangible assets, net	—			219			2,157			—			2,376
Goodwill	—			7,960			11,657			—			19,617
Other assets	196			1,158			1,073			—			2,427
Net investment in subsidiaries	30,594			—			—			(30,594		)	—
Total noncurrent assets	31,043			12,585			15,603			(30,594		)	28,637
Total assets	$	31,051		$	24,275		$	24,056		$	(30,594	)	$	48,788
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Short-term debt and current portion of long-term debt	$	4,294		$	—		$	367		$	—		$	4,661
Customer advances and deposits	—			3,965			2,889			—			6,854
Other current liabilities	677			4,116			1,919			—			6,712
Total current liabilities	4,971			8,081			5,175			—			18,227
Noncurrent liabilities:
Long-term debt	8,923			52			14			—			8,989
Other liabilities	3,644			2,659			1,756			—			8,059
Total noncurrent liabilities	12,567			2,711			1,770			—			17,048
Total shareholders’ equity	13,513			13,483			17,111			(30,594		)	13,513
Total liabilities and shareholders’ equity	$	31,051		$	24,275		$	24,056		$	(30,594	)	$	48,788

*

Includes the funded status of the company’s primary domestic qualified defined-benefit pension plans as the Parent has the ultimate obligation for the plans.

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	(251		)	647			518			—			914
Total current assets	209			10,431			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	27,887			—			—			(27,887		)	—
Total noncurrent assets	28,272			11,662			15,172			(27,887		)	27,219
Total assets	$	28,481		$	22,093		$	22,721		$	(27,887	)	$	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	3,949			2,115			1,429			—			7,493
Total noncurrent liabilities	15,347			2,154			1,436			—			18,937
Total shareholders’ equity	11,732			11,454			16,433			(27,887		)	11,732
Total liabilities and shareholders’ equity	$	28,481		$	22,093		$	22,721		$	(27,887	)	$	45,408

*

Includes the funded status of the company’s primary domestic qualified defined-benefit pension plans as the Parent has the ultimate obligation for the plans.

Condensed Consolidating Statement of Cash Flows (Unaudited)

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (UNAUDITED)

Nine Months Ended September 29, 2019	Parent			Guarantors on a Combined Basis			Other Subsidiaries on a Combined Basis			Consolidating Adjustments		Total Consolidated
Net cash provided by operating activities*	$	181		$	679		$	(273	)	$	—	$	587
Cash flows from investing activities:
Capital expenditures	(65		)	(404		)	(137		)	—		(606		)
Other, net	6			21			(25		)	—		2
Net cash used by investing activities	(59		)	(383		)	(162		)	—		(604		)
Cash flows from financing activities:
Proceeds from commercial paper, net	947			—			—			—		947
Dividends paid	(858		)	—			—			—		(858		)
Purchases of common stock	(231		)	—			—			—		(231		)
Other, net	24			(1		)	184			—		207
Net cash provided by financing activities	(118		)	(1		)	184			—		65
Net cash used by discontinued operations	(37		)	—			—			—		(37		)
Cash sweep/funding by parent	(15		)	(295		)	310			—		—
Net increase in cash and equivalents	(48		)	—			59			—		11
Cash and equivalents at beginning of period	460			—			503			—		963
Cash and equivalents at end of period	$	412		$	—		$	562		$	—	$	974
Nine Months Ended September 30, 2018
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

* Continuing operations only.