Condensed Consolidating Financial Statements

12 Months Ended

Dec. 31, 2019

Consolidating Financial Statements [Abstract]

Condensed Consolidating Financial Statements

CONDENSED CONSOLIDATING FINANCIAL STATEMENTS

The fixed- and floating-rate notes described in Note K 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

Year Ended December 31, 2019	Parent			Guarantors on a Combined Basis			Other Subsidiaries on a Combined Basis			Consolidating Adjustments			Total Consolidated
Revenue	$	—		$	30,566		$	8,784		$	—		$	39,350
Cost of sales	99			(25,120		)	(7,270		)	—			(32,291		)
G&A	(75		)	(1,725		)	(611		)	—			(2,411		)
Operating earnings	24			3,721			903			—			4,648
Interest, net	(426		)	1			(35		)	—			(460		)
Other, net	(60		)	15			59			—			14
Earnings before income tax	(462		)	3,737			927			—			4,202
Provision for income tax, net	117			(626		)	(209		)	—			(718		)
Equity in net earnings of subsidiaries	3,829			—			—			(3,829		)	—
Net earnings	$	3,484		$	3,111		$	718		$	(3,829	)	$	3,484
Comprehensive income	$	3,043		$	3,083		$	957		$	(4,040	)	$	3,043
Year Ended December 31, 2018
Revenue	$	—		$	28,132		$	8,061		$	—		$	36,193
Cost of sales	67			(22,841		)	(6,704		)	—			(29,478		)
G&A	(90		)	(1,638		)	(530		)	—			(2,258		)
Operating earnings	(23		)	3,653			827			—			4,457
Interest, net	(326		)	—			(30		)	—			(356		)
Other, net	(81		)	12			53			—			(16		)
Earnings before income tax	(430		)	3,665			850			—			4,085
Provision for income tax, net	116			(677		)	(166		)	—			(727		)
Discontinued operations, net of tax	(13		)	—			—			—			(13		)
Equity in net earnings of subsidiaries	3,672			—			—			(3,672		)	—
Net earnings	$	3,345		$	2,988		$	684		$	(3,672	)	$	3,345
Comprehensive income	$	3,025		$	2,992		$	305		$	(3,297	)	$	3,025
Year Ended December 31, 2017
Revenue	$	—		$	26,933		$	4,040		$	—		$	30,973
Cost of sales	76			(21,695		)	(3,112		)	—			(24,731		)
G&A	(48		)	(1,643		)	(315		)	—			(2,006		)
Operating earnings	28			3,595			613			—			4,236
Interest, net	(97		)	1			(7		)	—			(103		)
Other, net	(72		)	12			4			—			(56		)
Earnings before income tax	(141		)	3,608			610			—			4,077
Provision for income tax, net	154			(1,262		)	(57		)	—			(1,165		)
Equity in net earnings of subsidiaries	2,899			—			—			(2,899		)	—
Net earnings	$	2,912		$	2,346		$	553		$	(2,899	)	$	2,912
Comprehensive income	$	3,479		$	2,336		$	1,158		$	(3,494	)	$	3,479

CONDENSED CONSOLIDATING BALANCE SHEET

December 31, 2019	Parent*			Guarantors on a Combined Basis			Other Subsidiaries on a Combined Basis			Consolidating Adjustments			Total Consolidated
ASSETS
Current assets:
Cash and equivalents	$	601		$	—		$	301		$	—		$	902
Accounts receivable	—			1,188			2,356			—			3,544
Unbilled receivables	—			2,826			5,031			—			7,857
Inventories	—			6,191			115			—			6,306
Other current assets	(300		)	989			482			—			1,171
Total current assets	301			11,194			8,285			—			19,780
Noncurrent assets:
PP&E	346			7,741			1,674			—			9,761
Accumulated depreciation of PP&E	(91		)	(4,260		)	(935		)	—			(5,286		)
Intangible assets, net	—			210			2,105			—			2,315
Goodwill	—			7,960			11,717			—			19,677
Other assets	203			1,278			1,113			—			2,594
Net investment in subsidiaries	29,693			—			—			(29,693		)	—
Total noncurrent assets	30,151			12,929			15,674			(29,693		)	29,061
Total assets	$	30,452		$	24,123		$	23,959		$	(29,693	)	$	48,841
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Short-term debt and current portion of long-term debt	$	2,497		$	2		$	421		$	—		$	2,920
Customer advances and deposits	—			4,174			2,974			—			7,148
Other current liabilities	487			4,391			1,855			—			6,733
Total current liabilities	2,984			8,567			5,250			—			16,801
Noncurrent liabilities:
Long-term debt	8,928			67			15			—			9,010
Other liabilities	4,963			2,995			1,495			—			9,453
Total noncurrent liabilities	13,891			3,062			1,510			—			18,463
Total shareholders’ equity	13,577			12,494			17,199			(29,693		)	13,577
Total liabilities and shareholders’ equity	$	30,452		$	24,123		$	23,959		$	(29,693	)	$	48,841

*

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

Year Ended December 31, 2019	Parent			Guarantors on a Combined Basis			Other Subsidiaries on a Combined Basis			Consolidating Adjustments		Total Consolidated
Net cash provided by operating activities*	$	(46	)	$	2,918		$	109		$	—	$	2,981
Cash flows from investing activities:
Capital expenditures	(68		)	(718		)	(201		)	—		(987		)
Other, net	7			10			(24		)	—		(7		)
Net cash used by investing activities	(61		)	(708		)	(225		)	—		(994		)
Cash flows from financing activities:
Dividends paid	(1,152		)	—			—			—		(1,152		)
Repayments of commercial paper, net	(850		)	—			—			—		(850		)
Purchases of common stock	(231		)	—			—			—		(231		)
Other, net	24			(2		)	214			—		236
Net cash used by financing activities	(2,209		)	(2		)	214			—		(1,997		)
Net cash used by discontinued operations	(51		)	—			—			—		(51		)
Cash sweep/funding by parent	2,508			(2,208		)	(300		)	—		—
Net decrease in cash and equivalents	141			—			(202		)	—		(61		)
Cash and equivalents at beginning of year	460			—			503			—		963
Cash and equivalents at end of year	$	601		$	—		$	301		$	—	$	902
Year Ended December 31, 2018
Net cash provided by operating activities*	$	(579	)	$	2,954		$	773		$	—	$	3,148
Cash flows from investing activities:
Business acquisitions, net of cash acquired	(9,749		)	(74		)	(276		)	—		(10,099		)
Capital expenditures	(51		)	(513		)	(126		)	—		(690		)
Proceeds from sales of assets	90			472			—			—		562
Other, net	4			(12		)	1			—		(7		)
Net cash used by investing activities	(9,706		)	(127		)	(401		)	—		(10,234		)
Cash flows from financing activities:
Proceeds from fixed-rate notes	6,461			—			—			—		6,461
Purchases of common stock	(1,769		)	—			—			—		(1,769		)
Dividends paid	(1,075		)	—			—			—		(1,075		)
Proceeds from floating-rate notes	1,000			—			—			—		1,000
Proceeds from commercial paper, net	850			—			—			—		850
Repayment of CSRA accounts receivable purchase     agreement	—			—			(450		)	—		(450		)
Other, net	3			35			31			—		69
Net cash provided by financing activities	5,470			35			(419		)	—		5,086
Net cash used by discontinued operations	(20		)	—			—			—		(20		)
Cash sweep/funding by parent	3,365			(2,862		)	(503		)	—		—
Net decrease in cash and equivalents	(1,470		)	—			(550		)	—		(2,020		)
Cash and equivalents at beginning of year	1,930			—			1,053			—		2,983
Cash and equivalents at end of year	$	460		$	—		$	503		$	—	$	963

* Continuing operations only.

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

Year Ended December 31, 2017	Parent			Guarantors on a Combined Basis			Other Subsidiaries on a Combined Basis			Consolidating Adjustments		Total Consolidated
Net cash provided by operating activities*	$	312		$	2,371		$	1,193		$	—	$	3,876
Cash flows from investing activities:
Capital expenditures	(26		)	(330		)	(72		)	—		(428		)
Business acquisitions, net of cash acquired	—			(350		)	(49		)	—		(399		)
Other, net	10			31			(2		)	—		39
Net cash used by investing activities	(16		)	(649		)	(123		)	—		(788		)
Cash flows from financing activities:
Purchases of common stock	(1,558		)	—			—			—		(1,558		)
Dividends paid	(986		)	—			—			—		(986		)
Proceeds from fixed-rate notes	985			—			—			—		985
Repayment of fixed-rate notes	(900		)	—			—			—		(900		)
Other, net	63			(3		)	—			—		60
Net cash used by financing activities	(2,396		)	(3		)	—			—		(2,399		)
Net cash used by discontinued operations	(40		)	—			—			—		(40		)
Cash sweep/funding by parent	2,816			(1,719		)	(1,097		)	—		—
Net increase in cash and equivalents	676			—			(27		)	—		649
Cash and equivalents at beginning of year	1,254			—			1,080			—		2,334
Cash and equivalents at end of year	$	1,930		$	—		$	1,053		$	—	$	2,983

* Continuing operations only.