Condensed Consolidating Financial Statements (Tables)

12 Months Ended

Dec. 31, 2019

Consolidating Financial Statements [Abstract]

Condensed Consolidating Statements of Earnings

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

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 Statements of Cash Flows

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.