R. CONDENSED CONSOLIDATING FINANCIAL STATEMENTS

The fixed-rate notes described in Note J are fully and unconditionally guaranteed on an unsecured, joint and several basis by certain of our 100-percent-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 on December 31, 2010 and 2011, for the balance sheet, as well as the statements of earnings and cash flows for each of the three years in the period ended December 31, 2011.

CONDENSED CONSOLIDATING STATEMENT OF EARNINGS


Year Ended December 31, 2009	Parent			Guarantors on a Combined Basis		Other Subsidiaries on a Combined Basis		Consolidating Adjustments			Total Consolidated
Revenues	$	–		$	25,765	$	6,216	$	–		$	31,981
Operating costs		9			21,143		5,200		–			26,352
General and administrative expenses		83			1,495		376		–			1,954
Operating earnings		(92	)		3,127		640		–			3,675
Interest expense		(163	)		(3)		(5)		–			(171)
Interest income		2			4		5		–			11
Other, net		(1	)		(2)		1		–			(2)
Earnings from continuing operations before income taxes		(254	)		3,126		641		–			3,513
Provision for income taxes		(35	)		1,010		131		–			1,106
Discontinued operations, net of tax		–			–		(13)		–			(13)
Equity in net earnings of subsidiaries		2,613			–		–		(2,613	)		–
Net earnings	$	2,394		$	2,116	$	497	$	(2,613	)	$	2,394



Year Ended December 31, 2010	Parent			Guarantors on a Combined Basis		Other Subsidiaries on a Combined Basis		Consolidating Adjustments			Total Consolidated
Revenues	$	–		$	26,376	$	6,090	$	–		$	32,466
Operating costs		1			21,558		4,998		–			26,557
General and administrative expenses		82			1,497		385		–			1,964
Operating earnings		(83	)		3,321		707		–			3,945
Interest expense		(164	)		(2)		(1)		–			(167)
Interest income		3			3		4		–			10
Other, net		1			1		–		–			2
Earnings from continuing operations before income taxes		(243	)		3,323		710		–			3,790
Provision for income taxes		(78	)		1,067		173		–			1,162
Discontinued operations, net of tax		–			–		(4)		–			(4)
Equity in net earnings of subsidiaries		2,789			–		–		(2,789	)		–
Net earnings	$	2,624		$	2,256	$	533	$	(2,789	)	$	2,624



Year Ended December 31, 2011	Parent			Guarantors on a Combined Basis		Other Subsidiaries on a Combined Basis		Consolidating Adjustments			Total Consolidated
Revenues	$	–		$	26,253	$	6,424	$	–		$	32,677
Operating costs		(13	)		21,336		5,498		–			26,821
General and administrative expenses		90			1,499		441		–			2,030
Operating earnings		(77	)		3,418		485		–			3,826
Interest expense		(152	)		(2)		(1)		–			(155)
Interest income		9			2		3		–			14
Other, net		5			27		1		–			33
Earnings from continuing operations before income taxes		(215	)		3,445		488		–			3,718
Provision for income taxes		(43	)		1,097		112		–			1,166
Discontinued operations, net of tax		–			–		(26)		–			(26)
Equity in net earnings of subsidiaries		2,698			–		–		(2,698	)		–
Net earnings	$	2,526		$	2,348	$	350	$	(2,698	)	$	2,526

CONDENSED CONSOLIDATING BALANCE SHEET


December 31, 2010	Parent			Guarantors on a Combined Basis		Other Subsidiaries on a Combined Basis		Consolidating Adjustments			Total Consolidated
ASSETS
Current assets:
Cash and equivalents	$	1,608		$	–	$	1,005	$	–		$	2,613
Accounts receivable		–			1,538		2,310		–			3,848
Contracts in process		263			3,205		1,405		–			4,873
Inventories
Work in process		–			1,090		34		–			1,124
Raw materials		–			808		157		–			965
Finished goods		–			36		33		–			69
Other current assets		143			147		404		–			694
Total current assets		2,014			6,824		5,348		–			14,186
Noncurrent assets:
Property, plant and equipment		147			4,687		1,125		–			5,959
Accumulated depreciation of PP&E		(42	)		(2,448)		(498)		–			(2,988)
Intangible assets		–			1,664		1,623		–			3,287
Accumulated amortization of intangible assets		–			(920)		(375)		–			(1,295)
Goodwill		–			8,322		4,327		–			12,649
Other assets		183			172		392		–			747
Investment in subsidiaries		30,580			–		–		(30,580	)		–
Total noncurrent assets		30,868			11,477		6,594		(30,580	)		18,359
Total assets	$	32,882		$	18,301	$	11,942	$	(30,580	)	$	32,545
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Short-term debt	$	749		$	21	$	3	$	–		$	773
Customer advances and deposits		–			2,182		2,283		–			4,465
Other current liabilities		596			3,397		1,946		–			5,939
Total current liabilities		1,345			5,600		4,232		–			11,177
Noncurrent liabilities:
Long-term debt		2,396			29		5		–			2,430
Other liabilities		2,774			2,242		606		–			5,622
Total noncurrent liabilities		5,170			2,271		611		–			8,052
Intercompany		13,051			(13,626)		575		–			–
Shareholders' equity:
Common stock		482			6		44		(50	)		482
Other shareholders' equity		12,834			24,050		6,480		(30,530	)		12,834
Total shareholders' equity		13,316			24,056		6,524		(30,580	)		13,316
Total liabilities and shareholders' equity	$	32,882		$	18,301	$	11,942	$	(30,580	)	$	32,545

CONDENSED CONSOLIDATING BALANCE SHEET


December 31, 2011	Parent			Guarantors on a Combined Basis		Other Subsidiaries on a Combined Basis		Consolidating Adjustments			Total Consolidated
ASSETS
Current assets:
Cash and equivalents	$	1,530		$	–	$	1,119	$	–		$	2,649
Accounts receivable		–			1,659		2,793		–			4,452
Contracts in process		292			3,182		1,694		–			5,168
Inventories
Work in process		–			1,168		34		–			1,202
Raw materials		–			898		133		–			1,031
Finished goods		–			36		41		–			77
Other current assets		319			247		223		–			789
Total current assets		2,141			7,190		6,037		–			15,368
Noncurrent assets:
Property, plant and equipment		153			5,181		1,184		–			6,518
Accumulated depreciation of PP&E		(49	)		(2,604)		(581)		–			(3,234)
Intangible assets		–			1,767		1,452		–			3,219
Accumulated amortization of intangible assets		–			(976)		(430)		–			(1,406)
Goodwill		–			9,287		4,289		–			13,576
Other assets		265			247		330		–			842
Investment in subsidiaries		33,192			–		–		(33,192	)		–
Total noncurrent assets		33,561			12,902		6,244		(33,192	)		19,515
Total assets	$	35,702		$	20,092	$	12,281	$	(33,192	)	$	34,883
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Short-term debt	$	–		$	21	$	2	$	–		$	23
Customer advances and deposits		–			2,483		2,528		–			5,011
Other current liabilities		463			3,729		1,919		–			6,111
Total current liabilities		463			6,233		4,449		–			11,145
Noncurrent liabilities:
Long-term debt		3,895			9		3		–			3,907
Other liabilities		3,443			2,541		615		–			6,599
Total noncurrent liabilities		7,338			2,550		618		–			10,506
Intercompany		14,669			(15,240)		571		–			–
Shareholders' equity:
Common stock		482			6		44		(50	)		482
Other shareholders equity		12,750			26,543		6,599		(33,142	)		12,750
Total shareholders' equity		13,232			26,549		6,643		(33,192	)		13,232
Total liabilities and shareholders' equity	$	35,702		$	20,092	$	12,281	$	(33,192	)	$	34,883

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS


Year Ended December 31, 2009	Parent			Guarantors on a Combined Basis		Other Subsidiaries on a Combined Basis		Consolidating Adjustments		Total Consolidated
Net cash provided by operating activities	$	(172	)	$	2,872	$	155	$	–	$	2,855
Cash flows from investing activities:
Business acquisitions, net of cash acquired		(641	)		(168)		(2)		–		(811)
Capital expenditures		(7	)		(297)		(81)		–		(385)
Purchases of held-to-maturity securities		(97	)		–		(240)		–		(337)
Other, net		118			21		2		–		141
Net cash used by investing activities		(627	)		(444)		(321)		–		(1,392)
Cash flows from financing activities:
Repayment of commercial paper, net		(904	)		–		–		–		(904)
Proceeds from fixed-rate notes		747			–		–		–		747
Dividends paid		(577	)		–		–		–		(577)
Other, net		(67	)		(2)		(3)		–		(72)
Net cash used by financing activities		(801	)		(2)		(3)		–		(806)
Net cash used by discontinued operations		–			–		(15)		–		(15)
Cash sweep/funding by parent		2,260			(2,426)		166		–		–
Net increase in cash and equivalents		660			–		(18)		–		642
Cash and equivalents at beginning of year		746			–		875		–		1,621
Cash and equivalents at end of year	$	1,406		$	–	$	857	$	–	$	2,263



Year Ended December 31, 2010	Parent			Guarantors on a Combined Basis		Other Subsidiaries on a Combined Basis		Consolidating Adjustments		Total Consolidated
Net cash provided by operating activities	$	(391	)	$	2,884	$	493	$	–	$	2,986
Cash flows from investing activities:
Maturities of held-to-maturity securities		273			–		332		–		605
Purchases of held-to-maturity securities		(237	)		–		(231)		–		(468)
Capital expenditures		(10	)		(301)		(59)		–		(370)
Business acquisitions, net of cash acquired		–			(163)		(70)		–		(233)
Other, net		(12	)		70		–		–		58
Net cash used by investing activities		14			(394)		(28)		–		(408)
Cash flows from financing activities:
Purchases of common stock		(1,185	)		–		–		–		(1,185)
Repayment of fixed-rate notes		(700	)		–		–		–		(700)
Dividends paid		(631	)		–		–		–		(631)
Proceeds from option exercises		277			–		–		–		277
Other, net		18			(1)		(4)		–		13
Net cash used by financing activities		(2,221	)		(1)		(4)		–		(2,226)
Net cash used by discontinued operations		–			–		(2)		–		(2)
Cash sweep/funding by parent		2,800			(2,489)		(311)		–		–
Net increase in cash and equivalents		202			–		148		–		350
Cash and equivalents at beginning of year		1,406			–		857		–		2,263
Cash and equivalents at end of year	$	1,608		$	–	$	1,005	$	–	$	2,613

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS



Year Ended December 31, 2011	Parent			Guarantors on a Combined Basis		Other Subsidiaries on a Combined Basis		Consolidating Adjustments		Total Consolidated
Net cash provided by operating activities	$	(359	)	$	3,524	$	73	$	–	$	3,238
Cash flows from investing activities:
Business acquisitions, net of cash acquired		(233	)		(1,327)		–		–		(1,560)
Purchases of held-to-maturity securities		(459	)		–		–		–		(459)
Maturities of held-to-maturity securities		334			–		107		–		441
Capital expenditures		(6	)		(381)		(71)		–		(458)
Purchases of available-for-sale securities		(274	)		(99)		–		–		(373)
Other, net		246			192		(3)		–		435
Net cash used by investing activities		(392	)		(1,615)		33		–		(1,974)
Cash flows from financing activities:
Proceeds from fixed-rate notes		1,497			–		–		–		1,497
Purchases of common stock		(1,468	)		–		–		–		(1,468)
Repayment of fixed-rate notes		(750	)		–		–		–		(750)
Dividends paid		(673	)		–		–		–		(673)
Other, net		216			(20)		(3)		–		193
Net cash used by financing activities		(1,178	)		(20)		(3)		–		(1,201)
Net cash used by discontinued operations		–			–		(27)		–		(27)
Cash sweep/funding by parent		1,851			(1,889)		38		–		–
Net increase in cash and equivalents		(78	)		–		114		–		36
Cash and equivalents at beginning of year		1,608			–		1,005		–		2,613
Cash and equivalents at end of year	$	1,530		$	–	$	1,119	$	–	$	2,649