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Other Financial Data
3 Months Ended
Mar. 29, 2014
Other Financial Data [Abstract]  
Other Financial Data
Other Financial Data
Statement of Operations Information
Other Charges
Other charges included in Operating earnings consist of the following: 
 
Three Months Ended
  
March 29,
2014
 
March 30,
2013
Other charges (income):
 
 
 
Intangibles amortization
$
5

 
$
6

Reorganization of businesses
21

 
11

Gain on sale of building and land
(21
)
 

 
$
5

 
$
17


During the three months ended March 29, 2014, the Company completed the sale of a building and parcel of land with a net book value of $3 million for net cash proceeds of $24 million resulting in a gain on sale of $21 million.
Other Income (Expense)
Interest expense, net, and Other, both included in Other income (expense), consist of the following: 
 
Three Months Ended
  
March 29,
2014
 
March 30,
2013
Interest income (expense), net:
 
 
 
Interest expense
$
(30
)
 
$
(30
)
Interest income
5

 
5

 
$
(25
)
 
$
(25
)
Other:
 
 
 
Foreign currency gain (loss)
$
(2
)
 
$
4

Other
1

 
3

 
$
(1
)
 
$
7


Earnings Per Common Share
The computation of basic and diluted earnings per common share is as follows:
 
Net Earnings
Three Months Ended
March 29,
2014
 
March 30,
2013
Basic earnings per common share:
 
 
 
Earnings
$
127

 
$
192

Weighted average common shares outstanding
254.1

 
274.5

Per share amount
$
0.50

 
$
0.70

Diluted earnings per common share:
 
 
 
Earnings
$
127

 
$
192

Weighted average common shares outstanding
254.1

 
274.5

Add effect of dilutive securities:
 
 
 
Share-based awards
4.2

 
6.2

Diluted weighted average common shares outstanding
258.3

 
280.7

Per share amount
$
0.49

 
$
0.68


In the computation of diluted earnings per common share for the three months ended March 29, 2014 and March 30, 2013, the assumed exercise of 5.0 million and 4.5 million stock options, respectively, were excluded because their inclusion would have been antidilutive.
Balance Sheet Information
Cash and Cash Equivalents
The Company’s cash and cash equivalents (which are highly-liquid investments with an original maturity of three months or less) were $3.1 billion at March 29, 2014 and $3.2 billion at December 31, 2013. Of these amounts, $64 million at March 29, 2014 and $63 million at December 31, 2013 were restricted.
Investments
Investments consist of the following:
March 29, 2014
March 29, 2014
 
December 31, 2013
Available-for-sale securities:
 
 
 
Government, agency, and government-sponsored enterprise obligations
$
15

 
$
15

Corporate bonds
8

 
7

Mutual funds
11

 
11

Common stock and equivalents

 
2

 
34

 
35

Other investments, at cost
211

 
201

Equity method investments
15

 
15

 
$
260

 
$
251


The Company had no unrealized gains or losses on its investments as of both March 29, 2014 and December 31, 2013.
Accounts Receivable, Net
Accounts receivable, net, consists of the following: 
 
March 29,
2014
 
December 31,
2013
Accounts receivable
$
1,788

 
$
1,976

Less allowance for doubtful accounts
(61
)
 
(56
)
 
$
1,727

 
$
1,920


Inventories, Net
Inventories, net, consist of the following: 
 
March 29,
2014
 
December 31,
2013
Finished goods
$
257

 
$
232

Work-in-process and production materials
508

 
468

 
765

 
700

Less inventory reserves
(189
)
 
(178
)
 
$
576

 
$
522


Other Current Assets
Other current assets consist of the following: 
 
March 29,
2014
 
December 31,
2013
Costs and earnings in excess of billings
$
392

 
$
390

Contract-related deferred costs
114

 
105

Tax-related deposits and refunds receivable
71

 
113

Other
136

 
161

 
$
713

 
$
769


Property, Plant and Equipment, Net
Property, plant and equipment, net, consists of the following: 
 
March 29,
2014
 
December 31,
2013
Land
$
36

 
$
36

Building
651

 
649

Machinery and equipment
1,979

 
1,938

 
2,666

 
2,623

Less accumulated depreciation
(1,871
)
 
(1,813
)
 
$
795

 
$
810


During the first quarter of 2014, the Company entered into an arrangement to transfer its Reynosa, Mexico manufacturing operation including the land, building, equipment, inventory, and employees to a contract manufacturer.  The transaction closed subsequent to the quarter ended March 29, 2014. As a result of the expected sales proceeds, the Company recognized an impairment loss of $6 million during the quarter ended March 29, 2014, within Other charges in its condensed consolidated statements of operations.
Depreciation expense for the three months ended March 29, 2014 and March 30, 2013 was $50 million and $45 million, respectively.
Other Assets
Other assets consist of the following: 
 
March 29,
2014
 
December 31,
2013
Intangible assets, net
$
103

 
$
87

Long-term receivables
47

 
6

Other
94

 
92

 
$
244

 
$
185


Accrued Liabilities
Accrued liabilities consist of the following: 
 
March 29,
2014
 
December 31,
2013
Deferred revenue
$
810

 
$
778

Compensation
276

 
334

Billings in excess of costs and earnings
354

 
295

Tax liabilities
92

 
95

Customer reserves
107

 
146

Dividend payable
79

 
79

Other
649

 
675

 
$
2,367

 
$
2,402


Other Liabilities
Other liabilities consist of the following: 
 
March 29,
2014
 
December 31,
2013
Defined benefit plans, including split dollar life insurance arrangements
$
1,714

 
$
1,759

Postretirement health care benefit plan
118

 
117

Deferred revenue
293

 
302

Unrecognized tax benefits
61

 
102

Other
194

 
205

 
$
2,380

 
$
2,485


Stockholders’ Equity
Share Repurchase Program: The Company paid an aggregate of $57 million during the first quarter of 2014, including transaction costs, to repurchase approximately one million shares at an average price of $66.32 per share. As of March 29, 2014, the Company had used approximately $5.3 billion of the share repurchase authority, including transaction costs, to repurchase shares, leaving $1.7 billion of authority available for future repurchases.
Payment of Dividends: During the three months ended March 29, 2014 and March 30, 2013, the Company paid $79 million and $72 million, respectively, in cash dividends to holders of its common stock.
Accumulated Other Comprehensive Loss
The following table displays the changes in Accumulated other comprehensive loss, net of tax, by component from January 1, 2014 to March 29, 2014:
 
Gains and Losses on Cash Flow Hedges
 
Unrealized Gains and Losses on Available-for-Sale Securities
 
Retirement Benefit Items
 
Foreign Currency Translation Adjustments
 
Total
Balance as of January 1, 2014
$
(1
)
 
$
(2
)
 
$
(2,188
)
 
$
(96
)
 
$
(2,287
)
Other comprehensive income before reclassifications

 
2

 

 
2

 
4

Amounts reclassified from accumulated other comprehensive loss
$

 
$

 
$
13

 
$

 
$
13

Current period change in Other comprehensive income (loss)

 
2

 
13

 
2

 
17

Balance as of March 29, 2014
$
(1
)
 
$

 
$
(2,175
)
 
$
(94
)
 
$
(2,270
)


The following table displays the amounts reclassified from Accumulated other comprehensive loss and the affected line item in the condensed consolidated statement of operations during the three months ended March 29, 2014 and March 30, 2013:
 
Three Months Ended
 
 
  
March 29,
2014
 
March 30,
2013
 
 
Gains on cash flow hedges:
 
 
 
 
 
Foreign exchange contracts
$


 
$
(1
)
 
Cost of sales
 

 
(1
)
 
Total before tax
 
$

 
$

 
Tax (expense) or benefit
 
$

 
$
(1
)
 
Net of tax
Amortization of Retirement Benefit Items:
 
 
 
 
 
Prior-service costs
$
(10
)
 
$
(11
)
 
Selling, general, and administrative expenses
Actuarial net losses
29

 
39

 
Selling, general, and administrative expenses
 
19

 
28

 
Total before tax
 
(6
)
 
(9
)
 
Tax benefit
 
$
13

 
$
19

 
Net of tax
 
 
 
 
 
 
Total reclassifications for the period, net of tax
$
13

 
$
18