CHICAGO, July 22, 2015
/PRNewswire/ --
Table 1. Summary
Financial Results
|
|
Second
Quarter
|
|
|
First
Half
|
|
|
(Dollars in
Millions, except per share data)
|
|
2015
|
|
2014
|
|
Change
|
2015
|
|
2014
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
$24,543
|
|
|
$22,045
|
|
11%
|
|
|
$46,692
|
|
|
$42,510
|
|
10%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP*
|
|
|
|
|
|
|
|
|
|
|
|
|
Core Operating
Earnings
|
|
|
$1,713
|
|
|
$1,991
|
|
(14)%
|
|
|
$3,845
|
|
|
$4,086
|
|
(6)%
|
Core Operating
Margin
|
|
7.0%
|
|
9.0%
|
|
(2.0)
Pts
|
|
8.2%
|
|
9.6%
|
|
(1.4)
Pts
|
Core Earnings Per
Share
|
|
|
$1.62
|
|
|
$2.42
|
|
(33)%
|
|
|
$3.59
|
|
|
$4.16
|
|
(14)%
|
GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings From
Operations
|
|
|
$1,683
|
|
|
$1,787
|
|
(6)%
|
|
|
$3,702
|
|
|
$3,329
|
|
11%
|
Operating
Margin
|
|
6.9%
|
|
8.1%
|
|
(1.2)
Pts
|
|
7.9%
|
|
7.8%
|
|
0.1
Pts
|
Net
Earnings
|
|
|
$1,110
|
|
|
$1,653
|
|
(33)%
|
|
|
$2,446
|
|
|
$2,618
|
|
(7)%
|
Earnings Per
Share
|
|
|
$1.59
|
|
|
$2.24
|
|
(29)%
|
|
|
$3.46
|
|
|
$3.50
|
|
(1)%
|
Operating Cash
Flow
|
|
|
$3,297
|
|
|
$1,809
|
|
82%
|
|
|
$3,385
|
|
|
$2,921
|
|
16%
|
* Non-GAAP
measures. Complete definitions of Boeing's non-GAAP measures are on
page 6, "Non-GAAP Measures Disclosures."
|
The Boeing Company [NYSE: BA] reported second-quarter revenue
increased 11 percent to $24.5 billion
on record commercial deliveries (Table 1). Second quarter 2015
results included the previously announced $536 million after-tax charge ($0.77 per share) on the KC-46 Tanker program
reflecting higher estimated costs. Core earnings per share
(non-GAAP)* guidance for 2015 has been adjusted to between
$7.70 and $7.90 per share, from
$8.20 and $8.40, to reflect the
impact of the second quarter 2015 KC-46 Tanker charge ($0.77 per share), partially offset by strong
performance ($0.27 per share). GAAP
earnings per share has been adjusted to between $7.60 and $7.80, from $8.10 and $8.30.
"Record commercial airplane deliveries to customers worldwide
drove solid revenue growth, and the strength of our overall
portfolio and diligent focus produced significant operating cash
flow during the quarter," said Boeing President and Chief Executive
Officer Dennis Muilenburg.
"Strong operating performance across our commercial and defense
production programs partially offset the tanker charge and enabled
us to maintain our commitments to return cash to our shareholders
and invest in innovation and our people."
"Overall, our outlook for the second half of the year remains
positive. On the tanker program, we are investing the
necessary resources to keep this vitally important program on
schedule for our customer. We have a clear understanding of the
work to be done and we are confident that the long-term financial
value of the program will reward our additional
investment."
"With our sustained focus on productivity and growth, we will
continue to profitably deliver on our large and diverse backlog,
capture new orders, and deliver increasing value to all of our
stakeholders."
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 2. Cash
Flow
|
|
Second Quarter
|
|
First
Half
|
(Millions)
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Operating Cash
Flow
|
|
|
$3,297
|
|
|
|
$1,809
|
|
|
|
$3,385
|
|
|
|
$2,921
|
|
Less Additions to
Property, Plant & Equipment
|
|
|
($692)
|
|
|
|
($449)
|
|
|
|
($1,266)
|
|
|
|
($946)
|
|
Free Cash
Flow*
|
|
|
$2,605
|
|
|
|
$1,360
|
|
|
|
$2,119
|
|
|
|
$1,975
|
|
Operating cash flow in the quarter was $3.3 billion, reflecting commercial airplane
production rates and strong operating performance (Table 2). During
the quarter, the company repurchased 14 million shares for
$2.0 billion, leaving $7.5 billion remaining under the current
repurchase authorization which is expected to be completed over
approximately the next two years. The company also paid
$0.6 billion in dividends in the
quarter, reflecting an approximately 25 percent increase in
dividends per share compared to the same period of the prior
year.
|
|
|
|
|
|
|
|
|
Table 3. Cash,
Marketable Securities and Debt Balances
|
|
Quarter-End
|
(Billions)
|
|
Q2
15
|
|
Q1
15
|
Cash
|
|
|
$9.1
|
|
|
|
$8.6
|
|
Marketable
Securities1
|
|
|
$0.5
|
|
|
|
$1.0
|
|
Total
|
|
|
$9.6
|
|
|
|
$9.6
|
|
Debt
Balances:
|
|
|
|
|
The Boeing Company,
net of intercompany loans to BCC
|
|
|
$6.6
|
|
|
|
$6.6
|
|
Boeing Capital,
including intercompany loans
|
|
|
$2.4
|
|
|
|
$2.4
|
|
Total Consolidated
Debt
|
|
|
$9.0
|
|
|
|
$9.0
|
|
|
1
Marketable securities consists primarily of time deposits due
within one year classified as "short-term
investments."
|
Cash and investments in marketable securities totaled
$9.6 billion and debt totaled
$9.0 billion, both unchanged from the
beginning of the quarter (Table 3).
Total company backlog at quarter-end was $489 billion, down from $495 billion at the beginning of the quarter, and
included net orders for the quarter of $18
billion.
Segment Results
Commercial Airplanes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 4.
Commercial Airplanes
|
|
Second
Quarter
|
|
|
|
First
Half
|
|
|
(Dollars in
Millions)
|
|
2015
|
|
2014
|
|
Change
|
|
2015
|
|
2014
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
Airplanes Deliveries
|
|
197
|
|
181
|
|
9%
|
|
381
|
|
342
|
|
11%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
$16,877
|
|
|
$14,304
|
|
18%
|
|
|
$32,258
|
|
|
$27,041
|
|
19%
|
Earnings from
Operations
|
|
|
$1,206
|
|
|
$1,550
|
|
(22)%
|
|
|
$2,823
|
|
|
$3,052
|
|
(8) %
|
Operating
Margin
|
|
|
7.1%
|
|
|
10.8%
|
|
(3.7)
Pts
|
|
|
8.8%
|
|
|
11.3%
|
|
(2.5)
Pts
|
Commercial Airplanes second-quarter revenue increased 18 percent
to $16.9 billion on higher delivery
volume and mix (Table 4). Second-quarter operating margin was 7.1
percent, reflecting the previously announced $513 million pre-tax charge on the KC-46 Tanker
program and the dilutive impact of higher 787 and 747 deliveries
partially offset by strong performance on production programs.
During the quarter, Commercial Airplanes captured orders for 116
737 MAX airplanes. The 737 program has won over 2,800 firm orders
for the 737 MAX since launch. Also during the quarter, the company
started assembly of the first 737 MAX airplane and the 787-10
program completed its Critical Design Review which indicated the
program's design is sound and development is on schedule.
Commercial Airplanes booked 171 net orders during the quarter.
Backlog remains strong with nearly 5,700 airplanes valued at
$431 billion.
Defense, Space & Security
Table 5. Defense,
Space & Security
|
|
Second
Quarter
|
|
|
|
First
Half
|
|
|
(Dollars in
Millions)
|
|
2015
|
|
2014
|
|
Change
|
|
2015
|
|
2014
|
|
Change
|
Revenues1
|
|
|
|
|
|
|
|
|
|
|
|
Boeing Military
Aircraft
|
|
|
$3,488
|
|
|
$3,520
|
|
(1)%
|
|
|
$6,232
|
|
|
$6,975
|
|
(11)%
|
Network &
Space Systems
|
|
|
$1,938
|
|
|
$1,920
|
|
1%
|
|
|
$3,670
|
|
|
$3,796
|
|
(3)%
|
Global
Services & Support
|
|
|
$2,118
|
|
|
$2,307
|
|
(8)%
|
|
|
$4,351
|
|
|
$4,609
|
|
(6)%
|
Total BDS
Revenues
|
|
|
$7,544
|
|
|
$7,747
|
|
(3)%
|
|
|
$14,253
|
|
|
$15,380
|
|
(7)%
|
Earnings from
Operations1
|
|
|
|
|
|
|
|
|
|
|
|
|
Boeing Military
Aircraft
|
|
|
$123
|
|
|
$164
|
|
(25)%
|
|
|
$384
|
|
|
$496
|
|
(23)%
|
Network &
Space Systems
|
|
|
$151
|
|
|
$150
|
|
1%
|
|
|
$318
|
|
|
$318
|
|
—%
|
Global
Services & Support
|
|
|
$272
|
|
|
$268
|
|
1%
|
|
|
$587
|
|
|
$546
|
|
8%
|
Total BDS Earnings
from Operations
|
|
|
$546
|
|
|
$582
|
|
(6)%
|
|
|
$1,289
|
|
|
$1,360
|
|
(5)%
|
Operating
Margin
|
|
7.2%
|
|
7.5%
|
|
(0.3)
Pts
|
|
9.0%
|
|
8.8%
|
|
0.2
Pts
|
|
1
During the first quarter of 2015, certain programs were
realigned between Boeing Military Aircraft and Global Services
& Support.
|
Defense, Space & Security's second-quarter revenue was
$7.5 billion. Second quarter
operating margin was 7.2 percent, reflecting the previously
announced $322 million pre-tax charge
recorded at BMA on the KC-46 Tanker program partially offset by
strong performance on production programs and mix (Table 5).
Boeing Military Aircraft (BMA) second-quarter revenue was
$3.5 billion, reflecting planned
timing of deliveries and mix. Operating margin was 3.5 percent,
reflecting the KC-46 Tanker program charge partially offset by
strong performance on production programs. During the quarter, BMA
was awarded contracts for six C-17 Globemaster III airlifters.
Network & Space Systems (N&SS) second-quarter revenue
was $1.9 billion and operating margin
was unchanged at 7.8 percent. During the quarter, NASA awarded
Boeing the first ever commercial contract for a human spaceflight
mission as part of the existing Commercial Crew contract.
Global Services & Support (GS&S) second-quarter revenue
was $2.1 billion, reflecting lower
volume in Aircraft Modernization and Sustainment. Operating margin
increased to 12.8 percent on improved program mix. During the
quarter, GS&S was awarded an F-15 international services
contract extension.
Backlog at Defense, Space & Security was $58 billion, of which 39 percent represents
orders from international customers.
Additional Financial Information
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 6.
Additional Financial Information
|
|
Second
Quarter
|
|
First
Half
|
(Dollars in
Millions)
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Revenues
|
|
|
|
|
|
|
|
|
Boeing
Capital
|
|
|
$115
|
|
|
$90
|
|
|
$201
|
|
|
$172
|
Unallocated items,
eliminations and other
|
|
|
$7
|
|
|
($96)
|
|
|
($20)
|
|
|
($83)
|
Earnings from
Operations
|
|
|
|
|
|
|
|
|
Boeing
Capital
|
|
|
$11
|
|
|
$33
|
|
|
$31
|
|
|
$77
|
Unallocated
pension/postretirement
|
|
|
($30)
|
|
|
($204)
|
|
|
($143)
|
|
|
($757)
|
Other unallocated
items and eliminations
|
|
|
($50)
|
|
|
($174)
|
|
|
($298)
|
|
|
($403)
|
Other income,
net
|
|
|
$15
|
|
|
$11
|
|
|
$3
|
|
|
$20
|
Interest and debt
expense
|
|
|
($75)
|
|
|
($81)
|
|
|
($136)
|
|
|
($173)
|
Effective tax
rate
|
|
31.6%
|
|
3.7%
|
|
31.5%
|
|
17.6%
|
At quarter-end, Boeing Capital's net portfolio balance was
$3.3 billion, down from $3.4 billion at the beginning of the quarter
(Table 6). Total pension expense for the second quarter was
$523 million, down from $693 million in the same period of the prior
year. Other unallocated items and eliminations totaled $50 million at quarter end, down from
$174 million in the same period of
the prior year, primarily due to lower elimination of intercompany
profit and deferred compensation expense. The company's effective
income tax rate was 31.6 percent at quarter end, up from 3.7
percent in the same period of the prior year. The second quarter
2014 effective income tax rate included $524
million in tax benefits.
Outlook
The company's 2015 financial and delivery guidance (Table 7)
reflects the impact of the KC-46 Tanker charge and continued strong
performance across the company.
|
|
|
|
Table 7. 2015
Financial Outlook
|
Current
|
|
Prior
|
(Dollars in
Billions, except per share data)
|
Guidance
|
|
Guidance
|
|
|
|
|
The Boeing
Company
|
|
|
|
Revenue
|
$94.5 -
96.5
|
|
$94.5 -
96.5
|
Core Earnings Per
Share*
|
$7.70 -
7.90
|
|
$8.20 -
8.40
|
GAAP Earnings Per
Share
|
$7.60 -
7.80
|
|
$8.10 -
8.30
|
Operating Cash
Flow
|
> $9
|
|
> $9
|
|
|
|
|
Commercial
Airplanes
|
|
|
|
Deliveries
|
750 - 755
|
|
750 - 755
|
Revenue
|
$64.5 -
65.5
|
|
$64.5 -
65.5
|
Operating
Margin
|
~9.0%
|
|
9.5% -
10.0%
|
|
|
|
|
Defense, Space
& Security (revised for business realignment)
|
|
|
|
Revenue
|
|
|
|
Boeing Military
Aircraft
|
~$12.5
|
|
~$12.5
|
Network &
Space Systems
|
~$8.0
|
|
~$8.0
|
Global
Services & Support
|
~$9.5
|
|
~$9.5
|
|
|
|
|
Total BDS
Revenue
|
$29.5 -
30.5
|
|
$29.5 -
30.5
|
|
|
|
|
Operating
Margin
|
|
|
|
Boeing Military
Aircraft
|
~8%
|
|
~9.5%
|
Network &
Space Systems
|
~9.0%
|
|
~9.0%
|
Global
Services & Support
|
~11.5%
|
|
~11.0%
|
|
|
|
|
Total BDS Operating
Margin
|
~9.5%
|
|
9.75% -
10.0%
|
|
|
|
|
Boeing
Capital
|
|
|
|
Portfolio
Size
|
Stable
|
|
Stable
|
Revenue
|
~$0.3
|
|
~$0.3
|
Pre-Tax
Earnings
|
~$0.05
|
|
~$0.05
|
|
|
|
|
Research &
Development
|
~ $3.5
|
|
~ $3.5
|
Capital
Expenditures
|
~ $2.8
|
|
~ $2.8
|
Pension Expense
1
|
~ $2.1
|
|
~ $2.1
|
Effective Tax Rate
2
|
~
29.0%
|
|
~ 30.5%
|
|
|
1
|
Approximately $0.3 billion is expected to be
recorded in unallocated items and eliminations
|
2
|
Assumes the
extension of the research and development tax credit
|
*
|
Non-GAAP measures.
Complete definitions of Boeing's non-GAAP measures are on page 6,
"Non-GAAP Measures Disclosures."
|
Non-GAAP Measures Disclosures
We supplement the reporting of our financial information
determined under U.S. generally accepted accounting principles
(GAAP) with certain non-GAAP financial information. The non-GAAP
financial information presented excludes certain significant items
that may not be indicative of, or are unrelated to, results from
our ongoing business operations. We believe that these non-GAAP
measures provide investors with additional insight into the
company's ongoing business performance. These non-GAAP measures
should not be considered in isolation or as a substitute for the
related GAAP measures, and other companies may define such measures
differently. We encourage investors to review our financial
statements and publicly-filed reports in their entirety and not to
rely on any single financial measure. The following definitions are
provided:
Core Operating Earnings, Core Operating Margin and Core Earnings
Per Share
Core operating earnings is defined as GAAP earnings from
operations excluding unallocated pension and post-retirement
expense. Core operating margin is defined as core operating
earnings expressed as a percentage of revenue. Core earnings per
share is defined as GAAP diluted earnings per share
excluding the net earnings per share impact of unallocated
pension and post-retirement expense. Unallocated pension and
post-retirement expense represents the portion of pension and
other post-retirement costs that are not recognized by business
segments for segment reporting purposes. Management uses core
operating earnings, core operating margin and core earnings per
share for purposes of evaluating and forecasting underlying
business performance. Management believes these core earnings
measures provide investors additional insights into operational
performance as they exclude unallocated pension and post-retirement
costs, which primarily represent costs driven by market factors and
costs not allocable to government contracts. A reconciliation
between the GAAP and non-GAAP measures is provided on page 13.
Free Cash Flow
Free cash flow is defined as GAAP operating cash flow
without capital expenditures for property, plant and equipment
additions. Management believes free cash flow provides
investors with an important perspective on the cash available for
shareholders, debt repayment, and acquisitions after making the
capital investments required to support ongoing business operations
and long term value creation. Free cash flow does not represent the
residual cash flow available for discretionary expenditures as it
excludes certain mandatory expenditures such as repayment of
maturing debt. Management uses free cash flow as a measure to
assess both business performance and overall liquidity. Table 2
provides a reconciliation between GAAP operating cash flow and free
cash flow.
Caution Concerning Forward-Looking Statements
This press release contains "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of
1995. Words such as "may," "should," "expects," "intends,"
"projects," "plans," "believes," "estimates," "targets,"
"anticipates," and similar expressions are used to identify these
forward-looking statements. Examples of forward-looking statements
include statements relating to our future financial condition and
operating results, as well as any other statement that does not
directly relate to any historical or current fact. Forward-looking
statements are based on our current expectations and assumptions,
which may not prove to be accurate. These statements are not
guarantees and are subject to risks, uncertainties, and changes in
circumstances that are difficult to predict. Many factors could
cause actual results to differ materially and adversely from these
forward-looking statements. Among these factors are risks related
to: (1) general conditions in the economy and our industry,
including those due to regulatory changes; (2) our reliance on our
commercial airline customers; (3) the overall health of our
aircraft production system, planned production rate increases
across multiple commercial airline programs, our commercial
development and derivative aircraft programs, and our aircraft
being subject to stringent performance and reliability standards;
(4) changing budget and appropriation levels and acquisition
priorities of the U.S. government; (5) our dependence on U.S.
government contracts; (6) our reliance on fixed-price contracts;
(7) our reliance on cost-type contracts; (8) uncertainties
concerning contracts that include in-orbit incentive payments; (9)
our dependence on our subcontractors and suppliers, as well as the
availability of raw materials, (10) changes in accounting
estimates; (11) changes in the competitive landscape in our
markets; (12) our non-U.S. operations, including sales to non-U.S.
customers; (13) potential adverse developments in new or pending
litigation and/or government investigations; (14) customer and
aircraft concentration in Boeing Capital's customer financing
portfolio; (15) changes in our ability to obtain debt on
commercially reasonable terms and at competitive rates in order to
fund our operations and contractual commitments; (16) realizing the
anticipated benefits of mergers, acquisitions, joint
ventures/strategic alliances or divestitures; (17) the adequacy of
our insurance coverage to cover significant risk exposures; (18)
potential business disruptions, including those related to physical
security threats, information technology or cyber-attacks,
epidemics, sanctions or natural disasters; (19) work stoppages or
other labor disruptions; (20) significant changes in discount rates
and actual investment return on pension assets; (21) potential
environmental liabilities; and (22) threats to the security of our
or our customers' information.
Additional information concerning these and other factors can be
found in our filings with the Securities and Exchange Commission,
including our most recent Annual Report on Form 10-K, Quarterly
Reports on Form 10-Q and Current Reports on Form 8-K. Any
forward-looking statement speaks only as of the date on which it is
made, and we assume no obligation to update or revise any
forward-looking statement, whether as a result of new information,
future events, or otherwise, except as required by law.
Contact:
Investor Relations:
|
|
Troy Lahr or Rob
Martin (312) 544-2140
|
Communications:
|
|
Bernard Choi
(312) 544-2002
|
The Boeing Company
and Subsidiaries
Consolidated
Statements of Operations
(Unaudited)
|
|
|
|
|
|
Six months
ended
June 30
|
|
Three months
ended
June 30
|
(Dollars in
millions, except per share data)
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
|
Sales of
products
|
|
$41,408
|
|
|
|
$37,542
|
|
|
|
$21,923
|
|
|
|
$19,527
|
|
Sales of
services
|
5,284
|
|
|
4,968
|
|
|
2,620
|
|
|
2,518
|
|
Total
revenues
|
46,692
|
|
|
42,510
|
|
|
24,543
|
|
|
22,045
|
|
|
|
|
|
|
|
|
|
Cost of
products
|
(35,627)
|
|
|
(31,932)
|
|
|
(19,247)
|
|
|
(16,674)
|
|
Cost of
services
|
(4,186)
|
|
|
(3,999)
|
|
|
(2,086)
|
|
|
(1,979)
|
|
Boeing Capital
interest expense
|
(33)
|
|
|
(35)
|
|
|
(17)
|
|
|
(17)
|
|
Total costs and
expenses
|
(39,846)
|
|
|
(35,966)
|
|
|
(21,350)
|
|
|
(18,670)
|
|
|
6,846
|
|
|
6,544
|
|
|
3,193
|
|
|
3,375
|
|
Income from operating
investments, net
|
129
|
|
|
120
|
|
|
50
|
|
|
61
|
|
General and
administrative expense
|
(1,705)
|
|
|
(1,795)
|
|
|
(760)
|
|
|
(918)
|
|
Research and
development expense, net
|
(1,569)
|
|
|
(1,542)
|
|
|
(800)
|
|
|
(733)
|
|
Gain on dispositions,
net
|
1
|
|
|
2
|
|
|
|
|
|
2
|
|
Earnings from
operations
|
3,702
|
|
|
3,329
|
|
|
1,683
|
|
|
1,787
|
|
Other income,
net
|
3
|
|
|
20
|
|
|
15
|
|
|
11
|
|
Interest and debt
expense
|
(136)
|
|
|
(173)
|
|
|
(75)
|
|
|
(81)
|
|
Earnings before
income taxes
|
3,569
|
|
|
3,176
|
|
|
1,623
|
|
|
1,717
|
|
Income tax
expense
|
(1,123)
|
|
|
(558)
|
|
|
(513)
|
|
|
(64)
|
|
Net
earnings
|
|
$2,446
|
|
|
|
$2,618
|
|
|
|
$1,110
|
|
|
|
$1,653
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
|
$3.50
|
|
|
|
$3.55
|
|
|
|
$1.61
|
|
|
|
$2.26
|
|
|
|
|
|
|
|
|
|
Diluted earnings
per share
|
|
$3.46
|
|
|
|
$3.50
|
|
|
|
$1.59
|
|
|
|
$2.24
|
|
|
|
|
|
|
|
|
|
Cash dividends
paid per share
|
|
$1.82
|
|
|
|
$1.46
|
|
|
|
$0.91
|
|
|
|
$0.73
|
|
|
|
|
|
|
|
|
|
Weighted average
diluted shares (millions)
|
706.6
|
|
|
747.4
|
|
|
698.9
|
|
|
740.1
|
|
The Boeing Company
and Subsidiaries
Consolidated
Statements of Financial Position
(Unaudited)
|
|
|
|
|
|
|
|
|
(Dollars in
millions, except per share data)
|
June 30
2015
|
|
|
December 31
2014
|
|
Assets
|
|
|
|
Cash and cash
equivalents
|
|
$9,157
|
|
|
|
$11,733
|
|
Short-term and other
investments
|
468
|
|
|
1,359
|
|
Accounts receivable,
net
|
7,927
|
|
|
7,729
|
|
Current portion of
customer financing, net
|
209
|
|
|
190
|
|
Deferred income
taxes
|
17
|
|
|
18
|
|
Inventories, net of
advances and progress billings
|
49,028
|
|
|
46,756
|
|
Total current
assets
|
66,806
|
|
|
67,785
|
|
Customer financing,
net
|
3,175
|
|
|
3,371
|
|
Property, plant and
equipment, net of accumulated depreciation of $15,997 and
$15,689
|
11,338
|
|
|
11,007
|
|
Goodwill
|
5,126
|
|
|
5,119
|
|
Acquired intangible
assets, net
|
2,763
|
|
|
2,869
|
|
Deferred income
taxes
|
6,264
|
|
|
6,576
|
|
Investments
|
1,256
|
|
|
1,154
|
|
Other assets, net of
accumulated amortization of $419 and $479
|
1,374
|
|
|
1,317
|
|
Total
assets
|
|
$98,102
|
|
|
|
$99,198
|
|
Liabilities and
equity
|
|
|
|
Accounts
payable
|
|
$11,531
|
|
|
|
$10,667
|
|
Accrued
liabilities
|
13,226
|
|
|
13,343
|
|
Advances and billings
in excess of related costs
|
23,373
|
|
|
23,175
|
|
Deferred income taxes
and income taxes payable
|
8,894
|
|
|
8,603
|
|
Short-term debt and
current portion of long-term debt
|
112
|
|
|
929
|
|
Total current
liabilities
|
57,136
|
|
|
56,717
|
|
Accrued retiree
health care
|
6,777
|
|
|
6,802
|
|
Accrued pension plan
liability, net
|
17,537
|
|
|
17,182
|
|
Non-current income
taxes payable
|
389
|
|
|
358
|
|
Other long-term
liabilities
|
1,052
|
|
|
1,208
|
|
Long-term
debt
|
8,904
|
|
|
8,141
|
|
Shareholders'
equity:
|
|
|
|
Common stock, par
value $5.00 – 1,200,000,000 shares authorized; 1,012,261,159 shares
issued
|
5,061
|
|
|
5,061
|
|
Additional paid-in
capital
|
4,721
|
|
|
4,625
|
|
Treasury stock, at
cost – 331,193,968 and 305,533,606 shares
|
(27,463)
|
|
|
(23,298)
|
|
Retained
earnings
|
37,365
|
|
|
36,180
|
|
Accumulated other
comprehensive loss
|
(13,420)
|
|
|
(13,903)
|
|
Total shareholders'
equity
|
6,264
|
|
|
8,665
|
|
Noncontrolling
interests
|
43
|
|
|
125
|
|
Total
equity
|
6,307
|
|
|
8,790
|
|
Total liabilities
and equity
|
|
$98,102
|
|
|
|
$99,198
|
|
The Boeing Company
and Subsidiaries
Consolidated
Statements of Cash Flows
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Six months
ended
June 30
|
(Dollars in
millions)
|
2015
|
|
|
2014
|
|
Cash
flows – operating activities:
|
|
|
|
Net
earnings
|
|
$2,446
|
|
|
|
$2,618
|
|
Adjustments to
reconcile net earnings to net cash provided by operating
activities:
|
|
|
|
Non-cash items
–
|
|
|
|
Share-based plans
expense
|
94
|
|
|
101
|
|
Depreciation and
amortization
|
912
|
|
|
900
|
|
Investment/asset
impairment charges, net
|
74
|
|
|
36
|
|
Customer financing
valuation benefit
|
(5)
|
|
|
(26)
|
|
Gain on dispositions,
net
|
(1)
|
|
|
(2)
|
|
Other charges and
credits, net
|
140
|
|
|
87
|
|
Excess tax benefits
from share-based payment arrangements
|
(124)
|
|
|
(97)
|
|
Changes in assets and
liabilities –
|
|
|
|
Accounts
receivable
|
(313)
|
|
|
(1,286)
|
|
Inventories, net of
advances and progress billings
|
(2,395)
|
|
|
(3,402)
|
|
Accounts
payable
|
888
|
|
|
1,783
|
|
Accrued
liabilities
|
(177)
|
|
|
(913)
|
|
Advances and billings
in excess of related costs
|
195
|
|
|
1,217
|
|
Income taxes
receivable, payable and deferred
|
482
|
|
|
394
|
|
Other long-term
liabilities
|
(17)
|
|
|
(88)
|
|
Pension and other
postretirement plans
|
1,244
|
|
|
1,118
|
|
Customer financing,
net
|
19
|
|
|
466
|
|
Other
|
(77)
|
|
|
15
|
|
Net cash
provided by operating activities
|
3,385
|
|
|
2,921
|
|
Cash flows –
investing activities:
|
|
|
|
Property, plant and
equipment additions
|
(1,266)
|
|
|
(946)
|
|
Property, plant and
equipment reductions
|
20
|
|
|
17
|
|
Acquisitions, net of
cash acquired
|
(23)
|
|
|
(163)
|
|
Contributions to
investments
|
(1,205)
|
|
|
(5,657)
|
|
Proceeds from
investments
|
2,040
|
|
|
8,030
|
|
Other
|
22
|
|
|
|
|
Net cash
(used)/provided by investing activities
|
(412)
|
|
|
1,281
|
|
Cash flows –
financing activities:
|
|
|
|
New
borrowings
|
761
|
|
|
85
|
|
Debt
repayments
|
(846)
|
|
|
(854)
|
|
Repayments of
distribution rights and other asset financing
|
|
|
|
(184)
|
|
Stock options
exercised
|
276
|
|
|
261
|
|
Excess tax benefits
from share-based payment arrangements
|
124
|
|
|
97
|
|
Employee taxes on
certain share-based payment arrangements
|
(90)
|
|
|
(88)
|
|
Common shares
repurchased
|
(4,501)
|
|
|
(3,998)
|
|
Dividends
paid
|
(1,264)
|
|
|
(1,071)
|
|
Other
|
|
|
|
(12)
|
|
Net cash
used by financing activities
|
(5,540)
|
|
|
(5,764)
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
(9)
|
|
|
7
|
|
Net decrease in
cash and cash equivalents
|
(2,576)
|
|
|
(1,555)
|
|
Cash and cash
equivalents at beginning of year
|
11,733
|
|
|
9,088
|
|
Cash and cash
equivalents at end of period
|
|
$9,157
|
|
|
|
$7,533
|
|
The Boeing Company
and Subsidiaries
Summary of
Business Segment Data
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months
ended
June 30
|
|
Three months
ended
June 30
|
(Dollars in
millions)
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
|
Revenues:
|
|
|
|
|
|
|
|
Commercial
Airplanes
|
|
$32,258
|
|
|
|
$27,041
|
|
|
|
$16,877
|
|
|
|
$14,304
|
|
Defense,
Space & Security:
|
|
|
|
|
|
|
|
Boeing Military
Aircraft
|
6,232
|
|
|
6,975
|
|
|
3,488
|
|
|
3,520
|
|
Network &
Space Systems
|
3,670
|
|
|
3,796
|
|
|
1,938
|
|
|
1,920
|
|
Global
Services & Support
|
4,351
|
|
|
4,609
|
|
|
2,118
|
|
|
2,307
|
|
Total Defense,
Space & Security
|
14,253
|
|
|
15,380
|
|
|
7,544
|
|
|
7,747
|
|
Boeing
Capital
|
201
|
|
|
172
|
|
|
115
|
|
|
90
|
|
Unallocated items,
eliminations and other
|
(20)
|
|
|
(83)
|
|
|
7
|
|
|
(96)
|
|
Total
revenues
|
|
$46,692
|
|
|
|
$42,510
|
|
|
|
$24,543
|
|
|
|
$22,045
|
|
Earnings from
operations:
|
|
|
|
|
|
|
|
Commercial
Airplanes
|
|
$2,823
|
|
|
|
$3,052
|
|
|
|
$1,206
|
|
|
|
$1,550
|
|
Defense,
Space & Security:
|
|
|
|
|
|
|
|
Boeing Military
Aircraft
|
384
|
|
|
496
|
|
|
123
|
|
|
164
|
|
Network &
Space Systems
|
318
|
|
|
318
|
|
|
151
|
|
|
150
|
|
Global
Services & Support
|
587
|
|
|
546
|
|
|
272
|
|
|
268
|
|
Total Defense,
Space & Security
|
1,289
|
|
|
1,360
|
|
|
546
|
|
|
582
|
|
Boeing
Capital
|
31
|
|
|
77
|
|
|
11
|
|
|
33
|
|
Unallocated items,
eliminations and other
|
(441)
|
|
|
(1,160)
|
|
|
(80)
|
|
|
(378)
|
|
Earnings from
operations
|
3,702
|
|
|
3,329
|
|
|
1,683
|
|
|
1,787
|
|
Other income,
net
|
3
|
|
|
20
|
|
|
15
|
|
|
11
|
|
Interest and debt
expense
|
(136)
|
|
|
(173)
|
|
|
(75)
|
|
|
(81)
|
|
Earnings before
income taxes
|
3,569
|
|
|
3,176
|
|
|
1,623
|
|
|
1,717
|
|
Income tax
expense
|
(1,123)
|
|
|
(558)
|
|
|
(513)
|
|
|
(64)
|
|
Net
earnings
|
|
$2,446
|
|
|
|
$2,618
|
|
|
|
$1,110
|
|
|
|
$1,653
|
|
|
|
|
|
|
|
|
|
Research and
development expense, net:
|
|
|
|
|
|
|
|
Commercial
Airplanes
|
|
$1,097
|
|
|
|
$970
|
|
|
|
$554
|
|
|
|
$441
|
|
Defense,
Space & Security
|
474
|
|
|
577
|
|
|
250
|
|
|
297
|
|
Other
|
(2)
|
|
|
(5)
|
|
|
(4)
|
|
|
(5)
|
|
Total research and
development expense, net
|
|
$1,569
|
|
|
|
$1,542
|
|
|
|
$800
|
|
|
|
$733
|
|
|
|
|
|
|
|
|
|
Unallocated items,
eliminations and other:
|
|
|
|
|
|
|
|
Share-based
plans
|
|
($37)
|
|
|
|
($44)
|
|
|
|
($16)
|
|
|
|
($20)
|
|
Deferred
compensation
|
(48)
|
|
|
(19)
|
|
|
10
|
|
|
(26)
|
|
Amortization of
previously capitalized interest
|
(49)
|
|
|
(36)
|
|
|
(20)
|
|
|
(18)
|
|
Eliminations and
other unallocated items
|
(164)
|
|
|
(304)
|
|
|
(24)
|
|
|
(110)
|
|
Sub-total
(included in core operating earnings)
|
(298)
|
|
|
(403)
|
|
|
(50)
|
|
|
(174)
|
|
Pension
|
(209)
|
|
|
(804)
|
|
|
(57)
|
|
|
(228)
|
|
Postretirement
|
66
|
|
|
47
|
|
|
27
|
|
|
24
|
|
Total unallocated
items, eliminations and other
|
|
($441)
|
|
|
|
($1,160)
|
|
|
|
($80)
|
|
|
|
($378)
|
|
The Boeing Company
and Subsidiaries
Operating and
Financial Data
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deliveries
|
|
Six months
ended
June 30
|
|
Three months ended
June 30
|
|
Commercial
Airplanes
|
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
|
|
737
|
|
249
|
|
|
239
|
|
|
128
|
|
|
124
|
|
|
747
|
|
9
|
|
|
6
|
|
|
5
|
|
|
2
|
|
|
767
|
|
9
|
|
|
1
|
|
|
4
|
|
|
1
|
|
|
777
|
|
50
|
|
|
48
|
|
|
26
|
|
|
24
|
|
|
787
|
|
64
|
|
|
48
|
|
|
34
|
|
|
30
|
|
|
Total
|
|
381
|
|
|
342
|
|
|
197
|
|
|
181
|
|
|
Note: Deliveries
under operating lease are identified by parentheses.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Defense, Space &
Security
|
|
|
|
|
|
|
|
|
|
Boeing Military
Aircraft
|
|
|
|
|
|
|
|
|
|
AH-64 Apache
(New)
|
|
12
|
|
|
19
|
|
|
6
|
|
|
9
|
|
|
AH-64 Apache
(Remanufactured)
|
|
23
|
|
|
25
|
|
|
13
|
|
|
11
|
|
|
C-17 Globemaster
III
|
|
3
|
|
|
5
|
|
|
2
|
|
|
2
|
|
|
CH-47 Chinook
(New)
|
|
21
|
|
|
32
|
|
|
15
|
|
|
15
|
|
|
CH-47 Chinook
(Renewed)
|
|
5
|
|
|
|
|
|
1
|
|
|
|
|
F-15
Models
|
|
5
|
|
|
8
|
|
|
4
|
|
|
4
|
|
|
F/A-18
Models
|
|
20
|
|
|
23
|
|
|
9
|
|
|
12
|
|
|
P-8 Models
|
|
6
|
|
|
2
|
|
|
4
|
|
|
2
|
|
|
|
|
|
|
|
|
|
|
|
|
Global Services &
Support
|
|
|
|
|
|
|
|
|
|
AEW&C
|
|
|
|
|
2
|
|
|
|
|
|
1
|
|
|
C-40A
|
|
1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Network & Space
Systems
|
|
|
|
|
|
|
|
|
|
Commercial and Civil
Satellites
|
|
1
|
|
|
2
|
|
|
1
|
|
|
2
|
|
|
Military
Satellites
|
|
1
|
|
|
|
|
1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contractual
backlog (Dollars in billions)
|
|
June 30
2015
|
|
|
March 31
2015
|
|
|
December 31
2014
|
|
|
Commercial
Airplanes
|
|
|
$430.8
|
|
|
|
$435.0
|
|
|
|
$440.1
|
|
|
Defense, Space &
Security:
|
|
|
|
|
|
|
|
Boeing Military
Aircraft
|
|
22.8
|
|
|
21.3
|
|
|
21.1
|
|
|
Network & Space
Systems
|
|
9.1
|
|
|
9.4
|
|
|
8.9
|
|
|
Global Services &
Support
|
|
16.5
|
|
|
16.9
|
|
|
16.9
|
|
|
Total Defense, Space
& Security
|
|
48.4
|
|
|
47.6
|
|
|
46.9
|
|
|
Total contractual
backlog
|
|
|
$479.2
|
|
|
|
$482.6
|
|
|
|
$487.0
|
|
|
Unobligated
backlog
|
|
|
$9.6
|
|
|
|
$12.5
|
|
|
|
$15.3
|
|
|
Total
backlog
|
|
|
$488.8
|
|
|
|
$495.1
|
|
|
|
$502.3
|
|
|
Workforce
|
|
163,500
|
|
|
163,100
|
|
|
165,500
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Boeing Company
and Subsidiaries
|
Reconciliation of
Non-GAAP Measures
|
Core Operating
Earnings, Core Operating Margin and Core Earnings Per
Share
|
(Unaudited)
|
|
The tables provided
below reconcile the non-GAAP financial measures core operating
earnings, core operating margin and core earnings per share with
the most directly comparable GAAP financial measures, earnings from
operations, operating margin and diluted earnings per share. See
page 6 of this release for additional information on the use of
these non-GAAP financial measures.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second
Quarter
|
|
First
Half
|
|
Guidance
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
2015
|
Revenues
|
|
$24,543
|
|
|
$22,045
|
|
|
$46,692
|
|
|
$42,510
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Earnings From
Operations
|
|
$1,683
|
|
|
$1,787
|
|
|
$3,702
|
|
|
$3,329
|
|
|
GAAP Operating
Margin
|
6.9%
|
|
8.1%
|
|
7.9%
|
|
7.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
Unallocated
Pension/Postretirement Expense
|
|
$30
|
|
|
$204
|
|
|
$143
|
|
|
$757
|
|
|
$110
|
|
Core Operating
Earnings (non-GAAP)
|
|
$1,713
|
|
|
$1,991
|
|
|
$3,845
|
|
|
$4,086
|
|
|
Core Operating
Margin (non-GAAP)
|
7.0
|
|
9.0%
|
|
8.2%
|
|
9.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase/(Decrease) in GAAP Earnings From
Operations
|
(6%)
|
|
|
|
11%
|
|
|
|
|
Increase/(Decrease) in Core Operating Earnings
(non-GAAP)
|
(14%)
|
|
|
|
(6%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Diluted
Earnings Per Share
|
|
$1.59
|
|
|
$2.24
|
|
|
$3.46
|
|
|
$3.50
|
|
$7.60 -
$7.80
|
|
Unallocated
Pension/Postretirement Expense1
|
|
$0.03
|
|
|
$0.18
|
|
|
$0.13
|
|
|
$0.66
|
|
|
$0.10
|
|
Core Earnings Per
Share (non-GAAP)
|
|
$1.62
|
|
|
$2.42
|
|
|
$3.59
|
|
|
$4.16
|
|
$7.70 -
$7.90
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average
Diluted Shares (millions)
|
698.9
|
|
740.1
|
|
706.6
|
|
747.4
|
|
695 -
700
|
|
Increase/(Decrease) in GAAP Earnings Per
Share
|
(29%)
|
|
|
|
(1%)
|
|
|
|
|
|
Increase/(Decrease) in Core Earnings Per Share
(non-GAAP)
|
(33%)
|
|
|
|
(14%)
|
|
|
|
|
|
|
1
Earnings per share impact is presented net of the federal statutory
tax rate of 35.0 percent.
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/boeing-reports-second-quarter-results-300116930.html
SOURCE Boeing