CHICAGO, Oct. 27, 2021 /PRNewswire/ --
- Continued progress on global safe return to service of 737
MAX and focus on operational stability
- Revenue of $15.3 billion, GAAP
loss per share of ($0.19) and core
(non-GAAP)* loss per share of ($0.60)
- Operating cash flow of ($0.3)
billion; cash and marketable securities of $20.0 billion
- Commercial Airplanes backlog of $290
billion and added 93 net orders
Table 1. Summary
Financial Results
|
Third
Quarter
|
|
|
|
Nine
Months
|
|
|
(Dollars in
Millions, except per share data)
|
2021
|
|
2020
|
|
Change
|
|
2021
|
|
2020
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$15,278
|
|
$14,139
|
|
8%
|
|
$47,493
|
|
$42,854
|
|
11%
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
|
|
|
|
|
|
|
|
|
|
Earnings/(Loss)
From Operations
|
$329
|
|
($401)
|
|
NM
|
|
$1,269
|
|
($4,718)
|
|
NM
|
Operating
Margin
|
2.2%
|
|
(2.8)%
|
|
NM
|
|
2.7%
|
|
(11.0)%
|
|
NM
|
Net
Loss
|
($132)
|
|
($466)
|
|
NM
|
|
($126)
|
|
($3,502)
|
|
NM
|
Loss Per
Share
|
($0.19)
|
|
($0.79)
|
|
NM
|
|
($0.10)
|
|
($6.10)
|
|
NM
|
Operating Cash
Flow
|
($262)
|
|
($4,819)
|
|
NM
|
|
($4,132)
|
|
($14,401)
|
|
NM
|
Non-GAAP*
|
|
|
|
|
|
|
|
|
|
|
|
Core Operating
Earnings/(Loss)
|
$59
|
|
($754)
|
|
NM
|
|
$461
|
|
($5,773)
|
|
NM
|
Core Operating
Margin
|
0.4%
|
|
(5.3)%
|
|
NM
|
|
1.0%
|
|
(13.5)%
|
|
NM
|
Core Loss Per
Share
|
($0.60)
|
|
($1.39)
|
|
NM
|
|
($1.72)
|
|
($7.88)
|
|
NM
|
|
*Non-GAAP measure;
complete definitions of Boeing's non-GAAP measures are on page 6,
"Non-GAAP Measures
Disclosures."
|
The Boeing Company [NYSE: BA] reported third-quarter revenue of
$15.3 billion, driven by higher
commercial airplanes and services volume. GAAP loss per share
of ($0.19) and core loss per share
(non-GAAP)* of ($0.60) primarily
reflects higher commercial volume (Table 1). Boeing recorded
operating cash flow of ($0.3)
billion.
"We are driving stability across our operations, investing in
our future and positioning our teams to deliver for our customers
as the market recovers," said Boeing President and Chief Executive
Officer David Calhoun. "Commercial
market demand continues to gain traction with broad-based vaccine
distribution and border protocols beginning to open. Going forward,
supply chain capacity and global trade will be key drivers of our
industry and the broader economy's recovery. Our portfolio across
commercial, defense, space and services is well positioned, and
we're focused on improving performance, while advancing
technologies and digital manufacturing capabilities to drive our
next generation of products and a sustainable future."
Table 2. Cash
Flow
|
Third
Quarter
|
|
Nine
Months
|
(Millions)
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Operating Cash
Flow
|
($262)
|
|
($4,819)
|
|
($4,132)
|
|
($14,401)
|
Less Additions to
Property, Plant & Equipment
|
($245)
|
|
($262)
|
|
($758)
|
|
($1,038)
|
Free Cash
Flow*
|
($507)
|
|
($5,081)
|
|
($4,890)
|
|
($15,439)
|
|
*Non-GAAP measure;
complete definitions of Boeing's non-GAAP measures are on page 6,
"Non-GAAP Measures
Disclosures."
|
Operating cash flow improved to ($0.3)
billion in the quarter, reflecting higher
commercial deliveries, higher order receipts, and lower
expenditures (Table 2). Operating cash flow was also favorably
impacted by a $1.3 billion income tax
refund in the quarter.
Table 3. Cash,
Marketable Securities and Debt Balances
|
Quarter-End
|
(Billions)
|
Q3
21
|
|
Q2
21
|
Cash
|
$9.8
|
|
$8.2
|
Marketable
Securities1
|
$10.2
|
|
$13.1
|
Total
|
$20.0
|
|
$21.3
|
Debt
Balances:
|
|
|
|
The Boeing Company,
net of intercompany loans to BCC
|
$60.9
|
|
$62.1
|
Boeing Capital,
including intercompany loans
|
$1.5
|
|
$1.5
|
Total Consolidated
Debt
|
$62.4
|
|
$63.6
|
|
1 Marketable securities consists
primarily of time deposits due within one year classified as
"short-term investments."
|
Cash and investments in marketable securities decreased to
$20.0 billion, compared to
$21.3 billion at the beginning of the
quarter, primarily driven by debt repayment and operating cash
outflows (Table 3). Debt was $62.4
billion, down from $63.6
billion at the beginning of the quarter due to the repayment
of maturing debt.
Total company backlog at quarter-end was $367 billion.
Segment Results
Commercial Airplanes
Table 4.
Commercial Airplanes
|
Third
Quarter
|
|
|
|
Nine
Months
|
|
|
(Dollars in
Millions)
|
2021
|
|
2020
|
|
Change
|
|
2021
|
|
2020
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
Airplanes Deliveries
|
85
|
|
28
|
|
204%
|
|
241
|
|
98
|
|
146%
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$4,459
|
|
$3,596
|
|
24%
|
|
$14,743
|
|
$11,434
|
|
29%
|
Loss from
Operations
|
($693)
|
|
($1,369)
|
|
NM
|
|
($2,021)
|
|
($6,199)
|
|
NM
|
Operating
Margin
|
(15.5)%
|
|
(38.1)%
|
|
NM
|
|
(13.7)%
|
|
(54.2)%
|
|
NM
|
Commercial Airplanes third-quarter revenue increased to
$4.5 billion primarily driven by
higher 737 deliveries, partially offset by lower 787 deliveries.
Third-quarter operating margin improved to (15.5) percent primarily
due to higher deliveries (Table 4).
Boeing is continuing to make progress on the global safe return
to service of the 737 MAX. Since the FAA's approval to return the
737 MAX to operations in November
2020, Boeing has delivered more than 195 737 MAX aircraft
and airlines have returned more than 200 previously grounded
airplanes to service. 31 airlines are now operating the 737 MAX,
safely flying over 206,000 revenue flights totaling more than
500,000 flight hours (as of October 24,
2021). The 737 program is currently producing at a rate of
19 per month and continues to progress towards a production rate of
31 per month in early 2022, and the company is evaluating the
timing of further rate increases.
The company continues to focus 787 production resources on
conducting inspections and rework and continues to engage in
detailed discussions with the FAA regarding required actions for
resuming delivery. The current 787 production rate is approximately
two airplanes per month. The company expects to continue at this
rate until deliveries resume and then return to five per month over
time. The low production rates and rework are expected to result in
approximately $1 billion of abnormal
costs, of which $183 million was
recorded in the quarter.
Commercial Airplanes secured orders for 70 737 MAX, 24
freighter, and 12 787 airplanes. Commercial Airplanes delivered 85
airplanes during the quarter and backlog included over 4,100
airplanes valued at $290 billion.
Defense, Space & Security
Table 5. Defense,
Space & Security
|
Third
Quarter
|
|
|
|
Nine
Months
|
|
|
(Dollars in
Millions)
|
2021
|
|
2020
|
|
Change
|
|
2021
|
|
2020
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$6,617
|
|
$6,848
|
|
(3)%
|
|
$20,678
|
|
$19,478
|
|
6%
|
Earnings from
Operations
|
$436
|
|
$628
|
|
(31)%
|
|
$1,799
|
|
$1,037
|
|
73%
|
Operating
Margin
|
6.6%
|
|
9.2%
|
|
(28)%
|
|
8.7%
|
|
5.3%
|
|
64%
|
Defense, Space & Security third-quarter revenue decreased to
$6.6 billion and third-quarter
operating margin decreased to 6.6 percent, primarily due to a
$185 million earnings charge on the
Commercial Crew program driven by the second uncrewed Orbital
Flight Test now anticipated in 2022 and the latest assessment of
remaining work.
During the quarter, Defense, Space & Security secured awards
for five P-8A Poseidon aircraft for the German Navy and four CH-47F
Block II Chinook helicopters for the U.S Army, as well as a Joint
Direct Attack Munition contract for the U.S. Air Force. Defense,
Space & Security also conducted the MQ-25 unmanned aerial
refueling of a U.S. Navy E-2D and F-35C, and delivered a total
of 37 aircraft during the quarter, including the first CH-47F
Chinook to the Royal Australian Army.
Backlog at Defense, Space & Security was $58 billion, of which 33 percent represents
orders from customers outside the U.S.
Global Services
Table 6. Global
Services
|
Third
Quarter
|
|
|
|
Nine
Months
|
|
|
(Dollars in
Millions)
|
2021
|
|
2020
|
|
Change
|
|
2021
|
|
2020
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$4,221
|
|
$3,694
|
|
14%
|
|
$12,037
|
|
$11,810
|
|
2%
|
Earnings from
Operations
|
$644
|
|
$271
|
|
138%
|
|
$1,616
|
|
$307
|
|
426%
|
Operating
Margin
|
15.3%
|
|
7.3%
|
|
110%
|
|
13.4%
|
|
2.6%
|
|
415%
|
Global Services third-quarter revenue increased to $4.2 billion and third-quarter operating margin
increased to 15.3 percent primarily driven by higher commercial
services volume. Operating margin was also favorably impacted
by lower severance costs and mix of products and services.
During the quarter, Global Services captured orders for 12
additional 737-800 converted freighters for BBAM, an award for
performance-based logistics support of the global C-17 fleet, and a
modification award for Chinook infra-red suppression systems for
the U.K. Armed Forces. Global Services also announced a partnership
to expand capacity for 767-300 Boeing Converted Freighters and was
selected to provide training to the United Aviate Academy.
Additional Financial Information
Table 7.
Additional Financial Information
|
Third
Quarter
|
|
Nine
Months
|
(Dollars in
Millions)
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Revenues
|
|
|
|
|
|
|
|
Boeing
Capital
|
$71
|
|
$71
|
|
$209
|
|
$205
|
Unallocated items,
eliminations and other
|
($90)
|
|
($70)
|
|
($174)
|
|
($73)
|
Earnings/(Loss)
from Operations
|
|
|
|
|
|
|
|
Boeing
Capital
|
$42
|
|
$30
|
|
$99
|
|
$47
|
FAS/CAS service cost
adjustment
|
$270
|
|
$353
|
|
$808
|
|
$1,055
|
Other unallocated
items and eliminations
|
($370)
|
|
($314)
|
|
($1,032)
|
|
($965)
|
Other income,
net
|
$30
|
|
$119
|
|
$419
|
|
$325
|
Interest and debt
expense
|
($669)
|
|
($643)
|
|
($2,021)
|
|
($1,458)
|
Effective tax
rate
|
57.4%
|
|
49.6%
|
|
62.2%
|
|
40.1%
|
At quarter-end, Boeing Capital's net portfolio balance was
$1.8 billion. The earnings from
FAS/CAS service cost adjustment primarily reflects an increase in
the CAS discount rate driven by pension relief provisions in the
American Rescue Plan Act of 2021. Interest and debt expense
increased due to higher debt balances. The change in other income
was driven by a pension settlement charge recorded during the
quarter. The third quarter 2021 effective tax rate primarily
reflects a lower pre-tax loss compared to the prior period, as well
as benefits from R&D tax credits.
Non-GAAP Measures Disclosures
We supplement the reporting of our financial information
determined under Generally Accepted Accounting Principles in
the United States of America
(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 the FAS/CAS service cost
adjustment. The FAS/CAS service cost
adjustment represents the difference between the Financial
Accounting Standards (FAS) pension and postretirement service costs
calculated under GAAP and costs allocated to the business segments.
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
the FAS/CAS service cost
adjustment and Non-operating pension and
postretirement expenses. Non-operating pension and
postretirement expenses represent the components of net periodic
benefit costs other than service cost. Pension costs, comprising
service and prior service costs computed in accordance with GAAP
are allocated to Commercial Airplanes and BGS businesses supporting
commercial customers. Pension costs allocated to BDS and BGS
businesses supporting government customers are computed in
accordance with U.S. Government Cost Accounting Standards (CAS),
which employ different actuarial assumptions and accounting
conventions than GAAP. CAS costs are allocable to government
contracts. Other postretirement benefit costs are allocated to all
business segments based on CAS, which is generally based on
benefits paid. 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
non-service 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 pages 13-14.
Free Cash Flow
Free cash flow is GAAP operating cash
flow reduced by capital expenditures for property,
plant and equipment. 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 of free cash flow to GAAP
operating 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 generally 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 expectations and assumptions that we
believe to be reasonable when made, but that 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) the
COVID-19 pandemic and related industry impacts, including with
respect to our operations, our liquidity, the health of our
customers and suppliers, and future demand for our products and
services; (2) the 737 MAX, including the timing and conditions of
remaining 737 MAX regulatory approvals, lower than planned
production rates and/or delivery rates, and increased
considerations to customers and suppliers; (3) general conditions
in the economy and our industry, including those due to regulatory
changes; (4) our reliance on our commercial airline customers; (5)
the overall health of our aircraft production system, planned
commercial aircraft production rate changes, our commercial
development and derivative aircraft programs, and our aircraft
being subject to stringent performance and reliability standards;
(6) changing budget and appropriation levels and acquisition
priorities of the U.S. government; (7) our dependence on U.S.
government contracts; (8) our reliance on fixed-price contracts;
(9) our reliance on cost-type contracts; (10) uncertainties
concerning contracts that include in-orbit incentive payments; (11)
our dependence on our subcontractors and suppliers, as well as the
availability of raw materials; (12) changes in accounting
estimates; (13) changes in the competitive landscape in our
markets; (14) our non-U.S. operations, including sales to non-U.S.
customers; (15) threats to the security of our or our customers'
information; (16) potential adverse developments in new or pending
litigation and/or government investigations; (17) customer and
aircraft concentration in our customer financing portfolio; (18)
changes in our ability to obtain debt financing on commercially
reasonable terms and at competitive rates; (19) realizing the
anticipated benefits of mergers, acquisitions, joint
ventures/strategic alliances or divestitures; (20) the adequacy of
our insurance coverage to cover significant risk exposures; (21)
potential business disruptions, including those related to physical
security threats, information technology or cyber-attacks,
epidemics, sanctions or natural disasters; (22) work stoppages or
other labor disruptions; (23) substantial pension and other
postretirement benefit obligations; and (24) potential
environmental liabilities.
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:
|
|
Matt Welch or Keely
Moos (312) 544-2140
|
Communications:
|
|
Michael
Friedman media@boeing.com
|
The Boeing Company
and Subsidiaries
|
Consolidated
Statements of Operations
|
(Unaudited)
|
|
|
Nine months
ended
September
30
|
|
Three months
ended
September
30
|
(Dollars in
millions, except per share data)
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Sales of
products
|
$39,224
|
|
$34,656
|
|
$12,552
|
|
$11,402
|
Sales of
services
|
8,269
|
|
8,198
|
|
2,726
|
|
2,737
|
Total
revenues
|
47,493
|
|
42,854
|
|
15,278
|
|
14,139
|
|
|
|
|
|
|
|
|
Cost of
products
|
(35,166)
|
|
(36,001)
|
|
(11,271)
|
|
(10,910)
|
Cost of
services
|
(6,771)
|
|
(6,817)
|
|
(2,288)
|
|
(2,185)
|
Boeing Capital
interest expense
|
(25)
|
|
(33)
|
|
(7)
|
|
(10)
|
Total costs and
expenses
|
(41,962)
|
|
(42,851)
|
|
(13,566)
|
|
(13,105)
|
|
5,531
|
|
3
|
|
1,712
|
|
1,034
|
Income/(loss) from
operating investments, net
|
195
|
|
(61)
|
|
120
|
|
(14)
|
General and
administrative expense
|
(3,169)
|
|
(2,989)
|
|
(1,097)
|
|
(955)
|
Research and
development expense, net
|
(1,571)
|
|
(1,871)
|
|
(575)
|
|
(574)
|
Gain on dispositions,
net
|
283
|
|
200
|
|
169
|
|
108
|
Earnings/(loss)
from operations
|
1,269
|
|
(4,718)
|
|
329
|
|
(401)
|
Other income,
net
|
419
|
|
325
|
|
30
|
|
119
|
Interest and debt
expense
|
(2,021)
|
|
(1,458)
|
|
(669)
|
|
(643)
|
Loss before income
taxes
|
(333)
|
|
(5,851)
|
|
(310)
|
|
(925)
|
Income tax
benefit
|
207
|
|
2,349
|
|
178
|
|
459
|
Net
loss
|
(126)
|
|
(3,502)
|
|
(132)
|
|
(466)
|
Less: net loss
attributable to noncontrolling interest
|
(67)
|
|
(49)
|
|
(23)
|
|
(17)
|
Net loss
attributable to Boeing Shareholders
|
($59)
|
|
($3,453)
|
|
($109)
|
|
($449)
|
|
|
|
|
|
|
|
|
Basic loss per
share
|
($0.10)
|
|
($6.10)
|
|
($0.19)
|
|
($0.79)
|
|
|
|
|
|
|
|
|
Diluted loss per
share
|
($0.10)
|
|
($6.10)
|
|
($0.19)
|
|
($0.79)
|
|
|
|
|
|
|
|
|
Weighted average
diluted shares (millions)
|
587.3
|
|
566.3
|
|
589.0
|
|
566.6
|
The Boeing Company
and Subsidiaries
|
Consolidated
Statements of Financial Position
|
(Unaudited)
|
|
(Dollars in
millions, except per share data)
|
September
30
2021
|
|
December
31
2020
|
Assets
|
|
|
|
Cash and cash
equivalents
|
$9,764
|
|
$7,752
|
Short-term and other
investments
|
10,231
|
|
17,838
|
Accounts receivable,
net
|
2,247
|
|
1,955
|
Unbilled receivables,
net
|
10,009
|
|
7,995
|
Current portion of
customer financing, net
|
76
|
|
101
|
Inventories
|
81,897
|
|
81,715
|
Other current assets,
net
|
2,664
|
|
4,286
|
Total current
assets
|
116,888
|
|
121,642
|
Customer financing,
net
|
1,795
|
|
1,936
|
Property, plant and
equipment, net of accumulated depreciation of $20,442 and
$20,507
|
11,113
|
|
11,820
|
Goodwill
|
8,070
|
|
8,081
|
Acquired intangible
assets, net
|
2,631
|
|
2,843
|
Deferred income
taxes
|
74
|
|
86
|
Investments
|
963
|
|
1,016
|
Other assets, net of
accumulated amortization of of $916 and $729
|
5,312
|
|
4,712
|
Total
assets
|
$146,846
|
|
$152,136
|
Liabilities and
equity
|
|
|
|
Accounts
payable
|
$10,151
|
|
$12,928
|
Accrued
liabilities
|
18,974
|
|
22,171
|
Advances and progress
billings
|
51,269
|
|
50,488
|
Short-term debt and
current portion of long-term debt
|
5,377
|
|
1,693
|
Total current
liabilities
|
85,771
|
|
87,280
|
Deferred income
taxes
|
1,185
|
|
1,010
|
Accrued retiree
health care
|
3,957
|
|
4,137
|
Accrued pension plan
liability, net
|
11,435
|
|
14,408
|
Other long-term
liabilities
|
1,722
|
|
1,486
|
Long-term
debt
|
57,042
|
|
61,890
|
Total
liabilities
|
161,112
|
|
170,211
|
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
|
8,796
|
|
7,787
|
Treasury stock, at
cost - 424,789,354 and 429,941,021 shares
|
(52,030)
|
|
(52,641)
|
Retained
earnings
|
38,551
|
|
38,610
|
Accumulated other
comprehensive loss
|
(14,818)
|
|
(17,133)
|
Total
shareholders' deficit
|
(14,440)
|
|
(18,316)
|
Noncontrolling
interests
|
174
|
|
241
|
Total
equity
|
(14,266)
|
|
(18,075)
|
Total liabilities
and equity
|
$146,846
|
|
$152,136
|
The Boeing Company
and Subsidiaries
|
Consolidated
Statements of Cash Flows
|
(Unaudited)
|
|
|
Nine months
ended
September
30
|
(Dollars in
millions)
|
2021
|
|
2020
|
Cash
flows – operating activities:
|
|
|
|
Net
loss
|
($126)
|
|
($3,502)
|
Adjustments to
reconcile net loss to net cash used by operating
activities:
|
|
|
|
Non-cash items
–
|
|
|
|
Share-based plans
expense
|
677
|
|
165
|
Treasury shares
issued for 401(k) contribution
|
951
|
|
|
Depreciation and
amortization
|
1,610
|
|
1,668
|
Investment/asset
impairment charges, net
|
72
|
|
317
|
Customer financing
valuation adjustments
|
(3)
|
|
12
|
Gain on dispositions,
net
|
(283)
|
|
(200)
|
Other charges and
credits, net
|
(82)
|
|
912
|
Changes in assets and
liabilities –
|
|
|
|
Accounts
receivable
|
(280)
|
|
125
|
Unbilled
receivables
|
(2,010)
|
|
56
|
Advances and progress
billings
|
781
|
|
428
|
Inventories
|
508
|
|
(9,653)
|
Other current
assets
|
279
|
|
319
|
Accounts
payable
|
(3,565)
|
|
(3,303)
|
Accrued
liabilities
|
(3,168)
|
|
967
|
Income taxes
receivable, payable and deferred
|
1,011
|
|
(2,404)
|
Other long-term
liabilities
|
(168)
|
|
(149)
|
Pension and other
postretirement plans
|
(731)
|
|
(556)
|
Customer financing,
net
|
170
|
|
108
|
Other
|
225
|
|
289
|
Net cash used by
operating activities
|
(4,132)
|
|
(14,401)
|
Cash flows –
investing activities:
|
|
|
|
Property, plant and
equipment additions
|
(758)
|
|
(1,038)
|
Property, plant and
equipment reductions
|
385
|
|
275
|
Acquisitions, net of
cash acquired
|
(6)
|
|
|
Contributions to
investments
|
(27,902)
|
|
(25,846)
|
Proceeds from
investments
|
35,664
|
|
9,772
|
Other
|
6
|
|
14
|
Net cash
provided/(used) by investing activities
|
7,389
|
|
(16,823)
|
Cash flows –
financing activities:
|
|
|
|
New
borrowings
|
9,822
|
|
42,362
|
Debt
repayments
|
(11,049)
|
|
(8,792)
|
Stock options
exercised
|
36
|
|
31
|
Employee taxes on
certain share-based payment arrangements
|
(47)
|
|
(169)
|
Dividends
paid
|
|
|
(1,158)
|
Net cash
(used)/provided by financing activities
|
(1,238)
|
|
32,274
|
Effect of exchange
rate changes on cash and cash equivalents, including
restricted
|
(34)
|
|
26
|
Net increase in
cash & cash equivalents, including restricted
|
1,985
|
|
1,076
|
Cash & cash
equivalents, including restricted, at beginning of year
|
7,835
|
|
9,571
|
Cash & cash
equivalents, including restricted, at end of period
|
9,820
|
|
10,647
|
Less restricted cash
& cash equivalents, included in Investments
|
56
|
|
83
|
Cash and cash
equivalents at end of period
|
$9,764
|
|
$10,564
|
The Boeing Company
and Subsidiaries
|
Summary of
Business Segment Data
|
(Unaudited)
|
|
|
Nine months
ended
September
30
|
|
Three months
ended
September
30
|
(Dollars in
millions)
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Revenues:
|
|
|
|
|
|
|
|
Commercial
Airplanes
|
$14,743
|
|
$11,434
|
|
$4,459
|
|
$3,596
|
Defense, Space &
Security
|
20,678
|
|
19,478
|
|
6,617
|
|
6,848
|
Global
Services
|
12,037
|
|
11,810
|
|
4,221
|
|
3,694
|
Boeing
Capital
|
209
|
|
205
|
|
71
|
|
71
|
Unallocated items,
eliminations and other
|
(174)
|
|
(73)
|
|
(90)
|
|
(70)
|
Total
revenues
|
$47,493
|
|
$42,854
|
|
$15,278
|
|
$14,139
|
Earnings/(loss) from
operations:
|
|
|
|
|
|
|
|
Commercial
Airplanes
|
($2,021)
|
|
($6,199)
|
|
($693)
|
|
($1,369)
|
Defense, Space &
Security
|
1,799
|
|
1,037
|
|
436
|
|
628
|
Global
Services
|
1,616
|
|
307
|
|
644
|
|
271
|
Boeing
Capital
|
99
|
|
47
|
|
42
|
|
30
|
Segment operating
earnings/(loss)
|
1,493
|
|
(4,808)
|
|
429
|
|
(440)
|
Unallocated items,
eliminations and other
|
(1,032)
|
|
(965)
|
|
(370)
|
|
(314)
|
FAS/CAS service cost
adjustment
|
808
|
|
1,055
|
|
270
|
|
353
|
Earnings/(loss)
from operations
|
1,269
|
|
(4,718)
|
|
329
|
|
(401)
|
Other income,
net
|
419
|
|
325
|
|
30
|
|
119
|
Interest and debt
expense
|
(2,021)
|
|
(1,458)
|
|
(669)
|
|
(643)
|
Loss before income
taxes
|
(333)
|
|
(5,851)
|
|
(310)
|
|
(925)
|
Income tax
benefit
|
207
|
|
2,349
|
|
178
|
|
459
|
Net
loss
|
(126)
|
|
(3,502)
|
|
(132)
|
|
(466)
|
Less: Net loss
attributable to noncontrolling interest
|
(67)
|
|
(49)
|
|
(23)
|
|
(17)
|
Net loss
attributable to Boeing Shareholders
|
($59)
|
|
($3,453)
|
|
($109)
|
|
($449)
|
Research and
development expense, net:
|
|
|
|
|
|
|
|
Commercial
Airplanes
|
$817
|
|
$1,107
|
|
$293
|
|
$321
|
Defense, Space &
Security
|
530
|
|
494
|
|
193
|
|
164
|
Global
Services
|
80
|
|
110
|
|
30
|
|
45
|
Other
|
144
|
|
160
|
|
59
|
|
44
|
Total research and
development expense, net
|
$1,571
|
|
$1,871
|
|
$575
|
|
$574
|
Unallocated items,
eliminations and other:
|
|
|
|
|
|
|
|
Share-based
plans
|
($171)
|
|
($80)
|
|
($29)
|
|
($37)
|
Deferred
compensation
|
(86)
|
|
34
|
|
8
|
|
(39)
|
Amortization of
previously capitalized interest
|
(66)
|
|
(69)
|
|
(22)
|
|
(19)
|
Research and
development expense, net
|
(144)
|
|
(160)
|
|
(59)
|
|
(44)
|
Eliminations and
other unallocated items
|
(565)
|
|
(690)
|
|
(268)
|
|
(175)
|
Sub-total
(included in core operating loss)
|
(1,032)
|
|
(965)
|
|
(370)
|
|
(314)
|
Pension FAS/CAS
service cost adjustment
|
576
|
|
773
|
|
192
|
|
260
|
Postretirement
FAS/CAS service cost adjustment
|
232
|
|
282
|
|
78
|
|
93
|
FAS/CAS service
cost adjustment
|
808
|
|
1,055
|
|
$270
|
|
$353
|
Total
|
($224)
|
|
$90
|
|
($100)
|
|
$39
|
The Boeing Company
and Subsidiaries
|
Operating and
Financial Data
|
(Unaudited)
|
|
Deliveries
|
Nine months
ended
September
30
|
|
Three months
ended
September
30
|
Commercial
Airplanes
|
2021
|
|
2020
|
|
2021
|
2020
|
|
737
|
179
|
|
12
|
|
66
|
|
|
3
|
|
747
|
4
|
|
2
|
|
2
|
|
|
1
|
|
767
|
24
|
|
20
|
|
11
|
|
|
6
|
|
777
|
20
|
|
15
|
|
6
|
|
|
5
|
|
787
|
14
|
|
49
|
|
—
|
|
|
13
|
|
Total
|
241
|
|
98
|
|
85
|
|
|
28
|
|
|
|
|
|
|
|
|
|
|
|
Defense, Space &
Security
|
|
|
|
|
|
|
|
|
AH-64 Apache
(New)
|
19
|
|
18
|
|
4
|
|
|
7
|
|
AH-64 Apache
(Remanufactured)
|
42
|
|
44
|
|
11
|
|
|
12
|
|
CH-47 Chinook
(New)
|
12
|
|
19
|
|
6
|
|
|
4
|
|
CH-47 Chinook
(Renewed)
|
5
|
|
3
|
|
1
|
|
|
2
|
|
F-15
Models
|
11
|
|
3
|
|
3
|
|
|
—
|
|
F/A-18
Models
|
15
|
|
14
|
|
4
|
|
|
5
|
|
KC-46A
Tanker
|
7
|
|
10
|
|
3
|
|
|
4
|
|
P-8 Models
|
11
|
|
9
|
|
5
|
|
|
3
|
|
Total
backlog (Dollars in millions)
|
|
September
30
2021
|
|
December
31
2020
|
Commercial
Airplanes
|
|
$289,644
|
|
$281,588
|
Defense, Space &
Security
|
|
58,435
|
|
60,847
|
Global
Services
|
|
18,781
|
|
20,632
|
Unallocated items,
eliminations and other
|
|
248
|
|
337
|
Total
backlog
|
|
$367,108
|
|
$363,404
|
|
|
|
|
|
Contractual
backlog
|
|
$348,193
|
|
$339,309
|
Unobligated
backlog
|
|
18,915
|
|
24,095
|
Total
backlog
|
|
$367,108
|
|
$363,404
|
The Boeing Company and
Subsidiaries
Reconciliation of Non-GAAP
Measures
(Unaudited)
The tables provided below reconcile the non-GAAP financial
measures core operating earnings/(loss), core operating margin, and
core loss per share with the most directly comparable GAAP
financial measures, earnings/(loss) from operations, operating
margin, and diluted loss per share. See page 6 of this release for
additional information on the use of these non-GAAP financial
measures.
(Dollars in
millions, except per share data)
|
Third Quarter
2021
|
|
Third Quarter
2020
|
|
$
millions
|
Per
Share
|
|
$ millions
|
Per Share
|
Revenues
|
15,278
|
|
|
14,139
|
|
Earnings/(loss)
from operations (GAAP)
|
329
|
|
|
(401)
|
|
Operating margin
(GAAP)
|
2.2%
|
|
|
(2.8)%
|
|
|
|
|
|
|
|
FAS/CAS service
cost adjustment:
|
|
|
|
|
|
Pension FAS/CAS
service cost adjustment
|
(192)
|
|
|
(260)
|
|
Postretirement
FAS/CAS service cost adjustment
|
(78)
|
|
|
(93)
|
|
FAS/CAS service
cost adjustment
|
(270)
|
|
|
(353)
|
|
Core operating
earnings/(loss) (non-GAAP)
|
$59
|
|
|
($754)
|
|
Core operating
margin (non-GAAP)
|
0.4%
|
|
|
(5.3)%
|
|
|
|
|
|
|
|
Diluted loss per
share (GAAP)
|
|
($0.19)
|
|
|
($0.79)
|
Pension FAS/CAS
service cost adjustment
|
($192)
|
(0.33)
|
|
($260)
|
(0.46)
|
Postretirement
FAS/CAS service cost adjustment
|
(78)
|
(0.13)
|
|
(93)
|
(0.16)
|
Non-operating pension
expense
|
(29)
|
(0.05)
|
|
(84)
|
(0.16)
|
Non-operating
postretirement expense
|
(6)
|
(0.01)
|
|
10
|
0.02
|
Provision for
deferred income taxes on adjustments 1
|
64
|
0.11
|
|
90
|
0.16
|
Subtotal of
adjustments
|
($241)
|
($0.41)
|
|
($337)
|
($0.60)
|
Core loss per
share (non-GAAP)
|
|
($0.60)
|
|
|
($1.39)
|
|
|
|
|
|
|
Weighted average
diluted shares (in millions)
|
|
589.0
|
|
|
566.6
|
|
1 The
income tax impact is calculated using the U.S. corporate statutory
tax rate.
|
The Boeing Company and
Subsidiaries
Reconciliation of Non-GAAP
Measures
(Unaudited)
The tables provided below reconcile the non-GAAP financial
measures core operating earnings/(loss), core operating margin, and
core loss per share with the most directly comparable GAAP
financial measures, earnings/(loss) from operations, operating
margin, and diluted loss per share. See page 6 of this release for
additional information on the use of these non-GAAP financial
measures.
(Dollars in
millions, except per share data)
|
Nine Months
2021
|
|
Nine months
2020
|
|
$
millions
|
Per
Share
|
|
$ millions
|
Per Share
|
Revenues
|
47,493
|
|
|
42,854
|
|
Earnings/(loss)
from operations (GAAP)
|
1,269
|
|
|
(4,718)
|
|
Operating margin
(GAAP)
|
2.7%
|
|
|
(11.0)%
|
|
|
|
|
|
|
|
FAS/CAS service
cost adjustment:
|
|
|
|
|
|
Pension FAS/CAS
service cost adjustment
|
(576)
|
|
|
(773)
|
|
Postretirement
FAS/CAS service cost adjustment
|
(232)
|
|
|
(282)
|
|
FAS/CAS service
cost adjustment
|
(808)
|
|
|
(1,055)
|
|
Core operating
earnings/(loss) (non-GAAP)
|
$461
|
|
|
($5,773)
|
|
Core operating
margin (non-GAAP)
|
1.0%
|
|
|
(13.5)%
|
|
|
|
|
|
|
|
Diluted loss per
share (GAAP)
|
|
($0.10)
|
|
|
($6.10)
|
Pension FAS/CAS
service cost adjustment
|
($576)
|
(0.98)
|
|
($773)
|
(1.36)
|
Postretirement
FAS/CAS service cost adjustment
|
(232)
|
(0.40)
|
|
(282)
|
(0.50)
|
Non-operating pension
expense
|
(381)
|
(0.64)
|
|
(255)
|
(0.46)
|
Non-operating
postretirement expense
|
(16)
|
(0.03)
|
|
37
|
0.07
|
Provision for
deferred income taxes on adjustments 1
|
253
|
0.43
|
|
267
|
0.47
|
Subtotal of
adjustments
|
($952)
|
($1.62)
|
|
($1,006)
|
($1.78)
|
Core loss per
share (non-GAAP)
|
|
($1.72)
|
|
|
($7.88)
|
|
|
|
|
|
|
Weighted average
diluted shares (in millions)
|
|
587.3
|
|
|
566.3
|
|
1 The
income tax impact is calculated using the U.S. corporate statutory
tax rate.
|
View original
content:https://www.prnewswire.com/news-releases/boeing-reports-third-quarter-results-301409676.html
SOURCE Boeing