CHICAGO, Jan. 29, 2020 /PRNewswire/ --
Fourth Quarter 2019
- Financial results continue to be significantly impacted by
the 737 MAX grounding
- Revenue of $17.9 billion, GAAP
loss per share of ($1.79) and core
(non-GAAP)* loss per share of ($2.33)
Full-Year 2019
- Revenue of $76.6 billion,
GAAP loss per share of ($1.12) and
core (non-GAAP)* loss per share of ($3.47)
- Operating cash flow of ($2.4) billion; cash and marketable
securities of $10.0 billion
- Total backlog of $463 billion,
including over 5,400 commercial airplanes
Table 1. Summary
Financial Results
|
Fourth
Quarter
|
|
|
|
Full
Year
|
|
|
(Dollars in
Millions, except per share data)
|
2019
|
|
2018
|
|
Change
|
|
2019
|
|
2018
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$17,911
|
|
$28,341
|
|
(37)%
|
|
$76,559
|
|
$101,127
|
|
(24)%
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
|
|
|
|
|
|
|
|
|
|
(Loss)/Earnings
From Operations
|
($2,204)
|
|
$4,175
|
|
NM
|
|
($1,975)
|
|
$11,987
|
|
NM
|
Operating
Margin
|
(12.3)%
|
|
14.7%
|
|
NM
|
|
(2.6)%
|
|
11.9%
|
|
NM
|
Net
(Loss)/Earnings
|
($1,010)
|
|
$3,424
|
|
NM
|
|
($636)
|
|
$10,460
|
|
NM
|
(Loss)/Earnings
Per Share
|
($1.79)
|
|
$5.93
|
|
NM
|
|
($1.12)
|
|
$17.85
|
|
NM
|
Operating Cash
Flow
|
($2,220)
|
|
$2,947
|
|
NM
|
|
($2,446)
|
|
$15,322
|
|
NM
|
Non-GAAP*
|
|
|
|
|
|
|
|
|
|
|
|
Core Operating
(Loss)/Earnings
|
($2,526)
|
|
$3,867
|
|
NM
|
|
($3,390)
|
|
$10,660
|
|
NM
|
Core Operating
Margin
|
(14.1)%
|
|
13.6%
|
|
NM
|
|
(4.4)%
|
|
10.5%
|
|
NM
|
Core
(Loss)/Earnings Per Share
|
($2.33)
|
|
$5.48
|
|
NM
|
|
($3.47)
|
|
$16.01
|
|
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 fourth-quarter revenue of
$17.9 billion, GAAP loss per
share of ($1.79) and core loss per
share (non-GAAP)* of ($2.33),
primarily reflecting the impacts of the 737 MAX grounding (Table
1). Boeing recorded operating cash flow of ($2.2) billion and paid $1.2 billion of dividends.
"We recognize we have a lot of work to do," said Boeing
President and Chief Executive Officer David
Calhoun. "We are focused on returning the 737 MAX to service
safely and restoring the long-standing trust that the Boeing brand
represents with the flying public. We are committed to
transparency and excellence in everything we do. Safety will
underwrite every decision, every action and every step we take as
we move forward. Fortunately, the strength of our overall Boeing
portfolio of businesses provides the financial liquidity to follow
a thorough and disciplined recovery process."
Table 2. Cash
Flow
|
Fourth
Quarter
|
|
Full
Year
|
(Millions)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Operating Cash
Flow
|
($2,220)
|
|
$2,947
|
|
($2,446)
|
|
$15,322
|
Less Additions to
Property, Plant & Equipment
|
($447)
|
|
($495)
|
|
($1,834)
|
|
($1,722)
|
Free Cash
Flow*
|
($2,667)
|
|
$2,452
|
|
($4,280)
|
|
$13,600
|
|
*Non-GAAP measure;
complete definitions of Boeing's non-GAAP measures are on page 6,
"Non-GAAP Measures
Disclosures."
|
Operating cash flow was ($2.2)
billion in the quarter, primarily reflecting the impact of
the 737 MAX grounding as well as timing of receipts and
expenditures (Table 2). During the quarter, the company paid
$1.2 billion of dividends.
Table 3. Cash,
Marketable Securities and Debt Balances
|
Quarter-End
|
(Billions)
|
Q4
19
|
|
Q3
19
|
Cash
|
$9.5
|
|
|
$9.8
|
Marketable
Securities1
|
$0.5
|
|
|
$1.1
|
Total
|
$10.0
|
|
|
$10.9
|
Debt
Balances:
|
|
|
|
The Boeing Company,
net of intercompany loans to BCC
|
$25.3
|
|
|
$22.8
|
Boeing Capital,
including intercompany loans
|
$2.0
|
|
|
$1.9
|
Total Consolidated
Debt
|
$27.3
|
|
|
$24.7
|
|
1
Marketable securities consists primarily of time deposits due
within one year classified as "short-term
investments."
|
Cash and investments in marketable securities totaled
$10.0 billion, compared to
$10.9 billion at the beginning of the
quarter (Table 3). Debt was $27.3
billion, up from $24.7 billion
at the beginning of the quarter primarily due to increased
commercial paper borrowings.
Total company backlog at quarter-end was $463 billion and included net orders for the
quarter of $13 billion.
Segment Results
Commercial Airplanes
Table 4.
Commercial Airplanes
|
Fourth
Quarter
|
|
|
|
Full
Year
|
|
|
(Dollars in
Millions)
|
2019
|
|
2018
|
|
Change
|
|
2019
|
|
2018
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
Airplanes Deliveries
|
79
|
|
238
|
|
(67)%
|
|
380
|
|
806
|
|
(53)%
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$7,462
|
|
$16,531
|
|
(55)%
|
|
$32,255
|
|
$57,499
|
|
(44)%
|
(Loss)/Earnings
from Operations
|
($2,844)
|
|
$2,600
|
|
NM
|
|
($6,657)
|
|
$7,830
|
|
NM
|
Operating
Margin
|
(38.1)%
|
|
15.7%
|
|
NM
|
|
(20.6)%
|
|
13.6%
|
|
NM
|
Commercial Airplanes fourth-quarter revenue was $7.5 billion and fourth-quarter operating margin
decreased to (38.1) percent reflecting lower 737 deliveries and an
additional pre-tax charge of $2.6
billion related to estimated potential concessions and other
considerations to customers related to the 737 MAX grounding (Table
4). The estimated costs to produce 737 aircraft included in the
accounting quantity increased by $2.6
billion during the quarter, primarily to reflect updated
production and delivery assumptions. In addition, the suspension of
737 MAX production and a gradual resumption of production at low
production rates will result in approximately $4 billion of abnormal production costs that will
be expensed as incurred, primarily in 2020.
Commercial Airplanes delivered 79 airplanes during the quarter,
including 45 787's, and captured orders for 30 737 MAX aircraft at
the Dubai Air Show and 2 777 freighters for Lufthansa. The 787
program also booked 36 net orders in the quarter. As previously
announced, the 787 production rate will be reduced from the current
rate of 14 airplanes per month to 12 airplanes per month in late
2020. Based on the current environment and near-term market
outlook, the production rate is expected to be further adjusted to
10 airplanes per month in early 2021, and return to 12 airplanes
per month in 2023. The first flight of the 777X was completed on
January 25, and first delivery is
targeted for 2021.
Commercial Airplanes backlog included over 5,400 airplanes
valued at $377 billion.
Defense, Space & Security
Table 5. Defense,
Space & Security
|
Fourth
Quarter
|
|
|
|
Full
Year
|
|
|
(Dollars in
Millions)
|
2019
|
|
2018
|
|
Change
|
|
2019
|
|
2018
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$5,962
|
|
$6,874
|
|
(13)%
|
|
$26,227
|
|
$26,392
|
|
(1%)
|
Earnings from
Operations
|
$31
|
|
$771
|
|
(96)%
|
|
$2,608
|
|
$1,657
|
|
57%
|
Operating
Margin
|
0.5%
|
|
11.2%
|
|
(10.7)
Pts
|
|
9.9%
|
|
6.3%
|
|
3.6
Pts
|
Defense, Space & Security fourth-quarter revenue decreased
to $6.0 billion primarily driven by
lower volume across the portfolio as well as the impact of a
Commercial Crew charge (Table 5). Fourth-quarter operating margin
decreased to 0.5 percent due to a $410
million pre-tax Commercial Crew charge primarily to
provision for an additional uncrewed mission for the Commercial
Crew program, performance and mix. NASA is evaluating the data
received during the December 2019
mission to determine if another uncrewed mission is required.
During the quarter, Defense, Space & Security received an
award for 10 Space Launch System core stages and up to 8
Exploration Upper Stages. Defense, Space & Security also
received contracts for the remanufacture of 47 AH-64E Apache
helicopters for three countries and to upgrade the NATO Airborne
Warning & Control System fleet. Significant milestones achieved
during the quarter included the delivery of the first modified
MV-22 Osprey to the U.S. Marine Corps and delivery of the first
P-8A Poseidon aircraft to the United Kingdom Royal Air Force.
Defense, Space & Security also conducted a Commercial Crew
spacecraft uncrewed Orbital Flight Test.
Backlog at Defense, Space & Security was $64 billion, of which 29 percent represents
orders from customers outside the U.S.
Global Services
Table 6. Global
Services
|
Fourth
Quarter
|
|
|
|
Full
Year
|
|
|
(Dollars in
Millions)
|
2019
|
|
2018
|
|
Change
|
|
2019
|
|
2018
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$4,648
|
|
$4,908
|
|
(5)%
|
|
$18,468
|
|
$17,056
|
|
8%
|
Earnings from
Operations
|
$684
|
|
$737
|
|
(7)%
|
|
$2,697
|
|
$2,536
|
|
6%
|
Operating
Margin
|
14.7%
|
|
15.0%
|
|
(0.3)
Pts
|
|
14.6%
|
|
14.9%
|
|
(0.3)
Pts
|
Global Services fourth-quarter revenue was $4.6 billion, primarily driven by lower
commercial services volume (Table 6). Fourth-quarter operating
margin decreased to 14.7 percent primarily due to a charge related
to the retirement of the Aviall brand and mix of products and
services, partially offset by a gain on divestiture.
During the quarter, Global Services was awarded V-22 support
contracts for Japan and the U.S.
and AH-64 and CH-47 global support for the U.S. Army. Global
Services signed a multi-year Landing Gear Exchange services
agreement with LATAM Airlines Group and a 5-year digital navigation
renewal agreement with Saudi Arabian Airlines. Global Services also
expanded its digital offerings by launching ForeFlight Dispatch and
signed a contract with Flexjet to be the inaugural customer.
Additional Financial Information
Table 7.
Additional Financial Information
|
Fourth
Quarter
|
|
Full
Year
|
(Dollars in
Millions)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Revenues
|
|
|
|
|
|
|
|
Boeing
Capital
|
$37
|
|
$60
|
|
$244
|
|
$274
|
Unallocated items,
eliminations and other
|
($198)
|
|
($32)
|
|
($635)
|
|
($94)
|
Earnings from
Operations
|
|
|
|
|
|
|
|
Boeing
Capital
|
($58)
|
|
$8
|
|
$28
|
|
$79
|
FAS/CAS service cost
adjustment
|
$322
|
|
$308
|
|
$1,415
|
|
$1,327
|
Other unallocated
items and eliminations
|
($339)
|
|
($249)
|
|
($2,066)
|
|
($1,442)
|
Other income,
net
|
$104
|
|
$29
|
|
$438
|
|
$92
|
Interest and debt
expense
|
($242)
|
|
($158)
|
|
($722)
|
|
($475)
|
Effective tax
rate
|
56.9%
|
|
15.4%
|
|
71.8%
|
|
9.9%
|
At quarter-end, Boeing Capital's net portfolio balance was
$2.3 billion. Revenue in other
unallocated items and eliminations decreased primarily due to the
timing of eliminations for intercompany aircraft deliveries. The
change in earnings from other unallocated items and eliminations is
primarily due to higher deferred compensation expense and increased
enterprise research and development investment. Interest and debt
expense increased due to higher debt balances. The fourth quarter
2019 effective tax rate reflects a $371
million tax benefit related to the settlement of state tax
audits as well as the impact of pre-tax losses.
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 (Loss)/Earnings, Core Operating Margin and Core
(Loss)/Earnings Per Share
Core operating (loss)/earnings is defined as GAAP
(loss)/earnings from operations excluding the FAS/CAS
service cost adjustment. The FAS/CAS service cost
adjustment represents the difference between the FAS pension
and postretirement service costs calculated under GAAP and costs
allocated to the business segments. Core operating margin is
defined as core operating (loss)/earnings expressed as a percentage
of revenue. Core (loss)/earnings per share is defined as GAAP
diluted (loss)/earnings per share excluding the net
(loss)/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 (loss)/earnings, core operating margin and core
(loss)/earnings per share for purposes of evaluating and
forecasting underlying business performance. Management believes
these core (loss)/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 page 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 737
MAX, including the timing and conditions of 737 MAX regulatory
approvals, delays in the resumption of production, lower than
planned production rates and/or delivery rates, and increased
considerations to customers and suppliers, (2) general conditions
in the economy and our industry, including those due to regulatory
changes; (3) our reliance on our commercial airline customers; (4)
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;
(5) changing budget and appropriation levels and acquisition
priorities of the U.S. government; (6) our dependence on U.S.
government contracts; (7) our reliance on fixed-price contracts;
(8) our reliance on cost-type contracts; (9) uncertainties
concerning contracts that include in-orbit incentive payments; (10)
our dependence on our subcontractors and suppliers, as well as the
availability of raw materials; (11) changes in accounting
estimates; (12) changes in the competitive landscape in our
markets; (13) our non-U.S. operations, including sales to non-U.S.
customers; (14) threats to the security of our or our customers'
information; (15) potential adverse developments in new or pending
litigation and/or government investigations; (16) customer and
aircraft concentration in our customer financing portfolio; (17)
changes in our ability to obtain debt on commercially reasonable
terms and at competitive rates; (18) realizing the anticipated
benefits of mergers, acquisitions, joint ventures/strategic
alliances or divestitures; (19) the adequacy of our insurance
coverage to cover significant risk exposures; (20) potential
business disruptions, including those related to physical security
threats, information technology or cyber-attacks, epidemics,
sanctions or natural disasters; (21) work stoppages or other labor
disruptions; (22) substantial pension and other postretirement
benefit obligations; and (23) 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:
|
|
Maurita Sutedja or
Keely Moos (312) 544-2140
|
Communications:
|
|
Caroline Hutcheson
(312) 544-2002
|
The Boeing Company
and Subsidiaries
|
Consolidated
Statements of Operations
|
(Unaudited)
|
|
|
Twelve months
ended
December 31
|
|
Three months
ended
December 31
|
(Dollars in
millions, except per share data)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Sales of
products
|
$66,094
|
|
$90,229
|
|
$15,580
|
|
$25,381
|
Sales of
services
|
10,465
|
|
10,898
|
|
2,331
|
|
2,960
|
Total
revenues
|
76,559
|
|
101,127
|
|
17,911
|
|
28,341
|
|
|
|
|
|
|
|
|
Cost of
products
|
(62,877)
|
|
(72,922)
|
|
(16,293)
|
|
(19,788)
|
Cost of
services
|
(9,154)
|
|
(8,499)
|
|
(2,402)
|
|
(2,284)
|
Boeing Capital
interest expense
|
(62)
|
|
(69)
|
|
(13)
|
|
(18)
|
Total costs and
expenses
|
(72,093)
|
|
(81,490)
|
|
(18,708)
|
|
(22,090)
|
|
4,466
|
|
19,637
|
|
(797)
|
|
6,251
|
(Loss)/income from
operating investments, net
|
(4)
|
|
111
|
|
(1)
|
|
(1)
|
General and
administrative expense
|
(3,909)
|
|
(4,567)
|
|
(1,052)
|
|
(1,222)
|
Research and
development expense, net
|
(3,219)
|
|
(3,269)
|
|
(749)
|
|
(852)
|
Gain/(loss) on
dispositions, net
|
691
|
|
75
|
|
395
|
|
(1)
|
(Loss)/earnings
from operations
|
(1,975)
|
|
11,987
|
|
(2,204)
|
|
4,175
|
Other income,
net
|
438
|
|
92
|
|
104
|
|
29
|
Interest and debt
expense
|
(722)
|
|
(475)
|
|
(242)
|
|
(158)
|
(Loss)/earnings
before income taxes
|
(2,259)
|
|
11,604
|
|
(2,342)
|
|
4,046
|
Income tax
benefit/(expense)
|
1,623
|
|
(1,144)
|
|
1,332
|
|
(622)
|
Net
(loss)/earnings
|
($636)
|
|
$10,460
|
|
($1,010)
|
|
$3,424
|
|
|
|
|
|
|
|
|
Basic
(loss)/earnings per share
|
($1.12)
|
|
$18.05
|
|
($1.79)
|
|
$6.00
|
|
|
|
|
|
|
|
|
Diluted
(loss)/earnings per share
|
($1.12)
|
|
$17.85
|
|
($1.79)
|
|
$5.93
|
|
|
|
|
|
|
|
|
Weighted average
diluted shares (millions)
|
566.0
|
|
586.2
|
|
565.4
|
|
577.5
|
The Boeing Company
and Subsidiaries
|
Consolidated
Statements of Financial Position
|
(Unaudited)
|
|
(Dollars in
millions, except per share data)
|
December 31 2019
|
|
December 31
2018
|
Assets
|
|
|
|
Cash and cash
equivalents
|
$9,485
|
|
$7,637
|
Short-term and other
investments
|
545
|
|
927
|
Accounts receivable,
net
|
3,266
|
|
3,879
|
Unbilled receivables,
net
|
9,043
|
|
10,025
|
Current portion of
customer financing, net
|
162
|
|
460
|
Inventories
|
76,622
|
|
62,567
|
Other current
assets
|
3,106
|
|
2,335
|
Total current
assets
|
102,229
|
|
87,830
|
Customer financing,
net
|
2,136
|
|
2,418
|
Property, plant and
equipment, net of accumulated depreciation of $19,342 and
$18,568
|
12,502
|
|
12,645
|
Goodwill
|
8,060
|
|
7,840
|
Acquired intangible
assets, net
|
3,338
|
|
3,429
|
Deferred income
taxes
|
683
|
|
284
|
Investments
|
1,092
|
|
1,087
|
Other assets, net of
accumulated amortization of $580 and $503
|
3,585
|
|
1,826
|
Total
assets
|
$133,625
|
|
$117,359
|
Liabilities and
equity
|
|
|
|
Accounts
payable
|
$15,553
|
|
$12,916
|
Accrued
liabilities
|
22,868
|
|
14,808
|
Advances and progress
billings
|
51,551
|
|
50,676
|
Short-term debt and
current portion of long-term debt
|
7,340
|
|
3,190
|
Total current
liabilities
|
97,312
|
|
81,590
|
Deferred income
taxes
|
413
|
|
1,736
|
Accrued retiree
health care
|
4,540
|
|
4,584
|
Accrued pension plan
liability, net
|
16,276
|
|
15,323
|
Other long-term
liabilities
|
3,422
|
|
3,059
|
Long-term
debt
|
19,962
|
|
10,657
|
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
|
6,745
|
|
6,768
|
Treasury stock, at
cost
|
(54,914)
|
|
(52,348)
|
Retained
earnings
|
50,644
|
|
55,941
|
Accumulated other
comprehensive loss
|
(16,153)
|
|
(15,083)
|
Total shareholders'
equity
|
(8,617)
|
|
339
|
Noncontrolling
interests
|
317
|
|
71
|
Total
equity
|
(8,300)
|
|
410
|
Total liabilities
and equity
|
$133,625
|
|
$117,359
|
The Boeing Company
and Subsidiaries
|
Consolidated
Statements of Cash Flows
|
(Unaudited)
|
|
|
Twelve months
ended
December 31
|
(Dollars in
millions)
|
2019
|
|
2018
|
Cash
flows – operating activities:
|
|
|
|
Net
(loss)/earnings
|
($636)
|
|
$10,460
|
Adjustments to
reconcile net earnings to net cash provided by operating
activities:
|
|
|
|
Non-cash items
–
|
|
|
|
Share-based plans
expense
|
212
|
|
202
|
Depreciation and
amortization
|
2,271
|
|
2,114
|
Investment/asset
impairment charges, net
|
443
|
|
93
|
Customer financing
valuation adjustments
|
250
|
|
(3)
|
Gain on dispositions,
net
|
(691)
|
|
(75)
|
Other charges and
credits, net
|
334
|
|
247
|
Changes in assets and
liabilities –
|
|
|
|
Accounts
receivable
|
603
|
|
(795)
|
Unbilled
receivables
|
982
|
|
(1,826)
|
Advances and progress
billings
|
737
|
|
2,636
|
Inventories
|
(12,391)
|
|
568
|
Other current
assets
|
(682)
|
|
98
|
Accounts
payable
|
1,600
|
|
2
|
Accrued
liabilities
|
7,781
|
|
1,117
|
Income taxes
receivable, payable and deferred
|
(2,476)
|
|
(180)
|
Other long-term
liabilities
|
(621)
|
|
87
|
Pension and other
postretirement plans
|
(777)
|
|
(153)
|
Customer financing,
net
|
419
|
|
120
|
Other
|
196
|
|
610
|
Net cash
(used)/provided by operating activities
|
(2,446)
|
|
15,322
|
Cash flows –
investing activities:
|
|
|
|
Property, plant and
equipment additions
|
(1,834)
|
|
(1,722)
|
Property, plant and
equipment reductions
|
334
|
|
120
|
Acquisitions, net of
cash acquired
|
(455)
|
|
(3,230)
|
Proceeds from
dispositions
|
464
|
|
|
Contributions to
investments
|
(1,658)
|
|
(2,607)
|
Proceeds from
investments
|
1,759
|
|
2,898
|
Purchase of
distribution rights
|
(127)
|
|
(69)
|
Other
|
(13)
|
|
(11)
|
Net cash used by
investing activities
|
(1,530)
|
|
(4,621)
|
Cash flows –
financing activities:
|
|
|
|
New
borrowings
|
25,389
|
|
8,548
|
Debt
repayments
|
(12,171)
|
|
(7,183)
|
Contributions from
noncontrolling interests
|
7
|
|
35
|
Stock options
exercised
|
58
|
|
81
|
Employee taxes on
certain share-based payment arrangements
|
(248)
|
|
(257)
|
Common shares
repurchased
|
(2,651)
|
|
(9,000)
|
Dividends
paid
|
(4,630)
|
|
(3,946)
|
Other
|
(15)
|
|
|
Net cash
provided/(used) by financing activities
|
5,739
|
|
(11,722)
|
Effect of exchange
rate changes on cash and cash equivalents, including
restricted
|
(5)
|
|
(53)
|
Net
increase/(decrease) in cash & cash equivalents, including
restricted
|
1,758
|
|
(1,074)
|
Cash & cash
equivalents, including restricted, at beginning of year
|
7,813
|
|
8,887
|
Cash & cash
equivalents, including restricted, at end of period
|
9,571
|
|
7,813
|
Less restricted cash
& cash equivalents, included in Investments
|
86
|
|
176
|
Cash and cash
equivalents at end of period
|
$9,485
|
|
$7,637
|
The Boeing Company and Subsidiaries
Summary of Business Segment Data
(Unaudited)
Effective at the beginning of 2019, all revenues and costs
associated with military derivative aircraft production are
reported in the Defense, Space & Security segment. Revenues and
costs associated with military derivative aircraft production were
previously reported in the Commercial Airplanes and Defense, Space
& Security segments. Business segment data for 2018 reflects
the realignment for military derivative aircraft as well as the
realignment of certain programs from Defense, Space & Security
to Global Services.
|
Twelve months
ended
December 31
|
|
Three months
ended
December 31
|
(Dollars in
millions)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Revenues:
|
|
|
|
|
|
|
|
Commercial
Airplanes
|
$32,255
|
|
$57,499
|
|
$7,462
|
|
$16,531
|
Defense, Space &
Security
|
26,227
|
|
26,392
|
|
5,962
|
|
6,874
|
Global
Services
|
18,468
|
|
17,056
|
|
4,648
|
|
4,908
|
Boeing
Capital
|
244
|
|
274
|
|
37
|
|
60
|
Unallocated items,
eliminations and other
|
(635)
|
|
(94)
|
|
(198)
|
|
(32)
|
Total
revenues
|
$76,559
|
|
$101,127
|
|
$17,911
|
|
$28,341
|
(Loss)/earnings from
operations:
|
|
|
|
|
|
|
|
Commercial
Airplanes
|
($6,657)
|
|
$7,830
|
|
($2,844)
|
|
$2,600
|
Defense, Space &
Security
|
2,608
|
|
1,657
|
|
31
|
|
771
|
Global
Services
|
2,697
|
|
2,536
|
|
684
|
|
737
|
Boeing
Capital
|
28
|
|
79
|
|
(58)
|
|
8
|
Segment operating
(loss)/profit
|
(1,324)
|
|
12,102
|
|
(2,187)
|
|
4,116
|
Unallocated items,
eliminations and other
|
(2,066)
|
|
(1,442)
|
|
(339)
|
|
(249)
|
FAS/CAS service cost
adjustment
|
1,415
|
|
1,327
|
|
322
|
|
308
|
(Loss)/earnings
from operations
|
(1,975)
|
|
11,987
|
|
(2,204)
|
|
4,175
|
Other income,
net
|
438
|
|
92
|
|
104
|
|
29
|
Interest and debt
expense
|
(722)
|
|
(475)
|
|
(242)
|
|
(158)
|
(Loss)/earnings
before income taxes
|
(2,259)
|
|
11,604
|
|
(2,342)
|
|
4,046
|
Income tax
benefit/(expense)
|
1,623
|
|
(1,144)
|
|
1,332
|
|
(622)
|
Net
(loss)/earnings
|
($636)
|
|
$10,460
|
|
($1,010)
|
|
$3,424
|
|
|
|
|
|
|
|
|
Research and
development expense, net:
|
|
|
|
|
|
|
|
Commercial
Airplanes
|
$1,956
|
|
$2,188
|
|
$427
|
|
$572
|
Defense, Space &
Security
|
758
|
|
788
|
|
189
|
|
175
|
Global
Services
|
121
|
|
161
|
|
19
|
|
42
|
Other
|
384
|
|
132
|
|
114
|
|
63
|
Total research and
development expense, net
|
$3,219
|
|
$3,269
|
|
$749
|
|
$852
|
|
|
|
|
|
|
|
|
Unallocated items,
eliminations and other:
|
|
|
|
|
|
|
|
Share-based
plans
|
($65)
|
|
($76)
|
|
($8)
|
|
($16)
|
Deferred
compensation
|
(174)
|
|
(19)
|
|
(20)
|
|
93
|
Amortization of
previously capitalized interest
|
(89)
|
|
(92)
|
|
(21)
|
|
(25)
|
Customer financing
impairment
|
(250)
|
|
|
|
|
|
|
Research and
development expense, net
|
(384)
|
|
(132)
|
|
(97)
|
|
(63)
|
Eliminations and
other unallocated items
|
(1,104)
|
|
(1,123)
|
|
(193)
|
|
(238)
|
Sub-total
(included in core operating earnings)
|
(2,066)
|
|
(1,442)
|
|
(339)
|
|
(249)
|
Pension FAS/CAS
service cost adjustment
|
1,071
|
|
1,005
|
|
248
|
|
225
|
Postretirement
FAS/CAS service cost adjustment
|
344
|
|
322
|
|
74
|
|
83
|
FAS/CAS service
cost adjustment
|
1,415
|
|
1,327
|
|
$322
|
|
$308
|
Total
|
($651)
|
|
($115)
|
|
($17)
|
|
$59
|
The Boeing Company
and Subsidiaries
|
Operating and
Financial Data
|
(Unaudited)
|
|
Deliveries
|
Twelve months
ended
December 31
|
|
|
Three months
ended
December 31
|
Commercial
Airplanes
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
|
737
|
127
|
|
|
580
|
|
|
9
|
|
|
173
|
|
|
747
|
7
|
|
|
6
|
|
|
2
|
|
|
1
|
|
|
767
|
43
|
|
|
27
|
|
|
11
|
|
|
14
|
|
|
777
|
45
|
(2)
|
|
48
|
|
|
12
|
(1)
|
|
11
|
|
|
787
|
158
|
|
|
145
|
|
|
45
|
|
|
39
|
|
|
Total
|
380
|
|
|
806
|
|
|
79
|
|
|
238
|
|
Note: Aircraft
accounted for as revenues by BCA and as operating leases in
consolidation identified by parentheses
|
|
|
|
|
|
|
|
|
|
|
|
|
Defense, Space &
Security
|
|
|
|
|
|
|
|
|
|
|
|
AH-64 Apache
(New)
|
37
|
|
|
—
|
|
|
10
|
|
|
—
|
|
|
AH-64 Apache
(Remanufactured)
|
74
|
|
|
23
|
|
|
18
|
|
|
11
|
|
|
C-17 Globemaster
III
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
C-40A
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
CH-47 Chinook
(New)
|
13
|
|
|
13
|
|
|
—
|
|
|
2
|
|
|
CH-47 Chinook
(Renewed)
|
22
|
|
|
17
|
|
|
6
|
|
|
3
|
|
|
F-15
Models
|
11
|
|
|
10
|
|
|
4
|
|
|
2
|
|
|
F/A-18
Models
|
23
|
|
|
17
|
|
|
7
|
|
|
7
|
|
|
KC-46
Tanker
|
28
|
|
|
—
|
|
|
7
|
|
|
—
|
|
|
P-8 Models
|
18
|
|
|
16
|
|
|
4
|
|
|
6
|
|
|
Commercial and Civil
Satellites
|
2
|
|
|
1
|
|
|
1
|
|
|
—
|
|
|
Military
Satellites
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total backlog
(Dollars in millions)
|
December 31
2019
|
|
December 31
2018
|
Commercial
Airplanes
|
$376,593
|
|
$408,140
|
Defense, Space &
Security
|
63,908
|
|
61,277
|
Global
Services
|
22,902
|
|
21,064
|
Total
backlog
|
$463,403
|
|
$490,481
|
|
|
|
|
Contractual
backlog
|
$436,473
|
|
$462,070
|
Unobligated
backlog
|
26,930
|
|
28,411
|
Total
backlog
|
$463,403
|
|
$490,481
|
The Boeing Company and Subsidiaries
Reconciliation of Non-GAAP Measures
(Unaudited)
The tables provided below reconcile the non-GAAP financial
measures core operating (loss)/earnings, core operating margin, and
core (loss)/earnings per share with the most directly comparable
GAAP financial measures, (loss)/earnings from operations, operating
margin, and diluted (loss)/earnings 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)
|
Fourth Quarter
2019
|
|
Fourth Quarter
2018
|
|
$
millions
|
Per
Share
|
|
$ millions
|
Per Share
|
Revenues
|
17,911
|
|
|
28,341
|
|
(Loss)/earnings
from operations (GAAP)
|
(2,204)
|
|
|
4,175
|
|
Operating margin
(GAAP)
|
(12.3)%
|
|
|
14.7%
|
|
|
|
|
|
|
|
FAS/CAS service
cost adjustment:
|
|
|
|
|
|
Pension FAS/CAS
service cost adjustment
|
(248)
|
|
|
(225)
|
|
Postretirement
FAS/CAS service cost adjustment
|
(74)
|
|
|
(83)
|
|
FAS/CAS service
cost adjustment
|
(322)
|
|
|
(308)
|
|
Core operating
(loss)/earnings (non-GAAP)
|
($2,526)
|
|
|
$3,867
|
|
Core operating
margin (non-GAAP)
|
(14.1)%
|
|
|
13.6%
|
|
|
|
|
|
|
|
Diluted
(loss)/earnings per share (GAAP)
|
|
($1.79)
|
|
|
$5.93
|
Pension FAS/CAS
service cost adjustment
|
($248)
|
(0.44)
|
|
($225)
|
(0.39)
|
Postretirement
FAS/CAS service cost adjustment
|
(74)
|
(0.13)
|
|
(83)
|
(0.14)
|
Non-operating pension
expense
|
(94)
|
(0.17)
|
|
(45)
|
(0.08)
|
Non-operating
postretirement expense
|
27
|
0.05
|
|
24
|
0.04
|
Provision for
deferred income taxes on adjustments 1
|
82
|
0.15
|
|
69
|
0.12
|
Subtotal of
adjustments
|
($307)
|
($0.54)
|
|
($260)
|
($0.45)
|
Core
(loss)/earnings per share (non-GAAP)
|
|
($2.33)
|
|
|
$5.48
|
|
|
|
|
|
|
Weighted average
diluted shares (in millions)
|
|
565.4
|
|
|
577.5
|
|
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 (loss)/earnings, core operating margin, and
core (loss)/earnings per share with the most directly comparable
GAAP financial measures, (loss)/earnings from operations, operating
margin, and diluted (loss)/earnings 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)
|
Full Year
2019
|
|
Full Year
2018
|
|
$
millions
|
Per
Share
|
|
$ millions
|
Per Share
|
Revenues
|
76,559
|
|
|
101,127
|
|
(Loss)/earnings
from operations (GAAP)
|
(1,975)
|
|
|
11,987
|
|
Operating margin
(GAAP)
|
(2.6)%
|
|
|
11.9%
|
|
|
|
|
|
|
|
FAS/CAS service
cost adjustment:
|
|
|
|
|
|
Pension FAS/CAS
service cost adjustment
|
(1,071)
|
|
|
(1,005)
|
|
Postretirement
FAS/CAS service cost adjustment
|
(344)
|
|
|
(322)
|
|
FAS/CAS service
cost adjustment
|
(1,415)
|
|
|
(1,327)
|
|
Core operating
(loss)/earnings (non-GAAP)
|
($3,390)
|
|
|
$10,660
|
|
Core operating
margin (non-GAAP)
|
(4.4)%
|
|
|
10.5%
|
|
|
|
|
|
|
|
Diluted
(loss)/earnings per share (GAAP)
|
|
($1.12)
|
|
|
$17.85
|
Pension FAS/CAS
service cost adjustment
|
($1,071)
|
(1.89)
|
|
($1,005)
|
(1.71)
|
Postretirement
FAS/CAS service cost adjustment
|
(344)
|
(0.61)
|
|
(322)
|
(0.55)
|
Non-operating pension
expense
|
(374)
|
(0.66)
|
|
(143)
|
(0.24)
|
Non-operating
postretirement expense
|
107
|
0.19
|
|
101
|
0.17
|
Provision for
deferred income taxes on adjustments 1
|
353
|
0.62
|
|
287
|
0.49
|
Subtotal of
adjustments
|
($1,329)
|
($2.35)
|
|
($1,082)
|
($1.84)
|
Core
(loss)/earnings per share (non-GAAP)
|
|
($3.47)
|
|
|
$16.01
|
|
|
|
|
|
|
Weighted average
diluted shares (in millions)
|
|
566.0
|
|
|
586.2
|
|
1
The income tax impact is calculated using the U.S. corporate
statutory tax rate.
|
View original
content:http://www.prnewswire.com/news-releases/boeing-reports-fourth-quarter-results-300995213.html
SOURCE Boeing