CHICAGO, July 28, 2021 /PRNewswire/ --
- Continued progress on global safe return to service of 737
MAX
- Revenue of $17.0 billion, GAAP
earnings per share of $1.00 and core
(non-GAAP)* earnings per share of $0.40
- Operating cash flow of ($0.5)
billion; cash and marketable securities of $21.3 billion
- Commercial Airplanes backlog grew to $285 billion and added 180 net orders
Table 1. Summary
Financial Results
|
Second
Quarter
|
|
|
|
First
Half
|
|
|
(Dollars in
Millions, except per share data)
|
2021
|
|
2020
|
|
Change
|
|
2021
|
|
2020
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$16,998
|
|
$11,807
|
|
44%
|
|
$32,215
|
|
$28,715
|
|
12%
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
|
|
|
|
|
|
|
|
|
|
Earnings/(Loss)
From Operations
|
$1,023
|
|
($2,964)
|
|
NM
|
|
$940
|
|
($4,317)
|
|
NM
|
Operating
Margin
|
6.0%
|
|
(25.1)%
|
|
NM
|
|
2.9%
|
|
(15.0)%
|
|
NM
|
Net
Earnings/(Loss)
|
$567
|
|
($2,395)
|
|
NM
|
|
$6
|
|
($3,036)
|
|
NM
|
Earnings/(Loss)
Per Share
|
$1.00
|
|
($4.20)
|
|
NM
|
|
$0.09
|
|
($5.31)
|
|
NM
|
Operating Cash
Flow
|
($483)
|
|
($5,280)
|
|
NM
|
|
($3,870)
|
|
($9,582)
|
|
NM
|
Non-GAAP*
|
|
|
|
|
|
|
|
|
|
|
|
Core Operating
Earnings/(Loss)
|
$755
|
|
($3,319)
|
|
NM
|
|
$402
|
|
($5,019)
|
|
NM
|
Core Operating
Margin
|
4.4%
|
|
(28.1)%
|
|
NM
|
|
1.2%
|
|
(17.5)%
|
|
NM
|
Core
Earnings/(Loss) Per Share
|
$0.40
|
|
($4.79)
|
|
NM
|
|
($1.12)
|
|
($6.49)
|
|
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 second-quarter revenue of
$17.0 billion, driven by higher
commercial airplanes and services volume. GAAP earnings per
share of $1.00 and core earnings per
share (non-GAAP)* of $0.40 primarily
reflects higher commercial volume and lower period costs (Table 1).
Boeing recorded operating cash flow of ($0.5) billion.
"We continued to make important progress in the second quarter
as we focus on driving stability across our operations and
transforming our business for the future," said Boeing President
and Chief Executive Officer David
Calhoun. "While our commercial market environment is
improving, we're closely monitoring COVID-19 case rates, vaccine
distribution and global trade as key indicators for our industry's
stability. As we continue to position for a robust recovery, we
remain committed to safety and quality, while investing in our
people, products and technology. I am proud of our team's
resilience and commitment as we work to rebuild trust, improve our
performance and deliver for our commercial, defense, space and
services customers."
As part of Boeing's ongoing focus on global sustainability, the
company published its first integrated Sustainability Report in
July. "This was an important step in our continued efforts to
reinforce our Environmental, Social, and Governance principles,"
Calhoun said.
Table 2. Cash
Flow
|
Second
Quarter
|
|
First
Half
|
(Millions)
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Operating Cash
Flow
|
($483)
|
|
($5,280)
|
|
($3,870)
|
|
($9,582)
|
Less Additions to
Property, Plant & Equipment
|
($222)
|
|
($348)
|
|
($513)
|
|
($776)
|
Free Cash
Flow*
|
($705)
|
|
($5,628)
|
|
($4,383)
|
|
($10,358)
|
|
*Non-GAAP measure;
complete definitions of Boeing's non-GAAP measures are on page 6,
"Non-GAAP Measures
Disclosures."
|
Operating cash flow improved to ($0.5)
billion in the quarter, driven by higher
commercial deliveries, higher order receipts, and lower
expenditures (Table 2).
Table 3. Cash,
Marketable Securities and Debt Balances
|
Quarter-End
|
(Billions)
|
Q2
21
|
|
Q1
21
|
Cash
|
$8.2
|
|
$7.0
|
Marketable
Securities1
|
$13.1
|
|
$14.9
|
Total
|
$21.3
|
|
$21.9
|
Debt
Balances:
|
|
|
|
The Boeing Company,
net of intercompany loans to BCC
|
$62.1
|
|
$62.0
|
Boeing Capital,
including intercompany loans
|
$1.5
|
|
$1.6
|
Total Consolidated
Debt
|
$63.6
|
|
$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
$21.3 billion, compared to
$21.9 billion at the beginning of the
quarter, primarily driven by operating cash outflows (Table
3). The company has access to credit facilities of $14.8 billion which remain undrawn.
Total company backlog at quarter-end was $363 billion.
Segment Results
Commercial Airplanes
Table 4.
Commercial Airplanes
|
Second
Quarter
|
|
|
|
First
Half
|
|
|
(Dollars in
Millions)
|
2021
|
|
2020
|
|
Change
|
|
2021
|
|
2020
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
Airplanes Deliveries
|
79
|
|
20
|
|
295%
|
|
156
|
|
70
|
|
123%
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$6,015
|
|
$1,633
|
|
268%
|
|
$10,284
|
|
$7,838
|
|
31%
|
Loss from
Operations
|
($472)
|
|
($2,762)
|
|
NM
|
|
($1,328)
|
|
($4,830)
|
|
NM
|
Operating
Margin
|
(7.8)%
|
|
(169.1)%
|
|
NM
|
|
(12.9)%
|
|
(61.6)%
|
|
NM
|
Commercial Airplanes second-quarter revenue increased to
$6.0 billion primarily driven by
higher commercial airplane deliveries. Second-quarter operating
margin improved to (7.8) percent, primarily due to lower
period costs as well as higher delivery volume (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 130 737 MAX aircraft
and airlines have returned more than 190 previously grounded
airplanes to service. 30 airlines are now operating the 737 MAX,
safely flying nearly 95,000 revenue flights totaling more than
218,000 flight hours (as of July 25,
2021). The 737 program is currently producing at a rate of
approximately 16 per month and continues to expect to gradually
increase production to 31 per month in early 2022 with further
gradual increases to correspond with market demand. The company
will continue to assess the production rate plan as it monitors the
market environment and engages in customer discussions.
As Boeing has previously shared, the company is conducting
inspections and rework and continues to engage in detailed
discussions with the FAA on verification methodology for 787. In
connection with these efforts, the company announced earlier this
month that it has identified additional rework that will be
required on undelivered 787s. Based on our assessment of the time
required to complete this work, Boeing is reprioritizing production
resources for a few weeks to support the inspection and rework. As
that work is performed, the 787 production rate will temporarily be
lower than five per month and will gradually return to that rate.
Boeing expects to deliver fewer than half of the 787s currently in
inventory this year.
Commercial Airplanes secured orders for 200 737 aircraft for
United Airlines, 34 737 aircraft for Southwest Airlines, and a
total of 31 freighter aircraft. Commercial Airplanes delivered 79
airplanes during the quarter and backlog included over 4,100
airplanes valued at $285 billion.
Defense, Space & Security
Table 5. Defense,
Space & Security
|
Second
Quarter
|
|
|
|
First
Half
|
|
|
(Dollars in
Millions)
|
2021
|
|
2020
|
|
Change
|
|
2021
|
|
2020
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$6,876
|
|
$6,588
|
|
4%
|
|
$14,061
|
|
$12,630
|
|
11%
|
Earnings from
Operations
|
$958
|
|
$600
|
|
60%
|
|
$1,363
|
|
$409
|
|
233%
|
Operating
Margin
|
13.9%
|
|
9.1%
|
|
53%
|
|
9.7%
|
|
3.2%
|
|
203%
|
Defense, Space & Security second-quarter revenue increased
to $6.9 billion driven by higher
KC-46A Tanker and P-8A Poseidon volume. Second-quarter operating
margin increased to 13.9 percent, primarily reflecting the absence
of a charge on the KC-46A Tanker program as compared to second
quarter 2020, as well as a favorable non-US contract
adjustment.
During the quarter, Defense, Space & Security secured an
award for 14 H-47 extended-range Chinook helicopters for the U.K.
Royal Air Force and signed an agreement with the German Ministry of
Defense for five P-8A Poseidon aircraft. Defense, Space &
Security conducted the first MQ-25 unmanned aerial refueling of a
F/A-18 Super Hornet and successfully joined T-7A Red Hawk front and aft sections in under 30
minutes enabled by digital design. Also, the first Core Stage for
NASA's Space Launch System began stacking with other Artemis I
elements.
Backlog at Defense, Space & Security was $59 billion, of which 32 percent represents
orders from customers outside the U.S.
Global Services
Table 6. Global
Services
|
Second
Quarter
|
|
|
|
First
Half
|
|
|
(Dollars in
Millions)
|
2021
|
|
2020
|
|
Change
|
|
2021
|
|
2020
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$4,067
|
|
$3,488
|
|
17%
|
|
$7,816
|
|
$8,116
|
|
(4)%
|
Earnings/(Loss)
from Operations
|
$531
|
|
($672)
|
|
NM
|
|
$972
|
|
$36
|
|
NM
|
Operating
Margin
|
13.1%
|
|
(19.3)%
|
|
NM
|
|
12.4%
|
|
0.4%
|
|
NM
|
Global Services second-quarter revenue increased to $4.1 billion and second-quarter operating margin
increased to 13.1 percent primarily driven by higher commercial
services volume. Operating margin was also favorably impacted
by lower asset impairments, lower severance costs, and mix of
products and services.
During the quarter, Global Services signed an expanded parts
agreement with Turkish Technic and announced a partnership to
expand capacity for 737-800 Boeing Converted Freighters. Global
Services was also selected to provide P-8A training and sustainment
as well as C-17 training to the U.K. Royal Air Force, and was
awarded a modification for KC-46A interim contract support for the
U.S. Air Force.
Additional Financial Information
Table 7.
Additional Financial Information
|
Second
Quarter
|
|
First
Half
|
(Dollars in
Millions)
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Revenues
|
|
|
|
|
|
|
|
Boeing
Capital
|
$78
|
|
$69
|
|
$138
|
|
$134
|
Unallocated items,
eliminations and other
|
($38)
|
|
$29
|
|
($84)
|
|
($3)
|
Earnings/(Loss)
from Operations
|
|
|
|
|
|
|
|
Boeing
Capital
|
$36
|
|
($7)
|
|
$57
|
|
$17
|
FAS/CAS service cost
adjustment
|
$268
|
|
$355
|
|
$538
|
|
$702
|
Other unallocated
items and eliminations
|
($298)
|
|
($478)
|
|
($662)
|
|
($651)
|
Other income,
net
|
$199
|
|
$94
|
|
$389
|
|
$206
|
Interest and debt
expense
|
($673)
|
|
($553)
|
|
($1,352)
|
|
($815)
|
Effective tax
rate
|
(3.3)%
|
|
30.0%
|
|
126.1%
|
|
38.4%
|
At quarter-end, Boeing Capital's net portfolio balance was
$1.9 billion. The change in revenue
from other unallocated items and eliminations was primarily due to
the timing of allocations. The loss from other unallocated items
and eliminations was impacted by lower deferred compensation
expense as compared to the second quarter of 2020. Interest and
debt expense increased due to higher debt balances. The second
quarter 2021 effective tax rate primarily reflects benefits from a
lower valuation allowance.
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:
|
|
Maurita Sutedja or
Keely Moos (312) 544-2140
|
Communications:
|
|
Michael
Friedman media@boeing.com
|
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)
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Sales of
products
|
$26,672
|
|
$23,254
|
|
$14,154
|
|
$9,063
|
Sales of
services
|
5,543
|
|
5,461
|
|
2,844
|
|
2,744
|
Total
revenues
|
32,215
|
|
28,715
|
|
16,998
|
|
11,807
|
|
|
|
|
|
|
|
|
Cost of
products
|
(23,895)
|
|
(25,091)
|
|
(12,263)
|
|
(10,378)
|
Cost of
services
|
(4,483)
|
|
(4,632)
|
|
(2,316)
|
|
(2,589)
|
Boeing Capital
interest expense
|
(18)
|
|
(23)
|
|
(9)
|
|
(11)
|
Total costs and
expenses
|
(28,396)
|
|
(29,746)
|
|
(14,588)
|
|
(12,978)
|
|
3,819
|
|
(1,031)
|
|
2,410
|
|
(1,171)
|
Income/(loss) from
operating investments, net
|
75
|
|
(47)
|
|
38
|
|
(45)
|
General and
administrative expense
|
(2,072)
|
|
(2,034)
|
|
(1,040)
|
|
(1,161)
|
Research and
development expense, net
|
(996)
|
|
(1,297)
|
|
(497)
|
|
(625)
|
Gain on dispositions,
net
|
114
|
|
92
|
|
112
|
|
38
|
Earnings/(loss)
from operations
|
940
|
|
(4,317)
|
|
1,023
|
|
(2,964)
|
Other income,
net
|
389
|
|
206
|
|
199
|
|
94
|
Interest and debt
expense
|
(1,352)
|
|
(815)
|
|
(673)
|
|
(553)
|
(Loss)/earnings
before income taxes
|
(23)
|
|
(4,926)
|
|
549
|
|
(3,423)
|
Income tax
benefit
|
29
|
|
1,890
|
|
18
|
|
1,028
|
Net
earnings/(loss)
|
6
|
|
(3,036)
|
|
567
|
|
(2,395)
|
Less: net loss
attributable to noncontrolling interest
|
(44)
|
|
(32)
|
|
(20)
|
|
(19)
|
Net
earnings/(loss) attributable to Boeing Shareholders
|
$50
|
|
($3,004)
|
|
$587
|
|
($2,376)
|
|
|
|
|
|
|
|
|
Basic
earnings/(loss) per share
|
$0.09
|
|
($5.31)
|
|
$1.00
|
|
($4.20)
|
|
|
|
|
|
|
|
|
Diluted
earnings/(loss) per share
|
$0.09
|
|
($5.31)
|
|
$1.00
|
|
($4.20)
|
|
|
|
|
|
|
|
|
Weighted average
diluted shares (millions)
|
588.6
|
|
566.1
|
|
590.2
|
|
566.4
|
The Boeing Company
and Subsidiaries
|
Consolidated
Statements of Financial Position
|
(Unaudited)
|
|
(Dollars in
millions, except per share data)
|
June
30
2021
|
|
December
31
2020
|
Assets
|
|
|
|
Cash and cash
equivalents
|
$8,271
|
|
$7,752
|
Short-term and other
investments
|
13,071
|
|
17,838
|
Accounts receivable,
net
|
2,490
|
|
1,955
|
Unbilled receivables,
net
|
9,203
|
|
7,995
|
Current portion of
customer financing, net
|
74
|
|
101
|
Inventories
|
81,799
|
|
81,715
|
Other current assets,
net
|
4,187
|
|
4,286
|
Total current
assets
|
119,095
|
|
121,642
|
Customer financing,
net
|
1,865
|
|
1,936
|
Property, plant and
equipment, net of accumulated depreciation of $20,567 and
$20,507
|
11,341
|
|
11,820
|
Goodwill
|
8,076
|
|
8,081
|
Acquired intangible
assets, net
|
2,702
|
|
2,843
|
Deferred income
taxes
|
84
|
|
86
|
Investments
|
883
|
|
1,016
|
Other assets, net of
accumulated amortization of of $863 and $729
|
4,889
|
|
4,712
|
Total
assets
|
$148,935
|
|
$152,136
|
Liabilities and
equity
|
|
|
|
Accounts
payable
|
$11,450
|
|
$12,928
|
Accrued
liabilities
|
19,502
|
|
22,171
|
Advances and progress
billings
|
50,738
|
|
50,488
|
Short-term debt and
current portion of long-term debt
|
6,534
|
|
1,693
|
Total current
liabilities
|
88,224
|
|
87,280
|
Deferred income
taxes
|
1,064
|
|
1,010
|
Accrued retiree
health care
|
4,017
|
|
4,137
|
Accrued pension plan
liability, net
|
13,519
|
|
14,408
|
Other long-term
liabilities
|
1,571
|
|
1,486
|
Long-term
debt
|
57,025
|
|
61,890
|
Total
liabilities
|
165,420
|
|
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
|
8,481
|
|
7,787
|
Treasury stock, at
cost - 426,385,230 and 429,941,021 shares
|
(52,223)
|
|
(52,641)
|
Retained
earnings
|
38,660
|
|
38,610
|
Accumulated other
comprehensive loss
|
(16,661)
|
|
(17,133)
|
Total shareholders'
deficit
|
(16,682)
|
|
(18,316)
|
Noncontrolling
interests
|
197
|
|
241
|
Total
equity
|
(16,485)
|
|
(18,075)
|
Total liabilities
and equity
|
$148,935
|
|
$152,136
|
The Boeing Company
and Subsidiaries
|
Consolidated
Statements of Cash Flows
|
(Unaudited)
|
|
|
Six months
ended
June 30
|
(Dollars in
millions)
|
2021
|
|
2020
|
Cash
flows – operating activities:
|
|
|
|
Net
earnings/(loss)
|
$6
|
|
($3,036)
|
Adjustments to
reconcile net earnings/(loss) to net cash used by operating
activities:
|
|
|
|
Non-cash items
–
|
|
|
|
Share-based plans
expense
|
493
|
|
115
|
Treasury shares
issued for 401(k) contribution
|
628
|
|
|
Depreciation and
amortization
|
1,087
|
|
1,103
|
Investment/asset
impairment charges, net
|
38
|
|
280
|
Customer financing
valuation adjustments
|
(1)
|
|
9
|
Gain on dispositions,
net
|
(114)
|
|
(92)
|
Other charges and
credits, net
|
(1)
|
|
815
|
Changes in
assets and liabilities –
|
|
|
|
Accounts
receivable
|
(523)
|
|
143
|
Unbilled
receivables
|
(1,207)
|
|
285
|
Advances and progress
billings
|
251
|
|
1,822
|
Inventories
|
413
|
|
(6,741)
|
Other current
assets
|
324
|
|
433
|
Accounts
payable
|
(2,035)
|
|
(3,181)
|
Accrued
liabilities
|
(2,613)
|
|
514
|
Income taxes
receivable, payable and deferred
|
(130)
|
|
(1,894)
|
Other long-term
liabilities
|
(127)
|
|
(109)
|
Pension and other
postretirement plans
|
(576)
|
|
(357)
|
Customer financing,
net
|
83
|
|
62
|
Other
|
134
|
|
247
|
Net cash
used by operating activities
|
(3,870)
|
|
(9,582)
|
Cash flows –
investing activities:
|
|
|
|
Property, plant and
equipment additions
|
(513)
|
|
(776)
|
Property, plant and
equipment reductions
|
51
|
|
96
|
Contributions to
investments
|
(20,108)
|
|
(12,557)
|
Proceeds from
investments
|
24,989
|
|
543
|
Other
|
4
|
|
8
|
Net cash
provided/(used) by investing activities
|
4,423
|
|
(12,686)
|
Cash flows –
financing activities:
|
|
|
|
New
borrowings
|
9,826
|
|
42,302
|
Debt
repayments
|
(9,882)
|
|
(8,265)
|
Stock options
exercised
|
29
|
|
27
|
Employee taxes on
certain share-based payment arrangements
|
(40)
|
|
(164)
|
Dividends
paid
|
|
|
(1,158)
|
Net cash
(used)/provided by financing activities
|
(67)
|
|
32,742
|
Effect of exchange
rate changes on cash and cash equivalents, including
restricted
|
(14)
|
|
(11)
|
Net increase in
cash & cash equivalents, including restricted
|
472
|
|
10,463
|
Cash & cash
equivalents, including restricted, at beginning of year
|
7,835
|
|
9,571
|
Cash & cash
equivalents, including restricted, at end of period
|
8,307
|
|
20,034
|
Less restricted
cash & cash equivalents, included in Investments
|
36
|
|
42
|
Cash and cash
equivalents at end of period
|
$8,271
|
|
$19,992
|
The Boeing Company
and Subsidiaries
|
Summary of
Business Segment Data
|
(Unaudited)
|
|
|
Six months
ended
June
30
|
|
Three months
ended
June
30
|
(Dollars in
millions)
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Revenues:
|
|
|
|
|
|
|
|
Commercial
Airplanes
|
$10,284
|
|
$7,838
|
|
$6,015
|
|
$1,633
|
Defense, Space &
Security
|
14,061
|
|
12,630
|
|
6,876
|
|
6,588
|
Global
Services
|
7,816
|
|
8,116
|
|
4,067
|
|
3,488
|
Boeing
Capital
|
138
|
|
134
|
|
78
|
|
69
|
Unallocated items,
eliminations and other
|
(84)
|
|
(3)
|
|
(38)
|
|
29
|
Total
revenues
|
$32,215
|
|
$28,715
|
|
$16,998
|
|
$11,807
|
Earnings/(loss) from
operations:
|
|
|
|
|
|
|
|
Commercial
Airplanes
|
($1,328)
|
|
($4,830)
|
|
($472)
|
|
($2,762)
|
Defense, Space &
Security
|
1,363
|
|
409
|
|
958
|
|
600
|
Global
Services
|
972
|
|
36
|
|
531
|
|
(672)
|
Boeing
Capital
|
57
|
|
17
|
|
36
|
|
(7)
|
Segment operating
earnings/(loss)
|
1,064
|
|
(4,368)
|
|
1,053
|
|
(2,841)
|
Unallocated items,
eliminations and other
|
(662)
|
|
(651)
|
|
(298)
|
|
(478)
|
FAS/CAS service cost
adjustment
|
538
|
|
702
|
|
268
|
|
355
|
Earnings/(loss)
from operations
|
940
|
|
(4,317)
|
|
1,023
|
|
(2,964)
|
Other income,
net
|
389
|
|
206
|
|
199
|
|
94
|
Interest and debt
expense
|
(1,352)
|
|
(815)
|
|
(673)
|
|
(553)
|
(Loss)/earnings
before income taxes
|
(23)
|
|
(4,926)
|
|
549
|
|
(3,423)
|
Income tax
benefit
|
29
|
|
1,890
|
|
18
|
|
1,028
|
Net
earnings/(loss)
|
6
|
|
(3,036)
|
|
567
|
|
(2,395)
|
Less: Net loss
attributable to noncontrolling interest
|
(44)
|
|
(32)
|
|
(20)
|
|
(19)
|
Net
earnings/(loss) attributable to Boeing Shareholders
|
$50
|
|
($3,004)
|
|
$587
|
|
($2,376)
|
Research and
development expense, net:
|
|
|
|
|
|
|
|
Commercial
Airplanes
|
$524
|
|
$786
|
|
$255
|
|
$361
|
Defense, Space &
Security
|
337
|
|
330
|
|
174
|
|
167
|
Global
Services
|
50
|
|
65
|
|
25
|
|
35
|
Other
|
85
|
|
116
|
|
43
|
|
62
|
Total research and
development expense, net
|
$996
|
|
$1,297
|
|
$497
|
|
$625
|
Unallocated items,
eliminations and other:
|
|
|
|
|
|
|
|
Share-based
plans
|
($142)
|
|
($43)
|
|
($14)
|
|
($25)
|
Deferred
compensation
|
(94)
|
|
73
|
|
(42)
|
|
(120)
|
Amortization of
previously capitalized interest
|
(44)
|
|
(50)
|
|
(22)
|
|
(27)
|
Research and
development expense, net
|
(85)
|
|
(116)
|
|
(43)
|
|
(62)
|
Eliminations and
other unallocated items
|
(297)
|
|
(515)
|
|
(177)
|
|
(244)
|
Sub-total
(included in core operating loss)
|
(662)
|
|
(651)
|
|
(298)
|
|
(478)
|
Pension FAS/CAS
service cost adjustment
|
384
|
|
513
|
|
191
|
|
258
|
Postretirement
FAS/CAS service cost adjustment
|
154
|
|
189
|
|
77
|
|
97
|
FAS/CAS service
cost adjustment
|
538
|
|
702
|
|
$268
|
|
$355
|
Total
|
($124)
|
|
$51
|
|
($30)
|
|
($123)
|
The Boeing Company
and Subsidiaries
|
Operating and
Financial Data
|
(Unaudited)
|
|
Deliveries
|
|
Six months
ended
June 30
|
|
Three months
ended
June 30
|
|
Commercial
Airplanes
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
737
|
|
113
|
|
9
|
|
50
|
|
4
|
|
747
|
|
2
|
|
1
|
|
1
|
|
1
|
|
767
|
|
13
|
|
14
|
|
8
|
|
4
|
|
777
|
|
14
|
|
10
|
|
8
|
|
4
|
|
787
|
|
14
|
|
36
|
|
12
|
|
7
|
|
Total
|
|
156
|
|
70
|
|
79
|
|
20
|
|
|
|
Defense, Space &
Security
|
|
|
|
|
|
|
|
|
|
AH-64 Apache
(New)
|
|
15
|
|
11
|
|
6
|
|
9
|
|
AH-64 Apache
(Remanufactured)
|
|
31
|
|
32
|
|
16
|
|
18
|
|
CH-47 Chinook
(New)
|
|
6
|
|
15
|
|
3
|
|
6
|
|
CH-47 Chinook
(Renewed)
|
|
4
|
|
1
|
|
1
|
|
—
|
|
F-15
Models
|
|
8
|
|
3
|
|
5
|
|
3
|
|
F/A-18
Models
|
|
11
|
|
9
|
|
7
|
|
|
4
|
|
KC-46A
Tanker
|
|
4
|
|
6
|
|
2
|
|
1
|
|
P-8 Models
|
|
6
|
|
6
|
|
3
|
|
3
|
|
|
|
|
|
|
|
|
|
|
|
Total
backlog (Dollars in millions)
|
|
June
30
2021
|
|
December
31
2020
|
Commercial
Airplanes
|
|
$285,332
|
|
$281,588
|
Defense, Space &
Security
|
|
58,705
|
|
60,847
|
Global
Services
|
|
19,029
|
|
20,632
|
Unallocated items,
eliminations and other
|
|
400
|
|
337
|
Total
backlog
|
|
$363,466
|
|
$363,404
|
|
|
|
|
|
Contractual
backlog
|
|
$342,261
|
|
$339,309
|
Unobligated
backlog
|
|
21,205
|
|
24,095
|
Total
backlog
|
|
$363,466
|
|
$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 earnings/(loss) per share with the most directly comparable
GAAP financial measures, earnings/(loss) from operations, operating
margin, and diluted earnings/(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)
|
Second Quarter
2021
|
|
Second Quarter
2020
|
|
$
millions
|
Per
Share
|
|
$ millions
|
Per Share
|
Revenues
|
16,998
|
|
|
11,807
|
|
Earnings/(loss)
from operations (GAAP)
|
1,023
|
|
|
(2,964)
|
|
Operating margin
(GAAP)
|
6.0%
|
|
|
(25.1)%
|
|
|
|
|
|
|
|
FAS/CAS service
cost adjustment:
|
|
|
|
|
|
Pension FAS/CAS
service cost adjustment
|
(191)
|
|
|
(258)
|
|
Postretirement
FAS/CAS service cost adjustment
|
(77)
|
|
|
(97)
|
|
FAS/CAS service
cost adjustment
|
(268)
|
|
|
(355)
|
|
Core operating
earnings/(loss) (non-GAAP)
|
$755
|
|
|
($3,319)
|
|
Core operating
margin (non-GAAP)
|
4.4%
|
|
|
(28.1)%
|
|
|
|
|
|
|
|
Diluted
earnings/(loss) per share (GAAP)
|
|
$1.00
|
|
|
($4.20)
|
Pension FAS/CAS
service cost adjustment
|
($191)
|
(0.32)
|
|
($258)
|
(0.46)
|
Postretirement
FAS/CAS service cost adjustment
|
(77)
|
(0.13)
|
|
(97)
|
(0.17)
|
Non-operating pension
expense
|
(175)
|
(0.30)
|
|
(84)
|
(0.14)
|
Non-operating
postretirement expense
|
(5)
|
(0.01)
|
|
14
|
0.02
|
Provision for
deferred income taxes on adjustments 1
|
94
|
0.16
|
|
89
|
0.16
|
Subtotal of
adjustments
|
($354)
|
($0.60)
|
|
($336)
|
($0.59)
|
Core
earnings/(loss) per share (non-GAAP)
|
|
$0.40
|
|
|
($4.79)
|
|
|
|
|
|
|
Weighted average
diluted shares (in millions)
|
|
590.2
|
|
|
566.4
|
|
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 earnings/(loss) per share with the most directly comparable
GAAP financial measures, earnings/(loss) from operations, operating
margin, and diluted earnings/(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)
|
First Half
2021
|
|
First Half
2020
|
|
$
millions
|
Per
Share
|
|
$ millions
|
Per Share
|
Revenues
|
32,215
|
|
|
28,715
|
|
Earnings/(loss)
from operations (GAAP)
|
940
|
|
|
(4,317)
|
|
Operating margin
(GAAP)
|
2.9%
|
|
|
(15.0)%
|
|
|
|
|
|
|
|
FAS/CAS service
cost adjustment:
|
|
|
|
|
|
Pension FAS/CAS
service cost adjustment
|
(384)
|
|
|
(513)
|
|
Postretirement
FAS/CAS service cost adjustment
|
(154)
|
|
|
(189)
|
|
FAS/CAS service
cost adjustment
|
(538)
|
|
|
(702)
|
|
Core operating
earnings/(loss) (non-GAAP)
|
$402
|
|
|
($5,019)
|
|
Core operating
margin (non-GAAP)
|
1.2%
|
|
|
(17.5)%
|
|
|
|
|
|
|
|
Diluted
earnings/(loss) per share (GAAP)
|
|
$0.09
|
|
|
($5.31)
|
Pension FAS/CAS
service cost adjustment
|
($384)
|
(0.65)
|
|
($513)
|
(0.91)
|
Postretirement
FAS/CAS service cost adjustment
|
(154)
|
(0.26)
|
|
(189)
|
(0.33)
|
Non-operating pension
expense
|
(352)
|
(0.60)
|
|
(171)
|
(0.30)
|
Non-operating
postretirement expense
|
(10)
|
(0.02)
|
|
27
|
0.05
|
Provision for
deferred income taxes on adjustments 1
|
189
|
0.32
|
|
178
|
0.31
|
Subtotal of
adjustments
|
($711)
|
($1.21)
|
|
($668)
|
($1.18)
|
Core loss per
share (non-GAAP)
|
|
($1.12)
|
|
|
($6.49)
|
|
|
|
|
|
|
Weighted average
diluted shares (in millions)
|
|
588.6
|
|
|
566.1
|
|
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-second-quarter-results-301343079.html
SOURCE Boeing