Boeing Reports
Second-Quarter Results
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. |
|
|
|
|
|
|
|