Boeing Reports Third-Quarter Results
CHICAGO, Oct. 27, 2021 /PRNewswire/ --
- Continued progress on global safe return to service of 737
MAX and focus on operational stability
- Revenue of $15.3 billion, GAAP
loss per share of ($0.19) and core
(non-GAAP)* loss per share of ($0.60)
- Operating cash flow of ($0.3)
billion; cash and marketable securities of $20.0 billion
- Commercial Airplanes backlog of $290
billion and added 93 net orders
Table 1. Summary Financial Results |
Third
Quarter |
|
|
|
Nine Months |
|
|
(Dollars in Millions, except per share
data) |
2021 |
|
2020 |
|
Change |
|
2021 |
|
2020 |
|
Change |
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
$15,278 |
|
$14,139 |
|
8% |
|
$47,493 |
|
$42,854 |
|
11% |
|
|
|
|
|
|
|
|
|
|
|
|
GAAP |
|
|
|
|
|
|
|
|
|
|
|
Earnings/(Loss) From Operations |
$329 |
|
($401) |
|
NM |
|
$1,269 |
|
($4,718) |
|
NM |
Operating Margin |
2.2% |
|
(2.8)% |
|
NM |
|
2.7% |
|
(11.0)% |
|
NM |
Net Loss |
($132) |
|
($466) |
|
NM |
|
($126) |
|
($3,502) |
|
NM |
Loss Per Share |
($0.19) |
|
($0.79) |
|
NM |
|
($0.10) |
|
($6.10) |
|
NM |
Operating Cash Flow |
($262) |
|
($4,819) |
|
NM |
|
($4,132) |
|
($14,401) |
|
NM |
Non-GAAP* |
|
|
|
|
|
|
|
|
|
|
|
Core Operating Earnings/(Loss) |
$59 |
|
($754) |
|
NM |
|
$461 |
|
($5,773) |
|
NM |
Core Operating Margin |
0.4% |
|
(5.3)% |
|
NM |
|
1.0% |
|
(13.5)% |
|
NM |
Core Loss Per Share |
($0.60) |
|
($1.39) |
|
NM |
|
($1.72) |
|
($7.88) |
|
NM |
|
*Non-GAAP measure; complete
definitions of Boeing's non-GAAP measures are on page 6, "Non-GAAP
Measures Disclosures." |
The Boeing Company [NYSE: BA] reported third-quarter revenue of
$15.3 billion, driven by higher
commercial airplanes and services volume. GAAP loss per share
of ($0.19) and core loss per share
(non-GAAP)* of ($0.60) primarily
reflects higher commercial volume (Table 1). Boeing recorded
operating cash flow of ($0.3)
billion.
"We are driving stability across our operations, investing in
our future and positioning our teams to deliver for our customers
as the market recovers," said Boeing President and Chief Executive
Officer David Calhoun. "Commercial
market demand continues to gain traction with broad-based vaccine
distribution and border protocols beginning to open. Going forward,
supply chain capacity and global trade will be key drivers of our
industry and the broader economy's recovery. Our portfolio across
commercial, defense, space and services is well positioned, and
we're focused on improving performance, while advancing
technologies and digital manufacturing capabilities to drive our
next generation of products and a sustainable future."
Table 2. Cash Flow |
Third
Quarter |
|
Nine Months |
(Millions) |
2021 |
|
2020 |
|
2021 |
|
2020 |
Operating Cash Flow |
($262) |
|
($4,819) |
|
($4,132) |
|
($14,401) |
Less Additions to Property, Plant &
Equipment |
($245) |
|
($262) |
|
($758) |
|
($1,038) |
Free Cash Flow* |
($507) |
|
($5,081) |
|
($4,890) |
|
($15,439) |
|
*Non-GAAP measure; complete
definitions of Boeing's non-GAAP measures are on page 6, "Non-GAAP
Measures Disclosures." |
Operating cash flow improved to ($0.3)
billion in the quarter, reflecting higher
commercial deliveries, higher order receipts, and lower
expenditures (Table 2). Operating cash flow was also favorably
impacted by a $1.3 billion income tax
refund in the quarter.
Table 3. Cash, Marketable Securities and Debt
Balances |
Quarter-End |
(Billions) |
Q3 21 |
|
Q2 21 |
Cash |
$9.8 |
|
$8.2 |
Marketable Securities1 |
$10.2 |
|
$13.1 |
Total |
$20.0 |
|
$21.3 |
Debt Balances: |
|
|
|
The Boeing Company, net of intercompany loans to
BCC |
$60.9 |
|
$62.1 |
Boeing Capital, including intercompany loans |
$1.5 |
|
$1.5 |
Total Consolidated Debt |
$62.4 |
|
$63.6 |
|
1 Marketable
securities consists primarily of time deposits due within one year
classified as "short-term investments." |
Cash and investments in marketable securities decreased to
$20.0 billion, compared to
$21.3 billion at the beginning of the
quarter, primarily driven by debt repayment and operating cash
outflows (Table 3). Debt was $62.4
billion, down from $63.6
billion at the beginning of the quarter due to the repayment
of maturing debt.
Total company backlog at quarter-end was $367 billion.
Segment Results
Commercial Airplanes
Table 4. Commercial Airplanes |
Third
Quarter |
|
|
|
Nine Months |
|
|
(Dollars in Millions) |
2021 |
|
2020 |
|
Change |
|
2021 |
|
2020 |
|
Change |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial Airplanes Deliveries |
85 |
|
28 |
|
204% |
|
241 |
|
98 |
|
146% |
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
$4,459 |
|
$3,596 |
|
24% |
|
$14,743 |
|
$11,434 |
|
29% |
Loss from Operations |
($693) |
|
($1,369) |
|
NM |
|
($2,021) |
|
($6,199) |
|
NM |
Operating Margin |
(15.5)% |
|
(38.1)% |
|
NM |
|
(13.7)% |
|
(54.2)% |
|
NM |
Commercial Airplanes third-quarter revenue increased to
$4.5 billion primarily driven by
higher 737 deliveries, partially offset by lower 787 deliveries.
Third-quarter operating margin improved to (15.5) percent primarily
due to higher deliveries (Table 4).
Boeing is continuing to make progress on the global safe return
to service of the 737 MAX. Since the FAA's approval to return the
737 MAX to operations in November
2020, Boeing has delivered more than 195 737 MAX aircraft
and airlines have returned more than 200 previously grounded
airplanes to service. 31 airlines are now operating the 737 MAX,
safely flying over 206,000 revenue flights totaling more than
500,000 flight hours (as of October 24,
2021). The 737 program is currently producing at a rate of
19 per month and continues to progress towards a production rate of
31 per month in early 2022, and the company is evaluating the
timing of further rate increases.
The company continues to focus 787 production resources on
conducting inspections and rework and continues to engage in
detailed discussions with the FAA regarding required actions for
resuming delivery. The current 787 production rate is approximately
two airplanes per month. The company expects to continue at this
rate until deliveries resume and then return to five per month over
time. The low production rates and rework are expected to result in
approximately $1 billion of abnormal
costs, of which $183 million was
recorded in the quarter.
Commercial Airplanes secured orders for 70 737 MAX, 24
freighter, and 12 787 airplanes. Commercial Airplanes delivered 85
airplanes during the quarter and backlog included over 4,100
airplanes valued at $290 billion.
Defense, Space & Security
Table 5. Defense, Space & Security |
Third
Quarter |
|
|
|
Nine Months |
|
|
(Dollars in Millions) |
2021 |
|
2020 |
|
Change |
|
2021 |
|
2020 |
|
Change |
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
$6,617 |
|
$6,848 |
|
(3)% |
|
$20,678 |
|
$19,478 |
|
6% |
Earnings from Operations |
$436 |
|
$628 |
|
(31)% |
|
$1,799 |
|
$1,037 |
|
73% |
Operating Margin |
6.6% |
|
9.2% |
|
(28)% |
|
8.7% |
|
5.3% |
|
64% |
Defense, Space & Security third-quarter revenue decreased to
$6.6 billion and third-quarter
operating margin decreased to 6.6 percent, primarily due to a
$185 million earnings charge on the
Commercial Crew program driven by the second uncrewed Orbital
Flight Test now anticipated in 2022 and the latest assessment of
remaining work.
During the quarter, Defense, Space & Security secured awards
for five P-8A Poseidon aircraft for the German Navy and four CH-47F
Block II Chinook helicopters for the U.S Army, as well as a Joint
Direct Attack Munition contract for the U.S. Air Force. Defense,
Space & Security also conducted the MQ-25 unmanned aerial
refueling of a U.S. Navy E-2D and F-35C, and delivered a total
of 37 aircraft during the quarter, including the first CH-47F
Chinook to the Royal Australian Army.
Backlog at Defense, Space & Security was $58 billion, of which 33 percent represents
orders from customers outside the U.S.
Global Services
Table 6. Global Services |
Third
Quarter |
|
|
|
Nine Months |
|
|
(Dollars in Millions) |
2021 |
|
2020 |
|
Change |
|
2021 |
|
2020 |
|
Change |
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
$4,221 |
|
$3,694 |
|
14% |
|
$12,037 |
|
$11,810 |
|
2% |
Earnings from Operations |
$644 |
|
$271 |
|
138% |
|
$1,616 |
|
$307 |
|
426% |
Operating Margin |
15.3% |
|
7.3% |
|
110% |
|
13.4% |
|
2.6% |
|
415% |
Global Services third-quarter revenue increased to $4.2 billion and third-quarter operating margin
increased to 15.3 percent primarily driven by higher commercial
services volume. Operating margin was also favorably impacted
by lower severance costs and mix of products and services.
During the quarter, Global Services captured orders for 12
additional 737-800 converted freighters for BBAM, an award for
performance-based logistics support of the global C-17 fleet, and a
modification award for Chinook infra-red suppression systems for
the U.K. Armed Forces. Global Services also announced a partnership
to expand capacity for 767-300 Boeing Converted Freighters and was
selected to provide training to the United Aviate Academy.
Additional Financial Information
Table 7. Additional Financial
Information |
Third
Quarter |
|
Nine Months |
(Dollars in Millions) |
2021 |
|
2020 |
|
2021 |
|
2020 |
Revenues |
|
|
|
|
|
|
|
Boeing Capital |
$71 |
|
$71 |
|
$209 |
|
$205 |
Unallocated items, eliminations and other |
($90) |
|
($70) |
|
($174) |
|
($73) |
Earnings/(Loss) from Operations |
|
|
|
|
|
|
|
Boeing Capital |
$42 |
|
$30 |
|
$99 |
|
$47 |
FAS/CAS service cost adjustment |
$270 |
|
$353 |
|
$808 |
|
$1,055 |
Other unallocated items and eliminations |
($370) |
|
($314) |
|
($1,032) |
|
($965) |
Other income, net |
$30 |
|
$119 |
|
$419 |
|
$325 |
Interest and debt expense |
($669) |
|
($643) |
|
($2,021) |
|
($1,458) |
Effective tax rate |
57.4% |
|
49.6% |
|
62.2% |
|
40.1% |
At quarter-end, Boeing Capital's net portfolio balance was
$1.8 billion. The earnings from
FAS/CAS service cost adjustment primarily reflects an increase in
the CAS discount rate driven by pension relief provisions in the
American Rescue Plan Act of 2021. Interest and debt expense
increased due to higher debt balances. The change in other income
was driven by a pension settlement charge recorded during the
quarter. The third quarter 2021 effective tax rate primarily
reflects a lower pre-tax loss compared to the prior period, as well
as benefits from R&D tax credits.
Non-GAAP Measures Disclosures
We supplement the reporting of our financial information
determined under Generally Accepted Accounting Principles in
the United States of America
(GAAP) with certain non-GAAP financial information. The non-GAAP
financial information presented excludes certain significant items
that may not be indicative of, or are unrelated to, results from
our ongoing business operations. We believe that these non-GAAP
measures provide investors with additional insight into the
company's ongoing business performance. These non-GAAP measures
should not be considered in isolation or as a substitute for the
related GAAP measures, and other companies may define such measures
differently. We encourage investors to review our financial
statements and publicly-filed reports in their entirety and not to
rely on any single financial measure. The following definitions are
provided:
Core Operating Earnings, Core Operating Margin and Core Earnings
Per Share
Core operating earnings is defined as GAAP earnings from
operations excluding the FAS/CAS service cost
adjustment. The FAS/CAS service cost
adjustment represents the difference between the
Financial Accounting Standards (FAS) pension and postretirement
service costs calculated under GAAP and costs allocated to the
business segments. Core operating margin is defined as core
operating earnings expressed as a percentage of revenue. Core
earnings per share is defined as GAAP diluted earnings per
share excluding the net earnings per share impact of
the FAS/CAS service cost adjustment
and Non-operating pension and postretirement expenses.
Non-operating pension and postretirement expenses represent the
components of net periodic benefit costs other than service cost.
Pension costs, comprising service and prior service costs computed
in accordance with GAAP are allocated to Commercial Airplanes and
BGS businesses supporting commercial customers. Pension costs
allocated to BDS and BGS businesses supporting government customers
are computed in accordance with U.S. Government Cost Accounting
Standards (CAS), which employ different actuarial assumptions and
accounting conventions than GAAP. CAS costs are allocable to
government contracts. Other postretirement benefit costs are
allocated to all business segments based on CAS, which is generally
based on benefits paid. Management uses core operating earnings,
core operating margin and core earnings per share for purposes of
evaluating and forecasting underlying business performance.
Management believes these core earnings measures provide investors
additional insights into operational performance as they exclude
non-service pension and post-retirement costs, which primarily
represent costs driven by market factors and costs not allocable to
government contracts. A reconciliation between the GAAP and
non-GAAP measures is provided on pages 13-14.
Free Cash Flow
Free cash flow is GAAP operating cash
flow reduced by capital expenditures for property,
plant and equipment. Management believes free cash flow
provides investors with an important perspective on the cash
available for shareholders, debt repayment, and acquisitions after
making the capital investments required to support ongoing business
operations and long term value creation. Free cash flow does not
represent the residual cash flow available for discretionary
expenditures as it excludes certain mandatory expenditures such as
repayment of maturing debt. Management uses free cash flow as a
measure to assess both business performance and overall liquidity.
Table 2 provides a reconciliation of free cash flow to GAAP
operating cash flow.
Caution Concerning
Forward-Looking Statements
This press release contains "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of
1995. Words such as "may," "should," "expects," "intends,"
"projects," "plans," "believes," "estimates," "targets,"
"anticipates," and similar expressions generally identify these
forward-looking statements. Examples of forward-looking statements
include statements relating to our future financial condition and
operating results, as well as any other statement that does not
directly relate to any historical or current fact. Forward-looking
statements are based on expectations and assumptions that we
believe to be reasonable when made, but that may not prove to be
accurate. These statements are not guarantees and are subject to
risks, uncertainties, and changes in circumstances that are
difficult to predict. Many factors could cause actual results to
differ materially and adversely from these forward-looking
statements. Among these factors are risks related to: (1) the
COVID-19 pandemic and related industry impacts, including with
respect to our operations, our liquidity, the health of our
customers and suppliers, and future demand for our products and
services; (2) the 737 MAX, including the timing and conditions of
remaining 737 MAX regulatory approvals, lower than planned
production rates and/or delivery rates, and increased
considerations to customers and suppliers; (3) general conditions
in the economy and our industry, including those due to regulatory
changes; (4) our reliance on our commercial airline customers; (5)
the overall health of our aircraft production system, planned
commercial aircraft production rate changes, our commercial
development and derivative aircraft programs, and our aircraft
being subject to stringent performance and reliability standards;
(6) changing budget and appropriation levels and acquisition
priorities of the U.S. government; (7) our dependence on U.S.
government contracts; (8) our reliance on fixed-price contracts;
(9) our reliance on cost-type contracts; (10) uncertainties
concerning contracts that include in-orbit incentive payments; (11)
our dependence on our subcontractors and suppliers, as well as the
availability of raw materials; (12) changes in accounting
estimates; (13) changes in the competitive landscape in our
markets; (14) our non-U.S. operations, including sales to non-U.S.
customers; (15) threats to the security of our or our customers'
information; (16) potential adverse developments in new or pending
litigation and/or government investigations; (17) customer and
aircraft concentration in our customer financing portfolio; (18)
changes in our ability to obtain debt financing on commercially
reasonable terms and at competitive rates; (19) realizing the
anticipated benefits of mergers, acquisitions, joint
ventures/strategic alliances or divestitures; (20) the adequacy of
our insurance coverage to cover significant risk exposures; (21)
potential business disruptions, including those related to physical
security threats, information technology or cyber-attacks,
epidemics, sanctions or natural disasters; (22) work stoppages or
other labor disruptions; (23) substantial pension and other
postretirement benefit obligations; and (24) potential
environmental liabilities.
Additional information concerning these and other factors can be
found in our filings with the Securities and Exchange Commission,
including our most recent Annual Report on Form 10-K, Quarterly
Reports on Form 10-Q and Current Reports on Form 8-K. Any
forward-looking statement speaks only as of the date on which it is
made, and we assume no obligation to update or revise any
forward-looking statement, whether as a result of new information,
future events, or otherwise, except as required by law.
Contact: |
|
|
|
|
|
Investor Relations: |
|
Matt Welch or Keely Moos (312) 544-2140 |
Communications: |
|
Michael Friedman media@boeing.com |
The Boeing Company
and Subsidiaries |
Consolidated
Statements of Operations |
(Unaudited) |
|
|
Nine months
ended
September 30 |
|
Three months
ended
September 30 |
(Dollars in millions, except per share
data) |
2021 |
|
2020 |
|
2021 |
|
2020 |
Sales of products |
$39,224 |
|
$34,656 |
|
$12,552 |
|
$11,402 |
Sales of services |
8,269 |
|
8,198 |
|
2,726 |
|
2,737 |
Total revenues |
47,493 |
|
42,854 |
|
15,278 |
|
14,139 |
|
|
|
|
|
|
|
|
Cost of products |
(35,166) |
|
(36,001) |
|
(11,271) |
|
(10,910) |
Cost of services |
(6,771) |
|
(6,817) |
|
(2,288) |
|
(2,185) |
Boeing Capital interest expense |
(25) |
|
(33) |
|
(7) |
|
(10) |
Total costs and expenses |
(41,962) |
|
(42,851) |
|
(13,566) |
|
(13,105) |
|
5,531 |
|
3 |
|
1,712 |
|
1,034 |
Income/(loss) from operating investments, net |
195 |
|
(61) |
|
120 |
|
(14) |
General and administrative expense |
(3,169) |
|
(2,989) |
|
(1,097) |
|
(955) |
Research and development expense, net |
(1,571) |
|
(1,871) |
|
(575) |
|
(574) |
Gain on dispositions, net |
283 |
|
200 |
|
169 |
|
108 |
Earnings/(loss) from operations |
1,269 |
|
(4,718) |
|
329 |
|
(401) |
Other income, net |
419 |
|
325 |
|
30 |
|
119 |
Interest and debt expense |
(2,021) |
|
(1,458) |
|
(669) |
|
(643) |
Loss before income taxes |
(333) |
|
(5,851) |
|
(310) |
|
(925) |
Income tax benefit |
207 |
|
2,349 |
|
178 |
|
459 |
Net loss |
(126) |
|
(3,502) |
|
(132) |
|
(466) |
Less: net loss attributable to noncontrolling
interest |
(67) |
|
(49) |
|
(23) |
|
(17) |
Net loss attributable to Boeing
Shareholders |
($59) |
|
($3,453) |
|
($109) |
|
($449) |
|
|
|
|
|
|
|
|
Basic loss per share |
($0.10) |
|
($6.10) |
|
($0.19) |
|
($0.79) |
|
|
|
|
|
|
|
|
Diluted loss per share |
($0.10) |
|
($6.10) |
|
($0.19) |
|
($0.79) |
|
|
|
|
|
|
|
|
Weighted average diluted shares
(millions) |
587.3 |
|
566.3 |
|
589.0 |
|
566.6 |
The Boeing Company
and Subsidiaries |
Consolidated
Statements of Financial Position |
(Unaudited) |
|
(Dollars in millions, except per share
data) |
September 30
2021 |
|
December 31
2020 |
Assets |
|
|
|
Cash and cash equivalents |
$9,764 |
|
$7,752 |
Short-term and other investments |
10,231 |
|
17,838 |
Accounts receivable, net |
2,247 |
|
1,955 |
Unbilled receivables, net |
10,009 |
|
7,995 |
Current portion of customer financing, net |
76 |
|
101 |
Inventories |
81,897 |
|
81,715 |
Other current assets, net |
2,664 |
|
4,286 |
Total current assets |
116,888 |
|
121,642 |
Customer financing, net |
1,795 |
|
1,936 |
Property, plant and equipment, net of accumulated
depreciation of $20,442 and $20,507 |
11,113 |
|
11,820 |
Goodwill |
8,070 |
|
8,081 |
Acquired intangible assets, net |
2,631 |
|
2,843 |
Deferred income taxes |
74 |
|
86 |
Investments |
963 |
|
1,016 |
Other assets, net of accumulated amortization of
of $916 and $729 |
5,312 |
|
4,712 |
Total assets |
$146,846 |
|
$152,136 |
Liabilities and equity |
|
|
|
Accounts payable |
$10,151 |
|
$12,928 |
Accrued liabilities |
18,974 |
|
22,171 |
Advances and progress billings |
51,269 |
|
50,488 |
Short-term debt and current portion of long-term
debt |
5,377 |
|
1,693 |
Total current liabilities |
85,771 |
|
87,280 |
Deferred income taxes |
1,185 |
|
1,010 |
Accrued retiree health care |
3,957 |
|
4,137 |
Accrued pension plan liability, net |
11,435 |
|
14,408 |
Other long-term liabilities |
1,722 |
|
1,486 |
Long-term debt |
57,042 |
|
61,890 |
Total liabilities |
161,112 |
|
170,211 |
Shareholders' equity: |
|
|
|
Common stock, par value $5.00 – 1,200,000,000
shares authorized; 1,012,261,159 shares issued |
5,061 |
|
5,061 |
Additional paid-in capital |
8,796 |
|
7,787 |
Treasury stock, at cost - 424,789,354 and
429,941,021 shares |
(52,030) |
|
(52,641) |
Retained earnings |
38,551 |
|
38,610 |
Accumulated other comprehensive loss |
(14,818) |
|
(17,133) |
Total shareholders' deficit |
(14,440) |
|
(18,316) |
Noncontrolling interests |
174 |
|
241 |
Total equity |
(14,266) |
|
(18,075) |
Total liabilities and equity |
$146,846 |
|
$152,136 |
The Boeing Company
and Subsidiaries |
Consolidated
Statements of Cash Flows |
(Unaudited) |
|
|
Nine months
ended
September 30 |
(Dollars in millions) |
2021 |
|
2020 |
Cash flows – operating
activities: |
|
|
|
Net loss |
($126) |
|
($3,502) |
Adjustments to reconcile net loss to net cash used
by operating activities: |
|
|
|
Non-cash items – |
|
|
|
Share-based plans expense |
677 |
|
165 |
Treasury shares issued for 401(k)
contribution |
951 |
|
|
Depreciation and amortization |
1,610 |
|
1,668 |
Investment/asset impairment charges, net |
72 |
|
317 |
Customer financing valuation adjustments |
(3) |
|
12 |
Gain on dispositions, net |
(283) |
|
(200) |
Other charges and credits, net |
(82) |
|
912 |
Changes in assets and liabilities – |
|
|
|
Accounts receivable |
(280) |
|
125 |
Unbilled receivables |
(2,010) |
|
56 |
Advances and progress billings |
781 |
|
428 |
Inventories |
508 |
|
(9,653) |
Other current assets |
279 |
|
319 |
Accounts payable |
(3,565) |
|
(3,303) |
Accrued liabilities |
(3,168) |
|
967 |
Income taxes receivable, payable and deferred |
1,011 |
|
(2,404) |
Other long-term liabilities |
(168) |
|
(149) |
Pension and other postretirement plans |
(731) |
|
(556) |
Customer financing, net |
170 |
|
108 |
Other |
225 |
|
289 |
Net cash used by operating activities |
(4,132) |
|
(14,401) |
Cash flows – investing activities: |
|
|
|
Property, plant and equipment additions |
(758) |
|
(1,038) |
Property, plant and equipment reductions |
385 |
|
275 |
Acquisitions, net of cash acquired |
(6) |
|
|
Contributions to investments |
(27,902) |
|
(25,846) |
Proceeds from investments |
35,664 |
|
9,772 |
Other |
6 |
|
14 |
Net cash provided/(used) by investing
activities |
7,389 |
|
(16,823) |
Cash flows – financing activities: |
|
|
|
New borrowings |
9,822 |
|
42,362 |
Debt repayments |
(11,049) |
|
(8,792) |
Stock options exercised |
36 |
|
31 |
Employee taxes on certain share-based payment
arrangements |
(47) |
|
(169) |
Dividends paid |
|
|
(1,158) |
Net cash (used)/provided by financing
activities |
(1,238) |
|
32,274 |
Effect of exchange rate changes on cash and cash
equivalents, including restricted |
(34) |
|
26 |
Net increase in cash & cash equivalents,
including restricted |
1,985 |
|
1,076 |
Cash & cash equivalents, including restricted,
at beginning of year |
7,835 |
|
9,571 |
Cash & cash equivalents, including
restricted, at end of period |
9,820 |
|
10,647 |
Less restricted cash & cash equivalents,
included in Investments |
56 |
|
83 |
Cash and cash equivalents at end of
period |
$9,764 |
|
$10,564 |
The Boeing Company
and Subsidiaries |
Summary of Business
Segment Data |
(Unaudited) |
|
|
Nine months
ended
September 30 |
|
Three months
ended
September 30 |
(Dollars in millions) |
2021 |
|
2020 |
|
2021 |
|
2020 |
Revenues: |
|
|
|
|
|
|
|
Commercial Airplanes |
$14,743 |
|
$11,434 |
|
$4,459 |
|
$3,596 |
Defense, Space & Security |
20,678 |
|
19,478 |
|
6,617 |
|
6,848 |
Global Services |
12,037 |
|
11,810 |
|
4,221 |
|
3,694 |
Boeing Capital |
209 |
|
205 |
|
71 |
|
71 |
Unallocated items, eliminations and other |
(174) |
|
(73) |
|
(90) |
|
(70) |
Total revenues |
$47,493 |
|
$42,854 |
|
$15,278 |
|
$14,139 |
Earnings/(loss) from operations: |
|
|
|
|
|
|
|
Commercial Airplanes |
($2,021) |
|
($6,199) |
|
($693) |
|
($1,369) |
Defense, Space & Security |
1,799 |
|
1,037 |
|
436 |
|
628 |
Global Services |
1,616 |
|
307 |
|
644 |
|
271 |
Boeing Capital |
99 |
|
47 |
|
42 |
|
30 |
Segment operating earnings/(loss) |
1,493 |
|
(4,808) |
|
429 |
|
(440) |
Unallocated items, eliminations and other |
(1,032) |
|
(965) |
|
(370) |
|
(314) |
FAS/CAS service cost adjustment |
808 |
|
1,055 |
|
270 |
|
353 |
Earnings/(loss) from operations |
1,269 |
|
(4,718) |
|
329 |
|
(401) |
Other income, net |
419 |
|
325 |
|
30 |
|
119 |
Interest and debt expense |
(2,021) |
|
(1,458) |
|
(669) |
|
(643) |
Loss before income taxes |
(333) |
|
(5,851) |
|
(310) |
|
(925) |
Income tax benefit |
207 |
|
2,349 |
|
178 |
|
459 |
Net loss |
(126) |
|
(3,502) |
|
(132) |
|
(466) |
Less: Net loss attributable to noncontrolling
interest |
(67) |
|
(49) |
|
(23) |
|
(17) |
Net loss attributable to Boeing
Shareholders |
($59) |
|
($3,453) |
|
($109) |
|
($449) |
Research and development expense, net: |
|
|
|
|
|
|
|
Commercial Airplanes |
$817 |
|
$1,107 |
|
$293 |
|
$321 |
Defense, Space & Security |
530 |
|
494 |
|
193 |
|
164 |
Global Services |
80 |
|
110 |
|
30 |
|
45 |
Other |
144 |
|
160 |
|
59 |
|
44 |
Total research and development expense,
net |
$1,571 |
|
$1,871 |
|
$575 |
|
$574 |
Unallocated items, eliminations and
other: |
|
|
|
|
|
|
|
Share-based plans |
($171) |
|
($80) |
|
($29) |
|
($37) |
Deferred compensation |
(86) |
|
34 |
|
8 |
|
(39) |
Amortization of previously capitalized
interest |
(66) |
|
(69) |
|
(22) |
|
(19) |
Research and development expense, net |
(144) |
|
(160) |
|
(59) |
|
(44) |
Eliminations and other unallocated items |
(565) |
|
(690) |
|
(268) |
|
(175) |
Sub-total (included in core operating
loss) |
(1,032) |
|
(965) |
|
(370) |
|
(314) |
Pension FAS/CAS service cost adjustment |
576 |
|
773 |
|
192 |
|
260 |
Postretirement FAS/CAS service cost
adjustment |
232 |
|
282 |
|
78 |
|
93 |
FAS/CAS service cost adjustment |
808 |
|
1,055 |
|
$270 |
|
$353 |
Total |
($224) |
|
$90 |
|
($100) |
|
$39 |
The Boeing Company
and Subsidiaries |
Operating and
Financial Data |
(Unaudited) |
|
Deliveries |
Nine months
ended
September 30 |
|
Three months
ended
September 30 |
Commercial Airplanes |
2021 |
|
2020 |
|
2021 |
2020 |
|
737 |
179 |
|
12 |
|
66 |
|
|
3 |
|
747 |
4 |
|
2 |
|
2 |
|
|
1 |
|
767 |
24 |
|
20 |
|
11 |
|
|
6 |
|
777 |
20 |
|
15 |
|
6 |
|
|
5 |
|
787 |
14 |
|
49 |
|
— |
|
|
13 |
|
Total |
241 |
|
98 |
|
85 |
|
|
28 |
|
|
|
|
|
|
|
|
|
|
|
Defense, Space & Security |
|
|
|
|
|
|
|
|
AH-64 Apache (New) |
19 |
|
18 |
|
4 |
|
|
7 |
|
AH-64 Apache (Remanufactured) |
42 |
|
44 |
|
11 |
|
|
12 |
|
CH-47 Chinook (New) |
12 |
|
19 |
|
6 |
|
|
4 |
|
CH-47 Chinook (Renewed) |
5 |
|
3 |
|
1 |
|
|
2 |
|
F-15 Models |
11 |
|
3 |
|
3 |
|
|
— |
|
F/A-18 Models |
15 |
|
14 |
|
4 |
|
|
5 |
|
KC-46A Tanker |
7 |
|
10 |
|
3 |
|
|
4 |
|
P-8 Models |
11 |
|
9 |
|
5 |
|
|
3 |
|
Total backlog (Dollars
in millions) |
|
September 30
2021 |
|
December 31
2020 |
Commercial Airplanes |
|
$289,644 |
|
$281,588 |
Defense, Space & Security |
|
58,435 |
|
60,847 |
Global Services |
|
18,781 |
|
20,632 |
Unallocated items, eliminations and
other |
|
248 |
|
337 |
Total backlog |
|
$367,108 |
|
$363,404 |
|
|
|
|
|
Contractual backlog |
|
$348,193 |
|
$339,309 |
Unobligated backlog |
|
18,915 |
|
24,095 |
Total backlog |
|
$367,108 |
|
$363,404 |
The Boeing Company and
Subsidiaries
Reconciliation of Non-GAAP Measures
(Unaudited)
The tables provided below reconcile the non-GAAP financial
measures core operating earnings/(loss), core operating margin, and
core loss per share with the most directly comparable GAAP
financial measures, earnings/(loss) from operations, operating
margin, and diluted loss per share. See page 6 of this release for
additional information on the use of these non-GAAP financial
measures.
(Dollars in millions, except per share
data) |
Third Quarter
2021 |
|
Third Quarter 2020 |
|
$ millions |
Per Share |
|
$ millions |
Per Share |
Revenues |
15,278 |
|
|
14,139 |
|
Earnings/(loss) from operations (GAAP) |
329 |
|
|
(401) |
|
Operating margin (GAAP) |
2.2% |
|
|
(2.8)% |
|
|
|
|
|
|
|
FAS/CAS service cost adjustment: |
|
|
|
|
|
Pension FAS/CAS service cost adjustment |
(192) |
|
|
(260) |
|
Postretirement FAS/CAS service cost
adjustment |
(78) |
|
|
(93) |
|
FAS/CAS service cost adjustment |
(270) |
|
|
(353) |
|
Core operating earnings/(loss)
(non-GAAP) |
$59 |
|
|
($754) |
|
Core operating margin (non-GAAP) |
0.4% |
|
|
(5.3)% |
|
|
|
|
|
|
|
Diluted loss per share (GAAP) |
|
($0.19) |
|
|
($0.79) |
Pension FAS/CAS service cost adjustment |
($192) |
(0.33) |
|
($260) |
(0.46) |
Postretirement FAS/CAS service cost
adjustment |
(78) |
(0.13) |
|
(93) |
(0.16) |
Non-operating pension expense |
(29) |
(0.05) |
|
(84) |
(0.16) |
Non-operating postretirement expense |
(6) |
(0.01) |
|
10 |
0.02 |
Provision for deferred income taxes on
adjustments 1 |
64 |
0.11 |
|
90 |
0.16 |
Subtotal of adjustments |
($241) |
($0.41) |
|
($337) |
($0.60) |
Core loss per share (non-GAAP) |
|
($0.60) |
|
|
($1.39) |
|
|
|
|
|
|
Weighted average diluted shares (in
millions) |
|
589.0 |
|
|
566.6 |
|
1 The income tax impact is
calculated using the U.S. corporate statutory tax rate. |
|
|
|
|
|
|
|
The Boeing Company and
Subsidiaries
Reconciliation of Non-GAAP Measures
(Unaudited)
The tables provided below reconcile the non-GAAP financial
measures core operating earnings/(loss), core operating margin, and
core loss per share with the most directly comparable GAAP
financial measures, earnings/(loss) from operations, operating
margin, and diluted loss per share. See page 6 of this release for
additional information on the use of these non-GAAP financial
measures.
(Dollars in millions, except per share
data) |
Nine Months
2021 |
|
Nine months 2020 |
|
$ millions |
Per Share |
|
$ millions |
Per Share |
Revenues |
47,493 |
|
|
42,854 |
|
Earnings/(loss) from operations (GAAP) |
1,269 |
|
|
(4,718) |
|
Operating margin (GAAP) |
2.7% |
|
|
(11.0)% |
|
|
|
|
|
|
|
FAS/CAS service cost adjustment: |
|
|
|
|
|
Pension FAS/CAS service cost adjustment |
(576) |
|
|
(773) |
|
Postretirement FAS/CAS service cost
adjustment |
(232) |
|
|
(282) |
|
FAS/CAS service cost adjustment |
(808) |
|
|
(1,055) |
|
Core operating earnings/(loss)
(non-GAAP) |
$461 |
|
|
($5,773) |
|
Core operating margin (non-GAAP) |
1.0% |
|
|
(13.5)% |
|
|
|
|
|
|
|
Diluted loss per share (GAAP) |
|
($0.10) |
|
|
($6.10) |
Pension FAS/CAS service cost adjustment |
($576) |
(0.98) |
|
($773) |
(1.36) |
Postretirement FAS/CAS service cost
adjustment |
(232) |
(0.40) |
|
(282) |
(0.50) |
Non-operating pension expense |
(381) |
(0.64) |
|
(255) |
(0.46) |
Non-operating postretirement expense |
(16) |
(0.03) |
|
37 |
0.07 |
Provision for deferred income taxes on
adjustments 1 |
253 |
0.43 |
|
267 |
0.47 |
Subtotal of adjustments |
($952) |
($1.62) |
|
($1,006) |
($1.78) |
Core loss per share (non-GAAP) |
|
($1.72) |
|
|
($7.88) |
|
|
|
|
|
|
Weighted average diluted shares (in
millions) |
|
587.3 |
|
|
566.3 |
|
1 The income tax impact is
calculated using the U.S. corporate statutory tax rate. |
|
|
|
|
|
|
|