Boeing Reports
Fourth-Quarter Results
CHICAGO, Jan. 26, 2022 /PRNewswire/ --
Fourth Quarter
2021
- Continued global return to service of 737 MAX, including
progress in China
- Revenue of $14.8 billion;
operating cash flow of $0.7
billion
- 787 program recorded $3.5
billion pre-tax non-cash charge; focused on actions required
to resume deliveries
- GAAP loss per share of ($7.02)
and core (non-GAAP)* loss per share of ($7.69)
Full-Year 2021
- Revenue of $62.3 billion;
operating cash flow of ($3.4)
billion; cash and marketable securities of $16.2 billion
- GAAP loss per share of ($7.15)
and core (non-GAAP)* loss per share of ($9.44)
- Total backlog of $377 billion
and added 535 net commercial orders
- Focused on safety, quality and operational
stability
Table 1. Summary Financial Results |
|
Fourth
Quarter |
|
|
|
Full Year |
|
|
(Dollars in Millions, except per share
data) |
|
2021 |
|
2020 |
|
Change |
|
2021 |
|
2020 |
|
Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
$14,793 |
|
$15,304 |
|
(3)% |
|
$62,286 |
|
$58,158 |
|
7% |
GAAP |
|
|
|
|
|
|
|
|
|
|
|
|
Loss From Operations |
|
($4,171) |
|
($8,049) |
|
NM |
|
($2,902) |
|
($12,767) |
|
NM |
Operating Margin |
|
(28.2)% |
|
(52.6)% |
|
NM |
|
(4.7)% |
|
(22.0)% |
|
NM |
Net Loss |
|
($4,164) |
|
($8,439) |
|
NM |
|
($4,290) |
|
($11,941) |
|
NM |
Loss Per Share |
|
($7.02) |
|
($14.65) |
|
NM |
|
($7.15) |
|
($20.88) |
|
NM |
Operating Cash Flow |
|
$716 |
|
($4,009) |
|
NM |
|
($3,416) |
|
($18,410) |
|
NM |
Non-GAAP* |
|
|
|
|
|
|
|
|
|
|
|
|
Core Operating Loss |
|
($4,536) |
|
($8,377) |
|
NM |
|
($4,075) |
|
($14,150) |
|
NM |
Core Operating Margin |
|
(30.7)% |
|
(54.7)% |
|
NM |
|
(6.5)% |
|
(24.3)% |
|
NM |
Core Loss Per Share |
|
($7.69) |
|
($15.25) |
|
NM |
|
($9.44) |
|
($23.25) |
|
NM |
|
*Non-GAAP measure; complete
definitions of Boeing's non-GAAP measures are on page 6, "Non-GAAP
Measures Disclosures." |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Boeing Company [NYSE: BA] reported fourth-quarter revenue of
$14.8 billion, reflecting higher
commercial volume and lower defense revenue. GAAP loss per share of
($7.02) and core loss per share
(non-GAAP)* of ($7.69) reflect lower
charges and higher commercial volume (Table 1). Boeing recorded
operating cash flow of $0.7
billion.
"2021 was a rebuilding year for us as we overcame hurdles and
reached key milestones across our commercial, defense and services
portfolios. We increased 737 MAX production and deliveries, and
safely returned the 737 MAX to service in nearly all global
markets. As the commercial market recovery gained traction, we also
generated robust commercial orders, including record freighter
sales. Demonstrating progress in our overall recovery, we also
returned to generating positive cash flow in the fourth quarter,"
said David Calhoun, Boeing President
and Chief Executive Officer. "On the 787 program, we're progressing
through a comprehensive effort to ensure every airplane in our
production system conforms to our exacting specifications. While
this continues to impact our near-term results, it is the right
approach to building stability and predictability as demand returns
for the long term. Across the enterprise, we remain focused on
safety and quality as we deliver for our customers and invest in
our people and in our sustainable future."
Table 2. Cash Flow |
|
Fourth
Quarter |
|
Full Year |
(Millions) |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Operating Cash Flow |
|
$716 |
|
($4,009) |
|
($3,416) |
|
($18,410) |
Less Additions to Property, Plant &
Equipment |
|
($222) |
|
($265) |
|
($980) |
|
($1,303) |
Free Cash Flow* |
|
$494 |
|
($4,274) |
|
($4,396) |
|
($19,713) |
|
*Non-GAAP measure; complete
definitions of Boeing's non-GAAP measures are on page 6, "Non-GAAP
Measures Disclosures." |
Operating cash flow improved to $0.7
billion in the quarter, reflecting higher commercial volume,
higher advance payments, and lower expenditures (Table 2).
Table 3. Cash, Marketable Securities and Debt
Balances |
|
Quarter-End |
(Billions) |
|
Q4 21 |
|
Q3 21 |
Cash |
|
$8.0 |
|
$9.8 |
Marketable Securities1 |
|
$8.2 |
|
$10.2 |
Total |
|
$16.2 |
|
$20.0 |
Debt Balances: |
|
|
|
|
The Boeing Company, net of intercompany loans to
BCC |
|
$56.6 |
|
$60.9 |
Boeing Capital, including intercompany loans |
|
$1.5 |
|
$1.5 |
Total Consolidated Debt |
|
$58.1 |
|
$62.4 |
|
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
$16.2 billion, compared to
$20.0 billion at the beginning of the
quarter, primarily driven by debt repayment partially offset by
operating cash flow. Debt was $58.1
billion, down from $62.4
billion at the beginning of the quarter due to the
prepayment of a term loan and repayment of maturing debt.
Total company backlog at quarter-end was $377 billion.
Segment Results
Commercial Airplanes
Table 4. Commercial Airplanes |
|
Fourth
Quarter |
|
|
|
Full Year |
|
|
(Dollars in Millions) |
|
2021 |
|
2020 |
|
Change |
|
2021 |
|
2020 |
|
Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial Airplanes Deliveries |
|
99 |
|
59 |
|
68% |
|
340 |
|
157 |
|
117% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
$4,750 |
|
$4,728 |
|
0% |
|
$19,493 |
|
$16,162 |
|
21% |
Loss from Operations |
|
($4,454) |
|
($7,648) |
|
NM |
|
($6,475) |
|
($13,847) |
|
NM |
Operating Margin |
|
(93.8)% |
|
(161.8)% |
|
NM |
|
(33.2)% |
|
(85.7)% |
|
NM |
Commercial Airplanes fourth-quarter revenue increased slightly
to $4.8 billion primarily driven
by higher 737 deliveries, partially offset by lower widebody
deliveries and less favorable mix (Table 4). Fourth-quarter
operating margin was primarily driven by a charge on the 787
program.
Boeing is continuing to make progress on the global safe return
to service of the 737 MAX. In December, the Civil Aviation
Administration of China issued an
airworthiness directive outlining changes required for Chinese
airlines to prepare their fleets to resume service. Since the FAA's
approval to return the 737 MAX to operations in November 2020, over 300,000 revenue
flights have been completed, and the reliability of the 737 MAX
fleet remains above 99 percent (as of January 24, 2022). The 737 program is currently
producing at a rate of 26 per month and continues to progress
towards a production rate of 31 per month in early 2022. The
company is evaluating the timing of further rate increases.
The company continues to perform rework on 787 airplanes in
inventory and is engaged in detailed discussions with the FAA
regarding required actions to resume deliveries. In the fourth
quarter, the company determined that these activities will take
longer than previously expected, resulting in further delays in
customer delivery dates and associated customer considerations.
Accordingly, Commercial Airplanes recorded a $3.5 billion pre-tax non-cash charge on the 787
program. The program is producing at a very low rate and will
continue to do so until deliveries resume, with an expected gradual
return to five per month over time. The company now anticipates 787
abnormal costs will increase to approximately $2 billion, with most being incurred by the end
of 2023, including $285 million
recorded in the quarter.
Commercial Airplanes secured orders for 164 737 MAX and 24
freighter aircraft. Commercial Airplanes delivered 99 airplanes
during the quarter and backlog included over 4,200 airplanes valued
at $297 billion.
Defense, Space & Security
Table 5. Defense, Space & Security |
|
Fourth
Quarter |
|
|
|
Full Year |
|
|
(Dollars in Millions) |
|
2021 |
|
2020 |
|
Change |
|
2021 |
|
2020 |
|
Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
$5,862 |
|
$6,779 |
|
(14)% |
|
$26,540 |
|
$26,257 |
|
1% |
(Loss)/earnings from Operations |
|
($255) |
|
$502 |
|
(151)% |
|
$1,544 |
|
$1,539 |
|
—% |
Operating Margin |
|
(4.4)% |
|
7.4% |
|
(159)% |
|
5.8% |
|
5.9% |
|
(2)% |
Defense, Space & Security fourth-quarter revenue decreased
to $5.9 billion and fourth-quarter
operating margin decreased to (4.4) percent, primarily due to lower
volume and less favorable performance across the portfolio,
including a $402 million pre-tax
charge on the KC-46A Tanker program.
During the quarter, Defense, Space & Security secured an
award for six MH-47G Block II Chinook helicopters for the U.S. Army
Special Operations, a contract extension for Future Logistics
Information Services for the U.K. Ministry of Defence, an award for
modernization of Airborne Warning and Control System to the Royal
Saudi Air Force, and contracts for proprietary space programs.
Defense, Space & Security also completed the first carrier
tests for the MQ-25 unmanned aerial tanker and started flight
testing on the second uncrewed Loyal Wingman aircraft.
Backlog at Defense, Space & Security was $60 billion, of which 33 percent represents
orders from customers outside the U.S.
Global Services
Table 6. Global Services |
|
Fourth
Quarter |
|
|
|
Full Year |
|
|
(Dollars in Millions) |
|
2021 |
|
2020 |
|
Change |
|
2021 |
|
2020 |
|
Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
$4,291 |
|
$3,733 |
|
15% |
|
$16,328 |
|
$15,543 |
|
5% |
Earnings from Operations |
|
$401 |
|
$143 |
|
180% |
|
$2,017 |
|
$450 |
|
348% |
Operating Margin |
|
9.3% |
|
3.8% |
|
145% |
|
12.4% |
|
2.9% |
|
328% |
Global Services fourth-quarter revenue increased to $4.3 billion and fourth-quarter operating margin
increased to 9.3 percent primarily driven by higher commercial
volume and favorable mix. Operating margin was negatively impacted
by a $220 million inventory
impairment.
During the quarter, Global Services secured a V-22 Performance
Based Logistics contract for the U.S. Marine Corps, was awarded a
contract for F/A-18 Landing Gear Repair for the U.S. Navy, and was
selected to provide Apache training and support services to the
U.K. Ministry of Defence. Global Services also delivered the 50th
767-300 converted freighter.
Additional Financial Information
Table 7. Additional Financial
Information |
|
Fourth
Quarter |
|
Full Year |
(Dollars in Millions) |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Revenues |
|
|
|
|
|
|
|
|
Boeing Capital |
|
$63 |
|
$56 |
|
$272 |
|
$261 |
Unallocated items, eliminations and other |
|
($173) |
|
$8 |
|
($347) |
|
($65) |
Earnings/(Loss) from Operations |
|
|
|
|
|
|
|
|
Boeing Capital |
|
$7 |
|
$16 |
|
$106 |
|
$63 |
FAS/CAS service cost adjustment |
|
$365 |
|
$328 |
|
$1,173 |
|
$1,383 |
Other unallocated items and eliminations |
|
($235) |
|
($1,390) |
|
($1,267) |
|
($2,355) |
Other income, net |
|
$132 |
|
$122 |
|
$551 |
|
$447 |
Interest and debt expense |
|
($661) |
|
($698) |
|
($2,682) |
|
($2,156) |
Effective tax rate |
|
11.4% |
|
2.2% |
|
14.8% |
|
17.5% |
At quarter-end, Boeing Capital's net portfolio balance was
$1.7 billion. The change in revenue
and earnings from other unallocated items and eliminations was
primarily due to the timing of allocations. The loss from other
unallocated items and eliminations was also impacted by a
$744 million charge related to an
agreement between Boeing and the U.S. Department of Justice in
2020. The fourth quarter 2021 effective tax rate primarily reflects
a higher income tax benefit due to a lower valuation allowance
charge than in fourth quarter 2020.
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 additional
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, our customers'
and/or our suppliers' 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; (24) potential
environmental liabilities; and (25) effects of climate change and
legal, regulatory or market responses to such change.
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) |
|
|
Twelve months
ended
December 31 |
|
Three months
ended
December 31 |
(Dollars in millions, except per share
data) |
2021 |
|
2020 |
|
2021 |
|
2020 |
Sales of products |
$51,386 |
|
$47,142 |
|
$12,162 |
|
$12,486 |
Sales of services |
10,900 |
|
11,016 |
|
2,631 |
|
2,818 |
Total revenues |
62,286 |
|
58,158 |
|
14,793 |
|
15,304 |
|
|
|
|
|
|
|
|
Cost of products |
(49,954) |
|
(54,568) |
|
(14,788) |
|
(18,567) |
Cost of services |
(9,283) |
|
(9,232) |
|
(2,512) |
|
(2,415) |
Boeing Capital interest expense |
(32) |
|
(43) |
|
(7) |
|
(10) |
Total costs and expenses |
(59,269) |
|
(63,843) |
|
(17,307) |
|
(20,992) |
|
3,017 |
|
(5,685) |
|
(2,514) |
|
(5,688) |
Income from operating investments, net |
210 |
|
9 |
|
15 |
|
70 |
General and administrative expense |
(4,157) |
|
(4,817) |
|
(988) |
|
(1,828) |
Research and development expense, net |
(2,249) |
|
(2,476) |
|
(678) |
|
(605) |
Gain/(loss) on dispositions, net |
277 |
|
202 |
|
(6) |
|
2 |
Loss from operations |
(2,902) |
|
(12,767) |
|
(4,171) |
|
(8,049) |
Other income, net |
551 |
|
447 |
|
132 |
|
122 |
Interest and debt expense |
(2,682) |
|
(2,156) |
|
(661) |
|
(698) |
Loss before income taxes |
(5,033) |
|
(14,476) |
|
(4,700) |
|
(8,625) |
Income tax benefit |
743 |
|
2,535 |
|
536 |
|
186 |
Net loss |
(4,290) |
|
(11,941) |
|
(4,164) |
|
(8,439) |
Less: net loss attributable to noncontrolling
interest |
(88) |
|
(68) |
|
(21) |
|
(19) |
Net loss attributable to Boeing
Shareholders |
($4,202) |
|
($11,873) |
|
($4,143) |
|
($8,420) |
|
|
|
|
|
|
|
|
Basic loss per share |
($7.15) |
|
($20.88) |
|
($7.02) |
|
($14.65) |
|
|
|
|
|
|
|
|
Diluted loss per share |
($7.15) |
|
($20.88) |
|
($7.02) |
|
($14.65) |
|
|
|
|
|
|
|
|
Weighted average diluted shares
(millions) |
588.0 |
|
569.0 |
|
590.3 |
|
575.4 |
The Boeing Company
and Subsidiaries
Consolidated Statements of Financial Position
(Unaudited) |
|
(Dollars in millions, except per share
data) |
December 31
2021 |
|
December 31
2020 |
Assets |
|
|
|
Cash and cash equivalents |
$8,052 |
|
$7,752 |
Short-term and other investments |
8,192 |
|
17,838 |
Accounts receivable, net |
2,641 |
|
1,955 |
Unbilled receivables, net |
8,620 |
|
7,995 |
Current portion of customer financing, net |
117 |
|
101 |
Inventories |
78,823 |
|
81,715 |
Other current assets, net |
2,221 |
|
4,286 |
Total current assets |
108,666 |
|
121,642 |
Customer financing, net |
1,695 |
|
1,936 |
Property, plant and equipment, net of accumulated
depreciation of $20,538 and $20,507 |
10,918 |
|
11,820 |
Goodwill |
8,068 |
|
8,081 |
Acquired intangible assets, net |
2,562 |
|
2,843 |
Deferred income taxes |
77 |
|
86 |
Investments |
975 |
|
1,016 |
Other assets, net of accumulated amortization of
of $975 and $729 |
5,591 |
|
4,712 |
Total assets |
$138,552 |
|
$152,136 |
Liabilities and equity |
|
|
|
Accounts payable |
$9,261 |
|
$12,928 |
Accrued liabilities |
18,455 |
|
22,171 |
Advances and progress billings |
52,980 |
|
50,488 |
Short-term debt and current portion of long-term
debt |
1,296 |
|
1,693 |
Total current liabilities |
81,992 |
|
87,280 |
Deferred income taxes |
218 |
|
1,010 |
Accrued retiree health care |
3,528 |
|
4,137 |
Accrued pension plan liability, net |
9,104 |
|
14,408 |
Other long-term liabilities |
1,750 |
|
1,486 |
Long-term debt |
56,806 |
|
61,890 |
Total liabilities |
153,398 |
|
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 |
9,052 |
|
7,787 |
Treasury stock, at cost - 423,343,707 and
429,941,021 shares |
(51,861) |
|
(52,641) |
Retained earnings |
34,408 |
|
38,610 |
Accumulated other comprehensive loss |
(11,659) |
|
(17,133) |
Total shareholders' deficit |
(14,999) |
|
(18,316) |
Noncontrolling interests |
153 |
|
241 |
Total equity |
(14,846) |
|
(18,075) |
Total liabilities and equity |
$138,552 |
|
$152,136 |
The Boeing Company
and Subsidiaries
Consolidated Statements of Cash Flows
(Unaudited) |
|
|
Twelve months
ended
December 31 |
(Dollars in millions) |
2021 |
|
2020 |
Cash flows – operating
activities: |
|
|
|
Net loss |
($4,290) |
|
($11,941) |
Adjustments to reconcile net loss to net cash used
by operating activities: |
|
|
|
Non-cash items – |
|
|
|
Share-based plans expense |
833 |
|
250 |
Treasury shares issued for 401(k)
contribution |
1,233 |
|
195 |
Depreciation and amortization |
2,144 |
|
2,246 |
Investment/asset impairment charges, net |
98 |
|
410 |
Customer financing valuation adjustments |
|
|
12 |
Gain on dispositions, net |
(277) |
|
(202) |
787 and 777X reach-forward losses |
3,460 |
|
6,493 |
Other charges and credits, net |
360 |
|
1,462 |
Changes in assets and liabilities – |
|
|
|
Accounts receivable |
(713) |
|
909 |
Unbilled receivables |
(586) |
|
919 |
Advances and progress billings |
2,505 |
|
(1,060) |
Inventories |
(1,127) |
|
(11,002) |
Other current assets |
345 |
|
372 |
Accounts payable |
(3,783) |
|
(5,363) |
Accrued liabilities |
(3,687) |
|
1,074 |
Income taxes receivable, payable and deferred |
733 |
|
(2,576) |
Other long-term liabilities |
(206) |
|
(222) |
Pension and other postretirement plans |
(972) |
|
(794) |
Customer financing, net |
210 |
|
173 |
Other |
304 |
|
235 |
Net cash used by operating activities |
(3,416) |
|
(18,410) |
Cash flows – investing activities: |
|
|
|
Payments to acquire property, plant and
equipment |
(980) |
|
(1,303) |
Proceeds from disposals of property, plant and
equipment |
529 |
|
296 |
Acquisitions, net of cash acquired |
(6) |
|
|
Contributions to investments |
(35,713) |
|
(37,616) |
Proceeds from investments |
45,489 |
|
20,275 |
Other |
5 |
|
(18) |
Net cash provided/(used) by investing
activities |
9,324 |
|
(18,366) |
Cash flows – financing activities: |
|
|
|
New borrowings |
9,795 |
|
47,248 |
Debt repayments |
(15,371) |
|
(10,998) |
Stock options exercised |
42 |
|
36 |
Employee taxes on certain share-based payment
arrangements |
(66) |
|
(173) |
Dividends paid |
|
|
(1,158) |
Net cash (used)/provided by financing
activities |
(5,600) |
|
34,955 |
Effect of exchange rate changes on cash and cash
equivalents |
(39) |
|
85 |
Net increase/(decrease) in cash & cash
equivalents, including restricted |
269 |
|
(1,736) |
Cash & cash equivalents, including restricted,
at beginning of year |
7,835 |
|
9,571 |
Cash & cash equivalents, including
restricted, at end of year |
8,104 |
|
7,835 |
Less restricted cash & cash equivalents,
included in Investments |
52 |
|
83 |
Cash and cash equivalents at end of
year |
$8,052 |
|
$7,752 |
The Boeing Company
and Subsidiaries
Summary of Business Segment Data
(Unaudited) |
|
|
Twelve months
ended
December 31 |
|
Three months
ended
December 31 |
(Dollars in millions) |
2021 |
|
2020 |
|
2021 |
|
2020 |
Revenues: |
|
|
|
|
|
|
|
Commercial Airplanes |
$19,493 |
|
$16,162 |
|
$4,750 |
|
$4,728 |
Defense, Space & Security |
26,540 |
|
26,257 |
|
5,862 |
|
6,779 |
Global Services |
16,328 |
|
15,543 |
|
4,291 |
|
3,733 |
Boeing Capital |
272 |
|
261 |
|
63 |
|
56 |
Unallocated items, eliminations and other |
(347) |
|
(65) |
|
(173) |
|
8 |
Total revenues |
$62,286 |
|
$58,158 |
|
$14,793 |
|
$15,304 |
Earnings/(loss) from operations: |
|
|
|
|
|
|
|
Commercial Airplanes |
($6,475) |
|
($13,847) |
|
($4,454) |
|
($7,648) |
Defense, Space & Security |
1,544 |
|
1,539 |
|
(255) |
|
502 |
Global Services |
2,017 |
|
450 |
|
401 |
|
143 |
Boeing Capital |
106 |
|
63 |
|
7 |
|
16 |
Segment operating loss |
(2,808) |
|
(11,795) |
|
(4,301) |
|
(6,987) |
Unallocated items, eliminations and other |
(1,267) |
|
(2,355) |
|
(235) |
|
(1,390) |
FAS/CAS service cost adjustment |
1,173 |
|
1,383 |
|
365 |
|
328 |
Loss from operations |
(2,902) |
|
(12,767) |
|
(4,171) |
|
(8,049) |
Other income, net |
551 |
|
447 |
|
132 |
|
122 |
Interest and debt expense |
(2,682) |
|
(2,156) |
|
(661) |
|
(698) |
Loss before income taxes |
(5,033) |
|
(14,476) |
|
(4,700) |
|
(8,625) |
Income tax benefit |
743 |
|
2,535 |
|
536 |
|
186 |
Net loss |
(4,290) |
|
(11,941) |
|
(4,164) |
|
(8,439) |
Less: Net loss attributable to noncontrolling
interest |
(88) |
|
(68) |
|
(21) |
|
(19) |
Net loss attributable to Boeing
Shareholders |
($4,202) |
|
($11,873) |
|
($4,143) |
|
($8,420) |
Research and development expense, net: |
|
|
|
|
|
|
|
Commercial Airplanes |
$1,140 |
|
$1,385 |
|
$323 |
|
$278 |
Defense, Space & Security |
818 |
|
713 |
|
288 |
|
219 |
Global Services |
107 |
|
138 |
|
27 |
|
28 |
Other |
184 |
|
240 |
|
40 |
|
80 |
Total research and development expense,
net |
$2,249 |
|
$2,476 |
|
$678 |
|
$605 |
|
|
|
|
|
|
|
|
Unallocated items, eliminations and
other: |
|
|
|
|
|
|
|
Share-based plans |
($174) |
|
($120) |
|
($3) |
|
($40) |
Deferred compensation |
(126) |
|
(93) |
|
(40) |
|
(127) |
Amortization of previously capitalized
interest |
(107) |
|
(95) |
|
(41) |
|
(26) |
Research and development expense, net |
(184) |
|
(240) |
|
(40) |
|
(80) |
Eliminations and other unallocated items |
(676) |
|
(1,807) |
|
(111) |
|
(1,117) |
Sub-total (included in core operating
loss) |
(1,267) |
|
(2,355) |
|
(235) |
|
(1,390) |
Pension FAS/CAS service cost adjustment |
882 |
|
1,024 |
|
306 |
|
251 |
Postretirement FAS/CAS service cost
adjustment |
291 |
|
359 |
|
59 |
|
77 |
FAS/CAS service cost adjustment |
1,173 |
|
1,383 |
|
$365 |
|
$328 |
Total |
($94) |
|
($972) |
|
$130 |
|
($1,062) |
The Boeing Company
and Subsidiaries
Operating and Financial Data
(Unaudited) |
|
Deliveries |
|
Twelve months
ended
December 31 |
|
Three months
ended
December 31 |
|
Commercial Airplanes |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|
737 |
|
263 |
|
43 |
|
84 |
|
31 |
|
747 |
|
7 |
|
5 |
|
3 |
|
3 |
|
767 |
|
32 |
|
30 |
|
8 |
|
10 |
|
777 |
|
24 |
|
26 |
|
4 |
|
11 |
|
787 |
|
14 |
|
53 |
|
— |
|
4 |
|
Total |
|
340 |
|
157 |
|
99 |
|
59 |
|
|
|
|
|
|
|
|
|
|
|
|
Defense, Space & Security |
|
|
|
|
|
|
|
|
|
AH-64 Apache (New) |
|
27 |
|
19 |
|
8 |
|
1 |
|
AH-64 Apache (Remanufactured) |
|
56 |
|
52 |
|
14 |
|
8 |
|
CH-47 Chinook (New) |
|
15 |
|
27 |
|
3 |
|
8 |
|
CH-47 Chinook (Renewed) |
|
5 |
|
3 |
|
— |
|
— |
|
F-15 Models |
|
16 |
|
4 |
|
5 |
|
1 |
|
F/A-18 Models |
|
21 |
|
20 |
|
6 |
|
6 |
|
KC-46 Tanker |
|
13 |
|
14 |
|
6 |
|
4 |
|
P-8 Models |
|
16 |
|
15 |
|
5 |
|
6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total backlog (Dollars in
millions) |
|
December 31
2021 |
|
December 31
2020 |
Commercial Airplanes |
|
$296,882 |
|
$281,588 |
|
Defense, Space & Security |
|
59,828 |
|
60,847 |
|
Global Services |
|
20,496 |
|
20,632 |
|
Unallocated items, eliminations and
other |
|
293 |
|
337 |
|
Total backlog |
|
$377,499 |
|
$363,404 |
|
|
|
|
|
|
Contractual backlog |
|
$356,362 |
|
$339,309 |
|
Unobligated backlog |
|
21,137 |
|
24,095 |
|
Total backlog |
|
$377,499 |
|
$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 loss, core operating margin, and core loss
per share with the most directly comparable GAAP financial
measures, 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) |
|
Fourth Quarter
2021 |
Fourth Quarter
2020 |
|
|
$ millions |
Per Share |
$ millions |
Per Share |
Revenues |
|
14,793 |
|
15,304 |
|
Loss from operations (GAAP) |
|
(4,171) |
|
(8,049) |
|
Operating margin (GAAP) |
|
(28.2)% |
|
(52.6)% |
|
|
|
|
|
|
|
FAS/CAS service cost adjustment: |
|
|
|
|
|
Pension FAS/CAS service cost adjustment |
|
(306) |
|
(251) |
|
Postretirement FAS/CAS service cost
adjustment |
|
(59) |
|
(77) |
|
FAS/CAS service cost adjustment |
|
(365) |
|
(328) |
|
Core operating loss (non-GAAP) |
|
($4,536) |
|
($8,377) |
|
Core operating margin (non-GAAP) |
|
(30.7)% |
|
(54.7)% |
|
|
|
|
|
|
|
Diluted loss per share (GAAP) |
|
|
($7.02) |
|
($14.65) |
Pension FAS/CAS service cost adjustment |
|
($306) |
(0.52) |
($251) |
(0.44) |
Postretirement FAS/CAS service cost
adjustment |
|
(59) |
(0.10) |
(77) |
(0.13) |
Non-operating pension expense |
|
(147) |
(0.26) |
(85) |
(0.15) |
Non-operating postretirement expense |
|
15 |
0.03 |
(21) |
(0.04) |
Provision for deferred income taxes on
adjustments1 |
|
104 |
0.18 |
91 |
0.16 |
Subtotal of adjustments |
|
($393) |
($0.67) |
($343) |
($0.60) |
Core loss per share (non-GAAP) |
|
|
($7.69) |
|
($15.25) |
|
|
|
|
|
|
Weighted average diluted shares (in
millions) |
|
|
590.3 |
|
575.4 |
|
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 loss, core operating margin, and core loss
per share with the most directly comparable GAAP financial
measures, 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) |
|
Twelve Months
2021 |
Twelve months 2020 |
|
|
$ millions |
Per Share |
$ millions |
Per Share |
Revenues |
|
62,286 |
|
58,158 |
|
Loss from operations (GAAP) |
|
(2,902) |
|
(12,767) |
|
Operating margin (GAAP) |
|
(4.7)% |
|
(22.0)% |
|
|
|
|
|
|
|
FAS/CAS service cost adjustment: |
|
|
|
|
|
Pension FAS/CAS service cost adjustment |
|
(882) |
|
(1,024) |
|
Postretirement FAS/CAS service cost
adjustment |
|
(291) |
|
(359) |
|
FAS/CAS service cost adjustment |
|
(1,173) |
|
(1,383) |
|
Core operating loss (non-GAAP) |
|
($4,075) |
|
($14,150) |
|
Core operating margin (non-GAAP) |
|
(6.5)% |
|
(24.3)% |
|
|
|
|
|
|
|
Diluted loss per share (GAAP) |
|
|
($7.15) |
|
($20.88) |
Pension FAS/CAS service cost adjustment |
|
($882) |
(1.50) |
($1,024) |
(1.80) |
Postretirement FAS/CAS service cost
adjustment |
|
(291) |
(0.49) |
(359) |
(0.63) |
Non-operating pension expense |
|
(528) |
(0.91) |
(340) |
(0.60) |
Non-operating postretirement expense |
|
(1) |
|
16 |
0.03 |
Provision for deferred income taxes on adjustments
1 |
|
357 |
0.61 |
358 |
0.63 |
Subtotal of adjustments |
|
($1,345) |
($2.29) |
($1,349) |
($2.37) |
Core loss per share (non-GAAP) |
|
|
($9.44) |
|
($23.25) |
|
|
|
|
|
|
Weighted average diluted shares (in
millions) |
|
|
588.0 |
|
569.0 |
|
|
|
|
|
|
1 The income tax
impact is calculated using the U.S. corporate statutory tax
rate. |
|
|
|
|
|
|
|