Boeing Reports Second-Quarter Results
ARLINGTON, Va. , July 27, 2022 /PRNewswire/ --
Second Quarter 2022
* Operating cash flow of $0.1 billion ; continue to expect positive free cash
flow for 2022
* Increased 737 production to 31 per month; working with FAA on final actions
to resume 787 deliveries
* Successfully completed CST-100 Starliner uncrewed Orbital Flight Test-2
(OFT-2)
* Revenue of $16.7 billion ; GAAP earnings per share of $0.32 and core
(non-GAAP)* loss per share of ($0.37 )
* Total backlog of $372 billion ; including over 4,200 commercial airplanes
Table 1. Second Quarter First Half
Summary
Financial
Results
(Dollars in 2022 2021 Change 2022 2021 Change
Millions,
except per
share data)
Revenues $16,681 $16,998 (2) % $30,672 $32,215 (5) %
GAAP
Earnings/ $774 $1,023 (24) % ($395 ) $940 NM
(Loss) From
Operations
Operating 4.6 % 6.0 % (23) % (1.3) % 2.9 % NM
Margin
Net Earnings/ $160 $567 (72) % ($1,082 ) $6 NM
(Loss)
Earnings/ $0.32 $1.00 (68) % ($1.73 ) $0.09 NM
(Loss) Per
Share
Operating Cash $81 ($483 ) NM ($3,135 ) ($3,870 ) NM
Flow
Non-GAAP*
Core Operating $490 $755 (35) % ($962 ) $402 NM
Earnings/
(Loss)
Core Operating 2.9 % 4.4 % (34) % (3.1) % 1.2 % NM
Margin
Core (Loss)/ ($0.37 ) $0.40 NM ($3.11 ) ($1.12 ) NM
Earnings Per
Share
*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 $16.7 billion ,
GAAP earnings per share of $0.32 and core loss per share (non-GAAP)* of
($0.37 ), driven by lower defense volume and unfavorable performance, partially
offset by higher commercial volume (Table 1). Boeing recorded positive
operating cash flow of $0.1 billion .
"We made important progress across key programs in the second quarter and are
building momentum in our turnaround," said Dave Calhoun, Boeing President and
Chief Executive Officer. "As we begin to hit key milestones, we were able to
generate positive operating cash flow this quarter and remain on track to
achieve positive free cash flow for 2022. While we are making meaningful
progress, we have more work ahead. We will stay focused on safety, quality and
transparency, as we drive stability, improve performance, and continue to
invest in our future."
Table 2. Cash Flow Second Quarter First Half
(Millions) 2022 2021 2022 2021
Operating Cash Flow $81 ($483 ) ($3,135 ) ($3,870 )
Less Additions to ($263 ) ($222 ) ($612 ) ($513 )
Property, Plant &
Equipment
Free Cash Flow* ($182 ) ($705 ) ($3,747 ) ($4,383 )
*Non-GAAP measure; complete definitions of Boeing's non-GAAP measures are on
page 6, "Non-GAAP Measures Disclosures."
Operating cash flow improved to $0.1 billion in the quarter, reflecting higher
commercial deliveries and timing of receipts and expenditures (Table 2).
Table 3. Quarter-End
Cash,
Marketable
Securities
and Debt
Balances
(Billions) Q2 22 Q1 22
Cash $10.0 $7.4
Marketable $1.4 $4.9
Securities1
Total $11.4 $12.3
Debt
Balances:
The Boeing $55.7 $56.2
Company, net
of
intercompany
loans to BCC
Boeing $1.5 $1.5
Capital,
including
intercompany
loans
Total $57.2 $57.7
Consolidated
Debt
1 Marketable securities consist primarily of time deposits due within one year
classified as "short-term investments."
Cash and investments in marketable securities decreased to $11.4 billion ,
compared to $12.3 billion at the beginning of the quarter, primarily driven by
debt repayment (Table 3). The company has access to credit facilities of $14.7
billion which remain undrawn.
Total company backlog at quarter-end was $372 billion .
Segment Results
Commercial Airplanes
Table 4. Second Quarter First Half
Commercial
Airplanes
(Dollars in 2022 2021 Change 2022 2021 Change
Millions)
Commercial 121 79 53 % 216 156 38 %
Airplanes
Deliveries
Revenues $6,219 $6,015 3 % $10,380 $10,284 1 %
Loss from ($242 ) ($472 ) NM ($1,101 ) ($1,328 ) NM
Operations
Operating (3.9) % (7.8) % NM (10.6) % (12.9) % NM
Margin
Commercial Airplanes second-quarter revenue increased to $6.2 billion , driven
by higher 737 deliveries, partially offset by lower 787 deliveries (Table 4).
Operating margin of (3.9)% also reflects abnormal costs and period expenses,
including higher R&D expense.
Boeing has nearly completed the global safe return to service of the 737 MAX
and the fleet has flown more than 1.5 million total flight hours since late
2020. The 737 production rate increased to 31 airplanes per month during the
quarter.
On the 787 program, the company continues to work with the FAA to finalize
actions to resume deliveries and is readying airplanes for delivery. 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 still anticipates 787 abnormal costs of approximately $2 billion ,
with most being incurred by the end of 2023, including $283 million recorded in
the quarter.
Commercial Airplanes secured orders for 169 737 MAX airplanes and 13
freighters, including seven 777-8 Freighters from Lufthansa Group. Commercial
Airplanes delivered 121 airplanes during the quarter and backlog included over
4,200 airplanes valued at $297 billion .
Defense, Space & Security
Table 5. Second Quarter First Half
Defense, Space
& Security
(Dollars in 2022 2021 Change 2022 2021 Change
Millions)
Revenues $6,191 $6,876 (10) % $11,674 $14,061 (17) %
Earnings/ $71 $958 (93) % ($858 ) $1,363 NM
(loss) from
Operations
Operating 1.1 % 13.9 % (92) % (7.3) % 9.7 % NM
Margin
Defense, Space & Security second-quarter revenue decreased to $6.2 billion and
second-quarter operating margin decreased to 1.1 percent, primarily driven by
charges on fixed-price development programs, including MQ-25 and Commercial
Crew, as well as unfavorable performance on other programs and lower volume on
derivative aircraft programs. The MQ-25 program recorded a $147 million charge
primarily due to higher costs to meet certain technical requirements. The
Commercial Crew program also recorded a $93 million charge, primarily driven by
launch manifest updates and additional costs associated with OFT-2.
During the quarter, the CH-47F Chinook Block II was selected as the German
government's future heavy-lift helicopter. Defense, Space & Security also
successfully completed the CST-100 Starliner uncrewed OFT-2.
Backlog at Defense, Space & Security was $55 billion , of which 33% percent
represents orders from customers outside the U.S.
Global Services
Table 6. Second Quarter First Half
Global
Services
(Dollars in 2022 2021 Change 2022 2021 Change
Millions)
Revenues $4,298 $4,067 6 % $8,612 $7,816 10 %
Earnings from $728 $531 37 % $1,360 $972 40 %
Operations
Operating 16.9 % 13.1 % 29 % 15.8 % 12.4 % 27 %
Margin
Global Services second-quarter revenue increased to $4.3 billion and
second-quarter operating margin increased to 16.9 percent primarily driven by
higher commercial services volume and favorable mix.
During the quarter, Global Services received a contract for airlift flight
dispatch services from the U.S. Air Force and was awarded a contract for
avionics upgrades and cybersecurity support for the U.S. Navy. Global Services
also delivered the first A-10 wing set to the U.S. Air Force.
Additional Financial Information
Table 7. Second Quarter First Half
Additional
Financial
Information
(Dollars in 2022 2021 2022 2021
Millions)
Revenues
Boeing Capital $52 $78 $98 $138
Unallocated ($79 ) ($38 ) ($92 ) ($84 )
items,
eliminations and
other
Earnings/(Loss)
from Operations
Boeing Capital $27 $36 ($9 ) $57
FAS/CAS service $284 $268 $567 $538
cost adjustment
Other unallocated ($94 ) ($298 ) ($354 ) ($662 )
items and
eliminations
Other income, net $253 $199 $434 $389
Interest and debt ($650 ) ($673 ) ($1,280 ) ($1,352 )
expense
Effective tax 57.6 % (3.3) % 12.8 % 126.1 %
rate
At quarter-end, Boeing Capital's net portfolio balance was $1.6 billion . The
change in loss from other unallocated items and eliminations was primarily due
to the recognition of deferred compensation income as compared to expense
recorded in the second quarter 2021. The second quarter effective tax rate
primarily reflects tax expense on pretax earnings and an increase to the
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.
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)
Six months ended Three months ended
June 30 June 30
(Dollars in 2022 2021 2022 2021
millions,
except per
share data)
Sales of $25,436 $26,672 $14,009 $14,154
products
Sales of 5,236 5,543 2,672 2,844
services
Total revenues 30,672 32,215 16,681 16,998
Cost of (23,696) (23,895) (12,284) (12,263)
products
Cost of (4,495) (4,483) (2,269) (2,316)
services
Boeing Capital (13) (18) (6) (9)
interest
expense
Total costs (28,204) (28,396) (14,559) (14,588)
and expenses
2,468 3,819 2,122 2,410
(Loss)/income (3) 75 17 38
from operating
investments,
net
General and (1,531) (2,072) (668) (1,040)
administrative
expense
Research and (1,331) (996) (698) (497)
development
expense, net
Gain on 2 114 1 112
dispositions,
net
(Loss)/ (395) 940 774 1,023
earnings from
operations
Other income, 434 389 253 199
net
Interest and (1,280) (1,352) (650) (673)
debt expense
(Loss)/ (1,241) (23) 377 549
earnings
before income
taxes
Income tax 159 29 (217) 18
benefit/
(expense)
Net (loss)/ (1,082) 6 160 567
earnings
Less: net loss (56) (44) (33) (20)
attributable
to
noncontrolling
interest
Net (loss)/ ($1,026 ) $50 $193 $587
earnings
attributable
to Boeing
Shareholders
Basic (loss)/ ($1.73 ) $0.09 $0.32 $1.00
earnings per
share
Diluted (loss) ($1.73 ) $0.09 $0.32 $1.00
/earnings per
share
Weighted 592.8 588.6 596.4 590.2
average
diluted shares
(millions)
The Boeing Company and Subsidiaries
Consolidated Statements of Financial Position
(Unaudited)
(Dollars in June 30 December 31
millions, 2022 2021
except per
share data)
Assets
Cash and cash $10,090 $8,052
equivalents
Short-term and 1,358 8,192
other
investments
Accounts 2,996 2,641
receivable,
net
Unbilled 9,394 8,620
receivables,
net
Current 159 117
portion of
customer
financing, net
Inventories 79,917 78,823
Other current 2,086 2,221
assets, net
Total current 106,000 108,666
assets
Customer 1,542 1,695
financing, net
Property, 10,617 10,918
plant and
equipment, net
of accumulated
depreciation
of $20,971 and
$20,538
Goodwill 8,055 8,068
Acquired 2,431 2,562
intangible
assets, net
Deferred 106 77
income taxes
Investments 981 975
Other assets, 5,747 5,591
net of
accumulated
amortization
of of $864 and
$975
Total assets $135,479 $138,552
Liabilities
and equity
Accounts $9,575 $9,261
payable
Accrued 17,752 18,455
liabilities
Advances and 52,066 52,980
progress
billings
Short-term 5,406 1,296
debt and
current
portion of
long-term debt
Total current 84,799 81,992
liabilities
Deferred 38 218
income taxes
Accrued 3,413 3,528
retiree health
care
Accrued 8,335 9,104
pension plan
liability, net
Other 1,891 1,750
long-term
liabilities
Long-term debt 51,794 56,806
Total 150,270 153,398
liabilities
Shareholders'
equity:
Common 5,061 5,061
stock, par
value $5.00 -
1,200,000,000
shares
authorized;
1,012,261,159
shares issued
Additional 9,475 9,052
paid-in
capital
Treasury (51,319) (51,861)
stock, at cost
- 418,809,934
and
423,343,707
shares
Retained 33,382 34,408
earnings
Accumulated (11,487) (11,659)
other
comprehensive
loss
Total (14,888) (14,999)
shareholders'
deficit
Noncontrolling 97 153
interests
Total equity (14,791) (14,846)
Total $135,479 $138,552
liabilities
and equity
The Boeing Company and Subsidiaries
Consolidated Statements of Cash Flows
(Unaudited)
Six months ended
June 30
(Dollars in 2022 2021
millions)
Cash
flows - operating
activities:
Net (loss)/earnings ($1,082 ) $6
Adjustments to
reconcile net (loss)
/earnings to net
cash used by
operating
activities:
Non-cash items -
Share-based plans 352 493
expense
Treasury shares 612 628
issued for 401(k)
contribution
Depreciation and 984 1,087
amortization
Investment/asset 72 38
impairment charges,
net
Customer financing 42 (1)
valuation
adjustments
Gain on (2) (114)
dispositions, net
Other charges and 260 (1)
credits, net
Changes in assets
and liabilities -
Accounts receivable (350) (523)
Unbilled receivables (758) (1,207)
Advances and (907) 251
progress billings
Inventories (1,260) 413
Other current assets 144 324
Accounts payable 395 (2,035)
Accrued liabilities (835) (2,613)
Income taxes (238) (130)
receivable, payable
and deferred
Other long-term (64) (127)
liabilities
Pension and other (695) (576)
postretirement plans
Customer financing, 50 83
net
Other 145 134
Net cash used by (3,135) (3,870)
operating activities
Cash flows -
investing
activities:
Payments to acquire (612) (513)
property, plant and
equipment
Proceeds from 16 51
disposals of
property, plant and
equipment
Contributions to (2,471) (20,108)
investments
Proceeds from 9,296 24,989
investments
Other 2 4
Net cash provided by 6,231 4,423
investing activities
Cash flows -
financing
activities:
New borrowings 15 9,826
Debt repayments (1,013) (9,882)
Stock options 34 29
exercised
Employee taxes on (34) (40)
certain share-based
payment arrangements
Net cash used by (998) (67)
financing activities
Effect of exchange (71) (14)
rate changes on cash
and cash equivalents
Net increase in cash 2,027 472
& cash equivalents,
including restricted
Cash & cash 8,104 7,835
equivalents,
including
restricted, at
beginning of year
Cash & cash 10,131 8,307
equivalents,
including
restricted, at end
of period
Less restricted cash 41 36
& cash equivalents,
included in
Investments
Cash & cash $10,090 $8,271
equivalents at end
of period
The Boeing Company and Subsidiaries
Summary of Business Segment Data
(Unaudited)
Six months ended Three months ended
June 30 June 30
(Dollars in 2022 2021 2022 2021
millions)
Revenues:
Commercial $10,380 $10,284 $6,219 $6,015
Airplanes
Defense, Space 11,674 14,061 6,191 6,876
& Security
Global 8,612 7,816 4,298 4,067
Services
Boeing Capital 98 138 52 78
Unallocated (92) (84) (79) (38)
items,
eliminations
and other
Total revenues $30,672 $32,215 $16,681 $16,998
Earnings/
(loss) from
operations:
Commercial ($1,101 ) ($1,328 ) ($242 ) ($472 )
Airplanes
Defense, Space (858) 1,363 71 958
& Security
Global 1,360 972 728 531
Services
Boeing Capital (9) 57 27 36
Segment (608) 1,064 584 1,053
operating
(loss)/
earnings
Unallocated (354) (662) (94) (298)
items,
eliminations
and other
FAS/CAS 567 538 284 268
service cost
adjustment
(Loss)/ (395) 940 774 1,023
earnings from
operations
Other income, 434 389 253 199
net
Interest and (1,280) (1,352) (650) (673)
debt expense
(Loss)/ (1,241) (23) 377 549
earnings
before income
taxes
Income tax 159 29 (217) 18
benefit/
(expense)
Net (loss)/ (1,082) 6 160 567
earnings
Less: Net loss (56) (44) (33) (20)
attributable
to
noncontrolling
interest
Net (loss)/ ($1,026 ) $50 $193 $587
earnings
attributable
to Boeing
Shareholders
Research and
development
expense, net:
Commercial $693 $524 $372 $255
Airplanes
Defense, Space 466 337 233 174
& Security
Global 54 50 27 25
Services
Other 118 85 66 43
Total research $1,331 $996 $698 $497
and
development
expense, net
Unallocated
items,
eliminations
and other:
Share-based ($108 ) ($142 ) ($25 ) ($14 )
plans
Deferred 166 (94) 124 (42)
compensation
Amortization (47) (44) (24) (22)
of previously
capitalized
interest
Research and (118) (85) (66) (43)
development
expense, net
Eliminations (247) (297) (103) (177)
and other
unallocated
items
Sub-total (354) (662) (94) (298)
(included in
core operating
loss)
Pension FAS/ 413 384 205 191
CAS service
cost
adjustment
Postretirement 154 154 79 77
FAS/CAS
service cost
adjustment
FAS/CAS 567 538 $284 $268
service cost
adjustment
Total $213 ($124 ) $190 ($30 )
The Boeing Company and Subsidiaries
Operating and Financial Data
(Unaudited)
Deliveries Six months ended Three months ended
June 30 June 30
Commercial 2022 2021 2022 2021
Airplanes
737 189 113 103 50
747 3 2 2 1
767 12 13 7 8
777 12 14 9 8
787 0 14 - 12
Total 216 156 121 79
Defense, Space &
Security
AH-64 Apache (New) 13 15 6 6
AH-64 Apache 28 31 13 16
(Remanufactured)
CH-47 Chinook (New) 9 6 5 3
CH-47 Chinook 4 4 1 1
(Renewed)
F-15 Models 5 8 4 5
F/A-18 Models 8 11 4 7
KC-46 Tanker 8 4 4 2
P-8 Models 6 6 3 3
Total backlog (Dollars in millions) June 30 December 31
2022 2021
Commercial Airplanes $297,044 $296,882
Defense, Space & Security 55,401 59,828
Global Services 18,960 20,496
Unallocated items, eliminations and other 325 293
Total backlog $371,730 $377,499
Contractual backlog $351,242 $356,362
Unobligated backlog 20,488 21,137
Total backlog $371,730 $377,499
The Boeing Company and Subsidiaries
Reconciliation of Non-GAAP Measures
(Unaudited)
The tables provided below reconcile the non-GAAP financial measures core
operating earnings, core operating margin, and core (loss)/earnings per share
with the most directly comparable GAAP financial measures, earnings from
operations, operating margin, and diluted earnings per share. See page 6 of
this release for additional information on the use of these non-GAAP financial
measures.
(Dollars in Second Quarter 2022 Second Quarter 2021
millions,
except per
share data)
$ millions Per Share $ millions Per
Share
Revenues 16,681 16,998
Earnings from 774 1,023
operations
(GAAP)
Operating 4.6 % 6.0 %
margin (GAAP)
FAS/CAS
service cost
adjustment:
Pension FAS/ (205) (191)
CAS service
cost
adjustment
Postretirement (79) (77)
FAS/CAS
service cost
adjustment
FAS/CAS (284) (268)
service cost
adjustment
Core operating $490 $755
earnings
(non-GAAP)
Core operating 2.9 % 4.4 %
margin
(non-GAAP)
Diluted $0.32 $1.00
earnings per
share (GAAP)
Pension FAS/ ($205 ) (0.35) ($191 ) (0.32)
CAS service
cost
adjustment
Postretirement (79) (0.13) (77) (0.13)
FAS/CAS
service cost
adjustment
Non-operating (221) (0.37) (175) (0.30)
pension
expense
Non-operating (14) (0.02) (5) (0.01)
postretirement
expense
109 0.18 94 0.16
Subtotal of ($410 ) ($0.69 ) ($354 ) ($0.60 )
adjustments
Core (loss)/ ($0.37 ) $0.40
earnings per
share
(non-GAAP)
Weighted 596.4 590.2
average
diluted shares
(in millions)
1 The income tax impact is calculated using the U.S. corporate statutory tax
rate.
The Boeing Company and Subsidiaries
Reconciliation of Non-GAAP Measures
(Unaudited)
The tables provided below reconcile the non-GAAP financial measures core
operating (loss)/earnings, core operating margin, and core loss per share with
the most directly comparable GAAP financial measures, (loss)/earnings from
operations, operating margin, and diluted (loss)/earnings per share. See page 6
of this release for additional information on the use of these non-GAAP
financial measures.
(Dollars in First Half 2022 First Half 2021
millions,
except per
share data)
$ millions Per Share $ millions Per
Share
Revenues 30,672 32,215
(Loss)/ (395) 940
earnings from
operations
(GAAP)
Operating (1.3) % 2.9 %
margin (GAAP)
FAS/CAS
service cost
adjustment:
Pension FAS/ (413) (384)
CAS service
cost
adjustment
Postretirement (154) (154)
FAS/CAS
service cost
adjustment
FAS/CAS (567) (538)
service cost
adjustment
Core operating ($962 ) $402
(loss)/
earnings
(non-GAAP)
Core operating (3.1) % 1.2 %
margin
(non-GAAP)
Diluted (loss) ($1.73 ) $0.09
/earnings per
share (GAAP)
Pension FAS/ ($413 ) (0.70) ($384 ) (0.65)
CAS service
cost
adjustment
Postretirement (154) (0.26) (154) (0.26)
FAS/CAS
service cost
adjustment
Non-operating (441) (0.74) (352) (0.60)
pension
expense
Non-operating (29) (0.05) (10) (0.02)
postretirement
expense
218 0.37 189 0.32
Subtotal of ($819 ) ($1.38 ) ($711 ) ($1.21 )
adjustments
Core loss per ($3.11 ) ($1.12 )
share
(non-GAAP)
Weighted 592.8 588.6
average
diluted shares
(in millions)
1 The income tax impact is calculated using the U.S. corporate statutory tax
rate.BOE.L
The Boeing Co.
Boeing Company - Half-year Report
27th July 2022, 11:45
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