Boeing Reports Fourth-Quarter Results
CHICAGO , Jan. 27, 2021 /PRNewswire/ --
Fourth Quarter 2020
* Financial results significantly impacted by COVID-19, 737 MAX grounding,
and commercial widebody programs
* 777X program recorded $6.5 billion pre-tax charge; first delivery expected
in late 2023
* 737 MAX began receiving regulatory approval to resume operations and
restarted deliveries
* Revenue of $15.3 billion , GAAP loss per share of ($14.65 ) and core
(non-GAAP)* loss per share of ($15.25 )
Full-Year 2020
* Revenue of $58.2 billion , GAAP loss per share of ($20.88 ) and core
(non-GAAP)* loss per share of ($23.25 )
* Operating cash flow of ($18.4) billion ; cash and marketable securities of
$25.6 billion
* Total backlog of $363 billion , including more than 4,000 commercial
airplanes
* Strengthening safety processes, improving performance, managing liquidity
and transforming for the future
Table 1. Summary Fourth Quarter Full Year
Financial Results
(Dollars in Millions, 2020 2019 Change 2020 2019 Change
except per share data)
Revenues $15,304 $17,911 (15)% $58,158 $76,559 (24)%
GAAP
Loss From Operations ($8,049 ) ($2,204 ) NM ($12,767 ) ($1,975 ) NM
Operating Margin (52.6)% (12.3)% NM (22.0)% (2.6)% NM
Net Loss ($8,439 ) ($1,010 ) NM ($11,941 ) ($636 ) NM
Loss Per Share ($14.65 ) ($1.79 ) NM ($20.88 ) ($1.12 ) NM
Operating Cash Flow ($4,009 ) ($2,220 ) NM ($18,410 ) ($2,446 ) NM
Non-GAAP*
Core Operating Loss ($8,377 ) ($2,526 ) NM ($14,150 ) ($3,390 ) NM
Core Operating Margin (54.7)% (14.1)% NM (24.3)% (4.4)% NM
Core Loss Per Share ($15.25 ) ($2.33 ) NM ($23.25 ) ($3.47 ) 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 $15.3 billion ,
reflecting lower commercial deliveries and services volume primarily due to
COVID-19 as well as 787 production issues, partially offset by a lower 737 MAX
customer considerations charge in the quarter compared to the same period last
year (Table 1). GAAP loss per share of ($14.65 ) and core loss per share
(non-GAAP)* of ($15.25 ) reflected a $6.5 billion pre-tax charge on the 777X
program and a tax valuation allowance, partially offset by a lower 737 MAX
customer considerations charge. Boeing recorded operating cash flow of ($4.0)
billion .
"2020 was a year of profound societal and global disruption which significantly
constrained our industry. The deep impact of the pandemic on commercial air
travel, coupled with the 737 MAX grounding, challenged our results. I am proud
of the resilience and dedication our global team demonstrated in this
environment as we strengthened our safety processes, adapted to our market and
supported our customers, suppliers, communities and each other," said Boeing
President and Chief Executive Officer Dave Calhoun. "Our balanced portfolio of
diverse defense, space and services programs continues to provide important
stability as we lay the foundation for our recovery. While the impact of
COVID-19 presents continued challenges for commercial aerospace into 2021, we
remain confident in our future, squarely-focused on safety, quality and
transparency as we rebuild trust and transform our business."
The return to service of the 737 MAX in the U.S. and several other markets was
an important step, and Boeing continues to follow the lead of global regulators
and support its customers. Since the FAA's approval to return to operations,
Boeing has delivered over 40 737 MAX aircraft and five airlines have safely
returned their fleets to service as of January 25, 2021, safely flying more
than 2,700 revenue flights and approximately 5,500 flight hours.
Boeing now anticipates that the first 777X delivery will occur in late 2023.
This schedule, and the associated financial impact, reflect a number of
factors, including an updated assessment of global certification requirements,
the company's latest assessment of COVID-19 impacts on market demand, and
discussions with its customers with respect to aircraft delivery timing.
The company continues to progress through its business transformation effort
across five key areas including its infrastructure footprint, overhead and
organizational structure, portfolio and investment mix, supply chain health and
operational excellence. Boeing will continue these actions in 2021 to preserve
liquidity, adapt to the new market, improve performance, sustain key
investments and transform its business to be more productive, resilient and
competitive for the long term.
Table 2. Cash Flow Fourth Quarter Full Year
(Millions) 2020 2019 2020 2019
Operating Cash Flow ($4,009 ) ($2,220 ) ($18,410 ) ($2,446 )
Less Additions to Property, Plant & ($265 ) ($447 ) ($1,303 ) ($1,834 )
Equipment
Free Cash Flow* ($4,274 ) ($2,667 ) ($19,713 ) ($4,280 )
*Non-GAAP measure; complete definitions of Boeing's non-GAAP measures are on
page 6, "Non-GAAP Measures Disclosures."
Operating cash flow was ($4.0) billion in the quarter, reflecting lower
commercial deliveries and services volume, as well as timing of receipts and
expenditures (Table 2).
Table 3. Cash, Marketable Securities and Debt Balances Quarter-End
(Billions) Q4 20 Q3 20
Cash $7.8 $10.6
Marketable Securities1 $17.8 $16.5
Total $25.6 $27.1
Debt Balances:
The Boeing Company, net of intercompany loans to BCC $62.0 $59.1
Boeing Capital, including intercompany loans $1.6 $1.9
Total Consolidated Debt $63.6 $61.0
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 $25.6 billion ,
compared to $27.1 billion at the beginning of the quarter, primarily driven by
operating cash outflows partially offset by changes in the debt balance (Table
3).
Total company backlog at quarter-end was $363 billion .
Segment Results
Commercial Airplanes
Table 4. Commercial Fourth Quarter Full Year
Airplanes
(Dollars in Millions) 2020 2019 Change 2020 2019 Change
Commercial Airplanes 59 79 (25)% 157 380 (59)%
Deliveries
Revenues $4,728 $7,462 (37)% $16,162 $32,255 (50)%
Loss from Operations ($7,648 ) ($2,844 ) NM ($13,847 ) ($6,657 ) NM
Operating Margin (161.8)% (38.1)% NM (85.7)% (20.6)% NM
Commercial Airplanes fourth-quarter revenue decreased to $4.7 billion , driven
by lower widebody delivery volume due to COVID-19 impacts as well as 787
production issues, partially offset by higher 737 deliveries and a lower 737
MAX customer consideration charge in the quarter compared to the same period
last year (Table 4). Fourth-quarter operating margin decreased to (161.8)
percent, primarily driven by a $6.5 billion pre-tax charge on the 777X program,
lower delivery volume, and $468 million of abnormal production costs related to
the 737 program, partially offset by a lower 737 MAX customer consideration
charge.
Commercial Airplanes production rate assumptions reflect the continued impacts
of COVID-19 on commercial demand, and the company will continue to assess them
on an ongoing basis. The 737 program is currently producing at a low rate and
expects to gradually increase production to 31 per month in early 2022 with
further gradual increases to correspond with market demand. The 787 program
plans to transition its production rate to 5 per month in March 2021, at which
point 787 final assembly will be consolidated to Boeing South Carolina.
As discussed above, Commercial Airplanes now expects first delivery of the 777X
to occur in late 2023 and has recorded a $6.5 billion reach-forward loss on the
777X program. Among the factors contributing to the revised first delivery
schedule and reach-forward loss are an updated assessment of certification
requirements based on ongoing communication with civil aviation authorities, an
updated assessment of market demand based on continued dialogue with customers,
resulting adjustments to production rates and the program accounting quantity,
increased change incorporation costs, and associated customer and supply chain
impacts. The production rate expectation for the combined 777/777X program
remains at 2 per month in 2021.
Commercial Airplanes captured orders for 75 737 aircraft from Ryanair and eight
777 freighters from DHL, as well as a commitment for 23 737 aircraft from
Alaska Airlines. Commercial Airplanes delivered 59 airplanes during the
quarter, and backlog included over 4,000 airplanes valued at $282 billion .
Defense, Space & Security
Table 5. Defense, Space & Fourth Quarter Full Year
Security
(Dollars in Millions) 2020 2019 Change 2020 2019 Change
Revenues $6,779 $5,927 14% $26,257 $26,095 1%
Earnings from Operations $502 $34 1,376% $1,539 $2,615 (41)%
Operating Margin 7.4% 0.6% 6.8 5.9% 10.0% (4.1)
Pts Pts
Defense, Space & Security fourth-quarter revenue increased to $6.8 billion ,
primarily driven by higher volume on fighter programs and the rest of the
portfolio as well as a charge on the Commercial Crew program in the same period
last year (Table 5). Fourth-quarter operating margin increased to 7.4 percent
reflecting more favorable performance on multiple programs compared with the
same period last year, partially offset by a $275 million pre-tax charge on the
KC-46A Tanker program primarily due to production inefficiencies including
impacts of COVID-19 disruption.
During the quarter, Defense, Space & Security was awarded contracts for two
KC-46A aircraft for Japan and AEW&C upgrades for the Republic of Korea Air
Force. Defense, Space & Security achieved first flight of the MQ-25 unmanned
aircraft with an aerial refueling store and demonstrated ski-jump launch
capability of the F/A-18 Super Hornet for the Indian Navy. Also in the quarter,
Defense, Space & Security completed engineering design review for the Wideband
Global SATCOM-11+ communications satellite and critical design review of the
Space Launch System Exploration Upper Stage for NASA.
Backlog at Defense, Space & Security was $61 billion , of which 32 percent
represents orders from customers outside the U.S.
Global Services
Table 6. Global Fourth Quarter Full Year
Services
(Dollars in Millions) 2020 2019 Change 2020 2019 Change
Revenues $3,733 $4,648 (20)% $15,543 $18,468 (16)%
Earnings from $143 $684 (79)% $450 $2,697 (83)%
Operations
Operating Margin 3.8% 14.7% (10.9) Pts 2.9% 14.6% (11.7) Pts
Global Services fourth-quarter revenue decreased to $3.7 billion , driven by
lower commercial services volume due to COVID-19 (Table 6). Fourth-quarter
operating margin decreased to 3.8 percent primarily due to lower commercial
services volume and $290 million of pre-tax charges related to asset
impairments driven by COVID-19.
During the quarter, Global Services was awarded a Performance Based Logistics
contract for the Republic of Singapore Air Force F-15SG fleet, secured a F-15
spares and logistics support contract with the Qatar Emiri Air Force, and was
selected to provide P-8A training for the Royal New Zealand Air Force. Global
Services also announced a 10-year digital services agreement with Frontier
Airlines.
Additional Financial Information
Table 7. Additional Financial Information Fourth Quarter Full Year
(Dollars in Millions) 2020 2019 2020 2019
Revenues
Boeing Capital $56 $37 $261 $244
Unallocated items, eliminations and other $8 ($163 ) ($65 ) ($503 )
(Loss)/Earnings from Operations
Boeing Capital $16 ($58 ) $63 $28
FAS/CAS service cost adjustment $328 $322 $1,383 $1,415
Other unallocated items and eliminations ($1,390 ) ($342 ) ($2,355 ) ($2,073 )
Other income, net $122 $104 $447 $438
Interest and debt expense ($698 ) ($242 ) ($2,156 ) ($722 )
Effective tax rate 2.2% 56.9% 17.5% 71.8%
At quarter-end, Boeing Capital's net portfolio balance was $2.0 billion . The
change in revenue from other unallocated items and eliminations was primarily
due to the timing of eliminations for intercompany aircraft deliveries. Other
unallocated items and eliminations included a $744 million charge related to
the previously announced agreement between Boeing and the U.S. Department of
Justice in January 2021. Interest and debt expense increased due to higher debt
balances. The fourth quarter 2020 effective tax rate primarily reflects an
additional valuation allowance on certain deferred income tax assets, partially
offset by the benefit of the five year net operating loss carryback provision
in the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
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 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 government actions, 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 737 MAX regulatory approvals, lower than planned
production rates and/or delivery rates, and increased considerations to
customers and suppliers, (3) general conditions in the economy and our
industry, including those due to regulatory changes; (4) our reliance on our
commercial airline customers; (5) the overall health of our aircraft production
system, planned commercial aircraft production rate changes, our commercial
development and derivative aircraft programs, and our aircraft being subject to
stringent performance and reliability standards; (6) changing budget and
appropriation levels and acquisition priorities of the U.S. government; (7) our
dependence on U.S. government contracts; (8) our reliance on fixed-price
contracts; (9) our reliance on cost-type contracts; (10) uncertainties
concerning contracts that include in-orbit incentive payments; (11) our
dependence on our subcontractors and suppliers, as well as the availability of
raw materials; (12) changes in accounting estimates; (13) changes in the
competitive landscape in our markets; (14) our non-U.S. operations, including
sales to non-U.S. customers; (15) threats to the security of our or our
customers' information; (16) potential adverse developments in new or pending
litigation and/or government investigations; (17) customer and aircraft
concentration in our customer financing portfolio; (18) changes in our ability
to obtain debt financing on commercially reasonable terms and at competitive
rates; (19) realizing the anticipated benefits of mergers, acquisitions, joint
ventures/strategic alliances or divestitures; (20) the adequacy of our
insurance coverage to cover significant risk exposures; (21) potential business
disruptions, including those related to physical security threats, information
technology or cyber-attacks, epidemics, sanctions or natural disasters; (22)
work stoppages or other labor disruptions; (23) substantial pension and other
postretirement benefit obligations; and (24) potential environmental
liabilities.
Additional information concerning these and other factors can be found in our
filings with the Securities and Exchange Commission, including our most recent
Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports
on Form 8-K. Any forward-looking statement speaks only as of the date on which
it is made, and we assume no obligation to update or revise any forward-looking
statement, whether as a result of new information, future events, or otherwise,
except as required by law.
Contact:
Investor Relations: Maurita Sutedja or Keely Moos (312) 544-2140
Communications: Michael Friedman media@boeing.com
The Boeing Company and Subsidiaries
Consolidated Statements of Operations
(Unaudited)
Twelve months ended Three months ended
December 31 December 31
(Dollars in millions, except per share 2020 2019 2020 2019
data)
Sales of products $47,142 $66,094 $12,486 $15,580
Sales of services 11,016 10,465 2,818 2,331
Total revenues 58,158 76,559 15,304 17,911
Cost of products (54,568) (62,877) (18,567) (16,293)
Cost of services (9,232) (9,154) (2,415) (2,402)
Boeing Capital interest expense (43) (62) (10) (13)
Total costs and expenses (63,843) (72,093) (20,992) (18,708)
(5,685) 4,466 (5,688) (797)
Income/(loss) from operating 9 (4) 70 (1)
investments, net
General and administrative expense (4,817) (3,909) (1,828) (1,052)
Research and development expense, net (2,476) (3,219) (605) (749)
Gain on dispositions, net 202 691 2 395
Loss from operations (12,767) (1,975) (8,049) (2,204)
Other income, net 447 438 122 104
Interest and debt expense (2,156) (722) (698) (242)
Loss before income taxes (14,476) (2,259) (8,625) (2,342)
Income tax benefit 2,535 1,623 186 1,332
Net loss (11,941) (636) (8,439) (1,010)
Less: net loss attributable to (68) (19)
noncontrolling interest
Net loss attributable to Boeing ($11,873 ) ($636 ) ($8,420 ) ($1,010 )
Shareholders
Basic loss per share ($20.88 ) ($1.12 ) ($14.65 ) ($1.79 )
Diluted loss per share ($20.88 ) ($1.12 ) ($14.65 ) ($1.79 )
Weighted average diluted shares 569.0 566.0 575.4 565.4
(millions)
The Boeing Company and Subsidiaries
Consolidated Statements of Financial Position
(Unaudited)
(Dollars in millions, except per share data) December December
31 31
2020 2019
Assets
Cash and cash equivalents $7,752 $9,485
Short-term and other investments 17,838 545
Accounts receivable, net 1,955 3,266
Unbilled receivables, net 7,995 9,043
Current portion of customer financing, net 101 162
Inventories 81,715 76,622
Other current assets, net 4,286 3,106
Total current assets 121,642 102,229
Customer financing, net 1,936 2,136
Property, plant and equipment, net of accumulated 11,820 12,502
depreciation of $20,507 and $19,342
Goodwill 8,081 8,060
Acquired intangible assets, net 2,843 3,338
Deferred income taxes 86 683
Investments 1,016 1,092
Other assets, net of accumulated amortization of $729 and 4,712 3,585
$580
Total assets $152,136 $133,625
Liabilities and equity
Accounts payable $12,928 $15,553
Accrued liabilities 22,171 22,868
Advances and progress billings 50,488 51,551
Short-term debt and current portion of long-term debt 1,693 7,340
Total current liabilities 87,280 97,312
Deferred income taxes 1,010 413
Accrued retiree health care 4,137 4,540
Accrued pension plan liability, net 14,408 16,276
Other long-term liabilities 1,486 3,422
Long-term debt 61,890 19,962
Total liabilities 170,211 141,925
Shareholders' equity:
Common stock, par value $5.00 - 1,200,000,000 shares 5,061 5,061
authorized; 1,012,261,159 shares issued
Additional paid-in capital 7,787 6,745
Treasury stock, at cost - 429,941,021 and 449,352,405 shares (52,641) (54,914)
Retained earnings 38,610 50,644
Accumulated other comprehensive loss (17,133) (16,153)
Total shareholders' deficit (18,316) (8,617)
Noncontrolling interests 241 317
Total equity (18,075) (8,300)
Total liabilities and equity $152,136 $133,625
The Boeing Company and Subsidiaries
Consolidated Statements of Cash Flows
(Unaudited)
Twelve months ended
December 31
(Dollars in millions) 2020 2019
Cash flows - operating activities:
Net loss ($11,941 ) ($636 )
Adjustments to reconcile net loss to net cash (used)/
provided by operating activities:
Non-cash items -
Share-based plans expense 250 212
Treasury shares issued for 401(k) contribution 195
Depreciation and amortization 2,246 2,271
Investment/asset impairment charges, net 410 443
Customer financing valuation adjustments 12 250
Gain on dispositions, net (202) (691)
777X reach-forward loss 6,493
Other charges and credits, net 1,462 334
Changes in assets and liabilities -
Accounts receivable 909 603
Unbilled receivables 919 982
Advances and progress billings (1,060) 737
Inventories (11,002) (12,391)
Other current assets 372 (682)
Accounts payable (5,363) 1,600
Accrued liabilities 1,074 7,781
Income taxes receivable, payable and deferred (2,576) (2,476)
Other long-term liabilities (222) (621)
Pension and other postretirement plans (794) (777)
Customer financing, net 173 419
Other 235 196
Net cash used by operating activities (18,410) (2,446)
Cash flows - investing activities:
Property, plant and equipment additions (1,303) (1,834)
Property, plant and equipment reductions 296 334
Acquisitions, net of cash acquired (455)
Proceeds from dispositions 464
Contributions to investments (37,616) (1,658)
Proceeds from investments 20,275 1,759
Purchase of distribution rights (127)
Other (18) (13)
Net cash used by investing activities (18,366) (1,530)
Cash flows - financing activities:
New borrowings 47,248 25,389
Debt repayments (10,998) (12,171)
Contributions from noncontrolling interests 7
Stock options exercised 36 58
Employee taxes on certain share-based payment arrangements (173) (248)
Common shares repurchased (2,651)
Dividends paid (1,158) (4,630)
Other (15)
Net cash provided by financing activities 34,955 5,739
Effect of exchange rate changes on cash and cash 85 (5)
equivalents, including restricted
Net (decrease)/increase in cash & cash equivalents, (1,736) 1,758
including restricted
Cash & cash equivalents, including restricted, at beginning 9,571 7,813
of year
Cash & cash equivalents, including restricted, at end of 7,835 9,571
period
Less restricted cash & cash equivalents, included in 83 86
Investments
Cash and cash equivalents at end of period $7,752 $9,485
The Boeing Company and Subsidiaries
Summary of Business Segment Data
(Unaudited)
Effective at the beginning of 2020, certain programs were realigned between our
Defense, Space & Security segment and Unallocated items, eliminations and
other. Business segment data for 2019 has been adjusted to reflect the
realignment.
Twelve months ended Three months ended
December 31 December 31
(Dollars in millions) 2020 2019 2020 2019
Revenues:
Commercial Airplanes $16,162 $32,255 $4,728 $7,462
Defense, Space & Security 26,257 26,095 6,779 5,927
Global Services 15,543 18,468 3,733 4,648
Boeing Capital 261 244 56 37
Unallocated items, eliminations and (65) (503) 8 (163)
other
Total revenues $58,158 $76,559 $15,304 $17,911
Earnings/(loss) from operations:
Commercial Airplanes ($13,847 ) ($6,657 ) ($7,648 ) ($2,844 )
Defense, Space & Security 1,539 2,615 502 34
Global Services 450 2,697 143 684
Boeing Capital 63 28 16 (58)
Segment operating loss (11,795) (1,317) (6,987) (2,184)
Unallocated items, eliminations and (2,355) (2,073) (1,390) (342)
other
FAS/CAS service cost adjustment 1,383 1,415 328 322
Loss from operations (12,767) (1,975) (8,049) (2,204)
Other income, net 447 438 122 104
Interest and debt expense (2,156) (722) (698) (242)
Loss before income taxes (14,476) (2,259) (8,625) (2,342)
Income tax benefit 2,535 1,623 186 1,332
Net loss (11,941) (636) (8,439) (1,010)
Less: Net loss attributable to (68) (19)
noncontrolling interest
Net loss attributable to Boeing ($11,873 ) ($636 ) ($8,420 ) ($1,010 )
Shareholders
Research and development expense, net:
Commercial Airplanes $1,385 $1,956 $278 $427
Defense, Space & Security 713 741 219 185
Global Services 138 121 28 19
Other 240 401 80 118
Total research and development expense, $2,476 $3,219 $605 $749
net
Unallocated items, eliminations and
other:
Share-based plans ($120 ) ($65 ) ($40 ) ($8 )
Deferred compensation (93) (174) (127) (20)
Amortization of previously capitalized (95) (89) (26) (21)
interest
Customer financing impairment (250)
Research and development expense, net (240) (401) (80) (118)
Eliminations and other unallocated items (1,807) (1,094) (1,117) (175)
Sub-total (included in core operating (2,355) (2,073) (1,390) (342)
loss)
Pension FAS/CAS service cost adjustment 1,024 1,071 251 248
Postretirement FAS/CAS service cost 359 344 77 74
adjustment
FAS/CAS service cost adjustment 1,383 1,415 $328 $322
Total ($972 ) ($658 ) ($1,062 ) ($20 )
The Boeing Company and Subsidiaries
Operating and Financial Data
(Unaudited)
Deliveries Twelve months ended Three months ended
December 31 December 31
Commercial Airplanes 2020 2019 2020 2019
737 43 127 31 9
747 5 7 3 2
767 30 43 10 11
777 26 45 (2) 11 12 (1)
787 53 158 4 45
Total 157 380 59 79
Note: Aircraft accounted for as revenues by BCA and as operating leases in
consolidation identified by parentheses
Defense, Space & Security
AH-64 Apache (New) 19 37 1 10
AH-64 Apache (Remanufactured) 52 74 8 18
C-17 Globemaster III - 1 - -
C-40A - 2 - -
CH-47 Chinook (New) 27 13 8 -
CH-47 Chinook (Renewed) 3 22 - 6
F-15 Models 4 11 1 4
F/A-18 Models 20 23 6 7
KC-46A Tanker 14 28 4 7
P-8 Models 15 18 6 4
Commercial and Civil Satellites - 2 - 1
Total backlog (Dollars in millions) December December 31
31 2019
2020
Commercial Airplanes $281,588 $376,593
Defense, Space & Security 60,847 63,691
Global Services 20,632 22,902
Unallocated items, eliminations and other 337 217
Total backlog $363,404 $463,403
Contractual backlog $339,309 $436,473
Unobligated backlog 24,095 26,930
Total backlog $363,404 $463,403
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 Fourth Quarter Fourth Quarter
data) 2020 2019
$ Per $ Per
millions Share millions Share
Revenues 15,304 17,911
Loss from operations (GAAP) (8,049) (2,204)
Operating margin (GAAP) (52.6)% (12.3)%
FAS/CAS service cost adjustment:
Pension FAS/CAS service cost adjustment (251) (248)
Postretirement FAS/CAS service cost (77) (74)
adjustment
FAS/CAS service cost adjustment (328) (322)
Core operating loss (non-GAAP) ($8,377 ) ($2,526 )
Core operating margin (non-GAAP) (54.7)% (14.1)%
Diluted loss per share (GAAP) ($14.65 ) ($1.79 )
Pension FAS/CAS service cost adjustment ($251 ) (0.44) ($248 ) (0.44)
Postretirement FAS/CAS service cost (77) (0.13) (74) (0.13)
adjustment
Non-operating pension expense (85) (0.15) (94) (0.17)
Non-operating postretirement expense (21) (0.04) 27 0.05
Provision for deferred income taxes on 91 0.16 82 0.15
adjustments 1
Subtotal of adjustments ($343 ) ($0.60 ) ($307 ) ($0.54 )
Core loss per share (non-GAAP) ($15.25 ) ($2.33 )
Weighted average diluted shares (in 575.4 565.4
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, 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 Full Year 2020 Full Year 2019
data)
$ Per $ Per
millions Share millions Share
Revenues 58,158 76,559
Loss from operations (GAAP) (12,767) (1,975)
Operating margin (GAAP) (22.0)% (2.6)%
FAS/CAS service cost adjustment:
Pension FAS/CAS service cost adjustment (1,024) (1,071)
Postretirement FAS/CAS service cost (359) (344)
adjustment
FAS/CAS service cost adjustment (1,383) (1,415)
Core operating loss (non-GAAP) ($14,150 ) ($3,390 )
Core operating margin (non-GAAP) (24.3)% (4.4)%
Diluted loss per share (GAAP) ($20.88 ) ($1.12 )
Pension FAS/CAS service cost adjustment ($1,024 ) (1.80) ($1,071 ) (1.89)
Postretirement FAS/CAS service cost (359) (0.63) (344) (0.61)
adjustment
Non-operating pension expense (340) (0.60) (374) (0.66)
Non-operating postretirement expense 16 0.03 107 0.19
Provision for deferred income taxes on 358 0.63 353 0.62
adjustments 1
Subtotal of adjustments ($1,349 ) ($2.37 ) ($1,329 ) ($2.35 )
Core loss per share (non-GAAP) ($23.25 ) ($3.47 )
Weighted average diluted shares (in 569.0 566.0
millions)
1 The income tax impact is calculated using the U.S.
corporate statutory tax rate.BOE.L
The Boeing Co.
Boeing Company - Final Results
27th January 2021, 12:30
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