Boeing Reports Third-Quarter Results
CHICAGO , Oct. 28, 2020 /PRNewswire/ --
* Financial results continue to be significantly impacted by COVID-19 and the
737 MAX grounding
* Proactively managing liquidity and transforming for the future
* Revenue of $14.1 billion , GAAP loss per share of ($0.79 ) and core
(non-GAAP)* loss per share of ($1.39 )
* Operating cash flow of ($4.8) billion ; cash and marketable securities of
$27.1 billion
* Total backlog of $393 billion , including more than 4,300 commercial
airplanes
Table 1. Summary Third Quarter Nine Months
Financial Results
(Dollars in Millions, 2020 2019 Change 2020 2019 Change
except per share data)
Revenues $14,139 $19,980 (29)% $42,854 $58,648 (27)%
GAAP
(Loss)/Earnings From ($401 ) $1,259 NM ($4,718 ) $229 NM
Operations
Operating Margin (2.8)% 6.3% NM (11.0)% 0.4% NM
Net (Loss)/Earnings ($466 ) $1,167 NM ($3,502 ) $374 NM
(Loss)/Earnings Per ($0.79 ) $2.05 NM ($6.10 ) $0.66 NM
Share
Operating Cash Flow ($4,819 ) ($2,424 ) NM ($14,401 ) ($226 ) NM
Non-GAAP*
Core Operating (Loss)/ ($754 ) $895 NM ($5,773 ) ($864 ) NM
Earnings
Core Operating Margin (5.3)% 4.5% NM (13.5)% (1.5)% NM
Core (Loss)/Earnings Per ($1.39 ) $1.45 NM ($7.88 ) ($1.13 ) NM
Share
*Non-GAAP measure; complete definitions of Boeing's non-GAAP measures are on
page 5, "Non-GAAP Measures Disclosures."
The Boeing Company [NYSE: BA] reported third-quarter revenue of $14.1 billion ,
GAAP loss per share of ($0.79 ) and core loss per share (non-GAAP)* of ($1.39 ),
reflecting lower commercial deliveries and services volume primarily due to
COVID-19 (Table 1). Boeing recorded operating cash flow of ($4.8) billion .
"The global pandemic continued to add pressure to our business this quarter,
and we're aligning to this new reality by closely managing our liquidity and
transforming our enterprise to be sharper, more resilient and more sustainable
for the long term," said Boeing President and Chief Executive Officer Dave
Calhoun . "Our diverse portfolio, including our government services, defense and
space programs, continues to provide some stability for us as we adapt and
rebuild for the other side of the pandemic. We remain focused on the health and
safety of our employees and their communities. I'm proud of the dedication and
commitment our teams have demonstrated as they continued to deliver for our
customers in this challenging environment. Despite the near-term headwinds, we
remain confident in our long term future and are focused on sustaining critical
investments in our business and the meaningful actions we are taking to
strengthen our safety culture, improve transparency and rebuild trust."
Following the lead of global regulators, Boeing made steady progress toward the
safe return to service of the 737 MAX, including rigorous certification and
validation flights conducted by the U.S. Federal Aviation Administration,
Transport Canada and the European Union Aviation Safety Agency. The Joint
Operational Evaluation Board, featuring civil aviation authorities from the
United States , Canada , Brazil , and the European Union, also conducted its
evaluations of updated crew training. The 737 MAX has now completed around
1,400 test and check flights and more than 3,000 flight hours as it progresses
through the robust and comprehensive certification process.
To adapt to the market impacts of COVID-19 and position the company for the
future, Boeing continued its business transformation across five key areas
including its infrastructure footprint, overhead and organizational structure,
portfolio and investment mix, supply chain health and operational excellence.
As the company resizes its operations to align with market realities, Boeing
expects to continue lowering overall staffing levels through natural attrition
as well as voluntary and involuntary workforce reductions, and recorded
additional severance costs in the third quarter.
Table 2. Cash Flow Third Quarter Nine Months
(Millions) 2020 2019 2020 2019
Operating Cash Flow ($4,819 ) ($2,424 ) ($14,401 ) ($226 )
Less Additions to Property, Plant & ($262 ) ($465 ) ($1,038 ) ($1,387 )
Equipment
Free Cash Flow* ($5,081 ) ($2,889 ) ($15,439 ) ($1,613 )
*Non-GAAP measure; complete definitions of Boeing's non-GAAP measures are on
page 5, "Non-GAAP Measures Disclosures."
Operating cash flow was ($4.8) billion in the quarter, reflecting lower
commercial deliveries and services volume primarily due to COVID-19, as well as
timing of receipts and expenditures (Table 2).
Table 3. Cash, Marketable Securities and Debt Balances Quarter-End
(Billions) Q3 20 Q2 20
Cash $10.6 $20.0
Marketable Securities1 $16.5 $12.4
Total $27.1 $32.4
Debt Balances:
The Boeing Company, net of intercompany loans to BCC $59.1 $59.5
Boeing Capital, including intercompany loans $1.9 $1.9
Total Consolidated Debt $61.0 $61.4
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 $27.1 billion ,
compared to $32.4 billion at the beginning of the quarter, primarily driven by
operating cash outflows (Table 3). Debt was $61.0 billion , down from $61.4
billion at the beginning of the quarter due to the repayment of maturing debt.
Total company backlog at quarter-end was $393 billion .
Segment Results
Commercial Airplanes
Table 4. Commercial Third Quarter Nine Months
Airplanes
(Dollars in Millions) 2020 2019 Change 2020 2019 Change
Commercial Airplanes 28 62 (55)% 98 301 (67)%
Deliveries
Revenues $3,596 $8,249 (56)% $11,434 $24,793 (54)%
Loss from Operations ($1,369 ) ($40 ) NM ($6,199 ) ($3,813 ) NM
Operating Margin (38.1)% (0.5)% NM (54.2)% (15.4)% NM
Commercial Airplanes third-quarter revenue decreased to $3.6 billion ,
reflecting lower delivery volume primarily due to COVID-19 impacts as well as
787 quality issues and associated rework. Third-quarter operating margin
decreased to (38.1) percent, primarily driven by lower delivery volume, as well
as $590 million of abnormal production costs related to the 737 program.
Commercial Airplanes added the final 777X flight test airplane to the test
program and the GE9X engine received FAA certification. In October, the company
decided it will consolidate 787 production in South Carolina in mid-2021, which
did not have a significant financial impact on the program in the third
quarter. Commercial Airplanes delivered 28 airplanes during the quarter, and
backlog included over 4,300 airplanes valued at $313 billion .
Defense, Space & Security
Table 5. Defense, Space & Third Quarter Nine Months
Security
(Dollars in Millions) 2020 2019 Change 2020 2019 Change
Revenues $6,848 $7,002 (2)% $19,478 $20,168 (3)%
Earnings from Operations $628 $754 (17)% $1,037 $2,581 (60)%
Operating Margin 9.2% 10.8% (1.6) 5.3% 12.8% (7.5)
Pts Pts
Defense, Space & Security third-quarter revenue decreased to $6.8 billion ,
primarily due to derivative aircraft award timing, partially offset by higher
fighter volume (Table 5). Third-quarter operating margin decreased to 9.2
percent reflecting less favorable performance, including a $67 million KC-46A
Tanker charge.
During the quarter, Defense, Space & Security received an award for eight
F-15EX advanced fighter aircraft for the U.S. Air Force and a contract
extension for the International Space Station for NASA, as well as contracts
for nine additional MH-47G Block II Chinook helicopters for the U.S. Army
Special Operations and four additional 702X satellites. Also in the quarter,
the U.S. Air Force and Boeing team was awarded the Collier Trophy for aerospace
excellence for the X-37B autonomous spaceplane. Significant milestones included
inducting the 20th U.S. Navy F/A-18 into the Service Life Modification program
as well as delivering the first Bell Boeing V-22 Osprey to Japan and the first
MH-47G Block II Chinook to the U.S. Army Special Operations.
Backlog at Defense, Space & Security was $62 billion , of which 30 percent
represents orders from customers outside the U.S.
Global Services
Table 6. Global Third Quarter Nine Months
Services
(Dollars in Millions) 2020 2019 Change 2020 2019 Change
Revenues $3,694 $4,658 (21)% $11,810 $13,820 (15)%
Earnings from $271 $673 (60)% $307 $2,013 (85%)
Operations
Operating Margin 7.3% 14.4% (7.1) Pts 2.6% 14.6% (12.0) Pts
Global Services third-quarter revenue decreased to $3.7 billion , driven by
lower commercial services volume due to COVID-19, partially offset by higher
government services volume (Table 6). Third-quarter operating margin decreased
to 7.3 percent primarily due to lower commercial services volume and additional
severance costs.
During the quarter, Global Services signed an agreement with GECAS for 11
737-800 Boeing Converted Freighters, secured a six-year P-8A support contract
for the Royal Australian Air Force, and was awarded F-15EX training and
services support contracts by the U.S. Air Force. Global Services also
delivered the first P-8A Operational Flight Trainer for the United Kingdom
Royal Air Force.
Additional Financial Information
Table 7. Additional Financial Information Third Quarter Nine Months
(Dollars in Millions) 2020 2019 2020 2019
Revenues
Boeing Capital $71 $66 $205 $207
Unallocated items, eliminations and other ($70 ) $5 ($73 ) ($340 )
Earnings from Operations
Boeing Capital $30 $29 $47 $86
FAS/CAS service cost adjustment $353 $364 $1,055 $1,093
Other unallocated items and eliminations ($314 ) ($521 ) ($965 ) ($1,731 )
Other income, net $119 $121 $325 $334
Interest and debt expense ($643 ) ($203 ) ($1,458 ) ($480 )
Effective tax rate 49.6% 0.8% 40.1% (350.6)%
At quarter-end, Boeing Capital's net portfolio balance was $2.0 billion . The
change in revenue and earnings from other unallocated items and eliminations
was primarily due to the timing of cost allocations. Earnings from other
unallocated items and eliminations was also impacted by lower enterprise
research and development expense. Interest and debt expense increased due to
higher debt balances. The third quarter effective tax rate reflects tax
benefits related to the five year net operating loss carryback provision in the
Coronavirus Aid, Relief, and Economic Security (CARES) Act as well as the
impact of pre-tax losses.
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 12-13.
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 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)
Nine months ended Three months ended
September 30 September 30
(Dollars in millions, except per share 2020 2019 2020 2019
data)
Sales of products $34,656 $50,514 $11,402 $17,195
Sales of services 8,198 8,134 2,737 2,785
Total revenues 42,854 58,648 14,139 19,980
Cost of products (36,001) (46,584) (10,910) (14,674)
Cost of services (6,817) (6,752) (2,185) (2,241)
Boeing Capital interest expense (33) (49) (10) (15)
Total costs and expenses (42,851) (53,385) (13,105) (16,930)
3 5,263 1,034 3,050
Loss from operating investments, net (61) (3) (14) (8)
General and administrative expense (2,989) (2,857) (955) (1,001)
Research and development expense, net (1,871) (2,470) (574) (778)
Gain/(loss) on dispositions, net 200 296 108 (4)
(Loss)/earnings from operations (4,718) 229 (401) 1,259
Other income, net 325 334 119 121
Interest and debt expense (1,458) (480) (643) (203)
(Loss)/earnings before income taxes (5,851) 83 (925) 1,177
Income tax benefit/(expense) 2,349 291 459 (10)
Net (loss)/earnings (3,502) 374 (466) 1,167
Less: net loss attributable to (49) (17)
noncontrolling interest
Net (loss)/earnings attributable to ($3,453 ) $374 ($449 ) $1,167
Boeing Shareholders
Basic (loss)/earnings per share ($6.10 ) $0.66 ($0.79 ) $2.07
Diluted (loss)/earnings per share ($6.10 ) $0.66 ($0.79 ) $2.05
Weighted average diluted shares 566.3 570.4 566.6 569.2
(millions)
The Boeing Company and Subsidiaries
Consolidated Statements of Financial Position
(Unaudited)
(Dollars in millions, except per share data) September December
30 31
2020 2019
Assets
Cash and cash equivalents $10,564 $9,485
Short-term and other investments 16,552 545
Accounts receivable, net 2,762 3,266
Unbilled receivables, net 8,860 9,043
Current portion of customer financing, net 100 162
Inventories 86,961 76,622
Other current assets, net 5,213 3,106
Total current assets 131,012 102,229
Customer financing, net 2,010 2,136
Property, plant and equipment, net of accumulated 11,969 12,502
depreciation of $20,241 and $19,342
Goodwill 8,071 8,060
Acquired intangible assets, net 2,941 3,338
Deferred income taxes 704 683
Investments 1,052 1,092
Other assets, net of accumulated amortization of $671 and 3,502 3,585
$580
Total assets $161,261 $133,625
Liabilities and equity
Accounts payable $14,479 $15,553
Accrued liabilities 22,220 22,868
Advances and progress billings 51,974 51,551
Short-term debt and current portion of long-term debt 3,634 7,340
Total current liabilities 92,307 97,312
Deferred income taxes 503 413
Accrued retiree health care 4,429 4,540
Accrued pension plan liability, net 15,343 16,276
Other long-term liabilities 2,907 3,422
Long-term debt 57,325 19,962
Total liabilities 172,814 141,925
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 6,687 6,745
Treasury stock, at cost - 447,744,896 and 449,352,405 (54,819) (54,914)
shares
Retained earnings 47,029 50,644
Accumulated other comprehensive loss (15,779) (16,153)
Total shareholders' equity (11,821) (8,617)
Noncontrolling interests 268 317
Total equity (11,553) (8,300)
Total liabilities and equity $161,261 $133,625
The Boeing Company and Subsidiaries
Consolidated Statements of Cash Flows
(Unaudited)
Nine months ended
September 30
(Dollars in millions) 2020 2019
Cash flows - operating activities:
Net (loss)/earnings ($3,502 ) $374
Adjustments to reconcile net loss to net cash (used)/provided
by operating activities:
Non-cash items -
Share-based plans expense 165 160
Depreciation and amortization 1,668 1,643
Investment/asset impairment charges, net 317 106
Customer financing valuation adjustments 12 249
Gain on dispositions, net (200) (296)
Other charges and credits, net 912 190
Changes in assets and liabilities -
Accounts receivable 125 315
Unbilled receivables 56 (1,053)
Advances and progress billings 428 2,355
Inventories (9,653) (9,565)
Other current assets 319 (224)
Accounts payable (3,303) 1,626
Accrued liabilities 967 5,495
Income taxes receivable, payable and deferred (2,404) (989)
Other long-term liabilities (149) (577)
Pension and other postretirement plans (556) (570)
Customer financing, net 108 391
Other 289 144
Net cash used by operating activities (14,401) (226)
Cash flows - investing activities:
Property, plant and equipment additions (1,038) (1,387)
Property, plant and equipment reductions 275 334
Acquisitions, net of cash acquired (492)
Contributions to investments (25,846) (1,439)
Proceeds from investments 9,772 967
Purchase of distribution rights (20)
Other 14 (10)
Net cash used by investing activities (16,823) (2,047)
Cash flows - financing activities:
New borrowings 42,362 19,621
Debt repayments (8,792) (8,978)
Contributions from noncontrolling interests 7
Stock options exercised 31 51
Employee taxes on certain share-based payment arrangements (169) (241)
Common shares repurchased (2,651)
Dividends paid (1,158) (3,473)
Net cash provided by financing activities 32,274 4,336
Effect of exchange rate changes on cash and cash equivalents, 26 (27)
including restricted
Net increase in cash & cash equivalents, including restricted 1,076 2,036
Cash & cash equivalents, including restricted, at beginning 9,571 7,813
of year
Cash & cash equivalents, including restricted, at end of 10,647 9,849
period
Less restricted cash & cash equivalents, included in 83 86
Investments
Cash and cash equivalents at end of period $10,564 $9,763
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.
Nine months ended Three months
September 30 ended
September 30
(Dollars in millions) 2020 2019 2020 2019
Revenues:
Commercial Airplanes $11,434 $24,793 $3,596 $8,249
Defense, Space & Security 19,478 20,168 6,848 7,002
Global Services 11,810 13,820 3,694 4,658
Boeing Capital 205 207 71 66
Unallocated items, eliminations and other (73) (340) (70) 5
Total revenues $42,854 $58,648 $14,139 $19,980
Earnings/(loss) from operations:
Commercial Airplanes ($6,199 ) ($3,813 ) ($1,369 ) ($40 )
Defense, Space & Security 1,037 2,581 628 754
Global Services 307 2,013 271 673
Boeing Capital 47 86 30 29
Segment operating (loss)/earnings (4,808) 867 (440) 1,416
Unallocated items, eliminations and other (965) (1,731) (314) (521)
FAS/CAS service cost adjustment 1,055 1,093 353 364
(Loss)/earnings from operations (4,718) 229 (401) 1,259
Other income, net 325 334 119 121
Interest and debt expense (1,458) (480) (643) (203)
(Loss)/earnings before income taxes (5,851) 83 (925) 1,177
Income tax benefit/(expense) 2,349 291 459 (10)
Net (loss)/earnings (3,502) 374 (466) 1,167
Less: Net loss attributable to (49) (17)
noncontrolling interest
Net (loss)/earnings attributable to ($3,453 ) $374 ($449 ) $1,167
Boeing Shareholders
Research and development expense, net:
Commercial Airplanes $1,107 $1,529 $321 $467
Defense, Space & Security 494 556 164 182
Global Services 110 102 45 29
Other 160 283 44 100
Total research and development expense, $1,871 $2,470 $574 $778
net
Unallocated items, eliminations and
other:
Share-based plans ($80 ) ($57 ) ($37 ) ($21 )
Deferred compensation 34 (154) (39) (25)
Amortization of previously capitalized (69) (68) (19) (23)
interest
Customer financing impairment (250)
Research and development expense, net (160) (283) (44) (100)
Eliminations and other unallocated items (690) (919) (175) (352)
Sub-total (included in core operating (965) (1,731) (314) (521)
loss)
Pension FAS/CAS service cost adjustment 773 823 260 274
Postretirement FAS/CAS service cost 282 270 93 90
adjustment
FAS/CAS service cost adjustment 1,055 1,093 $353 $364
Total $90 ($638 ) $39 ($157 )
The Boeing Company and Subsidiaries
Operating and Financial Data
(Unaudited)
Deliveries Nine months ended Three months ended
September 30 September 30
Commercial Airplanes 2020 2019 2020 2019
737 12 118 3 5
747 2 5 1 1
767 20 32 6 10
777 15 33 (1) 5 11
787 49 113 13 35
Total 98 301 28 62
Note: Aircraft accounted for as revenues by BCA and as operating leases in
consolidation identified by parentheses
Defense, Space & Security
AH-64 Apache (New) 18 27 7 17
AH-64 Apache (Remanufactured) 44 56 12 21
C-17 Globemaster III - 1 - 1
C-40A - 2 - 2
CH-47 Chinook (New) 19 13 4 6
CH-47 Chinook (Renewed) 3 16 2 7
F-15 Models 3 7 - 2
F/A-18 Models 14 16 5 6
KC-46A Tanker 10 21 4 9
P-8 Models 9 14 3 6
Commercial and Civil Satellites - 1 - -
Total backlog (Dollars in millions) September 30 December 31
2020 2019
Commercial Airplanes $312,684 $376,593
Defense, Space & Security 62,375 63,691
Global Services 17,464 22,902
Unallocated items, eliminations and other 544 217
Total backlog $393,067 $463,403
Contractual backlog $368,916 $436,473
Unobligated backlog 24,151 26,930
Total backlog $393,067 $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)/earnings, core operating margin, and core (loss)/earnings per
share with the most directly comparable GAAP financial measures, (loss)/
earnings from operations, operating margin, and diluted (loss)/earnings per
share. See page 5 of this release for additional information on the use of
these non-GAAP financial measures.
(Dollars in millions, except per share data) Third Quarter Third Quarter
2020 2019
$ Per $ Per
millions Share millions Share
Revenues 14,139 19,980
(Loss)/earnings from operations (GAAP) (401) 1,259
Operating margin (GAAP) (2.8)% 6.3%
FAS/CAS service cost adjustment:
Pension FAS/CAS service cost adjustment (260) (274)
Postretirement FAS/CAS service cost (93) (90)
adjustment
FAS/CAS service cost adjustment (353) (364)
Core operating (loss)/earnings (non-GAAP) ($754 ) $895
Core operating margin (non-GAAP) (5.3)% 4.5%
Diluted (loss)/earnings per share (GAAP) ($0.79 ) $2.05
Pension FAS/CAS service cost adjustment ($260 ) (0.46) ($274 ) (0.48)
Postretirement FAS/CAS service cost (93) (0.16) (90) (0.16)
adjustment
Non-operating pension expense (84) (0.16) (93) (0.17)
Non-operating postretirement expense 10 0.02 27 0.05
Provision for deferred income taxes on 90 0.16 90 0.16
adjustments 1
Subtotal of adjustments ($337 ) ($0.60 ) ($340 ) ($0.60 )
Core (loss)/earnings per share (non-GAAP) ($1.39 ) $1.45
Weighted average diluted shares (in 566.6 569.2
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)/earnings from operations,
operating margin, and diluted (loss)/earnings per share. See page 5 of this
release for additional information on the use of these non-GAAP financial
measures.
(Dollars in millions, except per share data) Nine Months 2020 Nine Months 2019
$ Per $ Per
millions Share millions Share
Revenues 42,854 58,648
(Loss)/earnings from operations (GAAP) (4,718) 229
Operating margin (GAAP) (11.0)% 0.4 %
FAS/CAS service cost adjustment:
Pension FAS/CAS service cost adjustment (773) (823)
Postretirement FAS/CAS service cost (282) (270)
adjustment
FAS/CAS service cost adjustment (1,055) (1,093)
Core operating loss (non-GAAP) ($5,773 ) ($864 )
Core operating margin (non-GAAP) (13.5)% (1.5 %)
Diluted (loss)/earnings per share (GAAP) ($6.10 ) $0.66
Pension FAS/CAS service cost adjustment ($773 ) (1.36) ($823 ) (1.45)
Postretirement FAS/CAS service cost (282) (0.50) (270) (0.47)
adjustment
Non-operating pension expense (255) (0.46) (280) (0.49)
Non-operating postretirement expense 37 0.07 80 0.14
Provision for deferred income taxes on 267 0.47 272 0.48
adjustments 1
Subtotal of adjustments ($1,006 ) ($1.78 ) ($1,021 ) ($1.79 )
Core loss per share (non-GAAP) ($7.88 ) ($1.13 )
Weighted average diluted shares (in 566.3 570.4
millions)
1 The income tax impact is calculated using the U.S.
corporate statutory tax rate.BOE.L
The Boeing Co.
Boeing Company - 3rd Quarter Results
28th October 2020, 11:30
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