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