TIDMBOE
Boeing Reports Second-Quarter Results
CHICAGO, July 24, 2019 /PRNewswire/ --
* Continue to engage global regulators and customers on safe return to
service of the 737 MAX
* Recorded charge and increased costs related to the 737 MAX, as previously
announced
* Revenue of $15.8 billion reflecting 737 MAX impacts and higher defense and
services volume
* Loss of ($5.21) per share (GAAP) and core (non-GAAP)* loss of ($5.82) per
share
* Operating cash flow of ($0.6) billion; paid $1.2 billion of dividends
* Total backlog of $474 billion, including more than 5,500 commercial
airplanes
* Cash and marketable securities of $9.6 billion provide strong liquidity
* Previously issued 2019 guidance does not reflect 737 MAX impacts; new
guidance to be issued at a future date
Table 1. Summary Financial Second Quarter First Half
Results
(Dollars in Millions, 2019 2018 Change 2019 2018 Change
except per share data)
Revenues $15,751 $24,258 (35)% $38,668 $47,640 (19)%
GAAP
(Loss)/Earnings From ($3,380) $2,710 NM ($1,030) $5,585 NM
Operations
Operating Margin (21.5)% 11.2% NM (2.7)% 11.7% NM
Net (Loss)/Earnings ($2,942) $2,196 NM ($793) $4,673 NM
(Loss)/Earnings Per Share ($5.21) $3.73 NM ($1.40) $7.88 NM
Operating Cash Flow ($590) $4,680 NM $2,198 $7,816 NM
Non-GAAP*
Core Operating (Loss)/ ($3,745) $2,393 NM ($1,759) $4,903 NM
Earnings
Core Operating Margin (23.8)% 9.9% NM (4.5)% 10.3% NM
Core (Loss)/Earnings Per ($5.82) $3.33 NM ($2.60) $6.97 NM
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 $15.8 billion,
GAAP loss per share of ($5.21) and core loss per share (non-GAAP)* of ($5.82),
reflecting the previously announced 737 MAX charge (which reduced revenue by
$5.6 billion and earnings by $8.74 per share) as well as lower 737 deliveries
partially offset by higher defense and services volume (Table 1). Boeing
recorded operating cash flow of ($0.6) billion and paid $1.2 billion of
dividends.
The previously issued 2019 financial guidance does not reflect 737 MAX impacts.
Due to the uncertainty of the timing and conditions surrounding return to
service of the 737 MAX fleet, new guidance will be issued at a future date.
Boeing is working very closely with the FAA on the process they have laid out
to certify the 737 MAX software update and safely return the MAX to service.
Disciplined development and testing is underway and we will submit the final
software package to the FAA once we have satisfied all of their certification
requirements. Regulatory authorities will determine the process for certifying
the MAX software and training updates as well as the timing for lifting the
grounding order.
"This is a defining moment for Boeing and we remain focused on our enduring
values of safety, quality, and integrity in all that we do, as we work to
safely return the 737 MAX to service," said Boeing Chairman, President and
Chief Executive Officer Dennis Muilenburg. "During these challenging times,
teams across our enterprise continue to perform at a high level while
delivering on commitments and capturing new opportunities driven by strong,
long-term fundamentals."
Table 2. Cash Flow Second Quarter First Half
(Millions) 2019 2018 2019 2018
Operating Cash Flow ($590) $4,680 $2,198 $7,816
Less Additions to Property, Plant & Equipment ($421) ($376) ($922) ($770)
Free Cash Flow* ($1,011) $4,304 $1,276 $7,046
*Non-GAAP measure; complete definitions of Boeing's non-GAAP measures are on
page 6, "Non-GAAP Measures Disclosures."
Operating cash flow was ($0.6) billion in the quarter, primarily reflecting
lower 737 deliveries and production rate as well as timing of receipts and
expenditures (Table 2). During the quarter, the company paid $1.2 billion of
dividends, reflecting a 20 percent increase in dividends per share compared to
the same period of the prior year.
Table 3. Cash, Marketable Securities and Debt Balances Quarter-End
(Billions) Q2 19 Q1 19
Cash $9.2 $6.8
Marketable Securities1 $0.4 $0.9
Total $9.6 $7.7
Debt Balances:
The Boeing Company, net of intercompany loans to BCC $17.3 $12.6
Boeing Capital, including intercompany loans $1.9 $2.1
Total Consolidated Debt $19.2 $14.7
1 Marketable securities consists primarily of time deposits due within one year
classified as "short-term investments."
Cash and investments in marketable securities totaled $9.6 billion, compared to
$7.7 billion at the beginning of the quarter (Table 3). Debt was $19.2 billion,
up from $14.7 billion at the beginning of the quarter primarily due to the
issuance of new debt.
Total company backlog at quarter-end remained healthy at $474 billion and
included net orders of $9 billion.
Segment Results
Commercial Airplanes
Table 4. Commercial Airplanes Second Quarter First Half
(Dollars in Millions) 2019 2018 Change 2019 2018 Change
Commercial Airplanes 90 194 (54)% 239 378 (37)%
Deliveries
Revenues $4,722 13,952 (66)% $16,544 $26,897 (38)%
(Loss)/Earnings from ($4,946) $1,785 NM ($3,773) $3,197 NM
Operations
Operating Margin (104.7)% 12.8% NM (22.8)% 11.9% NM
Commercial Airplanes second-quarter revenue was $4.7 billion reflecting the
previously announced 737 MAX charge and lower 737 deliveries partially offset
by favorable mix (Table 4). Second-quarter operating margin was (104.7) percent
reflecting the previously announced 737 MAX charge and lower 737 deliveries
partially offset by a higher margin on the 787 program.
During the quarter, Commercial Airplanes delivered 90 airplanes, including 42
787s, and captured orders for two 777 freighters for DHL and six 767 freighters
for FedEx. Highlights from the Paris Air Show included a letter of intent from
IAG for 200 737 MAX airplanes as well as several wide body commitments. The
777X program is progressing well through pre-flight testing. While the company
is still targeting late 2020 for first delivery of the 777X, there is
significant risk to this schedule given engine challenges, which are delaying
first flight until early 2020.
Commercial Airplanes backlog remains healthy with more than 5,500 airplanes
valued at $390 billion.
Defense, Space & Security
Table 5. Defense, Space & Second Quarter First Half
Security
(Dollars in Millions) 2019 2018 Change 2019 2018 Change
Revenues $6,612 $6,100 8% $13,223 $12,581 5%
Earnings from Operations $975 $376 159% $1,822 $1,133 61%
Operating Margin 14.7% 6.2% 8.5 13.8% 9.0% 4.8
Pts Pts
Defense, Space & Security second-quarter revenue increased to $6.6 billion
primarily driven by higher volume across derivative aircraft, satellites, and
weapons (Table 5). Second-quarter operating margin increased to 14.7 percent
primarily due to a gain on sale of property and lower cost growth on the KC-46
Tanker program compared to the second quarter of 2018.
During the quarter, Defense, Space & Security received contracts for MH-47G
Block II Chinook for the U.S. Army Special Operations, F/A-18 service life
modification for the U.S. Navy, Joint Direct Attack Munition for the U.S. Air
Force, and Wideband Global Satellite Communication for the U.S. Air Force.
Significant milestones achieved during the quarter included completion of the
first T-X Trainer flight test on contract with the U.S. Air Force and the final
parachute test for the Commercial Crew spacecraft.
Backlog at Defense, Space & Security was $64 billion, of which 31 percent
represents orders from customers outside the U.S.
Global Services
Table 6. Global Services Second Quarter First Half
(Dollars in Millions) 2019 2018 Change 2019 2018 Change
Revenues $4,543 $4,097 11% $9,162 $8,047 14%
Earnings from Operations $687 $604 14% $1,340 $1,251 7%
Operating Margin 15.1% 14.7% 0.4 Pts 14.6% 15.5% (0.9) Pts
Global Services second-quarter revenue increased to $4.5 billion, primarily
driven by the acquisition of Boeing Distribution Services, Inc. (formerly KLX)
and higher international government services volume (Table 6). Second-quarter
operating margin was relatively stable at 15.1 percent.
During the quarter, Global Services was awarded Performance Based Logistics
contracts for AH-64 Apache for the U.S. Army and KC-767A Tanker for the Italian
Air Force. At the Paris Air Show, Global Services signed commitments with ASL
Aviation Holdings and GECAS for up to 45 737-800 converted freighters and
announced digital solution agreements with Delta Air Lines and JetBlue Airways.
Additional Financial Information
Table 7. Additional Financial Information Second Quarter First Half
(Dollars in Millions) 2019 2018 2019 2018
Revenues
Boeing Capital $75 $72 $141 $137
Unallocated items, eliminations and other ($201) $37 ($402) ($22)
Earnings from Operations
Boeing Capital $37 $24 $57 $44
FAS/CAS service cost adjustment $365 $317 $729 $682
Other unallocated items and eliminations ($498) ($396) ($1,205) ($722)
Other income, net $107 ($15) $213 $51
Interest and debt expense ($154) ($109) ($277) ($211)
Effective tax rate 14.2% 15.1% 27.5% 13.9%
At quarter-end, Boeing Capital's net portfolio balance was $2.3 billion.
Revenue in other unallocated items and eliminations decreased primarily due to
reserves related to cost accounting litigation. The change in earnings from
other unallocated items and eliminations is primarily due to increased
enterprise research and development investment. The effective tax rate for the
second quarter decreased from the same period in the prior year primarily due
to lower pre-tax earnings in the current year.
Outlook
The previously issued 2019 financial guidance does not reflect 737 MAX impacts.
Due to the uncertainty of the timing and conditions surrounding return to
service of the 737 MAX fleet, new guidance will be issued at a future date.
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 (Loss)/Earnings, Core Operating Margin and Core (Loss)/Earnings
Per Share
Core operating (loss)/earnings is defined as GAAP (loss)/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 (loss)/
earnings expressed as a percentage of revenue. Core (loss)/earnings per share
is defined as GAAP diluted (loss)/earnings per share excluding the net (loss)/
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 (loss)/earnings, core operating
margin and core (loss)/earnings per share for purposes of evaluating and
forecasting underlying business performance. Management believes these core
(loss)/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 page 13-14.
Free Cash Flow
Free cash flow is defined as GAAP operating cash flow without capital
expenditures for property, plant and equipment additions. 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 timing and conditions surrounding the return to service of the 737 MAX
fleet; (2) general conditions in the economy and our industry, including those
due to regulatory changes; (3) our reliance on our commercial airline
customers; (4) 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; (5) changing budget and appropriation
levels and acquisition priorities of the U.S. government; (6) our dependence on
U.S. government contracts; (7) our reliance on fixed-price contracts; (8) our
reliance on cost-type contracts; (9) uncertainties concerning contracts that
include in-orbit incentive payments; (10) our dependence on our subcontractors
and suppliers, as well as the availability of raw materials; (11) changes in
accounting estimates; (12) changes in the competitive landscape in our markets;
(13) our non-U.S. operations, including sales to non-U.S. customers; (14)
threats to the security of our or our customers' information; (15) potential
adverse developments in new or pending litigation and/or government
investigations; (16) customer and aircraft concentration in our customer
financing portfolio; (17) changes in our ability to obtain debt on commercially
reasonable terms and at competitive rates; (18) realizing the anticipated
benefits of mergers, acquisitions, joint ventures/strategic alliances or
divestitures; (19) the adequacy of our insurance coverage to cover significant
risk exposures; (20) potential business disruptions, including those related to
physical security threats, information technology or cyber-attacks, epidemics,
sanctions or natural disasters; (21) work stoppages or other labor disruptions;
(22) substantial pension and other postretirement benefit obligations; and (23)
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: Chaz Bickers (312) 544-2002
The Boeing Company and Subsidiaries
Consolidated Statements of Operations
(Unaudited)
Six months ended Three months ended
June 30 June 30
(Dollars in millions, except per share 2019 2018 2019 2018
data)
Sales of products $33,319 $42,385 $13,094 $21,565
Sales of services 5,349 5,255 2,657 2,693
Total revenues 38,668 47,640 15,751 24,258
Cost of products (31,910) (34,252) (15,672) (17,436)
Cost of services (4,511) (4,075) (2,122) (2,083)
Boeing Capital interest expense (34) (33) (16) (17)
Total costs and expenses (36,455) (38,360) (17,810) (19,536)
2,213 9,280 (2,059) 4,722
Income/(loss) from operating 5 80 (15) 6
investments, net
General and administrative expense (1,856) (2,191) (672) (1,194)
Research and development expense, net (1,692) (1,591) (826) (827)
Gain on dispositions, net 300 7 192 3
(Loss)/earnings from operations (1,030) 5,585 (3,380) 2,710
Other income/(loss), net 213 51 107 (15)
Interest and debt expense (277) (211) (154) (109)
(Loss)/earnings before income taxes (1,094) 5,425 (3,427) 2,586
Income tax benefit/(expense) 301 (752) 485 (390)
Net (loss)/earnings ($793) $4,673 ($2,942) $2,196
Basic (loss)/earnings per share ($1.40) $7.97 ($5.21) $3.77
Diluted (loss)/earnings per share ($1.40) $7.88 ($5.21) $3.73
Weighted average diluted shares 566.6 592.9 565.3 588.7
(millions)
The Boeing Company and Subsidiaries
Consolidated Statements of Financial Position
(Unaudited)
(Dollars in millions, except per share data) June 30 December 31
2019 2018
Assets
Cash and cash equivalents $9,167 $7,637
Short-term and other investments 439 927
Accounts receivable, net 3,291 3,879
Unbilled receivables, net 10,247 10,025
Current portion of customer financing, net 171 460
Inventories 68,492 62,567
Other current assets 3,304 2,335
Total current assets 95,111 87,830
Customer financing, net 2,139 2,418
Property, plant and equipment, net of accumulated 12,601 12,645
depreciation of $18,855 and $18,568
Goodwill 8,051 7,840
Acquired intangible assets, net 3,761 3,429
Deferred income taxes 357 284
Investments 1,142 1,087
Other assets, net of accumulated amortization of $523 and 3,099 1,826
$503
Total assets $126,261 $117,359
Liabilities and equity
Accounts payable $15,267 $12,916
Accrued liabilities 20,042 14,808
Advances and progress billings 52,523 50,676
Short-term debt and current portion of long-term debt 4,357 3,190
Total current liabilities 92,189 81,590
Deferred income taxes 1,736
Accrued retiree health care 4,486 4,584
Accrued pension plan liability, net 14,831 15,323
Other long-term liabilities 4,839 3,059
Long-term debt 14,859 10,657
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 6,638 6,768
Treasury stock, at cost - 449,558,553 and 444,619,970 (54,932) (52,348)
shares
Retained earnings 52,819 55,941
Accumulated other comprehensive loss (14,908) (15,083)
Total shareholders' equity (5,322) 339
Noncontrolling interests 379 71
Total equity (4,943) 410
Total liabilities and equity $126,261 $117,359
The Boeing Company and Subsidiaries
Consolidated Statements of Cash Flows
(Unaudited)
Six months ended
June 30
(Dollars in millions) 2019 2018
Cash flows - operating activities:
Net (loss)/earnings ($793) $4,673
Adjustments to reconcile net earnings to net cash provided by
operating activities:
Non-cash items -
Share-based plans expense 104 98
Depreciation and amortization 1,067 1,008
Investment/asset impairment charges, net 70 44
Customer financing valuation adjustments 249 (2)
Gain on dispositions, net (300) (7)
Other charges and credits, net 145 112
Changes in assets and liabilities -
Accounts receivable 588 62
Unbilled receivables (222) (1,675)
Advances and progress billings 1,842 2,931
Inventories (5,233) 408
Other current assets (887) 2
Accounts payable 2,002 682
Accrued liabilities 4,959 (922)
Income taxes receivable, payable and deferred (921) 269
Other long-term liabilities (509) (65)
Pension and other postretirement plans (390) (57)
Customer financing, net 347 (97)
Other 80 352
Net cash provided by operating activities 2,198 7,816
Cash flows - investing activities:
Property, plant and equipment additions (922) (770)
Property, plant and equipment reductions 331 41
Acquisitions, net of cash acquired (492)
Contributions to investments (496) (1,537)
Proceeds from investments 758 1,028
Purchase of distribution rights (20) (56)
Other (12) (1)
Net cash used by investing activities (853) (1,295)
Cash flows - financing activities:
New borrowings 11,670 3,648
Debt repayments (6,422) (2,708)
Contributions from noncontrolling interests 7 20
Stock options exercised 47 61
Employee taxes on certain share-based payment arrangements (238) (236)
Common shares repurchased (2,651) (5,965)
Dividends paid (2,317) (1,997)
Net cash provided/(used) by financing activities 96 (7,177)
Effect of exchange rate changes on cash and cash equivalents, (2) (36)
including restricted
Net increase/(decrease) in cash & cash equivalents, including 1,439 (692)
restricted
Cash & cash equivalents, including restricted, at beginning of 7,813 8,887
year
Cash & cash equivalents, including restricted, at end of 9,252 8,195
period
Less restricted cash & cash equivalents, included in 85 74
Investments
Cash and cash equivalents at end of period $9,167 $8,121
The Boeing Company and Subsidiaries
Summary of Business Segment Data
(Unaudited)
Effective at the beginning of 2019, all revenues and costs associated with
military derivative aircraft production are reported in the Defense, Space &
Security segment. Revenues and costs associated with military derivative
aircraft production were previously reported in the Commercial Airplanes and
Defense, Space & Security segments. Business segment data for 2018 reflects the
realignment for military derivative aircraft as well as the realignment of
certain programs from Defense, Space & Security to Global Services.
Six months ended Three months
June 30 ended
June 30
(Dollars in millions) 2019 2018 2019 2018
Revenues:
Commercial Airplanes $16,544 $26,897 $4,722 $13,952
Defense, Space & Security 13,223 12,581 6,612 6,100
Global Services 9,162 8,047 4,543 4,097
Boeing Capital 141 137 75 72
Unallocated items, eliminations and other (402) (22) (201) 37
Total revenues $38,668 $47,640 $15,751 $24,258
(Loss)/earnings from operations:
Commercial Airplanes ($3,773) $3,197 ($4,946) $1,785
Defense, Space & Security 1,822 1,133 975 376
Global Services 1,340 1,251 687 604
Boeing Capital 57 44 37 24
Segment operating (loss)/profit (554) 5,625 (3,247) 2,789
Unallocated items, eliminations and other (1,205) (722) (498) (396)
FAS/CAS service cost adjustment 729 682 365 317
(Loss)/earnings from operations (1,030) 5,585 (3,380) 2,710
Other income/(loss), net 213 51 107 (15)
Interest and debt expense (277) (211) (154) (109)
(Loss)/earnings before income taxes (1,094) 5,425 (3,427) 2,586
Income tax benefit/(expense) 301 (752) 485 (390)
Net (loss)/earnings ($793) $4,673 ($2,942) $2,196
Research and development expense, net:
Commercial Airplanes $1,062 $1,099 $498 $550
Defense, Space & Security 384 402 196 219
Global Services 73 71 33 37
Other 173 19 99 21
Total research and development expense, $1,692 $1,591 $826 $827
net
Unallocated items, eliminations and other:
Share-based plans ($36) ($36) ($22) ($18)
Deferred compensation (129) (56) (27) (27)
Amortization of previously capitalized (45) (48) (21) (23)
interest
Customer financing impairment (250)
Research and development expense, net (173) (19) (99) (21)
Eliminations and other unallocated items (572) (563) (329) (307)
Sub-total (included in core operating (1,205) (722) (498) (396)
earnings)
Pension FAS/CAS service cost adjustment 549 520 275 237
Postretirement FAS/CAS service cost 180 162 90 80
adjustment
FAS/CAS service cost adjustment 729 682 $365 $317
Total ($476) ($40) ($133) ($79)
The Boeing Company and Subsidiaries
Operating and Financial Data
(Unaudited)
Deliveries Six months ended Three months ended
June 30 June 30
Commercial Airplanes 2019 2018 2019 2018
737 113 269 24 137
747 4 3 2 1
767 22 9 10 5
777 22 (1) 25 12 13
787 78 72 42 38
Total 239 378 90 194
Note: Aircraft accounted for as revenues by BCA and as operating leases in
consolidation identified by parentheses
Defense, Space & Security
AH-64 Apache (New) 10 - 4 -
AH-64 Apache (Remanufactured) 35 6 13 -
CH-47 Chinook (New) 7 9 - 5
CH-47 Chinook (Renewed) 9 8 5 4
F-15 Models 5 5 1 3
F/A-18 Models 10 5 3 -
KC-46 Tanker 12 - 5 -
P-8 Models 8 8 5 4
Commercial and Civil Satellites 1 - 1 -
Military Satellites - - - -
Total backlog (Dollars in millions) June 30 December 31
2019 2018
Commercial Airplanes $390,405 $408,140
Defense, Space & Security 63,872 61,277
Global Services 19,974 21,064
Total backlog $474,251 $490,481
Contractual backlog $448,816 $462,070
Unobligated backlog 25,435 28,411
Total backlog $474,251 $490,481
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 6 of this release for additional information on the use of
these non-GAAP financial measures.
(Dollars in millions, except per share Second Quarter Second Quarter
data) 2019 2018
$ Per $ Per
millions Share millions Share
Revenues 15,751 24,258
(Loss)/earnings from operations (GAAP) (3,380) 2,710
Operating margin (GAAP) (21.5)% 11.2%
FAS/CAS service cost adjustment:
Pension FAS/CAS service cost adjustment (275) (237)
Postretirement FAS/CAS service cost (90) (80)
adjustment
FAS/CAS service cost adjustment (365) (317)
Core operating (loss)/earnings (non-GAAP) ($3,745) $2,393
Core operating margin (non-GAAP) (23.8)% 9.9%
Diluted (loss)/earnings per share (GAAP) ($5.21) $3.73
Pension FAS/CAS service cost adjustment ($275) (0.49) ($237) (0.40)
Postretirement FAS/CAS service cost (90) (0.16) (80) (0.14)
adjustment
Non-operating pension expense (94) (0.17) (6) (0.01)
Non-operating postretirement expense 26 0.05 24 0.04
Provision for deferred income taxes on 91 0.16 63 0.11
adjustments 1
Subtotal of adjustments ($342) ($0.61) ($236) ($0.40)
Core (loss)/earnings per share (non-GAAP) ($5.82) $3.33
Weighted average diluted shares (in 565.3 588.7
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 earnings, core operating margin, and core 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 millions, except per share First Half 2019 First Half 2018
data)
$ Per $ Per
millions Share millions Share
Revenues 38,668 47,640
(Loss)/earnings from operations (GAAP) (1,030) 5,585
Operating margin (GAAP) (2.7)% 11.7%
FAS/CAS service cost adjustment:
Pension FAS/CAS service cost adjustment (549) (520)
Postretirement FAS/CAS service cost (180) (162)
adjustment
FAS/CAS service cost adjustment (729) (682)
Core operating (loss)/earnings (non-GAAP) ($1,759) $4,903
Core operating margin (non-GAAP) (4.5)% 10.3%
Diluted earnings per share (GAAP) ($1.40) $7.88
Pension FAS/CAS service cost adjustment ($549) (0.97) ($520) (0.88)
Postretirement FAS/CAS service cost (180) (0.32) (162) (0.27)
adjustment
Non-operating pension expense (187) (0.32) (48) (0.08)
Non-operating postretirement expense 53 0.09 48 0.08
Provision for deferred income taxes on 181 0.32 143 0.24
adjustments 1
Subtotal of adjustments ($682) ($1.20) ($539) ($0.91)
Core (loss)/earnings per share (non-GAAP) ($2.60) $6.97
Weighted average diluted shares (in 566.6 592.9
millions)
1 The income tax impact is calculated using the U.S.
corporate statutory tax rate.
END
(END) Dow Jones Newswires
July 24, 2019 07:33 ET (11:33 GMT)
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