TIDMBOE
Boeing Reports Second-Quarter Results
CHICAGO, July 29, 2020 /PRNewswire/ --
* Financial results continue to be significantly impacted by COVID-19 and the
737 MAX grounding
* Revenue of $11.8 billion, GAAP loss per share of ($4.20) and core
(non-GAAP)* loss per share of ($4.79)
* Operating cash flow of ($5.3) billion; cash and marketable securities of
$32.4 billion
* Total backlog of $409 billion, including more than 4,500 commercial
airplanes
Table 1. Summary Second Quarter First Half
Financial Results
(Dollars in Millions, 2020 2019 Change 2020 2019 Change
except per share data)
Revenues $11,807 $15,751 (25)% $28,715 $38,668 (26)%
GAAP
Loss From Operations ($2,964) ($3,380) NM ($4,317) ($1,030) NM
Operating Margin (25.1)% (21.5)% NM (15.0)% (2.7)% NM
Net Loss ($2,395) ($2,942) NM ($3,036) ($793) NM
Loss Per Share ($4.20) ($5.21) NM ($5.31) ($1.40) NM
Operating Cash Flow ($5,280) ($590) NM ($9,582) $2,198 NM
Non-GAAP*
Core Operating Loss ($3,319) ($3,745) NM ($5,019) ($1,759) NM
Core Operating Margin (28.1)% (23.8)% NM (17.5)% (4.5)% NM
Core Loss Per Share ($4.79) ($5.82) NM ($6.49) ($2.60) 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 second-quarter revenue of $11.8 billion,
GAAP loss per share of ($4.20) and core loss per share (non-GAAP)* of ($4.79),
primarily reflecting the impacts of COVID-19 and the 737 MAX grounding (Table
1). Boeing recorded operating cash flow of ($5.3) billion.
"We remained focused on the health of our employees and communities while
proactively taking action to navigate the unprecedented commercial market
impacts from the COVID-19 pandemic," said Boeing President and Chief Executive
Officer Dave Calhoun. "We're working closely with our customers, suppliers and
global partners to manage the challenges to our industry, bridge to recovery
and rebuild to be stronger on the other side."
In the second quarter, Boeing restarted production operations across key sites
following temporary pauses to protect its workforce and introduce rigorous new
health and safety procedures. Despite the challenges, Boeing continued to
deliver across key commercial, defense, space and services programs. The
company also resumed early stages of production on the 737 program with a focus
on safety, quality and operational excellence. Following the lead of global
regulators, Boeing made steady progress toward the safe return to service of
the 737, including completion of FAA certification flight tests.
To align to the sharp reduction in commercial market demand in light of
COVID-19, the company is taking several actions including further adjusting
commercial airplane production rates and reducing employment levels.
"The diversity of our balanced portfolio and our government services, defense
and space programs provide some critical stability for us in the near-term as
we take tough but necessary steps to adapt for new market realities," Calhoun
said. "We are taking the right action to ensure we're well positioned for the
future by strengthening our culture, improving transparency, rebuilding trust
and transforming our business to become a better, more sustainable Boeing. Air
travel has always proven to be resilient - and so has Boeing."
Table 2. Cash Flow Second Quarter First Half
(Millions) 2020 2019 2020 2019
Operating Cash Flow ($5,280) ($590) ($9,582) $2,198
Less Additions to Property, Plant & ($348) ($421) ($776) ($922)
Equipment
Free Cash Flow* ($5,628) ($1,011) ($10,358) $1,276
*Non-GAAP measure; complete definitions of Boeing's non-GAAP measures are on
page 6, "Non-GAAP Measures Disclosures."
Operating cash flow was ($5.3) billion in the quarter, primarily reflecting
lower commercial deliveries and services volume due to COVID-19 and the 737 MAX
grounding, as well as timing of receipts and expenditures (Table 2).
Table 3. Cash, Marketable Securities and Debt Balances Quarter-End
(Billions) Q2 20 Q1 20
Cash $20.0 $15.0
Marketable Securities1 $12.4 $0.5
Total $32.4 $15.5
Debt Balances:
The Boeing Company, net of intercompany loans to BCC $59.5 $36.9
Boeing Capital, including intercompany loans $1.9 $2.0
Total Consolidated Debt $61.4 $38.9
1 Marketable securities consists primarily of time deposits due within one year
classified as "short-term investments."
Cash and investments in marketable securities increased to $32.4 billion,
compared to $15.5 billion at the beginning of the quarter, driven by the
issuance of new debt (Table 3). Debt was $61.4 billion, up from $38.9 billion
at the beginning of the quarter due to the issuance of new debt, partially
offset by repayment of maturing debt.
Total company backlog at quarter-end was $409 billion.
Segment Results
Commercial Airplanes
Table 4. Commercial Second Quarter First Half
Airplanes
(Dollars in Millions) 2020 2019 Change 2020 2019 Change
Commercial Airplanes 20 90 (78)% 70 239 (71)%
Deliveries
Revenues $1,633 $4,722 (65)% $7,838 $16,544 (53)%
Loss from Operations ($2,762) ($4,946) NM ($4,830) ($3,773) NM
Operating Margin (169.1)% (104.7)% NM (61.6)% (22.8)% NM
Commercial Airplanes second-quarter revenue and operating margin decreased
reflecting lower delivery volume, partially offset by a lower 737 MAX customer
consideration charge of $551 million in the quarter compared to a $5.6 billion
charge in the same period last year. Second-quarter operating margin was also
negatively impacted by $712 million of abnormal production costs related to the
737 program, $468 million of severance expense and $133 million of abnormal
production costs from the temporary suspension of operations in response to
COVID-19.
The 737 program resumed early stages of production in May and expects to
continue to produce at low rates for the remainder of 2020. The COVID-19
pandemic has significantly impacted air travel and reduced near-term demand,
resulting in lower production and delivery rate assumptions. Commercial
Airplanes expects to gradually increase the 737 production rate to 31 per month
by the beginning of 2022, with further gradual increases to correspond with
market demand. Estimated potential concessions and other considerations to
customers related to the 737 MAX grounding increased by $551 million in the
quarter. There was no material change to estimated abnormal production costs.
Commercial Airplanes has further updated its production rate assumptions this
quarter to reflect impacts of COVID-19 on its demand outlook, and will continue
to assess them on an ongoing basis. The 787 production rate will be reduced to
6 per month in 2021. The 777/777X combined production rate will be gradually
reduced to 2 per month in 2021, with 777X first delivery targeted for 2022. At
this time, production rate assumptions have not changed on the 767 and 747
programs.
Commercial Airplanes delivered 20 airplanes during the quarter, and backlog
included over 4,500 airplanes valued at $326 billion.
Defense, Space & Security
Table 5. Defense, Space & Second Quarter First Half
Security
(Dollars in Millions) 2020 2019 Change 2020 2019 Change
Revenues $6,588 $6,579 - $12,630 $13,166 (4)%
Earnings from Operations $600 $975 (38)% $409 $1,827 (78)%
Operating Margin 9.1% 14.8% (5.7) 3.2% 13.9% (10.7)
Pts Pts
Defense, Space & Security second-quarter revenue was $6.6 billion, reflecting
COVID-19 impact on derivative aircraft programs, partially offset by higher
volume across the remainder of the portfolio (Table 5). Second-quarter
operating margin decreased to 9.1 percent primarily due to a gain on sale of
property in the second quarter of 2019 and a $151 million KC-46A Tanker charge
primarily driven by additional fixed cost allocation resulting from lower
commercial airplane production volume due to COVID-19.
During the quarter, Defense, Space & Security received an award for three
additional MQ-25 unmanned aerial refueling aircraft for the U.S. Navy, as well
as contracts for Cruise Missile Systems for the U.S. Navy and a contract for 24
AH-64E Apache helicopters for the Kingdom of Morocco. Defense, Space & Security
completed Critical Design Review for the T-7A advanced trainer, achieved first
flight and delivery of the F/A-18 U.S. Navy Block III Super Hornet, and
achieved first flight of the F-15 Qatar Advanced aircraft. Defense, Space &
Security also delivered the 100th U.S. Navy P-8A Poseidon, the 400th V-22
Osprey, and the 2,500th AH-64 Apache.
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) 2020 2019 Change 2020 2019 Change
Revenues $3,488 $4,543 (23)% $8,116 $9,162 (11)%
(Loss)/Earnings from Operations ($672) $687 NM $36 $1,340 NM
Operating Margin (19.3)% 15.1% NM 0.4% 14.6% NM
Global Services second-quarter revenue decreased to $3.5 billion, driven by
lower commercial services volume due to COVID-19, partially offset by higher
government services volume (Table 6). Second-quarter operating margin decreased
to (19.3) percent primarily due to lower commercial services volume, less
favorable mix of products and services, and $923 million of charges related to
asset impairments and severance costs as a result of the COVID-19 market
environment.
During the quarter, Global Services was awarded a contract modification for
P-8A integrated logistics support for the U.S. Navy. Global Services captured
an order for four 767-300 freighter conversions for DHL and was awarded a
contract for F-15 pre-delivery training support for the Qatar Emiri Air Force.
Global Services also delivered the first F/A-18 Super Hornet test aircraft
modified for the U.S. Navy Blue Angels.
Additional Financial Information
Table 7. Additional Financial Information Second Quarter First Half
(Dollars in Millions) 2020 2019 2020 2019
Revenues
Boeing Capital $69 $75 $134 $141
Unallocated items, eliminations and other $29 ($168) ($3) ($345)
Earnings from Operations
Boeing Capital ($7) $37 $17 $57
FAS/CAS service cost adjustment $355 $365 $702 $729
Other unallocated items and eliminations ($478) ($498) ($651) ($1,210)
Other income, net $94 $107 $206 $213
Interest and debt expense ($553) ($154) ($815) ($277)
Effective tax rate 30.0% 14.2% 38.4% 27.5%
At quarter-end, Boeing Capital's net portfolio balance was $2.1 billion.
Revenue from other unallocated items and eliminations increased primarily due
to reserves related to cost accounting litigation recorded in the second
quarter of 2019. Interest and debt expense increased due to higher debt
balances. The second quarter effective tax rate reflects tax benefits related
to the 5 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 page 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 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)
Six months ended Three months ended
June 30 June 30
(Dollars in millions, except per share 2020 2019 2020 2019
data)
Sales of products $23,254 $33,319 $9,063 $13,094
Sales of services 5,461 5,349 2,744 2,657
Total revenues 28,715 38,668 11,807 15,751
Cost of products (25,091) (31,910) (10,378) (15,672)
Cost of services (4,632) (4,511) (2,589) (2,122)
Boeing Capital interest expense (23) (34) (11) (16)
Total costs and expenses (29,746) (36,455) (12,978) (17,810)
(1,031) 2,213 (1,171) (2,059)
(Loss)/income from operating (47) 5 (45) (15)
investments, net
General and administrative expense (2,034) (1,856) (1,161) (672)
Research and development expense, net (1,297) (1,692) (625) (826)
Gain on dispositions, net 92 300 38 192
Loss from operations (4,317) (1,030) (2,964) (3,380)
Other income, net 206 213 94 107
Interest and debt expense (815) (277) (553) (154)
Loss before income taxes (4,926) (1,094) (3,423) (3,427)
Income tax benefit 1,890 301 1,028 485
Net loss (3,036) (793) (2,395) (2,942)
Less: net loss attributable to (32) (19)
noncontrolling interest
Net loss attributable to Boeing ($3,004) ($793) ($2,376) ($2,942)
Shareholders
Basic loss per share ($5.31) ($1.40) ($4.20) ($5.21)
Diluted loss per share ($5.31) ($1.40) ($4.20) ($5.21)
Weighted average diluted shares 566.1 566.6 566.4 565.3
(millions)
The Boeing Company and Subsidiaries
Consolidated Statements of Financial Position
(Unaudited)
(Dollars in millions, except per share data) June 30 December 31
2020 2019
Assets
Cash and cash equivalents $19,992 $9,485
Short-term and other investments 12,438 545
Accounts receivable, net 2,793 3,266
Unbilled receivables, net 8,570 9,043
Current portion of customer financing, net 115 162
Inventories 83,745 76,622
Other current assets, net 2,624 3,106
Total current assets 130,277 102,229
Customer financing, net 2,054 2,136
Property, plant and equipment, net of accumulated 12,182 12,502
depreciation of $19,863 and $19,342
Goodwill 8,064 8,060
Acquired intangible assets, net 3,019 3,338
Deferred income taxes 729 683
Investments 1,066 1,092
Other assets, net of accumulated amortization of $617 5,481 3,585
and $580
Total assets $162,872 $133,625
Liabilities and equity
Accounts payable $13,700 $15,553
Accrued liabilities 22,493 22,868
Advances and progress billings 53,367 51,551
Short-term debt and current portion of long-term debt 2,922 7,340
Total current liabilities 92,482 97,312
Deferred income taxes 404 413
Accrued retiree health care 4,427 4,540
Accrued pension plan liability, net 15,663 16,276
Other long-term liabilities 2,821 3,422
Long-term debt 58,457 19,962
Total liabilities 174,254 141,925
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 6,648 6,745
Treasury stock, at cost - 447,840,938 and 449,352,405 (54,829) (54,914)
shares
Retained earnings 47,478 50,644
Accumulated other comprehensive loss (16,025) (16,153)
Total shareholders' equity (11,667) (8,617)
Noncontrolling interests 285 317
Total equity (11,382) (8,300)
Total liabilities and equity $162,872 $133,625
The Boeing Company and Subsidiaries
Consolidated Statements of Cash Flows
(Unaudited)
Six months ended
June 30
(Dollars in millions) 2020 2019
Cash flows - operating activities:
Net loss ($3,036) ($793)
Adjustments to reconcile net loss to net cash (used)/
provided by operating activities:
Non-cash items -
Share-based plans expense 115 104
Depreciation and amortization 1,103 1,067
Investment/asset impairment charges, net 280 70
Customer financing valuation adjustments 9 249
Gain on dispositions, net (92) (300)
Other charges and credits, net 815 145
Changes in assets and liabilities -
Accounts receivable 143 588
Unbilled receivables 285 (222)
Advances and progress billings 1,822 1,842
Inventories (6,741) (5,233)
Other current assets 433 (887)
Accounts payable (3,181) 2,002
Accrued liabilities 514 4,959
Income taxes receivable, payable and deferred (1,894) (921)
Other long-term liabilities (109) (509)
Pension and other postretirement plans (357) (390)
Customer financing, net 62 347
Other 247 80
Net cash (used)/provided by operating activities (9,582) 2,198
Cash flows - investing activities:
Property, plant and equipment additions (776) (922)
Property, plant and equipment reductions 96 331
Acquisitions, net of cash acquired (492)
Contributions to investments (12,557) (496)
Proceeds from investments 543 758
Purchase of distribution rights (20)
Other 8 (12)
Net cash used by investing activities (12,686) (853)
Cash flows - financing activities:
New borrowings 42,302 11,670
Debt repayments (8,265) (6,422)
Contributions from noncontrolling interests 7
Stock options exercised 27 47
Employee taxes on certain share-based payment arrangements (164) (238)
Common shares repurchased (2,651)
Dividends paid (1,158) (2,317)
Net cash provided by financing activities 32,742 96
Effect of exchange rate changes on cash and cash (11) (2)
equivalents, including restricted
Net increase in cash & cash equivalents, including 10,463 1,439
restricted
Cash & cash equivalents, including restricted, at beginning 9,571 7,813
of year
Cash & cash equivalents, including restricted, at end of 20,034 9,252
period
Less restricted cash & cash equivalents, included in 42 85
Investments
Cash and cash equivalents at end of period $19,992 $9,167
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.
Six months ended Three months
June 30 ended
June 30
(Dollars in millions) 2020 2019 2020 2019
Revenues:
Commercial Airplanes $7,838 $16,544 $1,633 $4,722
Defense, Space & Security 12,630 13,166 6,588 6,579
Global Services 8,116 9,162 3,488 4,543
Boeing Capital 134 141 69 75
Unallocated items, eliminations and (3) (345) 29 (168)
other
Total revenues $28,715 $38,668 $11,807 $15,751
Earnings/(loss) from operations:
Commercial Airplanes ($4,830) ($3,773) ($2,762) ($4,946)
Defense, Space & Security 409 1,827 600 975
Global Services 36 1,340 (672) 687
Boeing Capital 17 57 (7) 37
Segment operating loss (4,368) (549) (2,841) (3,247)
Unallocated items, eliminations and (651) (1,210) (478) (498)
other
FAS/CAS service cost adjustment 702 729 355 365
Loss from operations (4,317) (1,030) (2,964) (3,380)
Other income, net 206 213 94 107
Interest and debt expense (815) (277) (553) (154)
Loss before income taxes (4,926) (1,094) (3,423) (3,427)
Income tax benefit 1,890 301 1,028 485
Net loss (3,036) (793) (2,395) (2,942)
Less: Net loss attributable to (32) (19)
noncontrolling interest
Net loss attributable to Boeing ($3,004) ($793) ($2,376) ($2,942)
Shareholders
Research and development expense, net:
Commercial Airplanes $786 $1,062 $361 $498
Defense, Space & Security 330 374 167 190
Global Services 65 73 35 33
Other 116 183 62 105
Total research and development expense, $1,297 $1,692 $625 $826
net
Unallocated items, eliminations and
other:
Share-based plans ($43) ($36) ($25) ($22)
Deferred compensation 73 (129) (120) (27)
Amortization of previously capitalized (50) (45) (27) (21)
interest
Customer financing impairment (250)
Research and development expense, net (116) (183) (62) (105)
Eliminations and other unallocated items (515) (567) (244) (323)
Sub-total (included in core operating (651) (1,210) (478) (498)
loss)
Pension FAS/CAS service cost adjustment 513 549 258 275
Postretirement FAS/CAS service cost 189 180 97 90
adjustment
FAS/CAS service cost adjustment 702 729 $355 $365
Total $51 ($481) ($123) ($133)
The Boeing Company and Subsidiaries
Operating and Financial Data
(Unaudited)
Deliveries Six months ended Three months ended
June 30 June 30
Commercial Airplanes 2020 2019 2020 2019
737 9 113 4 24
747 1 4 1 2
767 14 22 4 10
777 10 22 (1) 4 12
787 36 78 7 42
Total 70 239 20 90
Note: Aircraft accounted for as revenues by BCA and as operating leases in
consolidation identified by parentheses
Defense, Space & Security
AH-64 Apache (New) 11 10 9 4
AH-64 Apache (Remanufactured) 32 35 18 13
C-17 Globemaster III - - - -
C-40A - - - -
CH-47 Chinook (New) 15 7 6 -
CH-47 Chinook (Renewed) 1 9 - 5
F-15 Models 3 5 3 1
F/A-18 Models 9 10 4 3
KC-46 Tanker 6 12 1 5
P-8 Models 6 8 3 5
Commercial and Civil Satellites - 1 - 1
Military Satellites - - - -
Total backlog (Dollars in millions) June 30 December 31
2020 2019
Commercial Airplanes $325,674 $376,593
Defense, Space & Security 64,286 63,691
Global Services 18,168 22,902
Unallocated items, eliminations and other 522 217
Total backlog $408,650 $463,403
Contractual backlog $385,389 $436,473
Unobligated backlog 23,261 26,930
Total backlog $408,650 $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 Second Quarter Second Quarter
data) 2020 2019
$ Per $ Per
millions Share millions share
Revenues 11,807 15,751
Loss from operations (GAAP) (2,964) (3,380)
Operating margin (GAAP) (25.1)% (21.5%)
FAS/CAS service cost adjustment:
Pension FAS/CAS service cost adjustment (258) (275)
Postretirement FAS/CAS service cost (97) (90)
adjustment
FAS/CAS service cost adjustment (355) (365)
Core operating loss (non-GAAP) ($3,319) ($3,745)
Core operating margin (non-GAAP) (28.1)% (23.8%)
Diluted loss per share (GAAP) ($4.20) ($5.21)
Pension FAS/CAS service cost adjustment ($258) (0.46) ($275) (0.49)
Postretirement FAS/CAS service cost (97) (0.17) (90) (0.16)
adjustment
Non-operating pension expense (84) (0.14) (94) (0.17)
Non-operating postretirement expense 14 0.02 26 0.05
Provision for deferred income taxes on 89 0.16 91 0.16
adjustments 1
Subtotal of adjustments ($336) ($0.59) ($342) ($0.61)
Core loss per share (non-GAAP) ($4.79) ($5.82)
Weighted average diluted shares (in 566.4 565.3
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 First Half 2020 First Half 2019
data)
$ Per $ Per
millions Share millions Share
Revenues 28,715 38,668
Loss from operations (GAAP) (4,317) (1,030)
Operating margin (GAAP) (15.0)% (2.7%)
FAS/CAS service cost adjustment:
Pension FAS/CAS service cost adjustment (513) (549)
Postretirement FAS/CAS service cost (189) (180)
adjustment
FAS/CAS service cost adjustment (702) (729)
Core operating loss (non-GAAP) ($5,019) ($1,759)
Core operating margin (non-GAAP) (17.5)% (4.5%)
Diluted loss per share (GAAP) ($5.31) ($1.40)
Pension FAS/CAS service cost adjustment ($513) (0.91) ($549) (0.97)
Postretirement FAS/CAS service cost (189) (0.33) (180) (0.32)
adjustment
Non-operating pension expense (171) (0.30) (187) (0.32)
Non-operating postretirement expense 27 0.05 53 0.09
Provision for deferred income taxes on 178 0.31 181 0.32
adjustments 1
Subtotal of adjustments ($668) ($1.18) ($682) ($1.20)
Core loss per share (non-GAAP) ($6.49) ($2.60)
Weighted average diluted shares (in 566.1 566.6
millions)
1 The income tax impact is calculated using the U.S.
corporate statutory tax rate.
END
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