Boeing Reports
Fourth-Quarter Results
CHICAGO, Jan. 27, 2021 /PRNewswire/ --
Fourth Quarter
2020
- Financial results significantly impacted by COVID-19, 737
MAX grounding, and commercial widebody programs
- 777X program recorded $6.5
billion pre-tax charge; first delivery expected in late
2023
- 737 MAX began receiving regulatory approval to resume
operations and restarted deliveries
- Revenue of $15.3 billion, GAAP
loss per share of ($14.65) and core
(non-GAAP)* loss per share of ($15.25)
Full-Year 2020
- Revenue of $58.2 billion, GAAP
loss per share of ($20.88) and core
(non-GAAP)* loss per share of ($23.25)
- Operating cash flow of ($18.4)
billion; cash and marketable securities of $25.6 billion
- Total backlog of $363 billion,
including more than 4,000 commercial airplanes
- Strengthening safety processes, improving performance,
managing liquidity and transforming for the future
Table 1. Summary Financial Results |
Fourth
Quarter |
|
|
|
Full Year |
|
|
(Dollars in Millions, except per share
data) |
2020 |
|
2019 |
|
Change |
|
2020 |
|
2019 |
|
Change |
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
$15,304 |
|
$17,911 |
|
(15)% |
|
$58,158 |
|
$76,559 |
|
(24)% |
|
|
|
|
|
|
|
|
|
|
|
|
GAAP |
|
|
|
|
|
|
|
|
|
|
|
Loss From Operations |
($8,049) |
|
($2,204) |
|
NM |
|
($12,767) |
|
($1,975) |
|
NM |
Operating Margin |
(52.6)% |
|
(12.3)% |
|
NM |
|
(22.0)% |
|
(2.6)% |
|
NM |
Net Loss |
($8,439) |
|
($1,010) |
|
NM |
|
($11,941) |
|
($636) |
|
NM |
Loss Per Share |
($14.65) |
|
($1.79) |
|
NM |
|
($20.88) |
|
($1.12) |
|
NM |
Operating Cash Flow |
($4,009) |
|
($2,220) |
|
NM |
|
($18,410) |
|
($2,446) |
|
NM |
Non-GAAP* |
|
|
|
|
|
|
|
|
|
|
|
Core Operating Loss |
($8,377) |
|
($2,526) |
|
NM |
|
($14,150) |
|
($3,390) |
|
NM |
Core Operating Margin |
(54.7)% |
|
(14.1)% |
|
NM |
|
(24.3)% |
|
(4.4)% |
|
NM |
Core Loss Per Share |
($15.25) |
|
($2.33) |
|
NM |
|
($23.25) |
|
($3.47) |
|
NM |
|
*Non-GAAP measure; complete
definitions of Boeing's non-GAAP measures are on page 6, "Non-GAAP
Measures Disclosures." |
The Boeing Company [NYSE: BA] reported fourth-quarter revenue of
$15.3 billion, reflecting lower
commercial deliveries and services volume primarily due to COVID-19
as well as 787 production issues, partially offset by a lower 737
MAX customer considerations charge in the quarter compared to the
same period last year (Table 1). GAAP loss per share of
($14.65) and core loss per share
(non-GAAP)* of ($15.25) reflected a
$6.5 billion pre-tax charge on the
777X program and a tax valuation allowance, partially offset by a
lower 737 MAX customer considerations charge. Boeing recorded
operating cash flow of ($4.0)
billion.
"2020 was a year of profound societal and global disruption
which significantly constrained our industry. The deep impact of
the pandemic on commercial air travel, coupled with the 737 MAX
grounding, challenged our results. I am proud of the resilience and
dedication our global team demonstrated in this environment as we
strengthened our safety processes, adapted to our market and
supported our customers, suppliers, communities and each other,"
said Boeing President and Chief Executive Officer Dave Calhoun. "Our balanced portfolio of diverse
defense, space and services programs continues to provide important
stability as we lay the foundation for our recovery. While the
impact of COVID-19 presents continued challenges for commercial
aerospace into 2021, we remain confident in our future,
squarely-focused on safety, quality and transparency as we rebuild
trust and transform our business."
The return to service of the 737 MAX in the U.S. and several
other markets was an important step, and Boeing continues to follow
the lead of global regulators and support its customers. Since the
FAA's approval to return to operations, Boeing has delivered over
40 737 MAX aircraft and five airlines have safely returned their
fleets to service as of January 25,
2021, safely flying more than 2,700 revenue flights and
approximately 5,500 flight hours.
Boeing now anticipates that the first 777X delivery will occur
in late 2023. This schedule, and the associated financial impact,
reflect a number of factors, including an updated assessment of
global certification requirements, the company's latest assessment
of COVID-19 impacts on market demand, and discussions with its
customers with respect to aircraft delivery timing.
The company continues to progress through its business
transformation effort across five key areas including its
infrastructure footprint, overhead and organizational structure,
portfolio and investment mix, supply chain health and operational
excellence. Boeing will continue these actions in 2021 to preserve
liquidity, adapt to the new market, improve performance, sustain
key investments and transform its business to be more productive,
resilient and competitive for the long term.
Table 2. Cash Flow |
Fourth
Quarter |
|
Full Year |
(Millions) |
2020 |
|
2019 |
|
2020 |
|
2019 |
Operating Cash Flow |
($4,009) |
|
($2,220) |
|
($18,410) |
|
($2,446) |
Less Additions to Property, Plant &
Equipment |
($265) |
|
($447) |
|
($1,303) |
|
($1,834) |
Free Cash Flow* |
($4,274) |
|
($2,667) |
|
($19,713) |
|
($4,280) |
|
*Non-GAAP measure; complete
definitions of Boeing's non-GAAP measures are on page 6, "Non-GAAP
Measures Disclosures." |
Operating cash flow was ($4.0)
billion in the quarter, reflecting lower commercial
deliveries and services volume, as well as timing of receipts and
expenditures (Table 2).
Table 3. Cash, Marketable Securities and Debt
Balances |
Quarter-End |
(Billions) |
Q4 20 |
|
Q3 20 |
Cash |
$7.8 |
|
$10.6 |
Marketable Securities1 |
$17.8 |
|
$16.5 |
Total |
$25.6 |
|
$27.1 |
Debt Balances: |
|
|
|
The Boeing Company, net of intercompany loans to
BCC |
$62.0 |
|
$59.1 |
Boeing Capital, including intercompany loans |
$1.6 |
|
$1.9 |
Total Consolidated Debt |
$63.6 |
|
$61.0 |
|
1 Marketable securities consists
primarily of time deposits due within one year classified as
"short-term investments." |
Cash and investments in marketable securities decreased to
$25.6 billion, compared to
$27.1 billion at the beginning of the
quarter, primarily driven by operating cash outflows partially
offset by changes in the debt balance (Table 3).
Total company backlog at quarter-end was $363 billion.
Segment Results
Commercial Airplanes
Table 4. Commercial Airplanes |
Fourth
Quarter |
|
|
|
Full Year |
|
|
(Dollars in Millions) |
2020 |
|
2019 |
|
Change |
|
2020 |
|
2019 |
|
Change |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial Airplanes Deliveries |
59 |
|
79 |
|
(25)% |
|
157 |
|
380 |
|
(59)% |
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
$4,728 |
|
$7,462 |
|
(37)% |
|
$16,162 |
|
$32,255 |
|
(50)% |
Loss from Operations |
($7,648) |
|
($2,844) |
|
NM |
|
($13,847) |
|
($6,657) |
|
NM |
Operating Margin |
(161.8)% |
|
(38.1)% |
|
NM |
|
(85.7)% |
|
(20.6)% |
|
NM |
Commercial Airplanes fourth-quarter revenue decreased to
$4.7 billion, driven by lower
widebody delivery volume due to COVID-19 impacts as well as 787
production issues, partially offset by higher 737 deliveries and a
lower 737 MAX customer consideration charge in the quarter compared
to the same period last year (Table 4). Fourth-quarter operating
margin decreased to (161.8) percent, primarily driven by a
$6.5 billion pre-tax charge on the
777X program, lower delivery volume, and $468 million of abnormal production costs related
to the 737 program, partially offset by a lower 737 MAX customer
consideration charge.
Commercial Airplanes production rate assumptions reflect the
continued impacts of COVID-19 on commercial demand, and the company
will continue to assess them on an ongoing basis. The 737 program
is currently producing at a low rate and expects to gradually
increase production to 31 per month in early 2022 with further
gradual increases to correspond with market demand. The 787 program
plans to transition its production rate to 5 per month in
March 2021, at which point 787 final
assembly will be consolidated to Boeing South Carolina.
As discussed above, Commercial Airplanes now expects first
delivery of the 777X to occur in late 2023 and has recorded a
$6.5 billion reach-forward loss on
the 777X program. Among the factors contributing to the revised
first delivery schedule and reach-forward loss are an updated
assessment of certification requirements based on ongoing
communication with civil aviation authorities, an updated
assessment of market demand based on continued dialogue with
customers, resulting adjustments to production rates and the
program accounting quantity, increased change incorporation costs,
and associated customer and supply chain impacts. The production
rate expectation for the combined 777/777X program remains at 2 per
month in 2021.
Commercial Airplanes captured orders for 75 737 aircraft from
Ryanair and eight 777 freighters from DHL, as well as a commitment
for 23 737 aircraft from Alaska Airlines. Commercial Airplanes
delivered 59 airplanes during the quarter, and backlog included
over 4,000 airplanes valued at $282
billion.
Defense, Space & Security
Table 5. Defense, Space & Security |
Fourth
Quarter |
|
|
|
Full Year |
|
|
(Dollars in Millions) |
2020 |
|
2019 |
|
Change |
|
2020 |
|
2019 |
|
Change |
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
$6,779 |
|
$5,927 |
|
14% |
|
$26,257 |
|
$26,095 |
|
1% |
Earnings from Operations |
$502 |
|
$34 |
|
1,376% |
|
$1,539 |
|
$2,615 |
|
(41)% |
Operating Margin |
7.4% |
|
0.6% |
|
6.8 Pts |
|
5.9% |
|
10.0% |
|
(4.1) Pts |
Defense, Space & Security fourth-quarter revenue increased
to $6.8 billion, primarily driven by
higher volume on fighter programs and the rest of the portfolio as
well as a charge on the Commercial Crew program in the same period
last year (Table 5). Fourth-quarter operating margin increased to
7.4 percent reflecting more favorable performance on multiple
programs compared with the same period last year, partially offset
by a $275 million pre-tax charge on
the KC-46A Tanker program primarily due to production
inefficiencies including impacts of COVID-19 disruption.
During the quarter, Defense, Space & Security was awarded
contracts for two KC-46A aircraft for Japan and AEW&C upgrades for the Republic
of Korea Air Force. Defense, Space & Security achieved first
flight of the MQ-25 unmanned aircraft with an aerial refueling
store and demonstrated ski-jump launch capability of the F/A-18
Super Hornet for the Indian Navy. Also in the quarter, Defense,
Space & Security completed engineering design review for the
Wideband Global SATCOM-11+ communications satellite and critical
design review of the Space Launch System Exploration Upper Stage
for NASA.
Backlog at Defense, Space & Security was $61 billion, of which 32 percent represents
orders from customers outside the U.S.
Global Services
Table 6. Global Services |
Fourth
Quarter |
|
|
|
Full Year |
|
|
(Dollars in Millions) |
2020 |
|
2019 |
|
Change |
|
2020 |
|
2019 |
|
Change |
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
$3,733 |
|
$4,648 |
|
(20)% |
|
$15,543 |
|
$18,468 |
|
(16)% |
Earnings from Operations |
$143 |
|
$684 |
|
(79)% |
|
$450 |
|
$2,697 |
|
(83)% |
Operating Margin |
3.8% |
|
14.7% |
|
(10.9) Pts |
|
2.9% |
|
14.6% |
|
(11.7) Pts |
Global Services fourth-quarter revenue decreased to $3.7 billion, driven by lower commercial services
volume due to COVID-19 (Table 6). Fourth-quarter operating margin
decreased to 3.8 percent primarily due to lower commercial services
volume and $290 million of pre-tax
charges related to asset impairments driven by COVID-19.
During the quarter, Global Services was awarded a Performance
Based Logistics contract for the Republic of Singapore Air Force
F-15SG fleet, secured a F-15 spares and logistics support contract
with the Qatar Emiri Air Force, and was selected to provide P-8A
training for the Royal New Zealand Air Force. Global Services also
announced a 10-year digital services agreement with Frontier
Airlines.
Additional Financial Information
Table 7. Additional Financial
Information |
Fourth
Quarter |
|
Full Year |
(Dollars in Millions) |
2020 |
|
2019 |
|
2020 |
|
2019 |
Revenues |
|
|
|
|
|
|
|
Boeing Capital |
$56 |
|
$37 |
|
$261 |
|
$244 |
Unallocated items, eliminations and other |
$8 |
|
($163) |
|
($65) |
|
($503) |
(Loss)/Earnings from Operations |
|
|
|
|
|
|
|
Boeing Capital |
$16 |
|
($58) |
|
$63 |
|
$28 |
FAS/CAS service cost adjustment |
$328 |
|
$322 |
|
$1,383 |
|
$1,415 |
Other unallocated items and eliminations |
($1,390) |
|
($342) |
|
($2,355) |
|
($2,073) |
Other income, net |
$122 |
|
$104 |
|
$447 |
|
$438 |
Interest and debt expense |
($698) |
|
($242) |
|
($2,156) |
|
($722) |
Effective tax rate |
2.2% |
|
56.9% |
|
17.5% |
|
71.8% |
At quarter-end, Boeing Capital's net portfolio balance was
$2.0 billion. The change in revenue
from other unallocated items and eliminations was primarily due to
the timing of eliminations for intercompany aircraft deliveries.
Other unallocated items and eliminations included a $744 million charge related to the previously
announced agreement between Boeing and the U.S. Department of
Justice in January 2021. Interest and
debt expense increased due to higher debt balances. The fourth
quarter 2020 effective tax rate primarily reflects an additional
valuation allowance on certain deferred income tax assets,
partially offset by the benefit of the five year net operating loss
carryback provision in the Coronavirus Aid, Relief, and Economic
Security (CARES) Act.
Non-GAAP Measures Disclosures
We supplement the reporting of our financial information
determined under Generally Accepted Accounting Principles in
the United States of America
(GAAP) with certain non-GAAP financial information. The non-GAAP
financial information presented excludes certain significant items
that may not be indicative of, or are unrelated to, results from
our ongoing business operations. We believe that these non-GAAP
measures provide investors with additional insight into the
company's ongoing business performance. These non-GAAP measures
should not be considered in isolation or as a substitute for the
related GAAP measures, and other companies may define such measures
differently. We encourage investors to review our financial
statements and publicly-filed reports in their entirety and not to
rely on any single financial measure. The following definitions are
provided:
Core Operating Earnings, Core Operating Margin and Core Earnings
Per Share
Core operating earnings is defined as GAAP earnings from
operations excluding the FAS/CAS service cost
adjustment. The FAS/CAS service cost adjustment
represents the difference between the FAS pension and
postretirement service costs calculated under GAAP and costs
allocated to the business segments. Core operating margin is
defined as core operating earnings expressed as a percentage of
revenue. Core earnings per share is defined as GAAP diluted
earnings per share excluding the net earnings per share impact
of the FAS/CAS service cost adjustment and Non-operating
pension and postretirement expenses. Non-operating pension and
postretirement expenses represent the components of net periodic
benefit costs other than service cost. Pension costs, comprising
service and prior service costs computed in accordance with GAAP
are allocated to Commercial Airplanes and BGS businesses supporting
commercial customers. Pension costs allocated to BDS and BGS
businesses supporting government customers are computed in
accordance with U.S. Government Cost Accounting Standards (CAS),
which employ different actuarial assumptions and accounting
conventions than GAAP. CAS costs are allocable to government
contracts. Other postretirement benefit costs are allocated to all
business segments based on CAS, which is generally based on
benefits paid. Management uses core operating earnings, core
operating margin and core earnings per share for purposes of
evaluating and forecasting underlying business performance.
Management believes these core earnings measures provide investors
additional insights into operational performance as they exclude
non-service pension and post-retirement costs, which primarily
represent costs driven by market factors and costs not allocable to
government contracts. A reconciliation between the GAAP and
non-GAAP measures is provided on pages 13-14.
Free Cash Flow
Free cash flow is GAAP operating cash flow reduced by
capital expenditures for property, plant and equipment.
Management believes free cash flow provides investors with an
important perspective on the cash available for shareholders, debt
repayment, and acquisitions after making the capital investments
required to support ongoing business operations and long term value
creation. Free cash flow does not represent the residual cash flow
available for discretionary expenditures as it excludes certain
mandatory expenditures such as repayment of maturing debt.
Management uses free cash flow as a measure to assess both business
performance and overall liquidity. Table 2 provides a
reconciliation of free cash flow to GAAP operating cash flow.
Caution Concerning
Forward-Looking Statements
This press release contains "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of
1995. Words such as "may," "should," "expects," "intends,"
"projects," "plans," "believes," "estimates," "targets,"
"anticipates," and similar expressions generally identify these
forward-looking statements. Examples of forward-looking statements
include statements relating to our future financial condition and
operating results, as well as any other statement that does not
directly relate to any historical or current fact. Forward-looking
statements are based on expectations and assumptions that we
believe to be reasonable when made, but that may not prove to be
accurate. These statements are not guarantees and are subject to
risks, uncertainties, and changes in circumstances that are
difficult to predict. Many factors could cause actual results to
differ materially and adversely from these forward-looking
statements. Among these factors are risks related to: (1) the
COVID-19 pandemic and related government actions, including with
respect to our operations, our liquidity, the health of our
customers and suppliers, and future demand for our products and
services; (2) the 737 MAX, including the timing and conditions of
737 MAX regulatory approvals, lower than planned production rates
and/or delivery rates, and increased considerations to customers
and suppliers, (3) general conditions in the economy and our
industry, including those due to regulatory changes; (4) our
reliance on our commercial airline customers; (5) the overall
health of our aircraft production system, planned commercial
aircraft production rate changes, our commercial development and
derivative aircraft programs, and our aircraft being subject to
stringent performance and reliability standards; (6) changing
budget and appropriation levels and acquisition priorities of the
U.S. government; (7) our dependence on U.S. government contracts;
(8) our reliance on fixed-price contracts; (9) our reliance on
cost-type contracts; (10) uncertainties concerning contracts that
include in-orbit incentive payments; (11) our dependence on our
subcontractors and suppliers, as well as the availability of raw
materials; (12) changes in accounting estimates; (13) changes in
the competitive landscape in our markets; (14) our non-U.S.
operations, including sales to non-U.S. customers; (15) threats to
the security of our or our customers' information; (16) potential
adverse developments in new or pending litigation and/or government
investigations; (17) customer and aircraft concentration in our
customer financing portfolio; (18) changes in our ability to obtain
debt financing on commercially reasonable terms and at competitive
rates; (19) realizing the anticipated benefits of mergers,
acquisitions, joint ventures/strategic alliances or divestitures;
(20) the adequacy of our insurance coverage to cover significant
risk exposures; (21) potential business disruptions, including
those related to physical security threats, information technology
or cyber-attacks, epidemics, sanctions or natural disasters; (22)
work stoppages or other labor disruptions; (23) substantial pension
and other postretirement benefit obligations; and (24) potential
environmental liabilities.
Additional information concerning these and other factors can be
found in our filings with the Securities and Exchange Commission,
including our most recent Annual Report on Form 10-K, Quarterly
Reports on Form 10-Q and Current Reports on Form 8-K. Any
forward-looking statement speaks only as of the date on which it is
made, and we assume no obligation to update or revise any
forward-looking statement, whether as a result of new information,
future events, or otherwise, except as required by law.
Contact: |
|
|
|
|
|
Investor Relations: |
|
Maurita Sutedja or Keely Moos (312) 544-2140 |
Communications: |
|
Michael Friedman media@boeing.com |
The Boeing Company
and Subsidiaries |
Consolidated
Statements of Operations |
(Unaudited) |
|
|
Twelve months
ended
December 31 |
|
Three months
ended
December 31 |
(Dollars in millions, except per share
data) |
2020 |
|
2019 |
|
2020 |
|
2019 |
Sales of products |
$47,142 |
|
$66,094 |
|
$12,486 |
|
$15,580 |
Sales of services |
11,016 |
|
10,465 |
|
2,818 |
|
2,331 |
Total revenues |
58,158 |
|
76,559 |
|
15,304 |
|
17,911 |
|
|
|
|
|
|
|
|
Cost of products |
(54,568) |
|
(62,877) |
|
(18,567) |
|
(16,293) |
Cost of services |
(9,232) |
|
(9,154) |
|
(2,415) |
|
(2,402) |
Boeing Capital interest expense |
(43) |
|
(62) |
|
(10) |
|
(13) |
Total costs and expenses |
(63,843) |
|
(72,093) |
|
(20,992) |
|
(18,708) |
|
(5,685) |
|
4,466 |
|
(5,688) |
|
(797) |
Income/(loss) from operating investments, net |
9 |
|
(4) |
|
70 |
|
(1) |
General and administrative expense |
(4,817) |
|
(3,909) |
|
(1,828) |
|
(1,052) |
Research and development expense, net |
(2,476) |
|
(3,219) |
|
(605) |
|
(749) |
Gain on dispositions, net |
202 |
|
691 |
|
2 |
|
395 |
Loss from operations |
(12,767) |
|
(1,975) |
|
(8,049) |
|
(2,204) |
Other income, net |
447 |
|
438 |
|
122 |
|
104 |
Interest and debt expense |
(2,156) |
|
(722) |
|
(698) |
|
(242) |
Loss before income taxes |
(14,476) |
|
(2,259) |
|
(8,625) |
|
(2,342) |
Income tax benefit |
2,535 |
|
1,623 |
|
186 |
|
1,332 |
|
|
|
|
|
|
|
|
Net loss |
(11,941) |
|
(636) |
|
(8,439) |
|
(1,010) |
Less: net loss attributable to noncontrolling
interest |
(68) |
|
|
|
(19) |
|
|
Net loss attributable to Boeing
Shareholders |
($11,873) |
|
($636) |
|
($8,420) |
|
($1,010) |
|
|
|
|
|
|
|
|
Basic loss per share |
($20.88) |
|
($1.12) |
|
($14.65) |
|
($1.79) |
|
|
|
|
|
|
|
|
Diluted loss per share |
($20.88) |
|
($1.12) |
|
($14.65) |
|
($1.79) |
|
|
|
|
|
|
|
|
Weighted average diluted shares
(millions) |
569.0 |
|
566.0 |
|
575.4 |
|
565.4 |
The Boeing Company
and Subsidiaries |
Consolidated
Statements of Financial Position |
(Unaudited) |
|
(Dollars in millions, except per share
data) |
December 31
2020 |
|
December 31
2019 |
Assets |
|
|
|
Cash and cash equivalents |
$7,752 |
|
$9,485 |
Short-term and other investments |
17,838 |
|
545 |
Accounts receivable, net |
1,955 |
|
3,266 |
Unbilled receivables, net |
7,995 |
|
9,043 |
Current portion of customer financing, net |
101 |
|
162 |
Inventories |
81,715 |
|
76,622 |
Other current assets, net |
4,286 |
|
3,106 |
Total current assets |
121,642 |
|
102,229 |
Customer financing, net |
1,936 |
|
2,136 |
Property, plant and equipment, net of accumulated
depreciation of $20,507 and $19,342 |
11,820 |
|
12,502 |
Goodwill |
8,081 |
|
8,060 |
Acquired intangible assets, net |
2,843 |
|
3,338 |
Deferred income taxes |
86 |
|
683 |
Investments |
1,016 |
|
1,092 |
Other assets, net of accumulated amortization of
$729 and $580 |
4,712 |
|
3,585 |
Total assets |
$152,136 |
|
$133,625 |
Liabilities and equity |
|
|
|
Accounts payable |
$12,928 |
|
$15,553 |
Accrued liabilities |
22,171 |
|
22,868 |
Advances and progress billings |
50,488 |
|
51,551 |
Short-term debt and current portion of long-term
debt |
1,693 |
|
7,340 |
Total current liabilities |
87,280 |
|
97,312 |
Deferred income taxes |
1,010 |
|
413 |
Accrued retiree health care |
4,137 |
|
4,540 |
Accrued pension plan liability, net |
14,408 |
|
16,276 |
Other long-term liabilities |
1,486 |
|
3,422 |
Long-term debt |
61,890 |
|
19,962 |
Total liabilities |
170,211 |
|
141,925 |
Shareholders' equity: |
|
|
|
Common stock, par value $5.00 – 1,200,000,000
shares authorized; 1,012,261,159 shares issued |
5,061 |
|
5,061 |
Additional paid-in capital |
7,787 |
|
6,745 |
Treasury stock, at cost - 429,941,021 and
449,352,405 shares |
(52,641) |
|
(54,914) |
Retained earnings |
38,610 |
|
50,644 |
Accumulated other comprehensive loss |
(17,133) |
|
(16,153) |
Total shareholders' deficit |
(18,316) |
|
(8,617) |
Noncontrolling interests |
241 |
|
317 |
Total equity |
(18,075) |
|
(8,300) |
Total liabilities and equity |
$152,136 |
|
$133,625 |
The Boeing Company
and Subsidiaries |
Consolidated
Statements of Cash Flows |
(Unaudited) |
|
|
Twelve months
ended
December 31 |
(Dollars in millions) |
2020 |
|
2019 |
Cash flows – operating
activities: |
|
|
|
Net loss |
($11,941) |
|
($636) |
Adjustments to reconcile net loss to net cash
(used)/provided by operating activities: |
|
|
|
Non-cash items – |
|
|
|
Share-based plans expense |
250 |
|
212 |
Treasury shares issued for 401(k)
contribution |
195 |
|
|
Depreciation and amortization |
2,246 |
|
2,271 |
Investment/asset impairment charges, net |
410 |
|
443 |
Customer financing valuation adjustments |
12 |
|
250 |
Gain on dispositions, net |
(202) |
|
(691) |
777X reach-forward loss |
6,493 |
|
|
Other charges and credits, net |
1,462 |
|
334 |
Changes in assets and liabilities – |
|
|
|
Accounts receivable |
909 |
|
603 |
Unbilled receivables |
919 |
|
982 |
Advances and progress billings |
(1,060) |
|
737 |
Inventories |
(11,002) |
|
(12,391) |
Other current assets |
372 |
|
(682) |
Accounts payable |
(5,363) |
|
1,600 |
Accrued liabilities |
1,074 |
|
7,781 |
Income taxes receivable, payable and deferred |
(2,576) |
|
(2,476) |
Other long-term liabilities |
(222) |
|
(621) |
Pension and other postretirement plans |
(794) |
|
(777) |
Customer financing, net |
173 |
|
419 |
Other |
235 |
|
196 |
Net cash used by operating activities |
(18,410) |
|
(2,446) |
Cash flows – investing activities: |
|
|
|
Property, plant and equipment additions |
(1,303) |
|
(1,834) |
Property, plant and equipment reductions |
296 |
|
334 |
Acquisitions, net of cash acquired |
|
|
(455) |
Proceeds from dispositions |
|
|
464 |
Contributions to investments |
(37,616) |
|
(1,658) |
Proceeds from investments |
20,275 |
|
1,759 |
Purchase of distribution rights |
|
|
(127) |
Other |
(18) |
|
(13) |
Net cash used by investing activities |
(18,366) |
|
(1,530) |
Cash flows – financing activities: |
|
|
|
New borrowings |
47,248 |
|
25,389 |
Debt repayments |
(10,998) |
|
(12,171) |
Contributions from noncontrolling interests |
|
|
7 |
Stock options exercised |
36 |
|
58 |
Employee taxes on certain share-based payment
arrangements |
(173) |
|
(248) |
Common shares repurchased |
|
|
(2,651) |
Dividends paid |
(1,158) |
|
(4,630) |
Other |
|
|
(15) |
Net cash provided by financing
activities |
34,955 |
|
5,739 |
Effect of exchange rate changes on cash and cash
equivalents, including restricted |
85 |
|
(5) |
Net (decrease)/increase in cash & cash
equivalents, including restricted |
(1,736) |
|
1,758 |
Cash & cash equivalents, including restricted,
at beginning of year |
9,571 |
|
7,813 |
Cash & cash equivalents, including
restricted, at end of period |
7,835 |
|
9,571 |
Less restricted cash & cash equivalents,
included in Investments |
83 |
|
86 |
Cash and cash equivalents at end of
period |
$7,752 |
|
$9,485 |
The Boeing Company and
Subsidiaries
Summary of Business Segment Data
(Unaudited)
Effective at the beginning of 2020, certain programs were
realigned between our Defense, Space & Security segment and
Unallocated items, eliminations and other. Business segment data
for 2019 has been adjusted to reflect the realignment.
|
Twelve months
ended
December 31 |
|
Three months
ended
December 31 |
(Dollars in millions) |
2020 |
|
2019 |
|
2020 |
|
2019 |
Revenues: |
|
|
|
|
|
|
|
Commercial Airplanes |
$16,162 |
|
$32,255 |
|
$4,728 |
|
$7,462 |
Defense, Space & Security |
26,257 |
|
26,095 |
|
6,779 |
|
5,927 |
Global Services |
15,543 |
|
18,468 |
|
3,733 |
|
4,648 |
Boeing Capital |
261 |
|
244 |
|
56 |
|
37 |
Unallocated items, eliminations and other |
(65) |
|
(503) |
|
8 |
|
(163) |
Total revenues |
$58,158 |
|
$76,559 |
|
$15,304 |
|
$17,911 |
Earnings/(loss) from operations: |
|
|
|
|
|
|
|
Commercial Airplanes |
($13,847) |
|
($6,657) |
|
($7,648) |
|
($2,844) |
Defense, Space & Security |
1,539 |
|
2,615 |
|
502 |
|
34 |
Global Services |
450 |
|
2,697 |
|
143 |
|
684 |
Boeing Capital |
63 |
|
28 |
|
16 |
|
(58) |
Segment operating loss |
(11,795) |
|
(1,317) |
|
(6,987) |
|
(2,184) |
Unallocated items, eliminations and other |
(2,355) |
|
(2,073) |
|
(1,390) |
|
(342) |
FAS/CAS service cost adjustment |
1,383 |
|
1,415 |
|
328 |
|
322 |
Loss from operations |
(12,767) |
|
(1,975) |
|
(8,049) |
|
(2,204) |
Other income, net |
447 |
|
438 |
|
122 |
|
104 |
Interest and debt expense |
(2,156) |
|
(722) |
|
(698) |
|
(242) |
Loss before income taxes |
(14,476) |
|
(2,259) |
|
(8,625) |
|
(2,342) |
Income tax benefit |
2,535 |
|
1,623 |
|
186 |
|
1,332 |
Net loss |
(11,941) |
|
(636) |
|
(8,439) |
|
(1,010) |
Less: Net loss attributable to noncontrolling
interest |
(68) |
|
|
|
(19) |
|
|
|
|
|
|
|
|
|
|
Net loss attributable to Boeing
Shareholders |
($11,873) |
|
($636) |
|
($8,420) |
|
($1,010) |
Research and development expense, net: |
|
|
|
|
|
|
|
Commercial Airplanes |
$1,385 |
|
$1,956 |
|
$278 |
|
$427 |
Defense, Space & Security |
713 |
|
741 |
|
219 |
|
185 |
Global Services |
138 |
|
121 |
|
28 |
|
19 |
Other |
240 |
|
401 |
|
80 |
|
118 |
Total research and development expense,
net |
$2,476 |
|
$3,219 |
|
$605 |
|
$749 |
|
|
|
|
|
|
|
|
Unallocated items, eliminations and
other: |
|
|
|
|
|
|
|
Share-based plans |
($120) |
|
($65) |
|
($40) |
|
($8) |
Deferred compensation |
(93) |
|
(174) |
|
(127) |
|
(20) |
Amortization of previously capitalized
interest |
(95) |
|
(89) |
|
(26) |
|
(21) |
Customer financing impairment |
|
|
(250) |
|
|
|
|
Research and development expense, net |
(240) |
|
(401) |
|
(80) |
|
(118) |
Eliminations and other unallocated items |
(1,807) |
|
(1,094) |
|
(1,117) |
|
(175) |
Sub-total (included in core operating
loss) |
(2,355) |
|
(2,073) |
|
(1,390) |
|
(342) |
Pension FAS/CAS service cost adjustment |
1,024 |
|
1,071 |
|
251 |
|
248 |
Postretirement FAS/CAS service cost
adjustment |
359 |
|
344 |
|
77 |
|
74 |
FAS/CAS service cost adjustment |
1,383 |
|
1,415 |
|
$328 |
|
$322 |
Total |
($972) |
|
($658) |
|
($1,062) |
|
($20) |
The Boeing Company
and Subsidiaries |
Operating and
Financial Data |
(Unaudited) |
|
Deliveries |
Twelve months
ended
December 31 |
|
Three months
ended
December 31 |
|
Commercial Airplanes |
2020 |
|
2019 |
|
2020 |
|
|
2019 |
|
737 |
43 |
|
127 |
|
31 |
|
|
9 |
|
747 |
5 |
|
7 |
|
3 |
|
|
2 |
|
767 |
30 |
|
43 |
|
10 |
|
|
11 |
|
777 |
26 |
|
45 |
(2) |
11 |
|
|
12 |
(1) |
787 |
53 |
|
158 |
|
4 |
|
|
45 |
|
Total |
157 |
|
380 |
|
59 |
|
|
79 |
|
Note: Aircraft accounted for as
revenues by BCA and as operating leases in consolidation identified
by parentheses |
|
|
|
|
|
|
|
|
|
Defense, Space & Security |
|
|
|
|
|
|
|
|
AH-64 Apache (New) |
19 |
|
37 |
|
1 |
|
|
10 |
|
AH-64 Apache (Remanufactured) |
52 |
|
74 |
|
8 |
|
|
18 |
|
C-17 Globemaster III |
— |
|
1 |
|
— |
|
|
— |
|
C-40A |
— |
|
2 |
|
— |
|
|
— |
|
CH-47 Chinook (New) |
27 |
|
13 |
|
8 |
|
|
— |
|
CH-47 Chinook (Renewed) |
3 |
|
22 |
|
— |
|
|
6 |
|
F-15 Models |
4 |
|
11 |
|
1 |
|
|
4 |
|
F/A-18 Models |
20 |
|
23 |
|
6 |
|
|
7 |
|
KC-46A Tanker |
14 |
|
28 |
|
4 |
|
|
7 |
|
P-8 Models |
15 |
|
18 |
|
6 |
|
|
4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and Civil Satellites |
— |
|
2 |
|
— |
|
|
1 |
|
|
|
|
|
|
|
|
|
|
Total backlog (Dollars in
millions) |
|
December 31
2020 |
|
December 31
2019 |
Commercial Airplanes |
|
$281,588 |
|
$376,593 |
Defense, Space & Security |
|
60,847 |
|
63,691 |
Global Services |
|
20,632 |
|
22,902 |
Unallocated items, eliminations and
other |
|
337 |
|
217 |
Total backlog |
|
$363,404 |
|
$463,403 |
|
|
|
|
|
Contractual backlog |
|
$339,309 |
|
$436,473 |
Unobligated backlog |
|
24,095 |
|
26,930 |
Total backlog |
|
$363,404 |
|
$463,403 |
The Boeing Company and
Subsidiaries
Reconciliation of Non-GAAP Measures
(Unaudited)
The tables provided below reconcile the non-GAAP financial
measures core operating loss, core operating margin, and core loss
per share with the most directly comparable GAAP financial
measures, loss from operations, operating margin, and diluted loss
per share. See page 6 of this release for additional information on
the use of these non-GAAP financial measures.
(Dollars in millions, except per share
data) |
Fourth Quarter
2020 |
|
Fourth Quarter
2019 |
|
$ millions |
Per Share |
|
$ millions |
Per Share |
Revenues |
15,304 |
|
|
17,911 |
|
Loss from operations (GAAP) |
(8,049) |
|
|
(2,204) |
|
Operating margin (GAAP) |
(52.6)% |
|
|
(12.3)% |
|
|
|
|
|
|
|
FAS/CAS service cost adjustment: |
|
|
|
|
|
Pension FAS/CAS service cost adjustment |
(251) |
|
|
(248) |
|
Postretirement FAS/CAS service cost
adjustment |
(77) |
|
|
(74) |
|
FAS/CAS service cost adjustment |
(328) |
|
|
(322) |
|
Core operating loss (non-GAAP) |
($8,377) |
|
|
($2,526) |
|
Core operating margin (non-GAAP) |
(54.7)% |
|
|
(14.1)% |
|
|
|
|
|
|
|
Diluted loss per share (GAAP) |
|
($14.65) |
|
|
($1.79) |
Pension FAS/CAS service cost adjustment |
($251) |
(0.44) |
|
($248) |
(0.44) |
Postretirement FAS/CAS service cost
adjustment |
(77) |
(0.13) |
|
(74) |
(0.13) |
Non-operating pension expense |
(85) |
(0.15) |
|
(94) |
(0.17) |
Non-operating postretirement expense |
(21) |
(0.04) |
|
27 |
0.05 |
Provision for deferred income taxes on
adjustments 1 |
91 |
0.16 |
|
82 |
0.15 |
Subtotal of adjustments |
($343) |
($0.60) |
|
($307) |
($0.54) |
Core loss per share (non-GAAP) |
|
($15.25) |
|
|
($2.33) |
|
|
|
|
|
|
Weighted average diluted shares (in
millions) |
|
575.4 |
|
|
565.4 |
|
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
data) |
Full Year
2020 |
|
Full Year 2019 |
|
$ millions |
Per Share |
|
$ millions |
Per Share |
Revenues |
58,158 |
|
|
76,559 |
|
Loss from operations (GAAP) |
(12,767) |
|
|
(1,975) |
|
Operating margin (GAAP) |
(22.0)% |
|
|
(2.6)% |
|
|
|
|
|
|
|
FAS/CAS service cost adjustment: |
|
|
|
|
|
Pension FAS/CAS service cost adjustment |
(1,024) |
|
|
(1,071) |
|
Postretirement FAS/CAS service cost
adjustment |
(359) |
|
|
(344) |
|
FAS/CAS service cost adjustment |
(1,383) |
|
|
(1,415) |
|
Core operating loss (non-GAAP) |
($14,150) |
|
|
($3,390) |
|
Core operating margin (non-GAAP) |
(24.3)% |
|
|
(4.4)% |
|
|
|
|
|
|
|
Diluted loss per share (GAAP) |
|
($20.88) |
|
|
($1.12) |
Pension FAS/CAS service cost adjustment |
($1,024) |
(1.80) |
|
($1,071) |
(1.89) |
Postretirement FAS/CAS service cost
adjustment |
(359) |
(0.63) |
|
(344) |
(0.61) |
Non-operating pension expense |
(340) |
(0.60) |
|
(374) |
(0.66) |
Non-operating postretirement expense |
16 |
0.03 |
|
107 |
0.19 |
Provision for deferred income taxes on
adjustments 1 |
358 |
0.63 |
|
353 |
0.62 |
Subtotal of adjustments |
($1,349) |
($2.37) |
|
($1,329) |
($2.35) |
Core loss per share (non-GAAP) |
|
($23.25) |
|
|
($3.47) |
|
|
|
|
|
|
Weighted average diluted shares (in
millions) |
|
569.0 |
|
|
566.0 |
|
1 The income tax impact is
calculated using the U.S. corporate statutory tax rate. |
|
|
|
|
|
|
|