Boeing Reports
Third-Quarter Results
ARLINGTON, Va., Oct. 26, 2022 /PRNewswire/ --
Third Quarter
2022
- Operating cash flow of $3.2
billion; continue to expect positive free cash flow for
2022
- Resumed 787 deliveries and delivered 9 airplanes
- Recorded losses on fixed-price defense development
programs
- Revenue of $16.0 billion; GAAP
loss per share of ($5.49) and core
(non-GAAP)* loss per share of ($6.18)
- Total backlog of $381 billion;
including over 4,300 commercial airplanes
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Table 1. Summary Financial
Results |
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Third
Quarter |
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Nine Months |
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(Dollars in Millions, except per
share data) |
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2022 |
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2021 |
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Change |
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2022 |
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2021 |
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Change |
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Revenues |
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$15,956 |
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$15,278 |
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4 % |
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$46,628 |
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$47,493 |
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(2) % |
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GAAP |
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(Loss)/Earnings From
Operations |
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($2,799) |
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$329 |
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NM |
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($3,194) |
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$1,269 |
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NM |
Operating Margin |
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(17.5) |
% |
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2.2 |
% |
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NM |
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(6.8) |
% |
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2.7 |
% |
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NM |
Net Loss |
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($3,308) |
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($132) |
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NM |
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($4,390) |
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($126) |
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NM |
Loss Per Share |
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($5.49) |
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($0.19) |
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NM |
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($7.24) |
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($0.10) |
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NM |
Operating Cash Flow |
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$3,190 |
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($262) |
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NM |
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$55 |
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($4,132) |
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NM |
Non-GAAP* |
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Core Operating
(Loss)/Earnings |
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($3,078) |
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$59 |
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NM |
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($4,040) |
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$461 |
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NM |
Core Operating Margin |
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(19.3) |
% |
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0.4 |
% |
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NM |
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(8.7) |
% |
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1.0 |
% |
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NM |
Core Loss Per Share |
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($6.18) |
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($0.60) |
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NM |
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($9.31) |
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($1.72) |
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NM |
*Non-GAAP measure; complete
definitions of Boeing's non-GAAP measures are on page 5, "Non-GAAP
Measures Disclosures." |
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The Boeing Company [NYSE: BA] reported third-quarter revenue of
$16.0 billion, GAAP loss per share of
($5.49) and core loss per share
(non-GAAP)* of ($6.18). Third-quarter
results reflect higher commercial volume and losses on fixed-price
defense development programs (Table 1). Boeing generated operating
cash flow of $3.2 billion.
"We continue to make important strides in our turnaround and
remain focused on our performance," said Dave Calhoun, Boeing President and Chief
Executive Officer. "We generated strong cash in the quarter and are
on a solid path to achieving positive free cash flow for 2022. At
the same time, revenue and earnings were significantly impacted by
losses on our fixed-price defense development programs. We're
squarely focused on maturing these programs, mitigating risks and
delivering for our customers and their important missions. We
remain in a challenging environment and have more work ahead to
drive stability, improve our performance and ensure we're
consistently delivering on our commitments. Despite the challenges,
I'm proud of our team and the progress we've made to strengthen our
company."
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Table 2. Cash Flow |
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Third
Quarter |
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Nine Months |
(Millions) |
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2022 |
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2021 |
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2022 |
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2021 |
Operating Cash Flow |
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$3,190 |
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($262) |
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$55 |
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($4,132) |
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Less Additions to Property, Plant
& Equipment |
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($284) |
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($245) |
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($896) |
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($758) |
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Free Cash Flow* |
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$2,906 |
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($507) |
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($841) |
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($4,890) |
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*Non-GAAP measure; complete
definitions of Boeing's non-GAAP measures are on page 5, "Non-GAAP
Measures Disclosures." |
Operating cash flow improved to $3.2
billion in the quarter, reflecting higher commercial
deliveries, favorable receipt timing, and a tax refund (Table
2).
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Table 3. Cash, Marketable
Securities and Debt Balances |
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Quarter-End |
(Billions) |
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Q3 22 |
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Q2 22 |
Cash |
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$13.5 |
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$10.0 |
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Marketable
Securities1 |
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$0.8 |
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$1.4 |
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Total |
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$14.3 |
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$11.4 |
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Debt Balances: |
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The Boeing Company, net of
intercompany loans to BCC |
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$55.7 |
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$55.7 |
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Boeing Capital, including intercompany
loans |
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$1.5 |
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$1.5 |
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Total Consolidated Debt |
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$57.2 |
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$57.2 |
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1 Marketable
securities consist primarily of time deposits due within one year
classified as "short-term investments." |
Cash and investments in marketable securities increased to
$14.3 billion, compared to
$11.4 billion at the beginning of the
quarter, primarily driven by cash from operations (Table
3). The company has access to credit facilities of
$12.0 billion, which remain
undrawn.
Total company backlog at quarter-end was $381 billion.
Segment Results
Commercial Airplanes
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Table 4. Commercial
Airplanes |
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Third
Quarter |
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Nine Months |
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(Dollars in Millions) |
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2022 |
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2021 |
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Change |
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2022 |
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2021 |
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Change |
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Commercial Airplanes
Deliveries |
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112 |
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85 |
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32 % |
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328 |
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241 |
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36 % |
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Revenues |
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$6,263 |
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$4,459 |
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40 % |
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$16,643 |
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$14,743 |
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13 % |
Loss from Operations |
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($643) |
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($693) |
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NM |
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($1,744) |
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($2,021) |
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NM |
Operating Margin |
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(10.3) |
% |
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(15.5) |
% |
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NM |
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(10.5) |
% |
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(13.7) |
% |
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NM |
Commercial Airplanes third-quarter revenue increased to
$6.3 billion, driven by the
resumption of 787 deliveries and higher 737 deliveries (Table 4).
Operating margin of (10.3) percent also reflects lower abnormal
costs as compared to the third quarter of 2021, partially offset by
higher period expenses, including R&D expense.
The company also resumed 787 deliveries in late August,
following comprehensive reviews to ensure each airplane meets the
company's highest standards. The program is producing at a low rate
with an expected gradual return to five per month over time.
Since late 2020, the 737 MAX fleet has completed nearly 1
million revenue flights. During the quarter, the company secured
net orders for 227 aircraft, including 167 737 airplanes, 27 767
airplanes, 18 777 airplanes, and 15 787 airplanes. Commercial
Airplanes delivered 112 airplanes during the quarter and backlog
included over 4,300 airplanes valued at $307
billion.
Defense, Space & Security
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Table 5. Defense, Space &
Security |
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Third
Quarter |
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Nine Months |
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(Dollars in Millions) |
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2022 |
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2021 |
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Change |
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2022 |
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2021 |
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Change |
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Revenues |
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$5,307 |
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$6,617 |
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(20) % |
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$16,981 |
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$20,678 |
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(18) % |
(Loss)/earnings from
Operations |
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($2,798) |
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$436 |
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NM |
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($3,656) |
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$1,799 |
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NM |
Operating Margin |
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(52.7) |
% |
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6.6 |
% |
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NM |
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(21.5) |
% |
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8.7 |
% |
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NM |
Defense, Space & Security third-quarter revenue decreased to
$5.3 billion and third-quarter
operating margin decreased to (52.7) percent, primarily due to
$2.8 billion of losses on certain
fixed-price development programs, driven by higher estimated
manufacturing and supply chain costs, as well as technical
challenges. These losses were recorded on the KC-46A, VC-25B,
MQ-25, T-7A and Commercial Crew programs. Results were also
impacted by unfavorable performance on other programs.
During the quarter, Defense, Space & Security captured
KC-46A Tanker awards from the U.S. Air Force for 15 aircraft and
the Israeli Air Force for four aircraft, and Poland selected the AH-64E Apache as its
future attack helicopter. Defense, Space & Security delivered
34 aircraft and two satellites, including the first four MH-139A
Grey Wolf helicopters to the U.S. Air Force. Also during the
quarter, Defense, Space and Security opened the Advanced Composite
Fabrication Center in Mesa,
Arizona.
Backlog at Defense, Space & Security was $55 billion, of which 31 percent represents
orders from customers outside the U.S.
Global Services
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Table 6. Global Services |
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Third
Quarter |
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Nine Months |
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(Dollars in Millions) |
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2022 |
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2021 |
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Change |
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2022 |
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2021 |
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Change |
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Revenues |
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$4,432 |
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$4,221 |
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5 % |
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$13,044 |
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$12,037 |
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8 % |
Earnings from Operations |
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$733 |
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$644 |
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14 % |
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$2,093 |
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$1,616 |
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30 % |
Operating Margin |
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16.5 |
% |
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15.3 |
% |
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8 % |
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16.0 |
% |
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13.4 |
% |
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19 % |
Global Services third-quarter revenue increased to $4.4 billion and third-quarter operating margin
increased to 16.5 percent primarily driven by higher commercial
services volume and favorable mix, partially offset by lower
government services volume.
During the quarter, Global Services was awarded a follow-on
KC-767A Performance Based Logistics support contract for the
Italian Air Force and received an F/A-18 depot support order for
the U.S. Navy. Global Services also signed a Landing Gear Exchange
and Airplane Health Management agreement with Ethiopian Airlines.
Also in the quarter, Global Services delivered the 100th contracted
737-800BCF to AerCap.
Additional Financial Information
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Table 7. Additional Financial
Information |
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Third
Quarter |
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Nine Months |
(Dollars in Millions) |
|
2022 |
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2021 |
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2022 |
|
2021 |
Revenues |
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Boeing Capital |
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$52 |
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$71 |
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$150 |
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$209 |
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Unallocated items, eliminations and
other |
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($98) |
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($90) |
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($190) |
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($174) |
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(Loss)/Earnings from
Operations |
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Boeing Capital |
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$23 |
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$42 |
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$14 |
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$99 |
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FAS/CAS service cost adjustment |
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$279 |
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$270 |
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$846 |
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$808 |
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Other unallocated items and
eliminations |
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($393) |
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($370) |
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($747) |
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($1,032) |
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Other income, net |
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$288 |
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$30 |
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$722 |
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$419 |
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Interest and debt expense |
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($621) |
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($669) |
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($1,901) |
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($2,021) |
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Effective tax rate |
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(5.6) |
% |
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57.4 |
% |
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(0.4) |
% |
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62.2 |
% |
At quarter-end, Boeing Capital's net portfolio balance was
$1.6 billion. The change in other
income was driven by the absence of a pension settlement charge
recorded in the third quarter of 2021. Interest and debt expense
decreased due to lower debt balance. The third quarter effective
tax rate primarily reflects tax expense due to an increase in the
valuation allowance.
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 Loss Per
Share
Core operating earnings is defined as GAAP earnings from
operations excluding the FAS/CAS service cost
adjustment. The FAS/CAS service cost
adjustment represents the difference between the
Financial Accounting Standards (FAS) pension and postretirement
service costs calculated under GAAP and costs allocated to the
business segments. Core operating margin is defined as core
operating earnings expressed as a percentage of revenue. Core
(loss)/earnings per share is defined as GAAP diluted
earnings per share excluding the net earnings per share
impact of the FAS/CAS service cost adjustment
and Non-operating pension and postretirement expenses.
Non-operating pension and postretirement expenses represent the
components of net periodic benefit costs other than service cost.
Pension costs, comprising service and prior service costs computed
in accordance with GAAP are allocated to Commercial Airplanes and
BGS businesses supporting commercial customers. Pension costs
allocated to BDS and BGS businesses supporting government customers
are computed in accordance with U.S. Government Cost Accounting
Standards (CAS), which employ different actuarial assumptions and
accounting conventions than GAAP. CAS costs are allocable to
government contracts. Other postretirement benefit costs are
allocated to all business segments based on CAS, which is generally
based on benefits paid. Management uses core operating earnings,
core operating margin and core earnings per share for purposes of
evaluating and forecasting underlying business performance.
Management believes these core earnings measures provide investors
additional insights into operational performance as they exclude
non-service pension and post-retirement costs, which primarily
represent costs driven by market factors and costs not allocable to
government contracts. A reconciliation between the GAAP and
non-GAAP measures is provided on pages 12 & 13.
Free Cash Flow
Free cash flow is GAAP operating cash
flow reduced by capital expenditures for property,
plant and equipment. Management believes free cash flow
provides investors with an important perspective on the cash
available for shareholders, debt repayment, and acquisitions after
making the capital investments required to support ongoing business
operations and long term value creation. Free cash flow does not
represent the residual cash flow available for discretionary
expenditures as it excludes certain mandatory expenditures such as
repayment of maturing debt. Management uses free cash flow as a
measure to assess both business performance and overall liquidity.
Table 2 provides a reconciliation of free cash flow to GAAP
operating cash flow.
Caution Concerning Forward-Looking
Statements
This press release contains "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of
1995. Words such as "may," "should," "expects," "intends,"
"projects," "plans," "believes," "estimates," "targets,"
"anticipates," and similar expressions generally identify these
forward-looking statements. Examples of forward-looking statements
include statements relating to our future financial condition and
operating results, as well as any other statement that does not
directly relate to any historical or current fact. Forward-looking
statements are based on expectations and assumptions that we
believe to be reasonable when made, but that may not prove to be
accurate. These statements are not guarantees and are subject to
risks, uncertainties, and changes in circumstances that are
difficult to predict. Many factors could cause actual results to
differ materially and adversely from these forward-looking
statements. Among these factors are risks related to: (1) the
COVID-19 pandemic and related industry impacts, including with
respect to our operations, our liquidity, the health of our
customers and suppliers, and future demand for our products and
services; (2) the 737 MAX, including the timing and conditions of
remaining 737 MAX regulatory approvals, lower than planned
production rates and/or delivery rates, and additional
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, our customers'
and/or our suppliers' 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; (24) potential
environmental liabilities; and (25) effects of climate change and
legal, regulatory or market responses to such change.
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: |
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Investor Relations: |
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Matt Welch or Keely Moos (312) 544-2140 |
Communications: |
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Michael Friedman media@boeing.com |
The Boeing Company
and Subsidiaries |
Consolidated
Statements of Operations |
(Unaudited) |
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Nine months
ended
September 30 |
|
Three months
ended
September 30 |
(Dollars in millions, except per
share data) |
2022 |
|
2021 |
|
2022 |
|
2021 |
Sales of products |
$38,767 |
|
|
$39,224 |
|
|
$13,331 |
|
|
$12,552 |
|
Sales of services |
7,861 |
|
|
8,269 |
|
|
2,625 |
|
|
2,726 |
|
Total revenues |
46,628 |
|
|
47,493 |
|
|
15,956 |
|
|
15,278 |
|
|
|
|
|
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|
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|
Cost of products |
(38,237) |
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|
(35,166) |
|
|
(14,541) |
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|
(11,271) |
|
Cost of services |
(6,725) |
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|
(6,771) |
|
|
(2,230) |
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|
(2,288) |
|
Boeing Capital interest expense |
(20) |
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|
(25) |
|
|
(7) |
|
|
(7) |
|
Total costs and expenses |
(44,982) |
|
|
(41,962) |
|
|
(16,778) |
|
|
(13,566) |
|
|
1,646 |
|
|
5,531 |
|
|
(822) |
|
|
1,712 |
|
(Loss)/income from operating
investments, net |
(27) |
|
|
195 |
|
|
(24) |
|
|
120 |
|
General and administrative
expense |
(2,757) |
|
|
(3,169) |
|
|
(1,226) |
|
|
(1,097) |
|
Research and development expense,
net |
(2,058) |
|
|
(1,571) |
|
|
(727) |
|
|
(575) |
|
Gain on dispositions, net |
2 |
|
|
283 |
|
|
0 |
|
|
169 |
|
(Loss)/earnings from
operations |
(3,194) |
|
|
1,269 |
|
|
(2,799) |
|
|
329 |
|
Other income, net |
722 |
|
|
419 |
|
|
288 |
|
|
30 |
|
Interest and debt expense |
(1,901) |
|
|
(2,021) |
|
|
(621) |
|
|
(669) |
|
Loss before income taxes |
(4,373) |
|
|
(333) |
|
|
(3,132) |
|
|
(310) |
|
Income tax (expense)/benefit |
(17) |
|
|
207 |
|
|
(176) |
|
|
178 |
|
Net loss |
(4,390) |
|
|
(126) |
|
|
(3,308) |
|
|
(132) |
|
Less: net loss attributable to
noncontrolling interest |
(89) |
|
|
(67) |
|
|
(33) |
|
|
(23) |
|
Net loss attributable to Boeing
Shareholders |
($4,301) |
|
|
($59) |
|
|
($3,275) |
|
|
($109) |
|
|
|
|
|
|
|
|
|
Basic loss per share |
($7.24) |
|
|
($0.10) |
|
|
($5.49) |
|
|
($0.19) |
|
|
|
|
|
|
|
|
|
Diluted loss per share |
($7.24) |
|
|
($0.10) |
|
|
($5.49) |
|
|
($0.19) |
|
|
|
|
|
|
|
|
|
Weighted average diluted shares
(millions) |
594.0 |
|
587.3 |
|
596.3 |
|
589.0 |
The Boeing Company
and Subsidiaries |
Consolidated
Statements of Financial Position |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in millions, except per
share data) |
September 30
2022 |
|
December 31
2021 |
Assets |
|
|
|
Cash and cash equivalents |
$13,494 |
|
|
$8,052 |
|
Short-term and other investments |
763 |
|
|
8,192 |
|
Accounts receivable, net |
2,673 |
|
|
2,641 |
|
Unbilled receivables, net |
9,316 |
|
|
8,620 |
|
Current portion of customer financing,
net |
155 |
|
|
117 |
|
Inventories |
79,777 |
|
|
78,823 |
|
Other current assets, net |
3,073 |
|
|
2,221 |
|
Total current assets |
109,251 |
|
|
108,666 |
|
Customer financing, net |
1,513 |
|
|
1,695 |
|
Property, plant and equipment, net of
accumulated depreciation of $21,208 and
$20,538 |
10,508 |
|
|
10,918 |
|
Goodwill |
8,045 |
|
|
8,068 |
|
Acquired intangible assets, net |
2,371 |
|
|
2,562 |
|
Deferred income taxes |
77 |
|
|
77 |
|
Investments |
979 |
|
|
975 |
|
Other assets, net of accumulated
amortization of of $897 and $975 |
4,814 |
|
|
5,591 |
|
Total assets |
$137,558 |
|
|
$138,552 |
|
Liabilities and equity |
|
|
|
Accounts payable |
$9,793 |
|
|
$9,261 |
|
Accrued liabilities |
21,217 |
|
|
18,455 |
|
Advances and progress billings |
53,177 |
|
|
52,980 |
|
Short-term debt and current portion of
long-term debt |
5,431 |
|
|
1,296 |
|
Total current liabilities |
89,618 |
|
|
81,992 |
|
Deferred income taxes |
230 |
|
|
218 |
|
Accrued retiree health care |
3,356 |
|
|
3,528 |
|
Accrued pension plan liability,
net |
7,951 |
|
|
9,104 |
|
Other long-term liabilities |
2,250 |
|
|
1,750 |
|
Long-term debt |
51,788 |
|
|
56,806 |
|
Total liabilities |
155,193 |
|
|
153,398 |
|
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 |
9,705 |
|
|
9,052 |
|
Treasury stock, at cost -
416,639,182 and 423,343,707 shares |
(51,054) |
|
|
(51,861) |
|
Retained
earnings |
30,107 |
|
|
34,408 |
|
Accumulated other
comprehensive loss |
(11,518) |
|
|
(11,659) |
|
Total shareholders'
deficit |
(17,699) |
|
|
(14,999) |
|
Noncontrolling interests |
64 |
|
|
153 |
|
Total equity |
(17,635) |
|
|
(14,846) |
|
Total liabilities and
equity |
$137,558 |
|
|
$138,552 |
|
The Boeing Company
and Subsidiaries |
Consolidated
Statements of Cash Flows |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months
ended
September 30 |
(Dollars in millions) |
2022 |
|
2021 |
Cash flows – operating
activities: |
|
|
|
Net loss |
($4,390) |
|
|
($126) |
|
Adjustments to reconcile net loss to
net cash provided/(used) by operating activities: |
|
|
|
Non-cash items – |
|
|
|
Share-based plans expense |
528 |
|
|
677 |
|
Treasury shares issued for 401(k)
contribution |
928 |
|
|
951 |
|
Depreciation and amortization |
1,477 |
|
|
1,610 |
|
Investment/asset impairment charges,
net |
78 |
|
|
72 |
|
Customer financing valuation
adjustments |
39 |
|
|
(3) |
|
Gain on dispositions, net |
(2) |
|
|
(283) |
|
Other charges and credits, net |
388 |
|
|
(82) |
|
Changes in assets and liabilities
– |
|
|
|
Accounts receivable |
(22) |
|
|
(280) |
|
Unbilled receivables |
(678) |
|
|
(2,010) |
|
Advances and progress billings |
204 |
|
|
781 |
|
Inventories |
(1,164) |
|
|
508 |
|
Other current assets |
(860) |
|
|
279 |
|
Accounts payable |
590 |
|
|
(3,565) |
|
Accrued liabilities |
2,416 |
|
|
(3,168) |
|
Income taxes receivable, payable and
deferred |
1,382 |
|
|
1,011 |
|
Other long-term liabilities |
(114) |
|
|
(168) |
|
Pension and other postretirement
plans |
(1,053) |
|
|
(731) |
|
Customer financing, net |
76 |
|
|
170 |
|
Other |
232 |
|
|
225 |
|
Net cash provided/(used) by
operating activities |
55 |
|
|
(4,132) |
|
Cash flows – investing
activities: |
|
|
|
Payments to acquire property, plant
and equipment |
(896) |
|
|
(758) |
|
Proceeds from disposals of property,
plant and equipment |
19 |
|
|
385 |
|
Acquisitions, net of cash
acquired |
|
|
(6) |
|
Contributions to investments |
(2,773) |
|
|
(27,902) |
|
Proceeds from investments |
10,182 |
|
|
35,664 |
|
Other |
(11) |
|
|
6 |
|
Net cash provided by investing
activities |
6,521 |
|
|
7,389 |
|
Cash flows – financing
activities: |
|
|
|
New borrowings |
19 |
|
|
9,822 |
|
Debt repayments |
(1,038) |
|
|
(11,049) |
|
Stock options exercised |
39 |
|
|
36 |
|
Employee taxes on certain share-based
payment arrangements |
(36) |
|
|
(47) |
|
Net cash used by financing
activities |
(1,016) |
|
|
(1,238) |
|
Effect of exchange rate changes on
cash and cash equivalents |
(134) |
|
|
(34) |
|
Net increase in cash & cash
equivalents, including restricted |
5,426 |
|
|
1,985 |
|
Cash & cash equivalents, including
restricted, at beginning of year |
8,104 |
|
|
7,835 |
|
Cash & cash equivalents,
including restricted, at end of period |
13,530 |
|
|
9,820 |
|
Less restricted cash & cash
equivalents, included in Investments |
36 |
|
|
56 |
|
Cash & cash equivalents at end
of period |
$13,494 |
|
|
$9,764 |
|
The Boeing Company
and Subsidiaries |
Summary of Business
Segment Data |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months
ended
September 30 |
|
Three months
ended
September 30 |
(Dollars in millions) |
2022 |
|
2021 |
|
2022 |
|
2021 |
Revenues: |
|
|
|
|
|
|
|
Commercial Airplanes |
$16,643 |
|
|
$14,743 |
|
|
$6,263 |
|
|
$4,459 |
|
Defense, Space & Security |
16,981 |
|
|
20,678 |
|
|
5,307 |
|
|
6,617 |
|
Global Services |
13,044 |
|
|
12,037 |
|
|
4,432 |
|
|
4,221 |
|
Boeing Capital |
150 |
|
|
209 |
|
|
52 |
|
|
71 |
|
Unallocated items, eliminations and
other |
(190) |
|
|
(174) |
|
|
(98) |
|
|
(90) |
|
Total revenues |
$46,628 |
|
|
$47,493 |
|
|
$15,956 |
|
|
$15,278 |
|
(Loss)/earnings from operations: |
|
|
|
|
|
|
|
Commercial Airplanes |
($1,744) |
|
|
($2,021) |
|
|
($643) |
|
|
($693) |
|
Defense, Space & Security |
(3,656) |
|
|
1,799 |
|
|
(2,798) |
|
|
436 |
|
Global Services |
2,093 |
|
|
1,616 |
|
|
733 |
|
|
644 |
|
Boeing Capital |
14 |
|
|
99 |
|
|
23 |
|
|
42 |
|
Segment operating
(loss)/earnings |
(3,293) |
|
|
1,493 |
|
|
(2,685) |
|
|
429 |
|
Unallocated items, eliminations and
other |
(747) |
|
|
(1,032) |
|
|
(393) |
|
|
(370) |
|
FAS/CAS service cost adjustment |
846 |
|
|
808 |
|
|
279 |
|
|
270 |
|
(Loss)/earnings from
operations |
(3,194) |
|
|
1,269 |
|
|
(2,799) |
|
|
329 |
|
Other income, net |
722 |
|
|
419 |
|
|
288 |
|
|
30 |
|
Interest and debt expense |
(1,901) |
|
|
(2,021) |
|
|
(621) |
|
|
(669) |
|
Loss before income taxes |
(4,373) |
|
|
(333) |
|
|
(3,132) |
|
|
(310) |
|
Income tax (expense)/benefit |
(17) |
|
|
207 |
|
|
(176) |
|
|
178 |
|
Net loss |
(4,390) |
|
|
(126) |
|
|
(3,308) |
|
|
(132) |
|
Less: Net loss attributable to
noncontrolling interest |
(89) |
|
|
(67) |
|
|
(33) |
|
|
(23) |
|
Net loss attributable to Boeing
Shareholders |
($4,301) |
|
|
($59) |
|
|
($3,275) |
|
|
($109) |
|
Research and development expense,
net: |
|
|
|
|
|
|
|
Commercial Airplanes |
$1,102 |
|
|
$817 |
|
|
$409 |
|
|
$293 |
|
Defense, Space & Security |
706 |
|
|
530 |
|
|
240 |
|
|
193 |
|
Global Services |
89 |
|
|
80 |
|
|
35 |
|
|
30 |
|
Other |
161 |
|
|
144 |
|
|
43 |
|
|
59 |
|
Total research and development
expense, net |
$2,058 |
|
|
$1,571 |
|
|
$727 |
|
|
$575 |
|
Unallocated items, eliminations and
other: |
|
|
|
|
|
|
|
Share-based plans |
($64) |
|
|
($171) |
|
|
$44 |
|
|
($29) |
|
Deferred compensation |
204 |
|
|
(86) |
|
|
38 |
|
|
8 |
|
Amortization of previously capitalized
interest |
(71) |
|
|
(66) |
|
|
(24) |
|
|
(22) |
|
Research and development expense,
net |
(161) |
|
|
(144) |
|
|
(43) |
|
|
(59) |
|
Eliminations and other unallocated
items |
(655) |
|
|
(565) |
|
|
(408) |
|
|
(268) |
|
Sub-total (included in core
operating loss) |
(747) |
|
|
(1,032) |
|
|
(393) |
|
|
(370) |
|
Pension FAS/CAS service cost
adjustment |
621 |
|
|
576 |
|
|
208 |
|
|
192 |
|
Postretirement FAS/CAS service cost
adjustment |
225 |
|
|
232 |
|
|
71 |
|
|
78 |
|
FAS/CAS service cost
adjustment |
846 |
|
|
808 |
|
|
$279 |
|
|
$270 |
|
Total |
$99 |
|
|
($224) |
|
|
($114) |
|
|
($100) |
|
The Boeing Company
and Subsidiaries |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating and
Financial Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deliveries |
|
Nine months
ended
September 30 |
|
Three months
ended
September 30 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial Airplanes |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
737 |
|
277 |
|
|
179 |
|
|
88 |
|
|
66 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
747 |
|
3 |
|
|
4 |
|
|
— |
|
|
2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
767 |
|
21 |
|
|
24 |
|
|
9 |
|
|
11 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
777 |
|
18 |
|
|
20 |
|
|
6 |
|
|
6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
787 |
|
9 |
|
|
14 |
|
|
9 |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
328 |
|
|
241 |
|
|
112 |
|
|
85 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Defense, Space & Security |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AH-64 Apache (New) |
|
20 |
|
19 |
|
7 |
|
4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AH-64 Apache (Remanufactured) |
|
36 |
|
42 |
|
8 |
|
11 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CH-47 Chinook (New) |
|
10 |
|
12 |
|
1 |
|
6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CH-47 Chinook (Renewed) |
|
6 |
|
5 |
|
2 |
|
1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
F-15 Models |
|
9 |
|
11 |
|
4 |
|
3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
F/A-18 Models |
|
11 |
|
15 |
|
3 |
|
4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
KC-46 Tanker |
|
9 |
|
7 |
|
1 |
|
3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
P-8 Models |
|
10 |
|
11 |
|
4 |
|
5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MH-139 |
|
4 |
|
— |
|
4 |
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and Civil Satellites |
|
2 |
|
— |
|
2 |
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Military Satellites |
|
— |
|
— |
|
— |
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total backlog (Dollars in
millions) |
|
September 30
2022 |
|
December 31
2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial Airplanes |
|
$307,168 |
|
|
$296,882 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Defense, Space & Security |
|
54,740 |
|
|
59,828 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Global Services |
|
19,072 |
|
|
20,496 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unallocated items, eliminations and other |
|
335 |
|
|
293 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total backlog |
|
$381,315 |
|
|
$377,499 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contractual backlog |
|
$362,926 |
|
|
$356,362 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unobligated backlog |
|
18,389 |
|
|
21,137 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total backlog |
|
$381,315 |
|
|
$377,499 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 per share with the most directly comparable GAAP
financial measures, (loss)/earnings from operations, operating
margin, and diluted loss per share. See page 5 of this release for
additional information on the use of these non-GAAP financial
measures.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in millions, except per
share data) |
|
|
Third Quarter
2022 |
Third Quarter 2021 |
|
|
|
|
$ millions |
Per Share |
|
$ millions |
Per Share |
Revenues |
|
|
|
15,956 |
|
|
|
15,278 |
|
|
(Loss)/earnings from operations
(GAAP) |
|
|
|
(2,799) |
|
|
|
329 |
|
|
Operating margin (GAAP) |
|
|
|
(17.5) |
% |
|
|
2.2 |
% |
|
|
|
|
|
|
|
|
|
|
FAS/CAS service cost
adjustment: |
|
|
|
|
|
|
|
|
Pension FAS/CAS service cost
adjustment |
|
|
|
(208) |
|
|
|
(192) |
|
|
Postretirement FAS/CAS service cost
adjustment |
|
|
|
(71) |
|
|
|
(78) |
|
|
FAS/CAS service cost
adjustment |
|
|
|
(279) |
|
|
|
(270) |
|
|
Core operating (loss)/earnings
(non-GAAP) |
|
|
|
($3,078) |
|
|
|
$59 |
|
|
Core operating margin
(non-GAAP) |
|
|
|
(19.3) |
% |
|
|
0.4 |
% |
|
|
|
|
|
|
|
|
|
|
Diluted loss per share
(GAAP) |
|
|
|
|
($5.49) |
|
|
|
($0.19) |
|
Pension FAS/CAS service cost
adjustment |
|
|
|
($208) |
|
(0.35) |
|
|
($192) |
|
(0.33) |
|
Postretirement FAS/CAS service cost
adjustment |
|
|
|
(71) |
|
(0.12) |
|
|
(78) |
|
|
(0.13) |
|
Non-operating pension expense |
|
|
|
(225) |
|
(0.37) |
|
|
(29) |
|
(0.05) |
|
Non-operating postretirement
expense |
|
|
|
(15) |
|
(0.03) |
|
|
(6) |
|
|
(0.01) |
|
Provision for deferred income taxes on
adjustments 1 |
|
|
|
109 |
|
0.18 |
|
|
64 |
|
0.11 |
|
Subtotal of adjustments |
|
|
|
($410) |
|
($0.69) |
|
|
($241) |
|
($0.41) |
|
Core loss per share
(non-GAAP) |
|
|
|
|
($6.18) |
|
|
|
($0.60) |
|
|
|
|
|
|
|
|
|
|
Weighted average diluted shares (in
millions) |
|
|
|
|
596.3 |
|
|
|
589.0 |
|
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)/earnings, core operating margin, and
core loss per share with the most directly comparable GAAP
financial measures, (loss)/earnings from operations, operating
margin, and diluted loss per share. See page 5 of this release for
additional information on the use of these non-GAAP financial
measures.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in millions, except per
share data) |
|
|
Nine Months
2022 |
Nine Months 2021 |
|
|
|
|
$ millions |
Per Share |
|
$ millions |
Per Share |
Revenues |
|
|
|
46,628 |
|
|
|
47,493 |
|
|
(Loss)/earnings from operations
(GAAP) |
|
|
|
(3,194) |
|
|
|
1,269 |
|
|
Operating margin (GAAP) |
|
|
|
(6.8) |
% |
|
|
2.7 |
% |
|
|
|
|
|
|
|
|
|
|
FAS/CAS service cost
adjustment: |
|
|
|
|
|
|
|
|
Pension FAS/CAS service cost
adjustment |
|
|
|
(621) |
|
|
|
(576) |
|
|
Postretirement FAS/CAS service cost
adjustment |
|
|
|
(225) |
|
|
|
(232) |
|
|
FAS/CAS service cost
adjustment |
|
|
|
(846) |
|
|
|
(808) |
|
|
Core operating (loss)/earnings
(non-GAAP) |
|
|
|
($4,040) |
|
|
|
$461 |
|
|
Core operating margin
(non-GAAP) |
|
|
|
(8.7) |
% |
|
|
1.0 |
% |
|
|
|
|
|
|
|
|
|
|
Diluted loss per share
(GAAP) |
|
|
|
|
($7.24) |
|
|
|
($0.10) |
|
Pension FAS/CAS service cost
adjustment |
|
|
|
($621) |
|
(1.04) |
|
|
($576) |
|
(0.98) |
|
Postretirement FAS/CAS service cost
adjustment |
|
|
|
(225) |
|
(0.38) |
|
|
(232) |
|
|
(0.40) |
|
Non-operating pension expense |
|
|
|
(666) |
|
(1.13) |
|
|
(381) |
|
(0.64) |
|
Non-operating postretirement
expense |
|
|
|
(44) |
|
(0.07) |
|
|
(16) |
|
|
(0.03) |
|
Provision for deferred income taxes on
adjustments 1 |
|
|
|
327 |
|
0.55 |
|
|
253 |
|
0.43 |
|
Subtotal of adjustments |
|
|
|
($1,229) |
|
($2.07) |
|
|
($952) |
|
($1.62) |
|
Core loss per share
(non-GAAP) |
|
|
|
|
($9.31) |
|
|
|
($1.72) |
|
|
|
|
|
|
|
|
|
|
Weighted average diluted shares (in
millions) |
|
|
|
|
594.0 |
|
|
|
587.3 |
|
1 The
income tax impact is calculated using the U.S. corporate statutory
tax rate. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|