Boeing Reports Fourth-Quarter Results
ARLINGTON, Va., Jan. 25, 2023 /PRNewswire/ --
Fourth Quarter
2022
- Generated $3.5 billion of
operating cash flow and $3.1 billion
of free cash flow (non-GAAP); cash and marketable securities of
$17.2 billion
- Certification efforts continue on 737-7 and 737-10
- Delivered 152 commercial airplanes and recorded 376 net
orders
Full Year 2022
- Generated $3.5 billion of
operating cash flow and $2.3 billion
of free cash flow (non-GAAP)
- Delivered 480 commercial airplanes and recorded 808 net
orders
- Total company backlog grew to $404
billion; including over 4,500 commercial airplanes
Outlook for
2023
- Reaffirming guidance: $4.5-$6.5 billion
of operating cash flow and $3.0-$5.0 billion
free cash flow (non-GAAP)
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Table 1. Summary Financial
Results |
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Fourth
Quarter |
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Full Year |
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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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$19,980 |
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$14,793 |
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35 % |
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$66,608 |
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$62,286 |
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7 % |
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GAAP |
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Loss From Operations |
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($353) |
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($4,171) |
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NM |
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($3,547) |
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($2,902) |
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NM |
Operating Margin |
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(1.8) |
% |
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(28.2) |
% |
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NM |
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(5.3) |
% |
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(4.7) |
% |
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NM |
Net Loss |
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($663) |
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($4,164) |
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NM |
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($5,053) |
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($4,290) |
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NM |
Loss Per Share |
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($1.06) |
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($7.02) |
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NM |
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($8.30) |
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($7.15) |
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NM |
Operating Cash Flow |
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$3,457 |
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$716 |
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383 % |
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$3,512 |
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($3,416) |
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NM |
Non-GAAP* |
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Core Operating Loss |
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($650) |
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($4,536) |
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NM |
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($4,690) |
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($4,075) |
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NM |
Core Operating Margin |
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(3.3) |
% |
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(30.7) |
% |
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NM |
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(7.0) |
% |
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(6.5) |
% |
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NM |
Core Loss Per Share |
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($1.75) |
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($7.69) |
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NM |
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($11.06) |
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($9.44) |
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NM |
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*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] recorded fourth-quarter revenue of
$20.0 billion, GAAP loss per share of
($1.06), and core loss per share
(non-GAAP)* of ($1.75) (Table 1).
Boeing also generated $3.5 billion of
operating cash flow and $3.1 billion
of free cash flow (non-GAAP). Results improved on commercial volume
and performance.
"We had a solid fourth quarter, and 2022 proved to be an
important year in our recovery," said Dave
Calhoun, Boeing President and Chief Executive Officer.
"Demand across our portfolio is strong, and we remain focused on
driving stability in our operations and within the supply chain to
meet our commitments in 2023 and beyond. We are investing in our
business, innovating and prioritizing safety, quality and
transparency in all that we do. While challenges remain, we are
well positioned and are on the right path to restoring our
operational and financial strength."
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Table 2. Cash Flow |
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Fourth
Quarter |
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Full Year |
(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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$3,457 |
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$716 |
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$3,512 |
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($3,416) |
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Less Additions to Property, Plant
& Equipment |
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($326) |
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($222) |
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($1,222) |
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($980) |
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Free Cash Flow* |
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$3,131 |
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$494 |
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$2,290 |
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($4,396) |
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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 $3.5
billion in the quarter, reflecting higher commercial
deliveries and timing of receipts and expenditures (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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Q4 22 |
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Q3 22 |
Cash |
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$14.6 |
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$13.5 |
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Marketable
Securities1 |
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$2.6 |
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$0.8 |
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Total |
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$17.2 |
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$14.3 |
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Consolidated Debt |
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$57.0 |
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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
$17.2 billion, compared to
$14.3 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 $404 billion.
Segment Results
Commercial Airplanes
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Table 4. Commercial
Airplanes |
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Fourth
Quarter |
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Full Year |
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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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152 |
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99 |
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54 % |
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480 |
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340 |
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41 % |
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Revenues |
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$9,224 |
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$4,750 |
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94 % |
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$25,867 |
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$19,493 |
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33 % |
Loss from Operations |
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($626) |
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($4,454) |
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NM |
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($2,370) |
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($6,475) |
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NM |
Operating Margin |
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(6.8) |
% |
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(93.8) |
% |
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NM |
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(9.2) |
% |
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(33.2) |
% |
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NM |
Commercial Airplanes fourth-quarter revenue increased to
$9.2 billion driven by higher
737 and 787 deliveries, partially offset by 787 customer
considerations (Table 4). Operating margin of (6.8) percent also
reflects abnormal costs and period expenses, including research and
development.
The 737 program is stabilizing production rate at 31 per month
with plans to ramp production to approximately 50 per month in the
2025/2026 timeframe. Additionally, the 787 program continues at a
low production rate with plans to ramp production to five per month
in late 2023 and to 10 per month in the 2025/2026 timeframe.
During the quarter, the company secured net orders
for 376 aircraft, including an order from United Airlines
for 100 737 MAX and 100 787 airplanes. Commercial Airplanes
delivered 152 airplanes during the quarter and backlog included
over 4,500 airplanes valued at $330
billion.
Defense, Space & Security
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Table 5. Defense, Space &
Security |
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Fourth
Quarter |
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Full Year |
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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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$6,181 |
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$5,862 |
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5 % |
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$23,162 |
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$26,540 |
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(13) % |
Earnings/(loss) from
Operations |
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$112 |
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($255) |
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NM |
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($3,544) |
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$1,544 |
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NM |
Operating Margin |
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1.8 |
% |
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(4.4) |
% |
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NM |
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(15.3) |
% |
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5.8 |
% |
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NM |
Defense, Space & Security fourth-quarter revenue was
$6.2 billion. Fourth-quarter
operating margin of 1.8 percent reflects the continued operational
impact of labor instability and supply chain disruption.
Defense, Space & Security delivered 45 aircraft and three
satellites, including the first P-8A Poseidon to New Zealand. Also in the quarter, the
Boeing-built Space Launch System core stage powered the first
Artemis I mission to the moon and the T-7A program completed engine
testing.
During the quarter, Defense, Space & Security captured
awards from Japan for two KC-46A
Tankers and from the Egyptian Air Force for 12 CH-47F Chinook
helicopters. Backlog at Defense, Space & Security was
$54 billion, of
which 28 percent represents orders from customers outside
the U.S.
Global Services
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Table 6. Global Services |
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Fourth
Quarter |
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Full Year |
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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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$4,567 |
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$4,291 |
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6 % |
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$17,611 |
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$16,328 |
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8 % |
Earnings from Operations |
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$634 |
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$401 |
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58 % |
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$2,727 |
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$2,017 |
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35 % |
Operating Margin |
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13.9 |
% |
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9.3 |
% |
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4.6 pts |
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15.5 |
% |
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12.4 |
% |
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3.1 pts |
Global Services fourth-quarter revenue of $4.6 billion and operating margin of 13.9 percent
reflect higher commercial volume, partially offset by lower
government volume.
During the quarter, Global Services finalized the U.S. Air Force
F-15 depot support order and opened the Germany Distribution Center
to serve 6,000+ customers with chemicals and specialty
materials.
Additional Financial Information
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Table 7. Additional Financial
Information |
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Fourth
Quarter |
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Full Year |
(Dollars in Millions) |
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2022 |
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2021 |
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2022 |
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2021 |
Revenues |
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Boeing Capital |
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$49 |
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$63 |
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$199 |
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$272 |
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Unallocated items, eliminations and
other |
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($41) |
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($173) |
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($231) |
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($347) |
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Earnings/(loss) from
Operations |
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Boeing Capital |
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$15 |
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$7 |
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$29 |
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$106 |
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FAS/CAS service cost adjustment |
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$297 |
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$365 |
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$1,143 |
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$1,173 |
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Other unallocated items and
eliminations |
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($785) |
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($235) |
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($1,532) |
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($1,267) |
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Other income, net |
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$336 |
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$132 |
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$1,058 |
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$551 |
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Interest and debt expense |
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($632) |
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($661) |
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($2,533) |
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($2,682) |
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Effective tax rate |
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(2.2) |
% |
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11.4 |
% |
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(0.6) |
% |
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14.8 |
% |
At quarter-end, Boeing Capital's net portfolio balance was
$1.5 billion. The increase in loss
from other unallocated items and eliminations was driven by timing
of allocations, share based compensation and deferred compensation
expense. The change in other income was primarily due to increased
interest rates driving increased investment income. The fourth
quarter effective tax rate primarily reflects tax expense driven by
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 Loss, Core Operating Margin and Core Loss Per
Share
Core operating loss 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 loss 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
(loss)/earnings, core operating margin and core loss per share for
purposes of evaluating and forecasting underlying business
performance. Management believes these core 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
non-GAAP and 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.
See Table 2 on page 2 and page 14 for reconciliations 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) general
conditions in the economy and our industry, including those due to
regulatory changes; (2) our reliance on our commercial airline
customers; (3) the overall health of our aircraft production
system, planned commercial aircraft production rate changes, our
ability to successfully develop and certify new aircraft or new
derivative aircraft, and the ability of our aircraft to meet
stringent performance and reliability standards; (4) changing
budget and appropriation levels and acquisition priorities of the
U.S. government; (5) our dependence on our subcontractors and
suppliers, as well as the availability of highly skilled labor and
raw materials; (6) competition within our markets; (7) our non-U.S.
operations and sales to non-U.S. customers; (8) changes in
accounting estimates; (9) realizing the anticipated benefits of
mergers, acquisitions, joint ventures/strategic alliances or
divestitures; (10) our dependence on U.S. government contracts;
(11) our reliance on fixed-price contracts; (12) our reliance on
cost-type contracts; (13) contracts that include in-orbit incentive
payments; (14) unauthorized access to our, our customers' and/or
our suppliers' information and systems; (15) potential business
disruptions, including threats to physical security or our
information technology systems, extreme weather (including effects
of climate change) or other acts of nature, and pandemics or other
public health crises; (16) potential adverse developments in new or
pending litigation and/or government inquiries or investigations;
(17) potential environmental liabilities; (18) effects of climate
change and legal, regulatory or market responses to such change;
(19) changes in our ability to obtain debt financing on
commercially reasonable terms, at competitive rates and in
sufficient amounts; (20) substantial pension and other
postretirement benefit obligations; (21) the adequacy of our
insurance coverage; (22) customer and aircraft concentration in our
customer financing portfolio; and (23) work stoppages or other
labor disruptions.
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) |
|
|
Twelve months
ended
December 31 |
|
Three months
ended
December 31 |
(Dollars in millions, except per share
data) |
2022 |
|
2021 |
|
2022 |
|
2021 |
Sales of products |
$55,893 |
|
|
$51,386 |
|
|
$17,126 |
|
|
$12,162 |
|
Sales of services |
10,715 |
|
|
10,900 |
|
|
2,854 |
|
|
2,631 |
|
Total revenues |
66,608 |
|
|
62,286 |
|
|
19,980 |
|
|
14,793 |
|
|
|
|
|
|
|
|
|
Cost of products |
(53,969) |
|
|
(49,954) |
|
|
(15,732) |
|
|
(14,788) |
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Cost of services |
(9,109) |
|
|
(9,283) |
|
|
(2,384) |
|
|
(2,512) |
|
Boeing Capital interest expense |
(28) |
|
|
(32) |
|
|
(8) |
|
|
(7) |
|
Total costs and expenses |
(63,106) |
|
|
(59,269) |
|
|
(18,124) |
|
|
(17,307) |
|
|
3,502 |
|
|
3,017 |
|
|
1,856 |
|
|
(2,514) |
|
(Loss)/income from operating investments, net |
(16) |
|
|
210 |
|
|
11 |
|
|
15 |
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General and administrative expense |
(4,187) |
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|
(4,157) |
|
|
(1,430) |
|
|
(988) |
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Research and development expense, net |
(2,852) |
|
|
(2,249) |
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|
(794) |
|
|
(678) |
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Gain on dispositions, net |
6 |
|
|
277 |
|
|
4 |
|
|
(6) |
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Loss from operations |
(3,547) |
|
|
(2,902) |
|
|
(353) |
|
|
(4,171) |
|
Other income, net |
1,058 |
|
|
551 |
|
|
336 |
|
|
132 |
|
Interest and debt expense |
(2,533) |
|
|
(2,682) |
|
|
(632) |
|
|
(661) |
|
Loss before income taxes |
(5,022) |
|
|
(5,033) |
|
|
(649) |
|
|
(4,700) |
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Income tax (expense)/benefit |
(31) |
|
|
743 |
|
|
(14) |
|
|
536 |
|
Net loss |
(5,053) |
|
|
(4,290) |
|
|
(663) |
|
|
(4,164) |
|
Less: net loss attributable to noncontrolling
interest |
(118) |
|
|
(88) |
|
|
(29) |
|
|
(21) |
|
Net loss attributable to Boeing
Shareholders |
($4,935) |
|
|
($4,202) |
|
|
($634) |
|
|
($4,143) |
|
|
|
|
|
|
|
|
|
Basic loss per share |
($8.30) |
|
|
($7.15) |
|
|
($1.06) |
|
|
($7.02) |
|
|
|
|
|
|
|
|
|
Diluted loss per share |
($8.30) |
|
|
($7.15) |
|
|
($1.06) |
|
|
($7.02) |
|
|
|
|
|
|
|
|
|
Weighted average diluted shares
(millions) |
595.2 |
|
588.0 |
|
598.9 |
|
590.3 |
The Boeing Company
and Subsidiaries
Consolidated Statements of Financial Position
(Unaudited) |
|
(Dollars in millions, except per share
data) |
December 31
2022 |
|
December 31
2021 |
Assets |
|
|
|
Cash and cash equivalents |
$14,614 |
|
|
$8,052 |
|
Short-term and other investments |
2,606 |
|
|
8,192 |
|
Accounts receivable, net |
2,517 |
|
|
2,641 |
|
Unbilled receivables, net |
8,634 |
|
|
8,620 |
|
Current portion of customer financing, net |
154 |
|
|
117 |
|
Inventories |
78,151 |
|
|
78,823 |
|
Other current assets, net |
2,847 |
|
|
2,221 |
|
Total current assets |
109,523 |
|
|
108,666 |
|
Customer financing, net |
1,450 |
|
|
1,695 |
|
Property, plant and equipment, net of accumulated
depreciation of $21,442 and
$20,538 |
10,550 |
|
|
10,918 |
|
Goodwill |
8,057 |
|
|
8,068 |
|
Acquired intangible assets, net |
2,311 |
|
|
2,562 |
|
Deferred income taxes |
63 |
|
|
77 |
|
Investments |
983 |
|
|
975 |
|
Other assets, net of accumulated amortization of
of $949 and $975 |
4,163 |
|
|
5,591 |
|
Total assets |
$137,100 |
|
|
$138,552 |
|
Liabilities and equity |
|
|
|
Accounts payable |
$10,200 |
|
|
$9,261 |
|
Accrued liabilities |
21,581 |
|
|
18,455 |
|
Advances and progress billings |
53,081 |
|
|
52,980 |
|
Short-term debt and current portion of long-term
debt |
5,190 |
|
|
1,296 |
|
Total current liabilities |
90,052 |
|
|
81,992 |
|
Deferred income taxes |
230 |
|
|
218 |
|
Accrued retiree health care |
2,503 |
|
|
3,528 |
|
Accrued pension plan liability, net |
6,141 |
|
|
9,104 |
|
Other long-term liabilities |
2,211 |
|
|
1,750 |
|
Long-term debt |
51,811 |
|
|
56,806 |
|
Total liabilities |
152,948 |
|
|
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 |
9,947 |
|
|
9,052 |
|
Treasury stock, at cost -
414,671,385 and 423,343,707 shares |
(50,814) |
|
|
(51,861) |
|
Retained earnings |
29,473 |
|
|
34,408 |
|
Accumulated other comprehensive loss |
(9,550) |
|
|
(11,659) |
|
Total shareholders' deficit |
(15,883) |
|
|
(14,999) |
|
Noncontrolling interests |
35 |
|
|
153 |
|
Total equity |
(15,848) |
|
|
(14,846) |
|
Total liabilities and equity |
$137,100 |
|
|
$138,552 |
|
The Boeing Company
and Subsidiaries
Consolidated Statements of Cash Flows
(Unaudited) |
|
|
Twelve months
ended
December 31 |
(Dollars in millions) |
2022 |
|
2021 |
Cash flows – operating
activities: |
|
|
|
Net loss |
($5,053) |
|
|
($4,290) |
|
Adjustments to reconcile net loss to net cash
provided/(used) by operating activities: |
|
|
|
Non-cash items – |
|
|
|
Share-based plans expense |
725 |
|
|
833 |
|
Treasury shares issued for 401(k)
contribution |
1,215 |
|
|
1,233 |
|
Depreciation and amortization |
1,979 |
|
|
2,144 |
|
Investment/asset impairment charges, net |
112 |
|
|
98 |
|
Customer financing valuation adjustments |
37 |
|
|
|
Gain on dispositions, net |
(6) |
|
|
(277) |
|
787 and 777X reach-forward losses |
|
|
3,460 |
|
Other charges and credits, net |
364 |
|
|
360 |
|
Changes in assets and liabilities – |
|
|
|
Accounts receivable |
142 |
|
|
(713) |
|
Unbilled receivables |
6 |
|
|
(586) |
|
Advances and progress billings |
108 |
|
|
2,505 |
|
Inventories |
420 |
|
|
(1,127) |
|
Other current assets |
(591) |
|
|
345 |
|
Accounts payable |
838 |
|
|
(3,783) |
|
Accrued liabilities |
2,956 |
|
|
(3,687) |
|
Income taxes receivable, payable and deferred |
1,347 |
|
|
733 |
|
Other long-term liabilities |
(158) |
|
|
(206) |
|
Pension and other postretirement plans |
(1,378) |
|
|
(972) |
|
Customer financing, net |
142 |
|
|
210 |
|
Other |
307 |
|
|
304 |
|
Net cash provided/(used) by
operating activities |
3,512 |
|
|
(3,416) |
|
Cash flows – investing activities: |
|
|
|
Payments to acquire property, plant and
equipment |
(1,222) |
|
|
(980) |
|
Proceeds from disposals of property, plant and
equipment |
35 |
|
|
529 |
|
Acquisitions, net of cash acquired |
|
|
(6) |
|
Proceeds from dispositions |
|
|
|
Contributions to investments |
(5,051) |
|
|
(35,713) |
|
Proceeds from investments |
10,619 |
|
|
45,489 |
|
Purchase of distribution rights |
|
|
|
Other |
(11) |
|
|
5 |
|
Net cash provided by investing
activities |
4,370 |
|
|
9,324 |
|
Cash flows – financing activities: |
|
|
|
New borrowings |
34 |
|
|
9,795 |
|
Debt repayments |
(1,310) |
|
|
(15,371) |
|
Contributions from noncontrolling interests |
|
|
|
Repayments of distribution rights and other asset
financing |
|
|
|
Stock options exercised |
50 |
|
|
42 |
|
Excess tax benefits from share-based payment
arrangements |
|
|
|
Employee taxes on certain share-based payment
arrangements |
(40) |
|
|
(66) |
|
Common shares repurchased |
|
|
|
Dividends paid |
|
|
— |
|
Other |
|
|
|
Net cash used by financing
activities |
(1,266) |
|
|
(5,600) |
|
Effect of exchange rate changes on cash and cash
equivalents |
(73) |
|
|
(39) |
|
Net increase in cash & cash equivalents,
including restricted |
6,543 |
|
|
269 |
|
Cash & cash equivalents, including restricted,
at beginning of year |
8,104 |
|
|
7,835 |
|
Cash & cash equivalents, including
restricted, at end of period |
14,647 |
|
|
8,104 |
|
Less restricted cash & cash equivalents,
included in Investments |
33 |
|
|
52 |
|
Cash & cash equivalents at end of
year |
$14,614 |
|
|
$8,052 |
|
The Boeing Company
and Subsidiaries
Summary of Business Segment Data
(Unaudited) |
|
|
Twelve months
ended
December 31 |
|
Three months
ended
December 31 |
(Dollars in millions) |
2022 |
|
2021 |
|
2022 |
|
2021 |
Revenues: |
|
|
|
|
|
|
|
Commercial Airplanes |
$25,867 |
|
|
$19,493 |
|
|
$9,224 |
|
|
$4,750 |
|
Defense, Space & Security |
23,162 |
|
|
26,540 |
|
|
6,181 |
|
|
5,862 |
|
Global Services |
17,611 |
|
|
16,328 |
|
|
4,567 |
|
|
4,291 |
|
Boeing Capital |
199 |
|
|
272 |
|
|
49 |
|
|
63 |
|
Unallocated items, eliminations and other |
(231) |
|
|
(347) |
|
|
(41) |
|
|
(173) |
|
Total revenues |
$66,608 |
|
|
$62,286 |
|
|
$19,980 |
|
|
$14,793 |
|
(Loss)/earnings from operations: |
|
|
|
|
|
|
|
Commercial Airplanes |
($2,370) |
|
|
($6,475) |
|
|
($626) |
|
|
($4,454) |
|
Defense, Space & Security |
(3,544) |
|
|
1,544 |
|
|
112 |
|
|
(255) |
|
Global Services |
2,727 |
|
|
2,017 |
|
|
634 |
|
|
401 |
|
Boeing Capital |
29 |
|
|
106 |
|
|
15 |
|
|
7 |
|
Segment operating (loss)/earnings |
(3,158) |
|
|
(2,808) |
|
|
135 |
|
|
(4,301) |
|
Unallocated items, eliminations and other |
(1,532) |
|
|
(1,267) |
|
|
(785) |
|
|
(235) |
|
FAS/CAS service cost adjustment |
1,143 |
|
|
1,173 |
|
|
297 |
|
|
365 |
|
Loss from operations |
(3,547) |
|
|
(2,902) |
|
|
(353) |
|
|
(4,171) |
|
Other income, net |
1,058 |
|
|
551 |
|
|
336 |
|
|
132 |
|
Interest and debt expense |
(2,533) |
|
|
(2,682) |
|
|
(632) |
|
|
(661) |
|
Loss before income taxes |
(5,022) |
|
|
(5,033) |
|
|
(649) |
|
|
(4,700) |
|
Income tax (expense)/benefit |
(31) |
|
|
743 |
|
|
(14) |
|
|
536 |
|
Net loss |
(5,053) |
|
|
(4,290) |
|
|
(663) |
|
|
(4,164) |
|
Less: Net loss attributable to noncontrolling
interest |
(118) |
|
|
(88) |
|
|
(29) |
|
|
(21) |
|
Net loss attributable to Boeing
Shareholders |
($4,935) |
|
|
($4,202) |
|
|
($634) |
|
|
($4,143) |
|
Research and development expense, net: |
|
|
|
|
|
|
|
Commercial Airplanes |
$1,510 |
|
|
$1,140 |
|
|
$408 |
|
|
$323 |
|
Defense, Space & Security |
945 |
|
|
818 |
|
|
239 |
|
|
288 |
|
Global Services |
119 |
|
|
107 |
|
|
30 |
|
|
27 |
|
Other |
278 |
|
|
184 |
|
|
117 |
|
|
40 |
|
Total research and development expense,
net |
$2,852 |
|
|
$2,249 |
|
|
$794 |
|
|
$678 |
|
Unallocated items, eliminations and
other: |
|
|
|
|
|
|
|
Share-based plans |
($114) |
|
|
($174) |
|
|
($50) |
|
|
($3) |
|
Deferred compensation |
117 |
|
|
(126) |
|
|
(87) |
|
|
(40) |
|
Amortization of previously capitalized
interest |
(95) |
|
|
(107) |
|
|
(24) |
|
|
(41) |
|
Research and development expense, net |
(278) |
|
|
(184) |
|
|
(117) |
|
|
(40) |
|
Eliminations and other unallocated items |
(1,162) |
|
|
(676) |
|
|
(507) |
|
|
(111) |
|
Sub-total (included in core operating
loss) |
(1,532) |
|
|
(1,267) |
|
|
(785) |
|
|
(235) |
|
Pension FAS/CAS service cost adjustment |
849 |
|
|
882 |
|
|
228 |
|
|
306 |
|
Postretirement FAS/CAS service cost
adjustment |
294 |
|
|
291 |
|
|
69 |
|
|
59 |
|
FAS/CAS service cost adjustment |
1,143 |
|
|
1,173 |
|
|
$297 |
|
|
$365 |
|
Total |
($389) |
|
|
($94) |
|
|
($488) |
|
|
$130 |
|
The Boeing Company
and Subsidiaries
Operating and Financial Data
(Unaudited) |
|
Deliveries |
|
Twelve months
ended
December 31 |
|
Three months
ended
December 31 |
|
Commercial Airplanes |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|
737 |
|
387 |
|
|
263 |
|
|
110 |
|
|
84 |
|
|
747 |
|
5 |
|
|
7 |
|
|
2 |
|
|
3 |
|
|
767 |
|
33 |
|
|
32 |
|
|
12 |
|
|
8 |
|
|
777 |
|
24 |
|
|
24 |
|
|
6 |
|
|
4 |
|
|
787 |
|
31 |
|
|
14 |
|
|
22 |
|
|
— |
|
|
Total |
|
480 |
|
|
340 |
|
|
152 |
|
|
99 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Defense, Space & Security |
|
|
|
|
|
|
|
|
|
AH-64 Apache (New) |
|
25 |
|
27 |
|
5 |
|
8 |
|
AH-64 Apache (Remanufactured) |
|
50 |
|
56 |
|
14 |
|
14 |
|
CH-47 Chinook (New) |
|
19 |
|
15 |
|
9 |
|
3 |
|
CH-47 Chinook (Renewed) |
|
9 |
|
5 |
|
3 |
|
— |
|
F-15 Models |
|
12 |
|
16 |
|
3 |
|
5 |
|
F/A-18 Models |
|
14 |
|
21 |
|
3 |
|
6 |
|
KC-46 Tanker |
|
15 |
|
13 |
|
6 |
|
6 |
|
P-8 Models |
|
12 |
|
16 |
|
2 |
|
5 |
|
MH-139 |
|
4 |
|
— |
|
— |
|
— |
|
Commercial and Civil Satellites |
|
4 |
|
— |
|
2 |
|
— |
|
Military Satellites |
|
1 |
|
— |
|
1 |
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total backlog (Dollars
in millions) |
|
|
|
|
|
|
|
|
|
|
|
December 31
2022 |
|
December 31
2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial Airplanes |
|
|
|
|
|
|
|
|
|
|
|
$329,824 |
|
$296,882 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Defense, Space & Security |
|
|
|
|
|
|
|
|
|
|
|
54,373 |
|
59,828 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Global Services |
|
|
|
|
|
|
|
|
|
|
|
19,338 |
|
20,496 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unallocated items, eliminations and
other |
|
|
|
|
|
|
|
|
|
|
|
846 |
|
293 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total backlog |
|
|
|
|
|
|
|
|
|
|
|
$404,381 |
|
$377,499 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contractual backlog |
|
|
|
|
|
|
|
|
|
|
|
$381,977 |
|
$356,362 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unobligated backlog |
|
|
|
|
|
|
|
|
|
|
|
22,404 |
|
21,137 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total backlog |
|
|
|
|
|
|
|
|
|
|
|
$404,381 |
|
$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) |
|
|
Fourth Quarter
2022 |
Fourth Quarter
2021 |
|
|
|
$ millions |
Per Share |
$ millions |
Per Share |
Revenues |
|
|
|
19,980 |
|
|
|
14,793 |
|
|
Loss from operations
(GAAP) |
|
|
|
(353) |
|
|
|
(4,171) |
|
|
Operating margin (GAAP) |
|
|
|
(1.8) |
% |
|
|
(28.2) |
% |
|
|
|
|
|
|
|
|
|
|
FAS/CAS service cost
adjustment: |
|
|
|
|
|
|
|
|
Pension FAS/CAS service cost
adjustment |
|
|
|
(228) |
|
|
|
(306) |
|
|
Postretirement FAS/CAS service cost
adjustment |
|
|
|
(69) |
|
|
|
(59) |
|
|
FAS/CAS service cost
adjustment |
|
|
|
(297) |
|
|
|
(365) |
|
|
Core operating loss
(non-GAAP) |
|
|
|
($650) |
|
|
|
($4,536) |
|
|
Core operating margin
(non-GAAP) |
|
|
|
(3.3) |
% |
|
|
(30.7) |
% |
|
|
|
|
|
|
|
|
|
|
Diluted loss per share
(GAAP) |
|
|
|
|
($1.06) |
|
|
|
($7.02) |
|
Pension FAS/CAS service cost
adjustment |
|
|
|
($228) |
|
(0.38) |
|
|
($306) |
|
(0.52) |
|
Postretirement FAS/CAS service cost
adjustment |
|
|
|
|
(69) |
|
(0.12) |
|
|
|
(59) |
|
|
(0.10) |
|
Non-operating pension expense |
|
|
|
(215) |
|
(0.35) |
|
|
(147) |
|
(0.26) |
|
Non-operating postretirement
expense |
|
|
|
|
(14) |
|
(0.02) |
|
|
|
15 |
|
|
0.03 |
|
Provision for deferred
income taxes on adjustments 1 |
|
|
|
110 |
|
0.18 |
|
|
104 |
|
0.18 |
|
Subtotal of adjustments |
|
|
|
($416) |
|
($0.69) |
|
|
($393) |
|
($0.67) |
|
Core loss per share
(non-GAAP) |
|
|
|
|
($1.75) |
|
|
|
($7.69) |
|
|
|
|
|
|
|
|
|
|
Weighted average diluted shares (in
millions) |
|
|
|
|
598.9 |
|
|
|
590.3 |
|
|
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) |
|
|
Full Year
2022 |
Full Year 2021 |
|
|
|
$ millions |
Per Share |
$ millions |
Per Share |
Revenues |
|
|
|
66,608 |
|
|
|
62,286 |
|
|
Loss from operations
(GAAP) |
|
|
|
(3,547) |
|
|
|
(2,902) |
|
|
Operating margin (GAAP) |
|
|
|
(5.3) |
% |
|
|
(4.7) |
% |
|
|
|
|
|
|
|
|
|
|
FAS/CAS service cost
adjustment: |
|
|
|
|
|
|
|
|
Pension FAS/CAS service cost
adjustment |
|
|
|
(849) |
|
|
|
(882) |
|
|
Postretirement FAS/CAS service cost
adjustment |
|
|
|
(294) |
|
|
|
(291) |
|
|
FAS/CAS service cost
adjustment |
|
|
|
(1,143) |
|
|
|
(1,173) |
|
|
Core operating loss
(non-GAAP) |
|
|
|
($4,690) |
|
|
|
($4,075) |
|
|
Core operating margin
(non-GAAP) |
|
|
|
(7.0) |
% |
|
|
(6.5) |
% |
|
|
|
|
|
|
|
|
|
|
Diluted loss per share
(GAAP) |
|
|
|
|
($8.30) |
|
|
|
($7.15) |
|
Pension FAS/CAS service cost
adjustment |
|
|
|
($849) |
|
(1.43) |
|
|
($882) |
|
(1.50) |
|
Postretirement FAS/CAS service cost
adjustment |
|
|
|
|
(294) |
|
(0.49) |
|
|
|
(291) |
|
(0.49) |
|
Non-operating pension expense |
|
|
|
(881) |
|
(1.47) |
|
|
(528) |
|
(0.91) |
|
Non-operating postretirement
expense |
|
|
|
|
(58) |
|
(0.10) |
|
|
|
(1) |
|
0.00 |
|
Provision for deferred
income taxes on adjustments 1 |
|
|
|
437 |
|
0.73 |
|
|
357 |
|
0.61 |
|
Subtotal of adjustments |
|
|
|
($1,645) |
|
($2.76) |
|
|
($1,345) |
|
($2.29) |
|
Core loss per share
(non-GAAP) |
|
|
|
|
($11.06) |
|
|
|
($9.44) |
|
|
|
|
|
|
|
|
|
|
Weighted average diluted shares (in
millions) |
|
|
|
|
595.2 |
|
|
|
588.0 |
|
|
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 table provided below reconciles the non-GAAP financial
measure free cash flow with the most directly comparable GAAP
financial measure, operating cash flow. See page 5 of this release
for additional information on the use of this non-GAAP financial
measure.
|
|
|
|
|
|
|
Full Year
2023 |
(dollars in billions) |
Outlook |
Operating Cash Flow |
$4.5 - $6.5 |
Less Additions to Property, Plant
& Equipment |
($1.5) |
Free Cash Flow (non-GAAP) |
$3.0 - $5.0 |