REG-Boeing Co: Half-year Report
28/07/2021 12:35
Boeing Reports Second-Quarter Results
CHICAGO, July 28, 2021 /PRNewswire/ --
* Continued progress on global safe return to service of 737 MAX
* Revenue of $17.0 billion, GAAP earnings per share of $1.00 and core
(non-GAAP)* earnings per share of $0.40
* Operating cash flow of ($0.5) billion; cash and marketable securities of
$21.3 billion
* Commercial Airplanes backlog grew to $285 billion and added 180 net orders
Table 1. Summary Financial Results Second Quarter First Half
(Dollars in Millions, except per share data) 2021 2020 Change 2021 2020 Change
Revenues $16,998 $11,807 44% $32,215 $28,715 12%
GAAP
Earnings/(Loss) From Operations $1,023 ($2,964) NM $940 ($4,317) NM
Operating Margin 6.0% (25.1)% NM 2.9% (15.0)% NM
Net Earnings/(Loss) $567 ($2,395) NM $6 ($3,036) NM
Earnings/(Loss) Per Share $1.00 ($4.20) NM $0.09 ($5.31) NM
Operating Cash Flow ($483) ($5,280) NM ($3,870) ($9,582) NM
Non-GAAP*
Core Operating Earnings/(Loss) $755 ($3,319) NM $402 ($5,019) NM
Core Operating Margin 4.4% (28.1)% NM 1.2% (17.5)% NM
Core Earnings/(Loss) Per Share $0.40 ($4.79) NM ($1.12) ($6.49) NM
*Non-GAAP measure; complete definitions of Boeing's non-GAAP measures are on page 6, "Non-GAAP Measures Disclosures."
The Boeing Company [NYSE: BA] reported second-quarter revenue of
$17.0 billion, driven by higher commercial airplanes and services
volume. GAAP earnings per share of $1.00 and core earnings per share
(non-GAAP)* of $0.40 primarily reflects higher commercial volume and lower
period costs (Table 1). Boeing recorded operating cash flow of ($0.5) billion.
"We continued to make important progress in the second quarter as we focus on
driving stability across our operations and transforming our business for the
future," said Boeing President and Chief Executive Officer David Calhoun.
"While our commercial market environment is improving, we're closely
monitoring COVID-19 case rates, vaccine distribution and global trade as key
indicators for our industry's stability. As we continue to position for a
robust recovery, we remain committed to safety and quality, while investing in
our people, products and technology. I am proud of our team's resilience and
commitment as we work to rebuild trust, improve our performance and deliver
for our commercial, defense, space and services customers."
As part of Boeing's ongoing focus on global sustainability, the company
published its first integrated Sustainability Report in July. "This was an
important step in our continued efforts to reinforce our Environmental,
Social, and Governance principles," Calhoun said.
Table 2. Cash Flow Second Quarter First Half
(Millions) 2021 2020 2021 2020
Operating Cash Flow ($483) ($5,280) ($3,870) ($9,582)
Less Additions to Property, Plant & Equipment ($222) ($348) ($513) ($776)
Free Cash Flow* ($705) ($5,628) ($4,383) ($10,358)
*Non-GAAP measure; complete definitions of Boeing's non-GAAP measures are on page 6, "Non-GAAP Measures Disclosures."
Operating cash flow improved to ($0.5) billion in the quarter, driven
by higher commercial deliveries, higher order receipts, and lower
expenditures (Table 2).
Table 3. Cash, Marketable Securities and Debt Balances Quarter-End
(Billions) Q2 21 Q1 21
Cash $8.2 $7.0
Marketable Securities1 $13.1 $14.9
Total $21.3 $21.9
Debt Balances:
The Boeing Company, net of intercompany loans to BCC $62.1 $62.0
Boeing Capital, including intercompany loans $1.5 $1.6
Total Consolidated Debt $63.6 $63.6
(1) Marketable securities consists primarily of time deposits due within one year classified as "short-term investments."
Cash and investments in marketable securities decreased to $21.3 billion,
compared to $21.9 billion at the beginning of the quarter, primarily driven by
operating cash outflows (Table 3). The company has access to credit
facilities of $14.8 billion which remain undrawn.
Total company backlog at quarter-end was $363 billion.
Segment Results
Commercial Airplanes
Table 4. Commercial Airplanes Second Quarter First Half
(Dollars in Millions) 2021 2020 Change 2021 2020 Change
Commercial Airplanes Deliveries 79 20 295% 156 70 123%
Revenues $6,015 $1,633 268% $10,284 $7,838 31%
Loss from Operations ($472) ($2,762) NM ($1,328) ($4,830) NM
Operating Margin (7.8)% (169.1)% NM (12.9)% (61.6)% NM
Commercial Airplanes second-quarter revenue increased to $6.0 billion
primarily driven by higher commercial airplane deliveries. Second-quarter
operating margin improved to (7.8) percent, primarily due to lower period
costs as well as higher delivery volume (Table 4).
Boeing is continuing to make progress on the global safe return to service of
the 737 MAX. Since the FAA's approval to return the 737 MAX to operations in
November 2020, Boeing has delivered more than 130 737 MAX aircraft and
airlines have returned more than 190 previously grounded airplanes to service.
30 airlines are now operating the 737 MAX, safely flying nearly 95,000 revenue
flights totaling more than 218,000 flight hours (as of July 25, 2021). The 737
program is currently producing at a rate of approximately 16 per month and
continues to expect to gradually increase production to 31 per month in early
2022 with further gradual increases to correspond with market demand. The
company will continue to assess the production rate plan as it monitors the
market environment and engages in customer discussions.
As Boeing has previously shared, the company is conducting inspections and
rework and continues to engage in detailed discussions with the FAA on
verification methodology for 787. In connection with these efforts, the
company announced earlier this month that it has identified additional rework
that will be required on undelivered 787s. Based on our assessment of the time
required to complete this work, Boeing is reprioritizing production resources
for a few weeks to support the inspection and rework. As that work is
performed, the 787 production rate will temporarily be lower than five per
month and will gradually return to that rate. Boeing expects to deliver fewer
than half of the 787s currently in inventory this year.
Commercial Airplanes secured orders for 200 737 aircraft for United Airlines,
34 737 aircraft for Southwest Airlines, and a total of 31 freighter aircraft.
Commercial Airplanes delivered 79 airplanes during the quarter and backlog
included over 4,100 airplanes valued at $285 billion.
Defense, Space & Security
Table 5. Defense, Space & Security Second Quarter First Half
(Dollars in Millions) 2021 2020 Change 2021 2020 Change
Revenues $6,876 $6,588 4% $14,061 $12,630 11%
Earnings from Operations $958 $600 60% $1,363 $409 233%
Operating Margin 13.9% 9.1% 53% 9.7% 3.2% 203%
Defense, Space & Security second-quarter revenue increased to $6.9 billion
driven by higher KC-46A Tanker and P-8A Poseidon volume. Second-quarter
operating margin increased to 13.9 percent, primarily reflecting the absence
of a charge on the KC-46A Tanker program as compared to second quarter 2020,
as well as a favorable non-US contract adjustment.
During the quarter, Defense, Space & Security secured an award for 14 H-47
extended-range Chinook helicopters for the U.K. Royal Air Force and signed an
agreement with the German Ministry of Defense for five P-8A Poseidon aircraft.
Defense, Space & Security conducted the first MQ-25 unmanned aerial refueling
of a F/A-18 Super Hornet and successfully joined T-7A Red Hawk front and aft
sections in under 30 minutes enabled by digital design. Also, the first Core
Stage for NASA's Space Launch System began stacking with other Artemis I
elements.
Backlog at Defense, Space & Security was $59 billion, of which 32 percent
represents orders from customers outside the U.S.
Global Services
Table 6. Global Services Second Quarter First Half
(Dollars in Millions) 2021 2020 Change 2021 2020 Change
Revenues $4,067 $3,488 17% $7,816 $8,116 (4)%
Earnings/(Loss) from Operations $531 ($672) NM $972 $36 NM
Operating Margin 13.1% (19.3)% NM 12.4% 0.4% NM
Global Services second-quarter revenue increased to $4.1 billion and
second-quarter operating margin increased to 13.1 percent primarily driven by
higher commercial services volume. Operating margin was also favorably
impacted by lower asset impairments, lower severance costs, and mix of
products and services.
During the quarter, Global Services signed an expanded parts agreement with
Turkish Technic and announced a partnership to expand capacity for 737-800
Boeing Converted Freighters. Global Services was also selected to provide P-8A
training and sustainment as well as C-17 training to the U.K. Royal Air Force,
and was awarded a modification for KC-46A interim contract support for the
U.S. Air Force.
Additional Financial Information
Table 7. Additional Financial Information Second Quarter First Half
(Dollars in Millions) 2021 2020 2021 2020
Revenues
Boeing Capital $78 $69 $138 $134
Unallocated items, eliminations and other ($38) $29 ($84) ($3)
Earnings/(Loss) from Operations
Boeing Capital $36 ($7) $57 $17
FAS/CAS service cost adjustment $268 $355 $538 $702
Other unallocated items and eliminations ($298) ($478) ($662) ($651)
Other income, net $199 $94 $389 $206
Interest and debt expense ($673) ($553) ($1,352) ($815)
Effective tax rate (3.3)% 30.0% 126.1% 38.4%
At quarter-end, Boeing Capital's net portfolio balance was $1.9 billion. The
change in revenue from other unallocated items and eliminations was primarily
due to the timing of allocations. The loss from other unallocated items and
eliminations was impacted by lower deferred compensation expense as compared
to the second quarter of 2020. Interest and debt expense increased due to
higher debt balances. The second quarter 2021 effective tax rate primarily
reflects benefits from a lower 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 Earnings Per Share
Core operating earnings is defined as GAAP earnings from
operations excluding the FAS/CAS service cost adjustment. The FAS/CAS
service cost adjustment represents the difference between the 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 earnings per share is defined as GAAP diluted earnings per
share excluding the net earnings per share impact of the FAS/CAS service
cost adjustment and Non-operating pension and postretirement expenses.
Non-operating pension and postretirement expenses represent the components of
net periodic benefit costs other than service cost. Pension costs, comprising
service and prior service costs computed in accordance with GAAP are allocated
to Commercial Airplanes and BGS businesses supporting commercial customers.
Pension costs allocated to BDS and BGS businesses supporting government
customers are computed in accordance with U.S. Government Cost Accounting
Standards (CAS), which employ different actuarial assumptions and accounting
conventions than GAAP. CAS costs are allocable to government contracts. Other
postretirement benefit costs are allocated to all business segments based on
CAS, which is generally based on benefits paid. Management uses core operating
earnings, core operating margin and core earnings per share for purposes of
evaluating and forecasting underlying business performance. Management
believes these core earnings measures provide investors additional insights
into operational performance as they exclude non-service pension and
post-retirement costs, which primarily represent costs driven by market
factors and costs not allocable to government contracts. A reconciliation
between the GAAP and non-GAAP measures is provided on pages 13-14.
Free Cash Flow
Free cash flow is GAAP operating cash flow reduced by capital expenditures
for property, plant and equipment. Management believes free cash flow
provides investors with an important perspective on the cash available for
shareholders, debt repayment, and acquisitions after making the capital
investments required to support ongoing business operations and long term
value creation. Free cash flow does not represent the residual cash flow
available for discretionary expenditures as it excludes certain mandatory
expenditures such as repayment of maturing debt. Management uses free cash
flow as a measure to assess both business performance and overall liquidity.
Table 2 provides a reconciliation of free cash flow to GAAP operating cash
flow.
Caution Concerning Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of
the Private Securities Litigation Reform Act of 1995. Words such as "may,"
"should," "expects," "intends," "projects," "plans," "believes," "estimates,"
"targets," "anticipates," and similar expressions generally identify these
forward-looking statements. Examples of forward-looking statements include
statements relating to our future financial condition and operating results,
as well as any other statement that does not directly relate to any historical
or current fact. Forward-looking statements are based on expectations and
assumptions that we believe to be reasonable when made, but that may not prove
to be accurate. These statements are not guarantees and are subject to risks,
uncertainties, and changes in circumstances that are difficult to predict.
Many factors could cause actual results to differ materially and adversely
from these forward-looking statements. Among these factors are risks related
to: (1) the COVID-19 pandemic and related 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 increased
considerations to customers and suppliers; (3) general conditions in the
economy and our industry, including those due to regulatory changes; (4) our
reliance on our commercial airline customers; (5) the overall health of our
aircraft production system, planned commercial aircraft production rate
changes, our commercial development and derivative aircraft programs, and our
aircraft being subject to stringent performance and reliability standards; (6)
changing budget and appropriation levels and acquisition priorities of the
U.S. government; (7) our dependence on U.S. government contracts; (8) our
reliance on fixed-price contracts; (9) our reliance on cost-type contracts;
(10) uncertainties concerning contracts that include in-orbit incentive
payments; (11) our dependence on our subcontractors and suppliers, as well as
the availability of raw materials; (12) changes in accounting estimates; (13)
changes in the competitive landscape in our markets; (14) our non-U.S.
operations, including sales to non-U.S. customers; (15) threats to the
security of our or our customers' information; (16) potential adverse
developments in new or pending litigation and/or government investigations;
(17) customer and aircraft concentration in our customer financing portfolio;
(18) changes in our ability to obtain debt financing on commercially
reasonable terms and at competitive rates; (19) realizing the anticipated
benefits of mergers, acquisitions, joint ventures/strategic alliances or
divestitures; (20) the adequacy of our insurance coverage to cover significant
risk exposures; (21) potential business disruptions, including those related
to physical security threats, information technology or cyber-attacks,
epidemics, sanctions or natural disasters; (22) work stoppages or other labor
disruptions; (23) substantial pension and other postretirement benefit
obligations; and (24) potential environmental liabilities.
Additional information concerning these and other factors can be found in our
filings with the Securities and Exchange Commission, including our most recent
Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports
on Form 8-K. Any forward-looking statement speaks only as of the date on which
it is made, and we assume no obligation to update or revise any
forward-looking statement, whether as a result of new information, future
events, or otherwise, except as required by law.
Contact:
Investor Relations: Maurita Sutedja or Keely Moos (312) 544-2140
Communications: Michael Friedman media@boeing.com
The Boeing Company and Subsidiaries
Consolidated Statements of Operations
(Unaudited)
Six months ended June 30 Three months ended June 30
(Dollars in millions, except per share data) 2021 2020 2021 2020
Sales of products $26,672 $23,254 $14,154 $9,063
Sales of services 5,543 5,461 2,844 2,744
Total revenues 32,215 28,715 16,998 11,807
Cost of products (23,895) (25,091) (12,263) (10,378)
Cost of services (4,483) (4,632) (2,316) (2,589)
Boeing Capital interest expense (18) (23) (9) (11)
Total costs and expenses (28,396) (29,746) (14,588) (12,978)
3,819 (1,031) 2,410 (1,171)
Income/(loss) from operating investments, net 75 (47) 38 (45)
General and administrative expense (2,072) (2,034) (1,040) (1,161)
Research and development expense, net (996) (1,297) (497) (625)
Gain on dispositions, net 114 92 112 38
Earnings/(loss) from operations 940 (4,317) 1,023 (2,964)
Other income, net 389 206 199 94
Interest and debt expense (1,352) (815) (673) (553)
(Loss)/earnings before income taxes (23) (4,926) 549 (3,423)
Income tax benefit 29 1,890 18 1,028
Net earnings/(loss) 6 (3,036) 567 (2,395)
Less: net loss attributable to noncontrolling interest (44) (32) (20) (19)
Net earnings/(loss) attributable to Boeing Shareholders $50 ($3,004) $587 ($2,376)
Basic earnings/(loss) per share $0.09 ($5.31) $1.00 ($4.20)
Diluted earnings/(loss) per share $0.09 ($5.31) $1.00 ($4.20)
Weighted average diluted shares (millions) 588.6 566.1 590.2 566.4
The Boeing Company and Subsidiaries
Consolidated Statements of Financial Position
(Unaudited)
(Dollars in millions, except per share data) June 30 2021 December 31 2020
Assets
Cash and cash equivalents $8,271 $7,752
Short-term and other investments 13,071 17,838
Accounts receivable, net 2,490 1,955
Unbilled receivables, net 9,203 7,995
Current portion of customer financing, net 74 101
Inventories 81,799 81,715
Other current assets, net 4,187 4,286
Total current assets 119,095 121,642
Customer financing, net 1,865 1,936
Property, plant and equipment, net of accumulated depreciation of $20,567 and $20,507 11,341 11,820
Goodwill 8,076 8,081
Acquired intangible assets, net 2,702 2,843
Deferred income taxes 84 86
Investments 883 1,016
Other assets, net of accumulated amortization of of $863 and $729 4,889 4,712
Total assets $148,935 $152,136
Liabilities and equity
Accounts payable $11,450 $12,928
Accrued liabilities 19,502 22,171
Advances and progress billings 50,738 50,488
Short-term debt and current portion of long-term debt 6,534 1,693
Total current liabilities 88,224 87,280
Deferred income taxes 1,064 1,010
Accrued retiree health care 4,017 4,137
Accrued pension plan liability, net 13,519 14,408
Other long-term liabilities 1,571 1,486
Long-term debt 57,025 61,890
Total liabilities 165,420 170,211
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 8,481 7,787
Treasury stock, at cost - 426,385,230 and 429,941,021 shares (52,223) (52,641)
Retained earnings 38,660 38,610
Accumulated other comprehensive loss (16,661) (17,133)
Total shareholders' deficit (16,682) (18,316)
Noncontrolling interests 197 241
Total equity (16,485) (18,075)
Total liabilities and equity $148,935 $152,136
The Boeing Company and Subsidiaries
Consolidated Statements of Cash Flows
(Unaudited)
Six months ended
June 30
(Dollars in millions) 2021 2020
Cash flows – operating activities:
Net earnings/(loss) $6 ($3,036)
Adjustments to reconcile net earnings/(loss) to net cash used by operating activities:
Non-cash items –
Share-based plans expense 493 115
Treasury shares issued for 401(k) contribution 628
Depreciation and amortization 1,087 1,103
Investment/asset impairment charges, net 38 280
Customer financing valuation adjustments (1) 9
Gain on dispositions, net (114) (92)
Other charges and credits, net (1) 815
Changes in assets and liabilities –
Accounts receivable (523) 143
Unbilled receivables (1,207) 285
Advances and progress billings 251 1,822
Inventories 413 (6,741)
Other current assets 324 433
Accounts payable (2,035) (3,181)
Accrued liabilities (2,613) 514
Income taxes receivable, payable and deferred (130) (1,894)
Other long-term liabilities (127) (109)
Pension and other postretirement plans (576) (357)
Customer financing, net 83 62
Other 134 247
Net cash used by operating activities (3,870) (9,582)
Cash flows – investing activities:
Property, plant and equipment additions (513) (776)
Property, plant and equipment reductions 51 96
Contributions to investments (20,108) (12,557)
Proceeds from investments 24,989 543
Other 4 8
Net cash provided/(used) by investing activities 4,423 (12,686)
Cash flows – financing activities:
New borrowings 9,826 42,302
Debt repayments (9,882) (8,265)
Stock options exercised 29 27
Employee taxes on certain share-based payment arrangements (40) (164)
Dividends paid (1,158)
Net cash (used)/provided by financing activities (67) 32,742
Effect of exchange rate changes on cash and cash equivalents, including restricted (14) (11)
Net increase in cash & cash equivalents, including restricted 472 10,463
Cash & cash equivalents, including restricted, at beginning of year 7,835 9,571
Cash & cash equivalents, including restricted, at end of period 8,307 20,034
Less restricted cash & cash equivalents, included in Investments 36 42
Cash and cash equivalents at end of period $8,271 $19,992
The Boeing Company and Subsidiaries
Summary of Business Segment Data
(Unaudited)
Six months ended June 30 Three months ended June 30
(Dollars in millions) 2021 2020 2021 2020
Revenues:
Commercial Airplanes $10,284 $7,838 $6,015 $1,633
Defense, Space & Security 14,061 12,630 6,876 6,588
Global Services 7,816 8,116 4,067 3,488
Boeing Capital 138 134 78 69
Unallocated items, eliminations and other (84) (3) (38) 29
Total revenues $32,215 $28,715 $16,998 $11,807
Earnings/(loss) from operations:
Commercial Airplanes ($1,328) ($4,830) ($472) ($2,762)
Defense, Space & Security 1,363 409 958 600
Global Services 972 36 531 (672)
Boeing Capital 57 17 36 (7)
Segment operating earnings/(loss) 1,064 (4,368) 1,053 (2,841)
Unallocated items, eliminations and other (662) (651) (298) (478)
FAS/CAS service cost adjustment 538 702 268 355
Earnings/(loss) from operations 940 (4,317) 1,023 (2,964)
Other income, net 389 206 199 94
Interest and debt expense (1,352) (815) (673) (553)
(Loss)/earnings before income taxes (23) (4,926) 549 (3,423)
Income tax benefit 29 1,890 18 1,028
Net earnings/(loss) 6 (3,036) 567 (2,395)
Less: Net loss attributable to noncontrolling interest (44) (32) (20) (19)
Net earnings/(loss) attributable to Boeing Shareholders $50 ($3,004) $587 ($2,376)
Research and development expense, net:
Commercial Airplanes $524 $786 $255 $361
Defense, Space & Security 337 330 174 167
Global Services 50 65 25 35
Other 85 116 43 62
Total research and development expense, net $996 $1,297 $497 $625
Unallocated items, eliminations and other:
Share-based plans ($142) ($43) ($14) ($25)
Deferred compensation (94) 73 (42) (120)
Amortization of previously capitalized interest (44) (50) (22) (27)
Research and development expense, net (85) (116) (43) (62)
Eliminations and other unallocated items (297) (515) (177) (244)
Sub-total (included in core operating loss) (662) (651) (298) (478)
Pension FAS/CAS service cost adjustment 384 513 191 258
Postretirement FAS/CAS service cost adjustment 154 189 77 97
FAS/CAS service cost adjustment 538 702 $268 $355
Total ($124) $51 ($30) ($123)
The Boeing Company and Subsidiaries
Operating and Financial Data
(Unaudited)
Deliveries Six months ended Three months ended
June 30 June 30
Commercial Airplanes 2021 2020 2021 2020
737 113 9 50 4
747 2 1 1 1
767 13 14 8 4
777 14 10 8 4
787 14 36 12 7
Total 156 70 79 20
Defense, Space & Security
AH-64 Apache (New) 15 11 6 9
AH-64 Apache (Remanufactured) 31 32 16 18
CH-47 Chinook (New) 6 15 3 6
CH-47 Chinook (Renewed) 4 1 1 —
F-15 Models 8 3 5 3
F/A-18 Models 11 9 7 4
KC-46A Tanker 4 6 2 1
P-8 Models 6 6 3 3
Total backlog (Dollars in millions) June 30 2021 December 31 2020
Commercial Airplanes $285,332 $281,588
Defense, Space & Security 58,705 60,847
Global Services 19,029 20,632
Unallocated items, eliminations and other 400 337
Total backlog $363,466 $363,404
Contractual backlog $342,261 $339,309
Unobligated backlog 21,205 24,095
Total backlog $363,466 $363,404
The Boeing Company and Subsidiaries
Reconciliation of Non-GAAP Measures
(Unaudited)
The tables provided below reconcile the non-GAAP financial measures core
operating earnings/(loss), core operating margin, and core earnings/(loss) per
share with the most directly comparable GAAP financial measures,
earnings/(loss) from operations, operating margin, and diluted earnings/(loss)
per share. See page 6 of this release for additional information on the use of
these non-GAAP financial measures.
(Dollars in millions, except per share data) Second Quarter 2021 Second Quarter 2020
$ millions Per Share $ millions Per Share
Revenues 16,998 11,807
Earnings/(loss) from operations (GAAP) 1,023 (2,964)
Operating margin (GAAP) 6.0% (25.1)%
FAS/CAS service cost adjustment:
Pension FAS/CAS service cost adjustment (191) (258)
Postretirement FAS/CAS service cost adjustment (77) (97)
FAS/CAS service cost adjustment (268) (355)
Core operating earnings/(loss) (non-GAAP) $755 ($3,319)
Core operating margin (non-GAAP) 4.4% (28.1)%
Diluted earnings/(loss) per share (GAAP) $1.00 ($4.20)
Pension FAS/CAS service cost adjustment ($191) (0.32) ($258) (0.46)
Postretirement FAS/CAS service cost adjustment (77) (0.13) (97) (0.17)
Non-operating pension expense (175) (0.30) (84) (0.14)
Non-operating postretirement expense (5) (0.01) 14 0.02
Provision for deferred income taxes on adjustments 1 94 0.16 89 0.16
Subtotal of adjustments ($354) ($0.60) ($336) ($0.59)
Core earnings/(loss) per share (non-GAAP) $0.40 ($4.79)
Weighted average diluted shares (in millions) 590.2 566.4
(1)The income tax impact is calculated using the U.S. corporate statutory tax rate.
The Boeing Company and Subsidiaries
Reconciliation of Non-GAAP Measures
(Unaudited)
The tables provided below reconcile the non-GAAP financial measures core
operating earnings/(loss), core operating margin, and core earnings/(loss) per
share with the most directly comparable GAAP financial measures,
earnings/(loss) from operations, operating margin, and diluted earnings/(loss)
per share. See page 6 of this release for additional information on the use of
these non-GAAP financial measures.
(Dollars in millions, except per share data) First Half 2021 First Half 2020
$ millions Per Share $ millions Per Share
Revenues 32,215 28,715
Earnings/(loss) from operations (GAAP) 940 (4,317)
Operating margin (GAAP) 2.9% (15.0)%
FAS/CAS service cost adjustment:
Pension FAS/CAS service cost adjustment (384) (513)
Postretirement FAS/CAS service cost adjustment (154) (189)
FAS/CAS service cost adjustment (538) (702)
Core operating earnings/(loss) (non-GAAP) $402 ($5,019)
Core operating margin (non-GAAP) 1.2% (17.5)%
Diluted earnings/(loss) per share (GAAP) $0.09 ($5.31)
Pension FAS/CAS service cost adjustment ($384) (0.65) ($513) (0.91)
Postretirement FAS/CAS service cost adjustment (154) (0.26) (189) (0.33)
Non-operating pension expense (352) (0.60) (171) (0.30)
Non-operating postretirement expense (10) (0.02) 27 0.05
Provision for deferred income taxes on adjustments 1 189 0.32 178 0.31
Subtotal of adjustments ($711) ($1.21) ($668) ($1.18)
Core loss per share (non-GAAP) ($1.12) ($6.49)
Weighted average diluted shares (in millions) 588.6 566.1
(1)The income tax impact is calculated using the U.S. corporate statutory tax rate.
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