REG-Boeing Co: Half-year Report
27/07/2022 13:00
Boeing Reports Second-Quarter Results
ARLINGTON, Va., July 27, 2022 /PRNewswire/ --
Second Quarter 2022
* Operating cash flow of $0.1 billion; continue to expect positive free cash
flow for 2022
* Increased 737 production to 31 per month; working with FAA on final actions
to resume 787 deliveries
* Successfully completed CST-100 Starliner uncrewed Orbital Flight Test-2
(OFT-2)
* Revenue of $16.7 billion; GAAP earnings per share of $0.32 and core
(non-GAAP)* loss per share of ($0.37)
* Total backlog of $372 billion; including over 4,200 commercial airplanes
Table 1. Summary Financial Results Second Quarter First Half
(Dollars in Millions, except per share data) 2022 2021 Change 2022 2021 Change
Revenues $16,681 $16,998 (2) % $30,672 $32,215 (5) %
GAAP
Earnings/(Loss) From Operations $774 $1,023 (24) % ($395) $940 NM
Operating Margin 4.6 % 6.0 % (23) % (1.3) % 2.9 % NM
Net Earnings/(Loss) $160 $567 (72) % ($1,082) $6 NM
Earnings/(Loss) Per Share $0.32 $1.00 (68) % ($1.73) $0.09 NM
Operating Cash Flow $81 ($483) NM ($3,135) ($3,870) NM
Non-GAAP*
Core Operating Earnings/(Loss) $490 $755 (35) % ($962) $402 NM
Core Operating Margin 2.9 % 4.4 % (34) % (3.1) % 1.2 % NM
Core (Loss)/Earnings Per Share ($0.37) $0.40 NM ($3.11) ($1.12) 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 $16.7
billion, GAAP earnings per share of $0.32 and core loss per share (non-GAAP)*
of ($0.37), driven by lower defense volume and unfavorable performance,
partially offset by higher commercial volume (Table 1). Boeing recorded
positive operating cash flow of $0.1 billion.
"We made important progress across key programs in the second quarter and are
building momentum in our turnaround," said Dave Calhoun, Boeing President and
Chief Executive Officer. "As we begin to hit key milestones, we were able to
generate positive operating cash flow this quarter and remain on track to
achieve positive free cash flow for 2022. While we are making meaningful
progress, we have more work ahead. We will stay focused on safety, quality and
transparency, as we drive stability, improve performance, and continue to
invest in our future."
Table 2. Cash Flow Second Quarter First Half
(Millions) 2022 2021 2022 2021
Operating Cash Flow $81 ($483) ($3,135) ($3,870)
Less Additions to Property, Plant & Equipment ($263) ($222) ($612) ($513)
Free Cash Flow* ($182) ($705) ($3,747) ($4,383)
*Non-GAAP measure; complete definitions of Boeing's non-GAAP measures are on page 6, "Non-GAAP Measures Disclosures."
Operating cash flow improved to $0.1 billion in the quarter, reflecting higher
commercial deliveries and timing of receipts and expenditures (Table 2).
Table 3. Cash, Marketable Securities and Debt Balances Quarter-End
(Billions) Q2 22 Q1 22
Cash $10.0 $7.4
Marketable Securities (1) $1.4 $4.9
Total $11.4 $12.3
Debt Balances:
The Boeing Company, net of intercompany loans to BCC $55.7 $56.2
Boeing Capital, including intercompany loans $1.5 $1.5
Total Consolidated Debt $57.2 $57.7
(1) Marketable securities consist primarily of time deposits due within one year classified as "short-term investments."
Cash and investments in marketable securities decreased to $11.4 billion,
compared to $12.3 billion at the beginning of the quarter, primarily driven by
debt repayment (Table 3). The company has access to credit facilities of $14.7
billion which remain undrawn.
Total company backlog at quarter-end was $372 billion.
Segment Results
Commercial Airplanes
Table 4. Commercial Airplanes Second Quarter First Half
(Dollars in Millions) 2022 2021 Change 2022 2021 Change
Commercial Airplanes Deliveries 121 79 53 % 216 156 38 %
Revenues $6,219 $6,015 3 % $10,380 $10,284 1 %
Loss from Operations ($242) ($472) NM ($1,101) ($1,328) NM
Operating Margin (3.9) % (7.8) % NM (10.6) % (12.9) % NM
Commercial Airplanes second-quarter revenue increased to $6.2 billion, driven
by higher 737 deliveries, partially offset by lower 787 deliveries (Table 4).
Operating margin of (3.9)% also reflects abnormal costs and period expenses,
including higher R&D expense.
Boeing has nearly completed the global safe return to service of the 737 MAX
and the fleet has flown more than 1.5 million total flight hours since late
2020. The 737 production rate increased to 31 airplanes per month during the
quarter.
On the 787 program, the company continues to work with the FAA to finalize
actions to resume deliveries and is readying airplanes for delivery. The
program is producing at a very low rate and will continue to do so until
deliveries resume, with an expected gradual return to five per month over
time. The company still anticipates 787 abnormal costs of approximately $2
billion, with most being incurred by the end of 2023, including $283 million
recorded in the quarter.
Commercial Airplanes secured orders for 169 737 MAX airplanes and 13
freighters, including seven 777-8 Freighters from Lufthansa Group. Commercial
Airplanes delivered 121 airplanes during the quarter and backlog included over
4,200 airplanes valued at $297 billion.
Defense, Space & Security
Table 5. Defense, Space & Security Second Quarter First Half
(Dollars in Millions) 2022 2021 Change 2022 2021 Change
Revenues $6,191 $6,876 (10) % $11,674 $14,061 (17) %
Earnings/(loss) from Operations $71 $958 (93) % ($858) $1,363 NM
Operating Margin 1.1 % 13.9 % (92) % (7.3) % 9.7 % NM
Defense, Space & Security second-quarter revenue decreased to $6.2 billion and
second-quarter operating margin decreased to 1.1 percent, primarily driven by
charges on fixed-price development programs, including MQ-25 and Commercial
Crew, as well as unfavorable performance on other programs and lower volume on
derivative aircraft programs. The MQ-25 program recorded a $147 million charge
primarily due to higher costs to meet certain technical requirements. The
Commercial Crew program also recorded a $93 million charge, primarily driven
by launch manifest updates and additional costs associated with OFT-2.
During the quarter, the CH-47F Chinook Block II was selected as the German
government's future heavy-lift helicopter. Defense, Space & Security also
successfully completed the CST-100 Starliner uncrewed OFT-2.
Backlog at Defense, Space & Security was $55 billion, of which 33% percent
represents orders from customers outside the U.S.
Global Services
Table 6. Global Services Second Quarter First Half
(Dollars in Millions) 2022 2021 Change 2022 2021 Change
Revenues $4,298 $4,067 6 % $8,612 $7,816 10 %
Earnings from Operations $728 $531 37 % $1,360 $972 40 %
Operating Margin 16.9 % 13.1 % 29 % 15.8 % 12.4 % 27 %
Global Services second-quarter revenue increased to $4.3 billion and
second-quarter operating margin increased to 16.9 percent primarily driven by
higher commercial services volume and favorable mix.
During the quarter, Global Services received a contract for airlift flight
dispatch services from the U.S. Air Force and was awarded a contract for
avionics upgrades and cybersecurity support for the U.S. Navy. Global Services
also delivered the first A-10 wing set to the U.S. Air Force.
Additional Financial Information
Table 7. Additional Financial Information Second Quarter First Half
(Dollars in Millions) 2022 2021 2022 2021
Revenues
Boeing Capital $52 $78 $98 $138
Unallocated items, eliminations and other ($79) ($38) ($92) ($84)
Earnings/(Loss) from Operations
Boeing Capital $27 $36 ($9) $57
FAS/CAS service cost adjustment $284 $268 $567 $538
Other unallocated items and eliminations ($94) ($298) ($354) ($662)
Other income, net $253 $199 $434 $389
Interest and debt expense ($650) ($673) ($1,280) ($1,352)
Effective tax rate 57.6 % (3.3) % 12.8 % 126.1 %
At quarter-end, Boeing Capital's net portfolio balance was $1.6 billion. The
change in loss from other unallocated items and eliminations was primarily due
to the recognition of deferred compensation income as compared to expense
recorded in the second quarter 2021. The second quarter effective tax rate
primarily reflects tax expense on pretax earnings and an increase to 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 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.
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:
Investor Relations: Matt Welch or Keely Moos (312) 544-2140
Communications: Michael Friedman media@boeing.com
The Boeing Company and Subsidiaries
Consolidated Statements of Operations
(Unaudited)
Six months ended Three months ended
June 30 June 30
(Dollars in millions, except per share data) 2022 2021 2022 2021
Sales of products $25,436 $26,672 $14,009 $14,154
Sales of services 5,236 5,543 2,672 2,844
Total revenues 30,672 32,215 16,681 16,998
Cost of products (23,696) (23,895) (12,284) (12,263)
Cost of services (4,495) (4,483) (2,269) (2,316)
Boeing Capital interest expense (13) (18) (6) (9)
Total costs and expenses (28,204) (28,396) (14,559) (14,588)
2,468 3,819 2,122 2,410
(Loss)/income from operating investments, net (3) 75 17 38
General and administrative expense (1,531) (2,072) (668) (1,040)
Research and development expense, net (1,331) (996) (698) (497)
Gain on dispositions, net 2 114 1 112
(Loss)/earnings from operations (395) 940 774 1,023
Other income, net 434 389 253 199
Interest and debt expense (1,280) (1,352) (650) (673)
(Loss)/earnings before income taxes (1,241) (23) 377 549
Income tax benefit/(expense) 159 29 (217) 18
Net (loss)/earnings (1,082) 6 160 567
Less: net loss attributable to noncontrolling interest (56) (44) (33) (20)
Net (loss)/earnings attributable to Boeing Shareholders ($1,026) $50 $193 $587
Basic (loss)/earnings per share ($1.73) $0.09 $0.32 $1.00
Diluted (loss)/earnings per share ($1.73) $0.09 $0.32 $1.00
Weighted average diluted shares (millions) 592.8 588.6 596.4 590.2
The Boeing Company and Subsidiaries
Consolidated Statements of Financial Position
(Unaudited)
(Dollars in millions, except per share data) June 30 December 31 2021
2022
Assets
Cash and cash equivalents $10,090 $8,052
Short-term and other investments 1,358 8,192
Accounts receivable, net 2,996 2,641
Unbilled receivables, net 9,394 8,620
Current portion of customer financing, net 159 117
Inventories 79,917 78,823
Other current assets, net 2,086 2,221
Total current assets 106,000 108,666
Customer financing, net 1,542 1,695
Property, plant and equipment, net of accumulated depreciation of $20,971 and $20,538 10,617 10,918
Goodwill 8,055 8,068
Acquired intangible assets, net 2,431 2,562
Deferred income taxes 106 77
Investments 981 975
Other assets, net of accumulated amortization of of $864 and $975 5,747 5,591
Total assets $135,479 $138,552
Liabilities and equity
Accounts payable $9,575 $9,261
Accrued liabilities 17,752 18,455
Advances and progress billings 52,066 52,980
Short-term debt and current portion of long-term debt 5,406 1,296
Total current liabilities 84,799 81,992
Deferred income taxes 38 218
Accrued retiree health care 3,413 3,528
Accrued pension plan liability, net 8,335 9,104
Other long-term liabilities 1,891 1,750
Long-term debt 51,794 56,806
Total liabilities 150,270 153,398
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 9,475 9,052
Treasury stock, at cost - 418,809,934 and 423,343,707 shares (51,319) (51,861)
Retained earnings 33,382 34,408
Accumulated other comprehensive loss (11,487) (11,659)
Total shareholders' deficit (14,888) (14,999)
Noncontrolling interests 97 153
Total equity (14,791) (14,846)
Total liabilities and equity $135,479 $138,552
The Boeing Company and Subsidiaries
Consolidated Statements of Cash Flows
(Unaudited)
Six months ended
June 30
(Dollars in millions) 2022 2021
Cash flows – operating activities:
Net (loss)/earnings ($1,082) $6
Adjustments to reconcile net (loss)/earnings to net cash used by operating activities:
Non-cash items –
Share-based plans expense 352 493
Treasury shares issued for 401(k) contribution 612 628
Depreciation and amortization 984 1,087
Investment/asset impairment charges, net 72 38
Customer financing valuation adjustments 42 (1)
Gain on dispositions, net (2) (114)
Other charges and credits, net 260 (1)
Changes in assets and liabilities –
Accounts receivable (350) (523)
Unbilled receivables (758) (1,207)
Advances and progress billings (907) 251
Inventories (1,260) 413
Other current assets 144 324
Accounts payable 395 (2,035)
Accrued liabilities (835) (2,613)
Income taxes receivable, payable and deferred (238) (130)
Other long-term liabilities (64) (127)
Pension and other postretirement plans (695) (576)
Customer financing, net 50 83
Other 145 134
Net cash used by operating activities (3,135) (3,870)
Cash flows – investing activities:
Payments to acquire property, plant and equipment (612) (513)
Proceeds from disposals of property, plant and equipment 16 51
Contributions to investments (2,471) (20,108)
Proceeds from investments 9,296 24,989
Other 2 4
Net cash provided by investing activities 6,231 4,423
Cash flows – financing activities:
New borrowings 15 9,826
Debt repayments (1,013) (9,882)
Stock options exercised 34 29
Employee taxes on certain share-based payment arrangements (34) (40)
Net cash used by financing activities (998) (67)
Effect of exchange rate changes on cash and cash equivalents (71) (14)
Net increase in cash & cash equivalents, including restricted 2,027 472
Cash & cash equivalents, including restricted, at beginning of year 8,104 7,835
Cash & cash equivalents, including restricted, at end of period 10,131 8,307
Less restricted cash & cash equivalents, included in Investments 41 36
Cash & cash equivalents at end of period $10,090 $8,271
The Boeing Company and Subsidiaries
Summary of Business Segment Data
(Unaudited)
Six months ended Three months ended
June 30 June 30
(Dollars in millions) 2022 2021 2022 2021
Revenues:
Commercial Airplanes $10,380 $10,284 $6,219 $6,015
Defense, Space & Security 11,674 14,061 6,191 6,876
Global Services 8,612 7,816 4,298 4,067
Boeing Capital 98 138 52 78
Unallocated items, eliminations and other (92) (84) (79) (38)
Total revenues $30,672 $32,215 $16,681 $16,998
Earnings/(loss) from operations:
Commercial Airplanes ($1,101) ($1,328) ($242) ($472)
Defense, Space & Security (858) 1,363 71 958
Global Services 1,360 972 728 531
Boeing Capital (9) 57 27 36
Segment operating (loss)/earnings (608) 1,064 584 1,053
Unallocated items, eliminations and other (354) (662) (94) (298)
FAS/CAS service cost adjustment 567 538 284 268
(Loss)/earnings from operations (395) 940 774 1,023
Other income, net 434 389 253 199
Interest and debt expense (1,280) (1,352) (650) (673)
(Loss)/earnings before income taxes (1,241) (23) 377 549
Income tax benefit/(expense) 159 29 (217) 18
Net (loss)/earnings (1,082) 6 160 567
Less: Net loss attributable to noncontrolling interest (56) (44) (33) (20)
Net (loss)/earnings attributable to Boeing Shareholders ($1,026) $50 $193 $587
Research and development expense, net:
Commercial Airplanes $693 $524 $372 $255
Defense, Space & Security 466 337 233 174
Global Services 54 50 27 25
Other 118 85 66 43
Total research and development expense, net $1,331 $996 $698 $497
Unallocated items, eliminations and other:
Share-based plans ($108) ($142) ($25) ($14)
Deferred compensation 166 (94) 124 (42)
Amortization of previously capitalized interest (47) (44) (24) (22)
Research and development expense, net (118) (85) (66) (43)
Eliminations and other unallocated items (247) (297) (103) (177)
Sub-total (included in core operating loss) (354) (662) (94) (298)
Pension FAS/CAS service cost adjustment 413 384 205 191
Postretirement FAS/CAS service cost adjustment 154 154 79 77
FAS/CAS service cost adjustment 567 538 $284 $268
Total $213 ($124) $190 ($30)
The Boeing Company and Subsidiaries
Operating and Financial Data
(Unaudited)
Deliveries Six months ended Three months ended
June 30 June 30
Commercial Airplanes 2022 2021 2022 2021
737 189 113 103 50
747 3 2 2 1
767 12 13 7 8
777 12 14 9 8
787 0 14 — 12
Total 216 156 121 79
Defense, Space & Security
AH-64 Apache (New) 13 15 6 6
AH-64 Apache (Remanufactured) 28 31 13 16
CH-47 Chinook (New) 9 6 5 3
CH-47 Chinook (Renewed) 4 4 1 1
F-15 Models 5 8 4 5
F/A-18 Models 8 11 4 7
KC-46 Tanker 8 4 4 2
P-8 Models 6 6 3 3
Total backlog (Dollars in millions) June 30 December 31 2021
2022
Commercial Airplanes $297,044 $296,882
Defense, Space & Security 55,401 59,828
Global Services 18,960 20,496
Unallocated items, eliminations and other 325 293
Total backlog $371,730 $377,499
Contractual backlog $351,242 $356,362
Unobligated backlog 20,488 21,137
Total backlog $371,730 $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 earnings, core operating margin, and core (loss)/earnings per share
with the most directly comparable GAAP financial measures, earnings from
operations, operating margin, and diluted earnings 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 2022 Second Quarter 2021
$ millions Per Share $ millions Per Share
Revenues 16,681 16,998
Earnings from operations (GAAP) 774 1,023
Operating margin (GAAP) 4.6 % 6.0 %
FAS/CAS service cost adjustment:
Pension FAS/CAS service cost adjustment (205) (191)
Postretirement FAS/CAS service cost adjustment (79) (77)
FAS/CAS service cost adjustment (284) (268)
Core operating earnings (non-GAAP) $490 $755
Core operating margin (non-GAAP) 2.9 % 4.4 %
Diluted earnings per share (GAAP) $0.32 $1.00
Pension FAS/CAS service cost adjustment ($205) (0.35) ($191) (0.32)
Postretirement FAS/CAS service cost adjustment (79) (0.13) (77) (0.13)
Non-operating pension expense (221) (0.37) (175) (0.30)
Non-operating postretirement expense (14) (0.02) (5) (0.01)
109 0.18 94 0.16
Subtotal of adjustments ($410) ($0.69) ($354) ($0.60)
Core (loss)/earnings per share (non-GAAP) ($0.37) $0.40
Weighted average diluted shares (in millions) 596.4 590.2
(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)/earnings 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 2022 First Half 2021
$ millions Per Share $ millions Per Share
Revenues 30,672 32,215
(Loss)/earnings from operations (GAAP) (395) 940
Operating margin (GAAP) (1.3) % 2.9 %
FAS/CAS service cost adjustment:
Pension FAS/CAS service cost adjustment (413) (384)
Postretirement FAS/CAS service cost adjustment (154) (154)
FAS/CAS service cost adjustment (567) (538)
Core operating (loss)/earnings (non-GAAP) ($962) $402
Core operating margin (non-GAAP) (3.1) % 1.2 %
Diluted (loss)/earnings per share (GAAP) ($1.73) $0.09
Pension FAS/CAS service cost adjustment ($413) (0.70) ($384) (0.65)
Postretirement FAS/CAS service cost adjustment (154) (0.26) (154) (0.26)
Non-operating pension expense (441) (0.74) (352) (0.60)
Non-operating postretirement expense (29) (0.05) (10) (0.02)
218 0.37 189 0.32
Subtotal of adjustments ($819) ($1.38) ($711) ($1.21)
Core loss per share (non-GAAP) ($3.11) ($1.12)
Weighted average diluted shares (in millions) 592.8 588.6
(1 ) The income tax impact is calculated using the U.S. corporate statutory tax rate .
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