REG-Boeing Company: 2nd Quarter Financial Results
26/07/2023 12:45
Boeing Reports Second Quarter Results
ARLINGTON, Va., July 26, 2023 --
Second Quarter 2023
* Transitioning 737 production to 38 per month; increased 787 production to
four per month
* Revenue increased to $19.8 billion primarily reflecting 136 commercial
deliveries
* Operating cash flow of $2.9 billion and free cash flow of $2.6 billion
(non-GAAP); cash and marketable securities of $13.8 billion
* Total company backlog of $440 billion, including over 4,800 commercial
airplanes
* Reaffirm guidance: $4.5-$6.5 billion of operating cash flow and $3.0-$5.0
billion of free cash flow (non-GAAP)
Table 1. Summary Financial Results Second Quarter First Half
(Dollars in Millions, except per share data) 2023 2022 Change 2023 2022 Change
Revenues $19,751 $16,681 18 % $37,672 $30,672 23 %
GAAP
(Loss)/earnings from operations ($99) $780 NM ($248) ($382) NM
Operating margins (0.5) % 4.7 % NM (0.7) % (1.2) % NM
Net (loss)/earnings ($149) $160 NM ($574) ($1,082) NM
(Loss)/earnings per share ($0.25) $0.32 NM ($0.93) ($1.73) NM
Operating cash flow $2,875 $81 NM $2,557 ($3,135) NM
Non-GAAP*
Core operating (loss)/earnings ($390) $496 NM ($830) ($949) NM
Core operating margins (2.0) % 3.0 % NM (2.2) % (3.1) % NM
Core loss per share ($0.82) ($0.37) NM ($2.08) ($3.11) NM
*Non-GAAP measure; complete definitions of Boeing's non-GAAP measures are on page 5, "Non-GAAP Measures Disclosures."
The Boeing Company [NYSE: BA] recorded second quarter revenue of
$19.8 billion, GAAP loss per share of ($0.25) and core loss per share
(non-GAAP)* of ($0.82) (Table 1). Second quarter results reflect higher
commercial volume and lower defense margins. Boeing generated operating cash
flow of $2.9 billion and free cash flow of $2.6 billion (non-GAAP).
"We had a solid second quarter with improved deliveries and strong free cash
flow generation. We are well positioned to meet the operational and financial
goals we set for this year and for the long term," said Dave Calhoun, Boeing
president and chief executive officer. "While we have more work ahead, we are
making progress in our recovery and driving stability in our factories and the
supply chain to meet our customer commitments. With demand strong, we're
steadily increasing our production rates across key programs and growing
investments in our people, products and technologies."
Table 2. Cash Flow Second Quarter First Half
(Millions) 2023 2022 2023 2022
Operating cash flow $2,875 $81 $2,557 ($3,135)
Less additions to property, plant & equipment ($296) ($263) ($764) ($612)
Free cash flow* $2,579 ($182) $1,793 ($3,747)
*Non-GAAP measure; complete definitions of Boeing's non-GAAP measures are on page 5, "Non-GAAP Measures Disclosures."
Operating cash flow was $2.9 billion in the quarter reflecting higher
commercial deliveries and favorable receipt timing (Table 2).
Table 3. Cash, Marketable Securities and Debt Balances Quarter End
(Billions) Q2 23 Q1 23
Cash $7.3 $10.8
Marketable securities 1 $6.5 $4.0
Total $13.8 $14.8
Consolidated debt $52.3 $55.4
1 Marketable securities consist primarily of time deposits due within one year classified as "short-term investments."
Cash and investments in marketable securities totaled $13.8 billion, compared
to $14.8 billion at the beginning of the quarter (Table 3). Debt was
$52.3 billion, down from $55.4 billion at the beginning of the quarter due
to the pay down of maturing debt. The company maintains access to credit
facilities of $12.0 billion, which remain undrawn.
Total company backlog at quarter end was $440 billion.
Segment Results
Commercial Airplanes
Table 4. Commercial Airplanes Second Quarter First Half
(Dollars in Millions) 2023 2022 Change 2023 2022 Change
Deliveries 136 121 12 % 266 216 23 %
Revenues $8,840 $6,258 41 % $15,544 $10,452 49 %
Loss from operations ($383) ($219) NM ($998) ($1,116) NM
Operating margins (4.3) % (3.5) % NM (6.4) % (10.7) % NM
Commercial Airplanes second quarter revenue increased to $8.8 billion driven
by higher 787 deliveries (Table 4). Operating margin of (4.3) percent also
reflects abnormal costs and period expenses, including research and
development.
The 737 program is transitioning production to 38 per month and plans to reach
50 per month in the 2025/2026 timeframe. The program still expects to deliver
400-450 airplanes this year.
The 787 program increased production to four per month with plans to ramp to
five per month in late 2023 and 10 per month in the 2025/2026 timeframe. The
program still expects to deliver 70-80 airplanes this year.
During the quarter, Commercial Airplanes booked 460 net orders, including 220
for Air India and 39 for Riyadh Air, and secured a commitment from Ryanair for
up to 300 737 MAX airplanes. Commercial Airplanes delivered 136 airplanes
during the quarter and backlog included over 4,800 airplanes valued at $363
billion.
Defense, Space & Security
Table 5. Defense, Space & Security Second Quarter First Half
(Dollars in Millions) 2023 2022 Change 2023 2022 Change
Revenues $6,167 $6,191 — % $12,706 $11,674 9 %
(Loss)/earnings from operations ($527) $71 NM ($739) ($858) NM
Operating margins (8.5) % 1.1 % NM (5.8) % (7.3) % NM
Defense, Space & Security second quarter revenue was $6.2 billion. Second
quarter operating margin was (8.5) percent, primarily driven by losses on
certain fixed-price development programs, as well as continued operational
impacts of labor instability and supply chain disruption on other programs.
The Commercial Crew program recorded a $257 million loss primarily due to the
impacts of the previously announced launch delay. The T-7A program recorded a
$189 million loss primarily due to higher estimated costs on production
contracts. The MQ-25 program also recorded a $68 million loss primarily due to
schedule delays on the Engineering and Manufacturing Development contract.
During the quarter, Defense, Space & Security completed the U.S. Air Force
first flight of the T-7A Red Hawk, began construction on the Advanced Coatings
Center in St. Louis and captured an award from the U.S. Army for 19 CH-47
Chinooks. Backlog at Defense, Space & Security was $58 billion, of which 31
percent represents orders from customers outside the U.S.
Global Services
Table 6. Global Services Second Quarter First Half
(Dollars in Millions) 2023 2022 Change 2023 2022 Change
Revenues $4,746 $4,298 10 % $9,466 $8,612 10 %
Earnings from operations $856 $728 18 % $1,703 $1,360 25 %
Operating margins 18.0 % 16.9 % 1.1 pts 18.0 % 15.8 % 2.2 pts
Global Services second quarter revenue of $4.7 billion and operating margin of
18.0 percent reflect higher commercial volume and favorable mix.
During the quarter, Global Services announced expansion in Poland with a new
parts distribution site, collaboration with CAE to enhance and expand training
solutions and Japan Airlines adopted Boeing Insight Accelerator for its 787
fleet.
Additional Financial Information
Table 7. Additional Financial Information Second Quarter First Half
(Dollars in Millions) 2023 2022 2023 2022
Revenues
Unallocated items, eliminations and other ($2) ($66) ($44) ($66)
Earnings/(loss) from operations
FAS/CAS service cost adjustment $291 $284 $582 $567
Other unallocated items and eliminations ($336) ($84) ($796) ($335)
Other income, net $320 $253 $622 $434
Interest and debt expense ($621) ($656) ($1,270) ($1,293)
Effective tax rate 62.8 % 57.6 % 35.9 % 12.8 %
The increase in loss from Other unallocated items and eliminations was
primarily driven by deferred compensation expense. Other income primarily
reflects an increase in investment income due to higher interest rates. The
second quarter effective tax rate primarily reflects the tax benefit on
pre-tax losses including cumulative adjustments related to a projected
increase in the valuation allowance.
Non-GAAP Measures Disclosures
We supplement the reporting of our financial information determined under
Generally Accepted Accounting Principles in the United States of America
(GAAP) with certain non-GAAP financial information. The non-GAAP financial
information presented excludes certain significant items that may not be
indicative of, or are unrelated to, results from our ongoing business
operations. We believe that these non-GAAP measures provide investors with
additional insight into the company's ongoing business performance. These
non-GAAP measures should not be considered in isolation or as a substitute for
the related GAAP measures, and other companies may define such measures
differently. We encourage investors to review our financial statements and
publicly-filed reports in their entirety and not to rely on any single
financial measure. The following definitions are provided:
Core Operating Earnings/(loss), Core Operating Margin and Core Earnings/(loss)
Per Share
Core operating earnings/(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 earnings/(loss) expressed as a percentage of revenue. Core
earnings/(loss) 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 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/(loss), core
operating margin and core earnings/(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 page 12 and page 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, as well as the potential impact of a government shutdown; (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:
Investor Relations: Matt Welch or David Dufault (312) 544-2140
Communications: Michael Friedman media@boeing.com (mailto: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) 2023 2022 2023 2022
Sales of products $31,601 $25,436 $16,687 $14,009
Sales of services 6,071 5,236 3,064 2,672
Total revenues 37,672 30,672 19,751 16,681
Cost of products (28,676) (23,696) (15,123) (12,284)
Cost of services (5,134) (4,495) (2,689) (2,269)
Total costs and expenses (33,810) (28,191) (17,812) (14,553)
3,862 2,481 1,939 2,128
Income/(loss) from operating investments, net 17 (3) 44 17
General and administrative expense (2,590) (1,531) (1,286) (668)
Research and development expense, net (1,538) (1,331) (797) (698)
Gain on dispositions, net 1 2 1 1
(Loss)/earnings from operations (248) (382) (99) 780
Other income, net 622 434 320 253
Interest and debt expense (1,270) (1,293) (621) (656)
(Loss)/earnings before income taxes (896) (1,241) (400) 377
Income tax benefit/(expense) 322 159 251 (217)
Net (loss)/earnings (574) (1,082) (149) 160
Less: net loss attributable to noncontrolling interest (11) (56) (33)
Net (loss)/earnings attributable to Boeing Shareholders ($563) ($1,026) ($149) $193
Basic (loss)/earnings per share ($0.93) ($1.73) ($0.25) $0.32
Diluted (loss)/earnings per share ($0.93) ($1.73) ($0.25) $0.32
Weighted average diluted shares (millions) 603.9 592.8 605.5 596.4
The Boeing Company and Subsidiaries Consolidated Statements of Financial Position (Unaudited)
(Dollars in millions, except per share data) June 30 December 31
2023 2022
Assets
Cash and cash equivalents $7,254 $14,614
Short-term and other investments 6,508 2,606
Accounts receivable, net 2,945 2,517
Unbilled receivables, net 9,357 8,634
Current portion of customer financing, net 85 154
Inventories 78,322 78,151
Other current assets, net 2,941 2,847
Total current assets 107,412 109,523
Customer financing, net 1,105 1,450
Property, plant and equipment, net of accumulated depreciation of $21,895 10,455 10,550
and $21,442
Goodwill 8,061 8,057
Acquired intangible assets, net 2,194 2,311
Deferred income taxes 66 63
Investments 1,025 983
Other assets, net of accumulated amortization of of $935 and $949 4,456 4,163
Total assets $134,774 $137,100
Liabilities and equity
Accounts payable $10,936 $10,200
Accrued liabilities 21,221 21,581
Advances and progress billings 55,310 53,081
Short-term debt and current portion of long-term debt 4,609 5,190
Total current liabilities 92,076 90,052
Deferred income taxes 95 230
Accrued retiree health care 2,424 2,503
Accrued pension plan liability, net 5,855 6,141
Other long-term liabilities 2,158 2,211
Long-term debt 47,659 51,811
Total liabilities 150,267 152,948
Shareholders' equity:
Common stock, par value $5.00 – 1,200,000,000 shares authorized; 5,061 5,061
1,012,261,159 shares issued
Additional paid-in capital 10,310 9,947
Treasury stock, at cost - 409,375,415 and 414,671,383 shares (50,181) (50,814)
Retained earnings 28,910 29,473
Accumulated other comprehensive loss (9,617) (9,550)
Total shareholders' deficit (15,517) (15,883)
Noncontrolling interests 24 35
Total equity (15,493) (15,848)
Total liabilities and equity $134,774 $137,100
The Boeing Company and Subsidiaries Consolidated Statements of Cash Flows (Unaudited)
Six months ended
June 30
(Dollars in millions) 2023 2022
Cash flows – operating activities:
Net loss ($574) ($1,082)
Adjustments to reconcile net loss to net cash provided/(used) by operating activities:
Non-cash items –
Share-based plans expense 381 352
Treasury shares issued for 401(k) contribution 862 612
Depreciation and amortization 913 984
Investment/asset impairment charges, net 12 72
Customer financing valuation adjustments (3) 42
Gain on dispositions, net (1) (2)
Other charges and credits, net 33 260
Changes in assets and liabilities –
Accounts receivable (433) (350)
Unbilled receivables (721) (758)
Advances and progress billings 2,228 (907)
Inventories (241) (1,260)
Other current assets 313 144
Accounts payable 852 395
Accrued liabilities (399) (835)
Income taxes receivable, payable and deferred (424) (238)
Other long-term liabilities (180) (64)
Pension and other postretirement plans (520) (695)
Customer financing, net 419 50
Other 40 145
Net cash provided/(used) by operating activities 2,557 (3,135)
Cash flows – investing activities:
Payments to acquire property, plant and equipment (764) (612)
Proceeds from disposals of property, plant and equipment 13 16
Contributions to investments (9,496) (2,471)
Proceeds from investments 5,567 9,296
Other (158) 2
Net cash (used)/provided by investing activities (4,838) 6,231
Cash flows – financing activities:
New borrowings 38 15
Debt repayments (5,123) (1,013)
Stock options exercised 44 34
Employee taxes on certain share-based payment arrangements (48) (34)
Other (4)
Net cash used by financing activities (5,093) (998)
Effect of exchange rate changes on cash and cash equivalents 2 (71)
Net (decrease)/increase in cash & cash equivalents, including restricted (7,372) 2,027
Cash & cash equivalents, including restricted, at beginning of year 14,647 8,104
Cash & cash equivalents, including restricted, at end of period 7,275 10,131
Less restricted cash & cash equivalents, included in Investments 21 41
Cash & cash equivalents at end of period $7,254 $10,090
The Boeing Company and Subsidiaries Summary of Business Segment Data (Unaudited)
Six months ended Three months ended
June 30 June 30
(Dollars in millions) 2023 2022 2023 2022
Revenues:
Commercial Airplanes $15,544 $10,452 $8,840 $6,258
Defense, Space & Security 12,706 11,674 6,167 6,191
Global Services 9,466 8,612 4,746 4,298
Unallocated items, eliminations and other (44) (66) (2) (66)
Total revenues $37,672 $30,672 $19,751 $16,681
(Loss)/earnings from operations:
Commercial Airplanes ($998) ($1,116) ($383) ($219)
Defense, Space & Security (739) (858) (527) 71
Global Services 1,703 1,360 856 728
Segment operating earnings/(loss) (34) (614) (54) 580
Unallocated items, eliminations and other (796) (335) (336) (84)
FAS/CAS service cost adjustment 582 567 291 284
(Loss)/earnings from operations (248) (382) (99) 780
Other income, net 622 434 320 253
Interest and debt expense (1,270) (1,293) (621) (656)
(Loss)/earnings before income taxes (896) (1,241) (400) 377
Income tax benefit/(expense) 322 159 251 (217)
Net (loss)/earnings (574) (1,082) (149) 160
Less: net loss attributable to noncontrolling interest (11) (56) (33)
Net (loss)/earnings attributable to Boeing Shareholders ($563) ($1,026) ($149) $193
Research and development expense, net:
Commercial Airplanes $915 $693 $471 $372
Defense, Space & Security 420 466 225 233
Global Services 54 54 28 27
Other 149 118 73 66
Total research and development expense, net $1,538 $1,331 $797 $698
Unallocated items, eliminations and other:
Share-based plans ($38) ($108) $14 ($25)
Deferred compensation (96) 166 (42) 124
Amortization of previously capitalized interest (47) (47) (24) (24)
Research and development expense, net (149) (118) (73) (66)
Eliminations and other unallocated items (466) (228) (211) (93)
Sub-total (included in core operating (loss)/earnings (796) (335) (336) (84)
Pension FAS/CAS service cost adjustment 445 413 222 205
Postretirement FAS/CAS service cost adjustment 137 154 69 79
FAS/CAS service cost adjustment 582 567 $291 $284
Total ($214) $232 ($45) $200
The Boeing Company and Subsidiaries Operating and Financial Data (Unaudited)
Deliveries Six months ended Three months ended
June 30 June 30
Commercial Airplanes 2023 2022 2023 2022
737 216 189 103 103
747 1 3 — 2
767 9 12 8 7
777 9 12 5 9
787 31 — 20 —
Total 266 216 136 121
Defense, Space & Security
AH-64 Apache (New) 12 13 5 6
AH-64 Apache (Remanufactured) 29 28 16 13
CH-47 Chinook (New) 7 9 2 5
CH-47 Chinook (Renewed) 4 4 3 1
F-15 Models 6 5 4 4
F/A-18 Models 13 8 6 4
KC-46 Tanker 1 8 — 4
P-8 Models 5 6 2 3
Commercial and Civil Satellites 3 — — —
Total backlog (Dollars in millions) June 30 December 31
2023 2022
Commercial Airplanes $362,866 $329,824
Defense, Space & Security 57,505 54,373
Global Services 18,455 19,338
Unallocated items, eliminations and other 738 846
Total backlog $439,564 $404,381
Contractual backlog $417,037 $381,977
Unobligated backlog 22,527 22,404
Total backlog $439,564 $404,381
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
5 of this release for additional information on the use of these non-GAAP
financial measures.
(Dollars in millions, except per share data) Second Quarter 2023 Second Quarter 2022
$ millions Per Share $ millions Per Share
Revenues 19,751 16,681
(Loss)/earnings from operations (GAAP) (99) 780
Operating margin (GAAP) (0.5) % 4.7 %
FAS/CAS service cost adjustment:
Pension FAS/CAS service cost adjustment (222) (205)
Postretirement FAS/CAS service cost adjustment (69) (79)
FAS/CAS service cost adjustment (291) (284)
Core operating (loss)/earnings (non-GAAP) ($390) $496
Core operating margin (non-GAAP) (2.0) % 3.0 %
Diluted (loss)/earnings per share (GAAP) ($0.25) $0.32
Pension FAS/CAS service cost adjustment ($222) (0.37) ($205) (0.35)
Postretirement FAS/CAS service cost adjustment (69) (0.11) (79) (0.13)
Non-operating pension expense (134) (0.22) (221) (0.37)
Non-operating postretirement expense (14) (0.02) (14) (0.02)
Provision for deferred income taxes on adjustments 1 92 0.15 109 0.18
Subtotal of adjustments ($347) ($0.57) ($410) ($0.69)
Core loss per share (non-GAAP) ($0.82) ($0.37)
Weighted average diluted shares (in millions) 605.5 596.4
1 The income tax impact is calculated using the U.S. corporate statutory tax rate.
The Boeing Company and Subsidiaries
Reconciliation of Non-GAAP Measures
(Unaudited)
The tables provided below reconcile the non-GAAP financial measures core
operating loss, core operating margin, and core loss per share with the most
directly comparable GAAP financial measures, loss from operations, operating
margin, and diluted loss per share. See page 5 of this release for additional
information on the use of these non-GAAP financial measures.
(Dollars in millions, except per share data) First Half 2023 First Half 2022
$ millions Per Share $ millions Per Share
Revenues 37,672 30,672
Loss from operations (GAAP) (248) (382)
Operating margin (GAAP) (0.7) % (1.2) %
FAS/CAS service cost adjustment:
Pension FAS/CAS service cost adjustment (445) (413)
Postretirement FAS/CAS service cost adjustment (137) (154)
FAS/CAS service cost adjustment (582) (567)
Core operating loss (non-GAAP) (830) (949)
Core operating margin (non-GAAP) (2.2) % (3.1) %
Diluted loss per share (GAAP) (0.93) (1.73)
Pension FAS/CAS service cost adjustment (445) (0.73) (413) (0.70)
Postretirement FAS/CAS service cost adjustment (137) (0.23) (154) (0.26)
Non-operating pension expense (268) (0.45) (441) (0.74)
Non-operating postretirement expense (29) (0.05) (29) (0.05)
Provision for deferred income taxes on adjustments 1 185 0.31 218 0.37
Subtotal of adjustments ($694) ($1.15) ($819) ($1.38)
Core loss per share (non-GAAP) ($2.08) ($3.11)
Weighted average diluted shares (in millions) 603.9 592.8
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
SOURCE Boeing
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