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Boeing Co

Boeing Company - Final Results

Boeing Reports Fourth-Quarter Results

, /PRNewswire/ --CHICAGOJan. 27, 2021

Fourth Quarter 2020

Full-Year 2020

The Boeing Company [NYSE: BA] reported fourth-quarter revenue of .3 billion, reflecting lower commercial deliveries and services volume primarily due to COVID-19 as well as 787 production issues, partially offset by a lower 737 MAX customer considerations charge in the quarter compared to the same period last year (Table 1). GAAP loss per share of () and core loss per share (non-GAAP)* of () reflected a pre-tax charge on the 777X program and a tax valuation allowance, partially offset by a lower 737 MAX customer considerations charge. Boeing recorded operating cash flow of .$15$14.65$15.25$6.5 billion($4.0) billion

"2020 was a year of profound societal and global disruption which significantly constrained our industry. The deep impact of the pandemic on commercial air travel, coupled with the 737 MAX grounding, challenged our results. I am proud of the resilience and dedication our global team demonstrated in this environment as we strengthened our safety processes, adapted to our market and supported our customers, suppliers, communities and each other," said Boeing President and Chief Executive Officer . "Our balanced portfolio of diverse defense, space and services programs continues to provide important stability as we lay the foundation for our recovery. While the impact of COVID-19 presents continued challenges for commercial aerospace into 2021, we remain confident in our future, squarely-focused on safety, quality and transparency as we rebuild trust and transform our business."Dave Calhoun

The return to service of the 737 MAX in the and several other markets was an important step, and Boeing continues to follow the lead of global regulators and support its customers. Since the FAA's approval to return to operations, Boeing has delivered over 40 737 MAX aircraft and five airlines have safely returned their fleets to service as of , safely flying more than 2,700 revenue flights and approximately 5,500 flight hours.U.S.January 25, 2021

Boeing now anticipates that the first 777X delivery will occur in late 2023. This schedule, and the associated financial impact, reflect a number of factors, including an updated assessment of global certification requirements, the company's latest assessment of COVID-19 impacts on market demand, and discussions with its customers with respect to aircraft delivery timing.

The company continues to progress through its business transformation effort across five key areas including its infrastructure footprint, overhead and organizational structure, portfolio and investment mix, supply chain health and operational excellence. Boeing will continue these actions in 2021 to preserve liquidity, adapt to the new market, improve performance, sustain key investments and transform its business to be more productive, resilient and competitive for the long term.

Operating cash flow was in the quarter, reflecting lower commercial deliveries and services volume, as well as timing of receipts and expenditures (Table 2).($4.0) billion

Cash and investments in marketable securities decreased to , compared to at the beginning of the quarter, primarily driven by operating cash outflows partially offset by changes in the debt balance (Table 3).$25.6 billion$27.1 billion

Total company backlog at quarter-end was .$363 billion

Segment Results

Commercial Airplanes

Commercial Airplanes fourth-quarter revenue decreased to .7 billion, driven by lower widebody delivery volume due to COVID-19 impacts as well as 787 production issues, partially offset by higher 737 deliveries and a lower 737 MAX customer consideration charge in the quarter compared to the same period last year (Table 4). Fourth-quarter operating margin decreased to (161.8) percent, primarily driven by a pre-tax charge on the 777X program, lower delivery volume, and of abnormal production costs related to the 737 program, partially offset by a lower 737 MAX customer consideration charge.$4$6.5 billion$468 million

Commercial Airplanes production rate assumptions reflect the continued impacts of COVID-19 on commercial demand, and the company will continue to assess them on an ongoing basis. The 737 program is currently producing at a low rate and expects to gradually increase production to 31 per month in early 2022 with further gradual increases to correspond with market demand. The 787 program plans to transition its production rate to 5 per month in , at which point 787 final assembly will be consolidated to Boeing South Carolina.March 2021

As discussed above, Commercial Airplanes now expects first delivery of the 777X to occur in late 2023 and has recorded a reach-forward loss on the 777X program. Among the factors contributing to the revised first delivery schedule and reach-forward loss are an updated assessment of certification requirements based on ongoing communication with civil aviation authorities, an updated assessment of market demand based on continued dialogue with customers, resulting adjustments to production rates and the program accounting quantity, increased change incorporation costs, and associated customer and supply chain impacts. The production rate expectation for the combined 777/777X program remains at 2 per month in 2021.$6.5 billion

Commercial Airplanes captured orders for 75 737 aircraft from Ryanair and eight 777 freighters from DHL, as well as a commitment for 23 737 aircraft from Alaska Airlines. Commercial Airplanes delivered 59 airplanes during the quarter, and backlog included over 4,000 airplanes valued at .$282 billion

Defense, Space & Security

Defense, Space & Security fourth-quarter revenue increased to , primarily driven by higher volume on fighter programs and the rest of the portfolio as well as a charge on the Commercial Crew program in the same period last year (Table 5). Fourth-quarter operating margin increased to 7.4 percent reflecting more favorable performance on multiple programs compared with the same period last year, partially offset by a pre-tax charge on the KC-46A Tanker program primarily due to production inefficiencies including impacts of COVID-19 disruption.$6.8 billion$275 million

During the quarter, Defense, Space & Security was awarded contracts for two KC-46A aircraft for and AEW&C upgrades for the Republic of Korea Air Force. Defense, Space & Security achieved first flight of the MQ-25 unmanned aircraft with an aerial refueling store and demonstrated ski-jump launch capability of the F/A-18 Super Hornet for the Indian Navy. Also in the quarter, Defense, Space & Security completed engineering design review for the Wideband Global SATCOM-11+ communications satellite and critical design review of the Space Launch System Exploration Upper Stage for NASA.Japan

Backlog at Defense, Space & Security was , of which 32 percent represents orders from customers outside the$61 billionU.S.

Global Services

Global Services fourth-quarter revenue decreased to , driven by lower commercial services volume due to COVID-19 (Table 6). Fourth-quarter operating margin decreased to 3.8 percent primarily due to lower commercial services volume and of pre-tax charges related to asset impairments driven by COVID-19.$3.7 billion$290 million

During the quarter, Global Services was awarded a Performance Based Logistics contract for the Republic of Singapore Air Force F-15SG fleet, secured a F-15 spares and logistics support contract with the Qatar Emiri Air Force, and was selected to provide P-8A training for the Royal New Zealand Air Force. Global Services also announced a 10-year digital services agreement with Frontier Airlines.

Additional Financial Information

At quarter-end, Boeing Capital's net portfolio balance was . The change in revenue from other unallocated items and eliminations was primarily due to the timing of eliminations for intercompany aircraft deliveries. Other unallocated items and eliminations included a charge related to the previously announced agreement between Boeing and the U.S. Department of Justice in . Interest and debt expense increased due to higher debt balances. The fourth quarter 2020 effective tax rate primarily reflects an additional valuation allowance on certain deferred income tax assets, partially offset by the benefit of the five year net operating loss carryback provision in the Coronavirus Aid, Relief, and Economic Security (CARES) Act.$2.0 billion$744 millionJanuary 2021

Non-GAAP Measures Disclosures

We supplement the reporting of our financial information determined under Generally Accepted Accounting Principles in (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:the United States of America

Core Operating Earnings, Core Operating Margin and Core Earnings Per Share

Core operating earnings is defined as GAAP excluding the The represents the difference between the 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 excluding the net earnings per share impact of the and . 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 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.earnings from operationsFAS/CAS service cost adjustment.FAS/CAS service cost adjustmentdiluted earnings per shareFAS/CAS service cost adjustmentNon-operating pension and postretirement expensesU.S.

Free Cash Flow

Free cash flow is GAAP reduced by capital expenditures for . 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.operating cash flowproperty, plant and equipment

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 government actions, 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 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 government; (7) our dependence on 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- operations, including sales to non- 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.U.S.U.S.U.S.U.S.

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.

   

   

   

(Unaudited)The Boeing Company and Subsidiaries Summary of Business Segment Data

Effective at the beginning of 2020, certain programs were realigned between our Defense, Space & Security segment and Unallocated items, eliminations and other. Business segment data for 2019 has been adjusted to reflect the realignment.

   

(Unaudited)The Boeing Company and Subsidiaries Reconciliation of Non-GAAP Measures

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 6 of this release for additional information on the use of these non-GAAP financial measures.

(Unaudited)The Boeing Company and SubsidiariesReconciliation of Non-GAAP Measures

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 6 of this release for additional information on the use of these non-GAAP financial measures.

--  Financial results significantly impacted by COVID-19, 737 MAX grounding,
        and commercial widebody programs
    --  777X program recorded  pre-tax charge; first delivery
        expected in late 2023
    --  737 MAX began receiving regulatory approval to resume operations and
        restarted deliveries
    --  Revenue of , GAAP loss per share of () and core
        (non-GAAP)* loss per share of ()$6.5 billion$15.3 billion$14.65$15.25
--  Revenue of , GAAP loss per share of () and core
        (non-GAAP)* loss per share of ()
    --  Operating cash flow of ; cash and marketable securities
        of 
    --  Total backlog of , including more than 4,000 commercial
        airplanes
    --  Strengthening safety processes, improving performance, managing
        liquidity and transforming for the future$58.2 billion$20.88$23.25($18.4) billion$25.6 billion$363 billion
Table 1. Summary         Fourth Quarter                 Full Year
Financial Results

(Dollars in Millions,      2020      2019  Change       2020      2019  Change
except per share data)

Revenues                     (15)%          (24)%

GAAP

Loss From Operations   ()  ()    NM    ()  ()    NM

Operating Margin        (52.6)%   (12.3)%    NM      (22.0)%    (2.6)%    NM

Net Loss               ()  ()    NM    ()    ()    NM

Loss Per Share         ()   ()    NM     ()   ()    NM

Operating Cash Flow    ()  ()    NM    ()  ()    NM

Non-GAAP*

Core Operating Loss    ()  ()    NM    ()  ()    NM

Core Operating Margin   (54.7)%   (14.1)%    NM      (24.3)%    (4.4)%    NM

Core Loss Per Share    ()   ()    NM     ()   ()    NM

*Non-GAAP measure; complete definitions of Boeing's non-GAAP measures are on
page 6, "Non-GAAP Measures Disclosures."$15,304$17,911$58,158$76,559$8,049$2,204$12,767$1,975$8,439$1,010$11,941$636$14.65$1.79$20.88$1.12$4,009$2,220$18,410$2,446$8,377$2,526$14,150$3,390$15.25$2.33$23.25$3.47
Table 2. Cash Flow                    Fourth Quarter         Full Year

(Millions)                              2020      2019       2020      2019

Operating Cash Flow                 ()  ()  ()  ()

Less Additions to Property, Plant &   ()    ()   ()  ()
Equipment

Free Cash Flow*                     ()  ()  ()  ()

*Non-GAAP measure; complete definitions of Boeing's non-GAAP measures are
on page 6, "Non-GAAP Measures Disclosures."$4,009$2,220$18,410$2,446$265$447$1,303$1,834$4,274$2,667$19,713$4,280
Table 3. Cash, Marketable Securities and Debt Balances Quarter-End

(Billions)                                             Q4 20  Q3 20

Cash                                                      

Marketable Securities1                                   

Total                                                    

Debt Balances:

The Boeing Company, net of intercompany loans to BCC     

Boeing Capital, including intercompany loans               

Total Consolidated Debt                                  

1 Marketable securities consists primarily of time deposits due
within one year classified as "short-term investments."$7.8$10.6$17.8$16.5$25.6$27.1$62.0$59.1$1.6$1.9$63.6$61.0
Table 4. Commercial     Fourth Quarter                 Full Year
Airplanes

(Dollars in Millions)     2020      2019  Change       2020      2019  Change

Commercial Airplanes        59        79  (25)%         157       380  (59)%
Deliveries

Revenues                      (37)%          (50)%

Loss from Operations  ()  ()    NM    ()  ()    NM

Operating Margin      (161.8)%   (38.1)%    NM      (85.7)%   (20.6)%    NM$4,728$7,462$16,162$32,255$7,648$2,844$13,847$6,657
Table 5. Defense, Space & Fourth Quarter              Full Year
Security

(Dollars in Millions)       2020    2019  Change      2020     2019   Change

Revenues                        14%           1%

Earnings from Operations           1,376%           (41)%

Operating Margin            7.4%    0.6%  6.8 Pts     5.9%    10.0%  (4.1) Pts$6,779$5,927$26,257$26,095$502$34$1,539$2,615
Table 6. Global       Fourth Quarter                 Full Year
Services

(Dollars in Millions)   2020    2019    Change       2020     2019    Change

Revenues                    (20)%           (16)%

Earnings from                   (79)%               (83)%
Operations

Operating Margin        3.8%   14.7%  (10.9) Pts     2.9%    14.6%  (11.7) Pts$3,733$4,648$15,543$18,468$143$684$450$2,697
Table 7. Additional Financial Information  Fourth Quarter       Full Year

(Dollars in Millions)                         2020    2019      2020      2019

Revenues

Boeing Capital                                                  

Unallocated items, eliminations and other         ()     ()    ()

(Loss)/Earnings from Operations

Boeing Capital                                    ()              

FAS/CAS service cost adjustment                           

Other unallocated items and eliminations  ()  ()  ()  ()

Other income, net                                             

Interest and debt expense                   ()  ()  ()    ()

Effective tax rate                            2.2%   56.9%     17.5%     71.8%$56$37$261$244$8$163$65$503$16$58$63$28$328$322$1,383$1,415$1,390$342$2,355$2,073$122$104$447$438$698$242$2,156$722
Contact:

Investor Relations:   or  (312) 544-2140

Communications:Maurita SutedjaKeely MoosMichael Friedmanmedia@boeing.com
The Boeing Company and Subsidiaries

                    Consolidated Statements of Operations

                                 (Unaudited)

                                       Twelve months ended  Three months ended

                                           December 31         December 31

(Dollars in millions, except per share      2020      2019      2020      2019
data)

Sales of products                                 

Sales of services                         11,016    10,465     2,818     2,331

Total revenues                            58,158    76,559    15,304    17,911

Cost of products                        (54,568)  (62,877)  (18,567)  (16,293)

Cost of services                         (9,232)   (9,154)   (2,415)   (2,402)

Boeing Capital interest expense             (43)      (62)      (10)      (13)

Total costs and expenses                (63,843)  (72,093)  (20,992)  (18,708)

                                         (5,685)     4,466   (5,688)     (797)

Income/(loss) from operating                   9       (4)        70       (1)
investments, net

General and administrative expense       (4,817)   (3,909)   (1,828)   (1,052)

Research and development expense, net    (2,476)   (3,219)     (605)     (749)

Gain on dispositions, net                    202       691         2       395

Loss from operations                    (12,767)   (1,975)   (8,049)   (2,204)

Other income, net                            447       438       122       104

Interest and debt expense                (2,156)     (722)     (698)     (242)

Loss before income taxes                (14,476)   (2,259)   (8,625)   (2,342)

Income tax benefit                         2,535     1,623       186     1,332

Net loss                                (11,941)     (636)   (8,439)   (1,010)

Less: net loss attributable to              (68)                (19)
noncontrolling interest

Net loss attributable to Boeing        ()    ()  ()  ()
Shareholders

Basic loss per share                    ()   ()  ()   ()

Diluted loss per share                  ()   ()  ()   ()

Weighted average diluted shares            569.0     566.0     575.4     565.4
(millions)$47,142$66,094$12,486$15,580$11,873$636$8,420$1,010$20.88$1.12$14.65$1.79$20.88$1.12$14.65$1.79
The Boeing Company and Subsidiaries

                Consolidated Statements of Financial Position

                                 (Unaudited)

(Dollars in millions, except per share data)          December 31  December 31
                                                             2020         2019

Assets

Cash and cash equivalents                                         

Short-term and other investments                           17,838          545

Accounts receivable, net                                    1,955        3,266

Unbilled receivables, net                                   7,995        9,043

Current portion of customer financing, net                    101          162

Inventories                                                81,715       76,622

Other current assets, net                                   4,286        3,106

Total current assets                                      121,642      102,229

Customer financing, net                                     1,936        2,136

Property, plant and equipment, net of accumulated          11,820       12,502
depreciation of  and 

Goodwill                                                    8,081        8,060

Acquired intangible assets, net                             2,843        3,338

Deferred income taxes                                          86          683

Investments                                                 1,016        1,092

Other assets, net of accumulated amortization of        4,712        3,585
and 

Total assets                                                  

Liabilities and equity

Accounts payable                                                

Accrued liabilities                                        22,171       22,868

Advances and progress billings                             50,488       51,551

Short-term debt and current portion of long-term debt       1,693        7,340

Total current liabilities                                  87,280       97,312

Deferred income taxes                                       1,010          413

Accrued retiree health care                                 4,137        4,540

Accrued pension plan liability, net                        14,408       16,276

Other long-term liabilities                                 1,486        3,422

Long-term debt                                             61,890       19,962

Total liabilities                                         170,211      141,925

Shareholders' equity:

Common stock, par value  – 1,200,000,000 shares        5,061        5,061
authorized; 1,012,261,159 shares issued

Additional paid-in capital                                  7,787        6,745

Treasury stock, at cost - 429,941,021 and 449,352,405    (52,641)     (54,914)
shares

Retained earnings                                          38,610       50,644

Accumulated other comprehensive loss                     (17,133)     (16,153)

Total shareholders' deficit                              (18,316)      (8,617)

Noncontrolling interests                                      241          317

Total equity                                             (18,075)      (8,300)

Total liabilities and equity$7,752$9,485$20,507$19,342$729$580$152,136$133,625$12,928$15,553$5.00$152,136$133,625
The Boeing Company and Subsidiaries

                     Consolidated Statements of Cash Flows

                                  (Unaudited)

                                                            Twelve months ended

                                                                December 31

(Dollars in millions)                                            2020      2019

Cash flows – operating activities:

Net loss                                                    ()    ()

Adjustments to reconcile net loss to net cash
(used)/provided by operating activities:

Non-cash items –

Share-based plans expense                                         250       212

Treasury shares issued for 401(k) contribution                    195

Depreciation and amortization                                   2,246     2,271

Investment/asset impairment charges, net                          410       443

Customer financing valuation adjustments                           12       250

Gain on dispositions, net                                       (202)     (691)

777X reach-forward loss                                         6,493

Other charges and credits, net                                  1,462       334

Changes in assets and liabilities –

Accounts receivable                                               909       603

Unbilled receivables                                              919       982

Advances and progress billings                                (1,060)       737

Inventories                                                  (11,002)  (12,391)

Other current assets                                              372     (682)

Accounts payable                                              (5,363)     1,600

Accrued liabilities                                             1,074     7,781

Income taxes receivable, payable and deferred                 (2,576)   (2,476)

Other long-term liabilities                                     (222)     (621)

Pension and other postretirement plans                          (794)     (777)

Customer financing, net                                           173       419

Other                                                             235       196

Net cash used by operating activities                        (18,410)   (2,446)

Cash flows – investing activities:

Property, plant and equipment additions                       (1,303)   (1,834)

Property, plant and equipment reductions                          296       334

Acquisitions, net of cash acquired                                        (455)

Proceeds from dispositions                                                  464

Contributions to investments                                 (37,616)   (1,658)

Proceeds from investments                                      20,275     1,759

Purchase of distribution rights                                           (127)

Other                                                            (18)      (13)

Net cash used by investing activities                        (18,366)   (1,530)

Cash flows – financing activities:

New borrowings                                                 47,248    25,389

Debt repayments                                              (10,998)  (12,171)

Contributions from noncontrolling interests                                   7

Stock options exercised                                            36        58

Employee taxes on certain share-based payment arrangements      (173)     (248)

Common shares repurchased                                               (2,651)

Dividends paid                                                (1,158)   (4,630)

Other                                                                      (15)

Net cash provided by financing activities                      34,955     5,739

Effect of exchange rate changes on cash and cash                   85       (5)
equivalents, including restricted

Net (decrease)/increase in cash & cash equivalents,           (1,736)     1,758
including restricted

Cash & cash equivalents, including restricted, at beginning     9,571     7,813
of year

Cash & cash equivalents, including restricted, at end of        7,835     9,571
period

Less restricted cash & cash equivalents, included in               83        86
Investments

Cash and cash equivalents at end of period$11,941$636$7,752$9,485
Twelve months ended  Three months ended

                                             December 31         December 31

(Dollars in millions)                         2020      2019      2020      2019

Revenues:

Commercial Airplanes                                  

Defense, Space & Security                   26,257    26,095     6,779     5,927

Global Services                             15,543    18,468     3,733     4,648

Boeing Capital                                 261       244        56        37

Unallocated items, eliminations and           (65)     (503)         8     (163)
other

Total revenues                                      

Earnings/(loss) from operations:

Commercial Airplanes                     ()  ()  ()  ()

Defense, Space & Security                    1,539     2,615       502        34

Global Services                                450     2,697       143       684

Boeing Capital                                  63        28        16      (58)

Segment operating loss                    (11,795)   (1,317)   (6,987)   (2,184)

Unallocated items, eliminations and        (2,355)   (2,073)   (1,390)     (342)
other

FAS/CAS service cost adjustment              1,383     1,415       328       322

Loss from operations                      (12,767)   (1,975)   (8,049)   (2,204)

Other income, net                              447       438       122       104

Interest and debt expense                  (2,156)     (722)     (698)     (242)

Loss before income taxes                  (14,476)   (2,259)   (8,625)   (2,342)

Income tax benefit                           2,535     1,623       186     1,332

Net loss                                  (11,941)     (636)   (8,439)   (1,010)

Less: Net loss attributable to                (68)                (19)
noncontrolling interest

Net loss attributable to Boeing          ()    ()  ()  ()
Shareholders

Research and development expense, net:

Commercial Airplanes                                        

Defense, Space & Security                      713       741       219       185

Global Services                                138       121        28        19

Other                                          240       401        80       118

Total research and development expense,                     
net

Unallocated items, eliminations and
other:

Share-based plans                           ()     ()     ()      ()

Deferred compensation                         (93)     (174)     (127)      (20)

Amortization of previously capitalized        (95)      (89)      (26)      (21)
interest

Customer financing impairment                          (250)

Research and development expense, net        (240)     (401)      (80)     (118)

Eliminations and other unallocated items   (1,807)   (1,094)   (1,117)     (175)

Sub-total (included in core operating      (2,355)   (2,073)   (1,390)     (342)
loss)

Pension FAS/CAS service cost adjustment      1,024     1,071       251       248

Postretirement FAS/CAS service cost            359       344        77        74
adjustment

FAS/CAS service cost adjustment              1,383     1,415            

Total                                       ()    ()  ()     ()$16,162$32,255$4,728$7,462$58,158$76,559$15,304$17,911$13,847$6,657$7,648$2,844$11,873$636$8,420$1,010$1,385$1,956$278$427$2,476$3,219$605$749$120$65$40$8$328$322$972$658$1,062$20
The Boeing Company and Subsidiaries

                    Operating and Financial Data

                            (Unaudited)

Deliveries                        Twelve         Three months
                                  months            ended
                                  ended           December 31
                                 December
                                    31

Commercial Airplanes            2020  2019     2020         2019

737                               43   127       31            9

747                                5     7        3            2

767                               30    43       10           11

777                               26    45 (2)   11           12 (1)

787                               53   158        4           45

Total                            157   380       59           79

Note: Aircraft accounted for as revenues by BCA and as operating
leases in consolidation identified by parentheses

Defense, Space & Security

AH-64 Apache (New)                19    37        1           10

AH-64 Apache (Remanufactured)     52    74        8           18

C-17 Globemaster III               —     1        —            —

C-40A                              —     2        —            —

CH-47 Chinook (New)               27    13        8            —

CH-47 Chinook (Renewed)            3    22        —            6

F-15 Models                        4    11        1            4

F/A-18 Models                     20    23        6            7

KC-46A Tanker                     14    28        4            7

P-8 Models                        15    18        6            4

Commercial and Civil Satellites    —     2        —            1

Total backlog (Dollars in millions)            December 31  December
                                                      2020        31
                                                                2019

Commercial Airplanes                                

Defense, Space & Security                           60,847    63,691

Global Services                                     20,632    22,902

Unallocated items, eliminations and other              337       217

Total backlog                                       

Contractual backlog                                 

Unobligated backlog                                 24,095    26,930

Total backlog$281,588$376,593$363,404$463,403$339,309$436,473$363,404$463,403
(Dollars in millions, except per     Fourth Quarter 2020   Fourth Quarter 2019
share data)

                                     $ millions Per Share  $ millions Per Share

Revenues                                 15,304                17,911

Loss from operations (GAAP)             (8,049)               (2,204)

Operating margin (GAAP)                 (52.6)%               (12.3)%

FAS/CAS service cost adjustment:

Pension FAS/CAS service cost              (251)                 (248)
adjustment

Postretirement FAS/CAS service cost        (77)                  (74)
adjustment

FAS/CAS service cost adjustment           (328)                 (322)

Core operating loss (non-GAAP)         ()              ()

Core operating margin (non-GAAP)        (54.7)%               (14.1)%

Diluted loss per share (GAAP)                    ()               ()

Pension FAS/CAS service cost             ()    (0.44)      ()    (0.44)
adjustment

Postretirement FAS/CAS service cost        (77)    (0.13)        (74)    (0.13)
adjustment

Non-operating pension expense              (85)    (0.15)        (94)    (0.17)

Non-operating postretirement expense       (21)    (0.04)          27      0.05

Provision for deferred income taxes          91      0.16          82      0.15
on adjustments 1

Subtotal of adjustments                  ()   ()      ()   ()

Core loss per share (non-GAAP)                   ()               ()

Weighted average diluted shares (in                 575.4                 565.4
millions)

1 The income tax impact is calculated using the 
corporate statutory tax rate.$8,377$2,526$14.65$1.79$251$248$343$0.60$307$0.54$15.25$2.33U.S.
(Dollars in millions, except per        Full Year 2020        Full Year 2019
share data)

                                     $ millions Per Share  $ millions Per Share

Revenues                                 58,158                76,559

Loss from operations (GAAP)            (12,767)               (1,975)

Operating margin (GAAP)                 (22.0)%                (2.6)%

FAS/CAS service cost adjustment:

Pension FAS/CAS service cost            (1,024)               (1,071)
adjustment

Postretirement FAS/CAS service cost       (359)                 (344)
adjustment

FAS/CAS service cost adjustment         (1,383)               (1,415)

Core operating loss (non-GAAP)        ()              ()

Core operating margin (non-GAAP)        (24.3)%                (4.4)%

Diluted loss per share (GAAP)                    ()               ()

Pension FAS/CAS service cost           ()    (1.80)    ()    (1.89)
adjustment

Postretirement FAS/CAS service cost       (359)    (0.63)       (344)    (0.61)
adjustment

Non-operating pension expense             (340)    (0.60)       (374)    (0.66)

Non-operating postretirement expense         16      0.03         107      0.19

Provision for deferred income taxes         358      0.63         353      0.62
on adjustments 1

Subtotal of adjustments                ()   ()    ()   ()

Core loss per share (non-GAAP)                   ()               ()

Weighted average diluted shares (in                 569.0                 566.0
millions)

1 The income tax impact is calculated using the 
corporate statutory tax rate.$14,150$3,390$20.88$1.12$1,024$1,071$1,349$2.37$1,329$2.35$23.25$3.47U.S.
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