Boeing Reports Fourth-Quarter Results

CHICAGO, Jan. 27, 2021 /PRNewswire/ --

Fourth Quarter 2020

    --  Financial results significantly impacted by COVID-19, 737 MAX grounding,
        and commercial widebody programs
    --  777X program recorded $6.5 billion pre-tax charge; first delivery
        expected in late 2023
    --  737 MAX began receiving regulatory approval to resume operations and
        restarted deliveries
    --  Revenue of $15.3 billion, GAAP loss per share of ($14.65) and core
        (non-GAAP)* loss per share of ($15.25)

Full-Year 2020

    --  Revenue of $58.2 billion, GAAP loss per share of ($20.88) and core
        (non-GAAP)* loss per share of ($23.25)
    --  Operating cash flow of ($18.4) billion; cash and marketable securities
        of $25.6 billion
    --  Total backlog of $363 billion, including more than 4,000 commercial
        airplanes
    --  Strengthening safety processes, improving performance, managing
        liquidity and transforming for the future

        Table 1. Summary
         Financial
         Results                        Fourth Quarter                           Full Year


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




        Revenues                $15,304           $17,911      (15)%     $58,158               $76,559        (24)%




                     GAAP

    ---

        Loss From
         Operations            ($8,049)         ($2,204)  
     
     NM     ($12,767)             ($1,975)    
     
     NM


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


        Net Loss               ($8,439)         ($1,010)  
     
     NM     ($11,941)               ($636)    
     
     NM


        Loss Per Share         ($14.65)          ($1.79)  
     
     NM      ($20.88)              ($1.12)    
     
     NM


        Operating Cash
         Flow                  ($4,009)         ($2,220)  
     
     NM     ($18,410)             ($2,446)    
     
     NM


                     Non-GAAP*

    ---

        Core Operating
         Loss                  ($8,377)         ($2,526)  
     
     NM     ($14,150)             ($3,390)    
     
     NM


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


        Core Loss Per
         Share                 ($15.25)          ($2.33)  
     
     NM      ($23.25)              ($3.47)    
     
     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 fourth-quarter revenue of $15.3 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 ($14.65) and core loss per share (non-GAAP)* of ($15.25) reflected a $6.5 billion 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 ($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 Dave Calhoun. "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."

The return to service of the 737 MAX in the U.S. 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 January 25, 2021, safely flying more than 2,700 revenue flights and approximately 5,500 flight hours.

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.



       
                Table 2. Cash Flow                         Fourth Quarter                      Full Year



       
                (Millions)                           2020      2019              2020        2019



       
                Operating Cash Flow              ($4,009) ($2,220)        ($18,410)   ($2,446)



       Less Additions to Property, Plant & Equipment   ($265)   ($447)         ($1,303)   ($1,834)



       
                Free Cash Flow*                  ($4,274) ($2,667)        ($19,713)   ($4,280)

    ---



                            *Non-GAAP measure; complete
                             definitions of Boeing's non-GAAP
                             measures are on page 6, "Non-GAAP
                             Measures Disclosures."

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



       
                Table 3. Cash, Marketable Securities and Debt Balances Quarter-End



       
                (Billions)                                                Q4 20    Q3 20



       
                Cash                                                          $7.8  $10.6



       
                Marketable Securities
                1                          $17.8  $16.5



       
                Total                                                        $25.6  $27.1



       
                Debt Balances:



       The Boeing Company, net of intercompany loans to BCC                      $62.0  $59.1



       Boeing Capital, including intercompany loans                               $1.6   $1.9



       
                Total Consolidated Debt                                      $63.6  $61.0

    ---



               1 Marketable securities consists
                primarily of time deposits due
                within one year classified as
                "short-term investments."

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

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

Segment Results

Commercial Airplanes


        Table 4.
         Commercial
         Airplanes                Fourth Quarter                    Full Year


        (Dollars in
         Millions)           2020          2019  Change        2020           2019   Change




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




        Revenues           $4,728        $7,462   (37)%     $16,162        $32,255    (50)%


        Loss from
         Operations      ($7,648)     ($2,844)   NM     ($13,847)      ($6,657)    NM


        Operating Margin (161.8)%      (38.1)%   NM       (85.7)%       (20.6)%    NM

    ---

Commercial Airplanes fourth-quarter revenue decreased to $4.7 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 $6.5 billion pre-tax charge on the 777X program, lower delivery volume, and $468 million of abnormal production costs related to the 737 program, partially offset by a lower 737 MAX customer consideration charge.

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 March 2021, at which point 787 final assembly will be consolidated to Boeing South Carolina.

As discussed above, Commercial Airplanes now expects first delivery of the 777X to occur in late 2023 and has recorded a $6.5 billion 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.

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


         Table
         5.
         Defense,
         Space
         &
         Security          Fourth Quarter                   Full Year


         (Dollars
         in
         Millions)    2020        2019      Change     2020         2019       Change




        Revenues    $6,779      $5,927          14% $26,257      $26,095            1%


         Earnings
         from
         Operations   $502         $34       1,376%  $1,539       $2,615         (41)%


         Operating
         Margin       7.4%       0.6%     6.8 Pts    5.9%       10.0%    (4.1) Pts

    ---

Defense, Space & Security fourth-quarter revenue increased to $6.8 billion, 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 $275 million pre-tax charge on the KC-46A Tanker program primarily due to production inefficiencies including impacts of COVID-19 disruption.

During the quarter, Defense, Space & Security was awarded contracts for two KC-46A aircraft for Japan 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.

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

Global Services


         Table
         6.
         Global
         Services          Fourth Quarter                      Full Year


         (Dollars
         in
         Millions)    2020        2019        Change      2020         2019       Change




        Revenues    $3,733      $4,648           (20)% $15,543      $18,468          (16)%


         Earnings
         from
         Operations   $143        $684           (79)%    $450       $2,697          (83)%


         Operating
         Margin       3.8%      14.7%     (10.9) Pts    2.9%       14.6%    (11.7) Pts

    ---

Global Services fourth-quarter revenue decreased to $3.7 billion, 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 $290 million of pre-tax charges related to asset impairments driven by COVID-19.

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



       
                Table 7. Additional Financial Information          Fourth Quarter            Full Year



       
                (Dollars in Millions)                         2020        2019          2020          2019



       
                Revenues



       Boeing Capital                                              $56         $37          $261          $244



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



       
                (Loss)/Earnings from Operations



       Boeing Capital                                              $16       ($58)          $63           $28



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



       Other unallocated items and eliminations               ($1,390)     ($342)     ($2,355)     ($2,073)



       
                Other income, net                             $122        $104          $447          $438



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



       
                Effective tax rate                            2.2%      56.9%        17.5%        71.8%

    ---

At quarter-end, Boeing Capital's net portfolio balance was $2.0 billion. 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 $744 million charge related to the previously announced agreement between Boeing and the U.S. Department of Justice in January 2021. 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.

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 FAS pension and postretirement service costs calculated under GAAP and costs allocated to the business segments. Core operating margin is defined as core operating earnings expressed as a percentage of revenue. Core earnings per share is defined as GAAP diluted earnings per share excluding the net earnings per share impact of the FAS/CAS service cost adjustment and Non-operating pension and postretirement expenses. Non-operating pension and postretirement expenses represent the components of net periodic benefit costs other than service cost. Pension costs, comprising service and prior service costs computed in accordance with GAAP are allocated to Commercial Airplanes and BGS businesses supporting commercial customers. Pension costs allocated to BDS and BGS businesses supporting government customers are computed in accordance with U.S. Government Cost Accounting Standards (CAS), which employ different actuarial assumptions and accounting conventions than GAAP. CAS costs are allocable to government contracts. Other postretirement benefit costs are allocated to all business segments based on CAS, which is generally based on benefits paid. Management uses core operating earnings, core operating margin and core earnings per share for purposes of evaluating and forecasting underlying business performance. Management believes these core earnings measures provide investors additional insights into operational performance as they exclude non-service pension and post-retirement costs, which primarily represent costs driven by market factors and costs not allocable to government contracts. A reconciliation between the GAAP and non-GAAP measures is provided on pages 13-14.

Free Cash Flow

Free cash flow is GAAP operating cash flow reduced by capital expenditures for property, plant and equipment. Management believes free cash flow provides investors with an important perspective on the cash available for shareholders, debt repayment, and acquisitions after making the capital investments required to support ongoing business operations and long term value creation. Free cash flow does not represent the residual cash flow available for discretionary expenditures as it excludes certain mandatory expenditures such as repayment of maturing debt. Management uses free cash flow as a measure to assess both business performance and overall liquidity. Table 2 provides a reconciliation of free cash flow to GAAP operating cash flow.

Caution Concerning Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "may," "should," "expects," "intends," "projects," "plans," "believes," "estimates," "targets," "anticipates," and similar expressions generally identify these forward-looking statements. Examples of forward-looking statements include statements relating to our future financial condition and operating results, as well as any other statement that does not directly relate to any historical or current fact. Forward-looking statements are based on expectations and assumptions that we believe to be reasonable when made, but that may not prove to be accurate. These statements are not guarantees and are subject to risks, uncertainties, and changes in circumstances that are difficult to predict. Many factors could cause actual results to differ materially and adversely from these forward-looking statements. Among these factors are risks related to: (1) the COVID-19 pandemic and related 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 U.S. government; (7) our dependence on U.S. government contracts; (8) our reliance on fixed-price contracts; (9) our reliance on cost-type contracts; (10) uncertainties concerning contracts that include in-orbit incentive payments; (11) our dependence on our subcontractors and suppliers, as well as the availability of raw materials; (12) changes in accounting estimates; (13) changes in the competitive landscape in our markets; (14) our non-U.S. operations, including sales to non-U.S. customers; (15) threats to the security of our or our customers' information; (16) potential adverse developments in new or pending litigation and/or government investigations; (17) customer and aircraft concentration in our customer financing portfolio; (18) changes in our ability to obtain debt financing on commercially reasonable terms and at competitive rates; (19) realizing the anticipated benefits of mergers, acquisitions, joint ventures/strategic alliances or divestitures; (20) the adequacy of our insurance coverage to cover significant risk exposures; (21) potential business disruptions, including those related to physical security threats, information technology or cyber-attacks, epidemics, sanctions or natural disasters; (22) work stoppages or other labor disruptions; (23) substantial pension and other postretirement benefit obligations; and (24) potential environmental liabilities.

Additional information concerning these and other factors can be found in our filings with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Any forward-looking statement speaks only as of the date on which it is made, and we assume no obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise, except as required by law.



     Contact:





     Investor Relations:   Maurita Sutedja or Keely Moos (312) 544-2140



     Communications:     
     Michael Friedman media@boeing.com


                   
              
                The Boeing Company and Subsidiaries


                  
              
                Consolidated Statements of Operations


                                     
              (Unaudited)




                                                                        Twelve months ended                          Three months ended

                                                                        December 31                          December 31


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


        Sales of products                          $47,142                $66,094              $12,486     $15,580


        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 investments,
         net                                             9                    (4)                  70         (1)


        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
                      noncontrolling
                      interest                        (68)                                      (19)


                     Net loss attributable
                      to Boeing Shareholders     ($11,873)                ($636)            ($8,420)   ($1,010)

    ===



                     Basic loss per share         ($20.88)               ($1.12)            ($14.65)    ($1.79)

    ===



                     Diluted loss per share       ($20.88)               ($1.12)            ($14.65)    ($1.79)

    ===



                     Weighted average
                      diluted shares
                      (millions)                     569.0                  566.0                575.4       565.4

    ===


                                       
              
                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                                                           $7,752              $9,485


        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 depreciation of $20,507
         and $19,342                                                                        11,820              12,502



       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 $729 and $580                                                       4,712               3,585



       
                Total assets                                                         $152,136            $133,625



       
                Liabilities and equity



       Accounts payable                                                                   $12,928             $15,553



       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 $5.00 -
         1,200,000,000 shares authorized;
         1,012,261,159 shares issued                                                         5,061               5,061



       Additional paid-in capital                                                           7,787               6,745


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



       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                                         $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                                                                                                                ($11,941)           ($636)



       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 equivalents, including restricted                                              85               (5)



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



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



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



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



       
                Cash and cash equivalents at end of period                                                                     $7,752            $9,485

    ===                                                                                                                                                 ===

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

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.


                                                                            Twelve months ended                          Three months ended

                                                                            December 31                          December 31



       
                (Dollars in millions)                             2020      2019                 2020        2019



       Revenues:



       Commercial Airplanes                                        $16,162   $32,255               $4,728      $7,462



       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 other                      (65)    (503)                   8       (163)



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



       Earnings/(loss) from operations:



       Commercial Airplanes                                      ($13,847) ($6,657)            ($7,648)   ($2,844)



       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 other                   (2,355)  (2,073)             (1,390)      (342)



       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 noncontrolling interest         (68)                         (19)

    ---




       
                Net loss attributable to Boeing Shareholders ($11,873)   ($636)            ($8,420)   ($1,010)



       
                Research and development expense, net:



       Commercial Airplanes                                         $1,385    $1,956                 $278        $427



       Defense, Space & Security                                       713       741                  219         185



       Global Services                                                 138       121                   28          19



       Other                                                           240       401                   80         118



       
                Total research and development expense, net     $2,476    $3,219                 $605        $749





       
                Unallocated items, eliminations and other:



       Share-based plans                                            ($120)    ($65)               ($40)       ($8)



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



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



       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 loss)    (2,355)  (2,073)             (1,390)      (342)



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



       Postretirement FAS/CAS service cost adjustment                  359       344                   77          74



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



       
                Total                                           ($972)   ($658)            ($1,062)      ($20)

    ===


                                                             
              
                The Boeing Company and Subsidiaries


                                                                 
              
                Operating and Financial Data


                                                                                
              (Unaudited)





       
                Deliveries                                                                       Twelve months ended                           Three months 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 31

                                                                                                                                                                       2020              2019



       Commercial Airplanes                                                                                                                                       $281,588          $376,593



       Defense, Space & Security                                                                                                                                    60,847            63,691



       Global Services                                                                                                                                              20,632            22,902



       Unallocated items, eliminations and other                                                                                                                       337               217



       
                Total backlog                                                                                                                                 $363,404          $463,403





       Contractual backlog                                                                                                                                        $339,309          $436,473



       Unobligated backlog                                                                                                                                          24,095            26,930



       
                Total backlog                                                                                                                                 $363,404          $463,403

    ===

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



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


                                                                 
     
              $ 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 adjustment                                      (251)                                       (248)



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



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



     
                Core operating loss (non-GAAP)                               ($8,377)                                    ($2,526)



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





     
                Diluted loss per share (GAAP)                                          ($14.65)                                            ($1.79)



     Pension FAS/CAS service cost adjustment                                     ($251)    (0.44)                            ($248)           (0.44)



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



     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 on adjustments 1                            91       0.16                                 82              0.15



     
                Subtotal of adjustments                                        ($343)   ($0.60)                            ($307)          ($0.54)



     
                Core loss per share (non-GAAP)                                         ($15.25)                                            ($2.33)





     
                Weighted average diluted shares (in millions)                             575.4                                               565.4



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



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


                                                                 
     
         $ 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 adjustment                               (1,024)                                (1,071)



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



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



     
                Core operating loss (non-GAAP)                         ($14,150)                               ($3,390)



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





     
                Diluted loss per share (GAAP)                                     ($20.88)                                       ($1.12)



     Pension FAS/CAS service cost adjustment                              ($1,024)    (1.80)                     ($1,071)           (1.89)



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



     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 on adjustments 1                      358       0.63                           353              0.62



     
                Subtotal of adjustments                                 ($1,349)   ($2.37)                     ($1,329)          ($2.35)



     
                Core loss per share (non-GAAP)                                    ($23.25)                                       ($3.47)





     
                Weighted average diluted shares (in millions)                        569.0                                          566.0



                            1 
                The income
                             tax impact is calculated
                             using the U.S. corporate
                             statutory tax rate
                                .

View original content:http://www.prnewswire.com/news-releases/boeing-reports-fourth-quarter-results-301216144.html

SOURCE Boeing