CHICAGO, Jan. 29, 2020 /PRNewswire/ --

Fourth Quarter 2019

Financial results continue to be significantly impacted by the 737 MAX grounding

Revenue of $17.9 billion, GAAP loss per share of ($1.79) and core (non-GAAP)* loss per share of ($2.33)

Full-Year 2019

Revenue of $76.6 billion, GAAP loss per share of ($1.12) and core (non-GAAP)* loss per share of ($3.47)

Operating cash flow of ($2.4) billion; cash and marketable securities of $10.0 billion

Total backlog of $463 billion, including over 5,400 commercial airplanes

Table 1. Summary Financial Results Fourth Quarter





Full Year



(Dollars in Millions, except per share data) 2019

2018

Change

2019

2018

Change























Revenues $17,911

$28,341

(37)%

$76,559

$101,127

(24)%























GAAP





















(Loss)/Earnings From Operations ($2,204)

$4,175

NM

($1,975)

$11,987

NM Operating Margin (12.3)%

14.7%

NM

(2.6)%

11.9%

NM Net (Loss)/Earnings ($1,010)

$3,424

NM

($636)

$10,460

NM (Loss)/Earnings Per Share ($1.79)

$5.93

NM

($1.12)

$17.85

NM Operating Cash Flow ($2,220)

$2,947

NM

($2,446)

$15,322

NM Non-GAAP*





















Core Operating (Loss)/Earnings ($2,526)

$3,867

NM

($3,390)

$10,660

NM Core Operating Margin (14.1)%

13.6%

NM

(4.4)%

10.5%

NM Core (Loss)/Earnings Per Share ($2.33)

$5.48

NM

($3.47)

$16.01

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 $17.9 billion, GAAP loss per share of ($1.79) and core loss per share (non-GAAP)* of ($2.33), primarily reflecting the impacts of the 737 MAX grounding (Table 1). Boeing recorded operating cash flow of ($2.2) billion and paid $1.2 billion of dividends.

"We recognize we have a lot of work to do," said Boeing President and Chief Executive Officer David Calhoun. "We are focused on returning the 737 MAX to service safely and restoring the long-standing trust that the Boeing brand represents with the flying public. We are committed to transparency and excellence in everything we do. Safety will underwrite every decision, every action and every step we take as we move forward. Fortunately, the strength of our overall Boeing portfolio of businesses provides the financial liquidity to follow a thorough and disciplined recovery process."

Table 2. Cash Flow Fourth Quarter

Full Year (Millions) 2019

2018

2019

2018 Operating Cash Flow ($2,220)

$2,947

($2,446)

$15,322 Less Additions to Property, Plant & Equipment ($447)

($495)

($1,834)

($1,722) Free Cash Flow* ($2,667)

$2,452

($4,280)

$13,600



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

Operating cash flow was ($2.2) billion in the quarter, primarily reflecting the impact of the 737 MAX grounding as well as timing of receipts and expenditures (Table 2). During the quarter, the company paid $1.2 billion of dividends.

Table 3. Cash, Marketable Securities and Debt Balances Quarter-End (Billions) Q4 19

Q3 19 Cash $9.5



$9.8 Marketable Securities 1 $0.5



$1.1 Total $10.0



$10.9 Debt Balances:





The Boeing Company, net of intercompany loans to BCC $25.3



$22.8 Boeing Capital, including intercompany loans $2.0



$1.9 Total Consolidated Debt $27.3



$24.7



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

Cash and investments in marketable securities totaled $10.0 billion, compared to $10.9 billion at the beginning of the quarter (Table 3). Debt was $27.3 billion, up from $24.7 billion at the beginning of the quarter primarily due to increased commercial paper borrowings.

Total company backlog at quarter-end was $463 billion and included net orders for the quarter of $13 billion.

Segment Results

Commercial Airplanes

Table 4. Commercial Airplanes Fourth Quarter





Full Year



(Dollars in Millions) 2019

2018

Change

2019

2018

Change























Commercial Airplanes Deliveries 79

238

(67)%

380

806

(53)%























Revenues $7,462

$16,531

(55)%

$32,255

$57,499

(44)% (Loss)/Earnings from Operations ($2,844)

$2,600

NM

($6,657)

$7,830

NM Operating Margin (38.1)%

15.7%

NM

(20.6)%

13.6%

NM

Commercial Airplanes fourth-quarter revenue was $7.5 billion and fourth-quarter operating margin decreased to (38.1) percent reflecting lower 737 deliveries and an additional pre-tax charge of $2.6 billion related to estimated potential concessions and other considerations to customers related to the 737 MAX grounding (Table 4). The estimated costs to produce 737 aircraft included in the accounting quantity increased by $2.6 billion during the quarter, primarily to reflect updated production and delivery assumptions. In addition, the suspension of 737 MAX production and a gradual resumption of production at low production rates will result in approximately $4 billion of abnormal production costs that will be expensed as incurred, primarily in 2020.

Commercial Airplanes delivered 79 airplanes during the quarter, including 45 787's, and captured orders for 30 737 MAX aircraft at the Dubai Air Show and 2 777 freighters for Lufthansa. The 787 program also booked 36 net orders in the quarter. As previously announced, the 787 production rate will be reduced from the current rate of 14 airplanes per month to 12 airplanes per month in late 2020. Based on the current environment and near-term market outlook, the production rate is expected to be further adjusted to 10 airplanes per month in early 2021, and return to 12 airplanes per month in 2023. The first flight of the 777X was completed on January 25, and first delivery is targeted for 2021.

Commercial Airplanes backlog included over 5,400 airplanes valued at $377 billion.

Defense, Space & Security

Table 5. Defense, Space & Security Fourth Quarter





Full Year



(Dollars in Millions) 2019

2018

Change

2019

2018

Change























Revenues $5,962

$6,874

(13)%

$26,227

$26,392

(1%) Earnings from Operations $31

$771

(96)%

$2,608

$1,657

57% Operating Margin 0.5%

11.2%

(10.7) Pts

9.9%

6.3%

3.6 Pts

Defense, Space & Security fourth-quarter revenue decreased to $6.0 billion primarily driven by lower volume across the portfolio as well as the impact of a Commercial Crew charge (Table 5). Fourth-quarter operating margin decreased to 0.5 percent due to a $410 million pre-tax Commercial Crew charge primarily to provision for an additional uncrewed mission for the Commercial Crew program, performance and mix. NASA is evaluating the data received during the December 2019 mission to determine if another uncrewed mission is required.

During the quarter, Defense, Space & Security received an award for 10 Space Launch System core stages and up to 8 Exploration Upper Stages. Defense, Space & Security also received contracts for the remanufacture of 47 AH-64E Apache helicopters for three countries and to upgrade the NATO Airborne Warning & Control System fleet. Significant milestones achieved during the quarter included the delivery of the first modified MV-22 Osprey to the U.S. Marine Corps and delivery of the first P-8A Poseidon aircraft to the United Kingdom Royal Air Force. Defense, Space & Security also conducted a Commercial Crew spacecraft uncrewed Orbital Flight Test.

Backlog at Defense, Space & Security was $64 billion, of which 29 percent represents orders from customers outside the U.S.

Global Services

Table 6. Global Services Fourth Quarter





Full Year



(Dollars in Millions) 2019

2018

Change

2019

2018

Change























Revenues $4,648

$4,908

(5)%

$18,468

$17,056

8% Earnings from Operations $684

$737

(7)%

$2,697

$2,536

6% Operating Margin 14.7%

15.0%

(0.3) Pts

14.6%

14.9%

(0.3) Pts

Global Services fourth-quarter revenue was $4.6 billion, primarily driven by lower commercial services volume (Table 6). Fourth-quarter operating margin decreased to 14.7 percent primarily due to a charge related to the retirement of the Aviall brand and mix of products and services, partially offset by a gain on divestiture.

During the quarter, Global Services was awarded V-22 support contracts for Japan and the U.S. and AH-64 and CH-47 global support for the U.S. Army. Global Services signed a multi-year Landing Gear Exchange services agreement with LATAM Airlines Group and a 5-year digital navigation renewal agreement with Saudi Arabian Airlines. Global Services also expanded its digital offerings by launching ForeFlight Dispatch and signed a contract with Flexjet to be the inaugural customer.

Additional Financial Information

Table 7. Additional Financial Information Fourth Quarter

Full Year (Dollars in Millions) 2019

2018

2019

2018 Revenues













Boeing Capital $37

$60

$244

$274 Unallocated items, eliminations and other ($198)

($32)

($635)

($94) Earnings from Operations













Boeing Capital ($58)

$8

$28

$79 FAS/CAS service cost adjustment $322

$308

$1,415

$1,327 Other unallocated items and eliminations ($339)

($249)

($2,066)

($1,442) Other income, net $104

$29

$438

$92 Interest and debt expense ($242)

($158)

($722)

($475) Effective tax rate 56.9%

15.4%

71.8%

9.9%

At quarter-end, Boeing Capital's net portfolio balance was $2.3 billion. Revenue in other unallocated items and eliminations decreased primarily due to the timing of eliminations for intercompany aircraft deliveries. The change in earnings from other unallocated items and eliminations is primarily due to higher deferred compensation expense and increased enterprise research and development investment. Interest and debt expense increased due to higher debt balances. The fourth quarter 2019 effective tax rate reflects a $371 million tax benefit related to the settlement of state tax audits as well as the impact of pre-tax losses.

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 (Loss)/Earnings, Core Operating Margin and Core (Loss)/Earnings Per Share

Core operating (loss)/earnings is defined as GAAP (loss)/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 (loss)/earnings expressed as a percentage of revenue. Core (loss)/earnings per share is defined as GAAP diluted (loss)/earnings per share excluding the net (loss)/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 (loss)/earnings, core operating margin and core (loss)/earnings per share for purposes of evaluating and forecasting underlying business performance. Management believes these core (loss)/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 page 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 737 MAX, including the timing and conditions of 737 MAX regulatory approvals, delays in the resumption of production, lower than planned production rates and/or delivery rates, and increased considerations to customers and suppliers, (2) general conditions in the economy and our industry, including those due to regulatory changes; (3) our reliance on our commercial airline customers; (4) 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; (5) changing budget and appropriation levels and acquisition priorities of the U.S. government; (6) our dependence on U.S. government contracts; (7) our reliance on fixed-price contracts; (8) our reliance on cost-type contracts; (9) uncertainties concerning contracts that include in-orbit incentive payments; (10) our dependence on our subcontractors and suppliers, as well as the availability of raw materials; (11) changes in accounting estimates; (12) changes in the competitive landscape in our markets; (13) our non-U.S. operations, including sales to non-U.S. customers; (14) threats to the security of our or our customers' information; (15) potential adverse developments in new or pending litigation and/or government investigations; (16) customer and aircraft concentration in our customer financing portfolio; (17) changes in our ability to obtain debt on commercially reasonable terms and at competitive rates; (18) realizing the anticipated benefits of mergers, acquisitions, joint ventures/strategic alliances or divestitures; (19) the adequacy of our insurance coverage to cover significant risk exposures; (20) potential business disruptions, including those related to physical security threats, information technology or cyber-attacks, epidemics, sanctions or natural disasters; (21) work stoppages or other labor disruptions; (22) substantial pension and other postretirement benefit obligations; and (23) 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:

Caroline Hutcheson (312) 544-2002

The Boeing Company and Subsidiaries Consolidated Statements of Operations (Unaudited)



Twelve months ended

December 31

Three months ended

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

2018

2019

2018 Sales of products $66,094

$90,229

$15,580

$25,381 Sales of services 10,465

10,898

2,331

2,960 Total revenues 76,559

101,127

17,911

28,341















Cost of products (62,877)

(72,922)

(16,293)

(19,788) Cost of services (9,154)

(8,499)

(2,402)

(2,284) Boeing Capital interest expense (62)

(69)

(13)

(18) Total costs and expenses (72,093)

(81,490)

(18,708)

(22,090)

4,466

19,637

(797)

6,251 (Loss)/income from operating investments, net (4)

111

(1)

(1) General and administrative expense (3,909)

(4,567)

(1,052)

(1,222) Research and development expense, net (3,219)

(3,269)

(749)

(852) Gain/(loss) on dispositions, net 691

75

395

(1) (Loss)/earnings from operations (1,975)

11,987

(2,204)

4,175 Other income, net 438

92

104

29 Interest and debt expense (722)

(475)

(242)

(158) (Loss)/earnings before income taxes (2,259)

11,604

(2,342)

4,046 Income tax benefit/(expense) 1,623

(1,144)

1,332

(622) Net (loss)/earnings ($636)

$10,460

($1,010)

$3,424















Basic (loss)/earnings per share ($1.12)

$18.05

($1.79)

$6.00















Diluted (loss)/earnings per share ($1.12)

$17.85

($1.79)

$5.93















Weighted average diluted shares (millions) 566.0

586.2

565.4

577.5

The Boeing Company and Subsidiaries Consolidated Statements of Financial Position (Unaudited)

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

2019

December 31

2018 Assets





Cash and cash equivalents $9,485

$7,637 Short-term and other investments 545

927 Accounts receivable, net 3,266

3,879 Unbilled receivables, net 9,043

10,025 Current portion of customer financing, net 162

460 Inventories 76,622

62,567 Other current assets 3,106

2,335 Total current assets 102,229

87,830 Customer financing, net 2,136

2,418 Property, plant and equipment, net of accumulated depreciation of $19,342 and $18,568 12,502

12,645 Goodwill 8,060

7,840 Acquired intangible assets, net 3,338

3,429 Deferred income taxes 683

284 Investments 1,092

1,087 Other assets, net of accumulated amortization of $580 and $503 3,585

1,826 Total assets $133,625

$117,359 Liabilities and equity





Accounts payable $15,553

$12,916 Accrued liabilities 22,868

14,808 Advances and progress billings 51,551

50,676 Short-term debt and current portion of long-term debt 7,340

3,190 Total current liabilities 97,312

81,590 Deferred income taxes 413

1,736 Accrued retiree health care 4,540

4,584 Accrued pension plan liability, net 16,276

15,323 Other long-term liabilities 3,422

3,059 Long-term debt 19,962

10,657 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 6,745

6,768 Treasury stock, at cost (54,914)

(52,348) Retained earnings 50,644

55,941 Accumulated other comprehensive loss (16,153)

(15,083) Total shareholders' equity (8,617)

339 Noncontrolling interests 317

71 Total equity (8,300)

410 Total liabilities and equity $133,625

$117,359

The Boeing Company and Subsidiaries Consolidated Statements of Cash Flows (Unaudited)



Twelve months ended

December 31 (Dollars in millions) 2019

2018 Cash flows – operating activities:





Net (loss)/earnings ($636)

$10,460 Adjustments to reconcile net earnings to net cash provided by operating activities:





Non-cash items –





Share-based plans expense 212

202 Depreciation and amortization 2,271

2,114 Investment/asset impairment charges, net 443

93 Customer financing valuation adjustments 250

(3) Gain on dispositions, net (691)

(75) Other charges and credits, net 334

247 Changes in assets and liabilities –





Accounts receivable 603

(795) Unbilled receivables 982

(1,826) Advances and progress billings 737

2,636 Inventories (12,391)

568 Other current assets (682)

98 Accounts payable 1,600

2 Accrued liabilities 7,781

1,117 Income taxes receivable, payable and deferred (2,476)

(180) Other long-term liabilities (621)

87 Pension and other postretirement plans (777)

(153) Customer financing, net 419

120 Other 196

610 Net cash (used)/provided by operating activities (2,446)

15,322 Cash flows – investing activities:





Property, plant and equipment additions (1,834)

(1,722) Property, plant and equipment reductions 334

120 Acquisitions, net of cash acquired (455)

(3,230) Proceeds from dispositions 464



Contributions to investments (1,658)

(2,607) Proceeds from investments 1,759

2,898 Purchase of distribution rights (127)

(69) Other (13)

(11) Net cash used by investing activities (1,530)

(4,621) Cash flows – financing activities:





New borrowings 25,389

8,548 Debt repayments (12,171)

(7,183) Contributions from noncontrolling interests 7

35 Stock options exercised 58

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

(257) Common shares repurchased (2,651)

(9,000) Dividends paid (4,630)

(3,946) Other (15)



Net cash provided/(used) by financing activities 5,739

(11,722) Effect of exchange rate changes on cash and cash equivalents, including restricted (5)

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

(1,074) Cash & cash equivalents, including restricted, at beginning of year 7,813

8,887 Cash & cash equivalents, including restricted, at end of period 9,571

7,813 Less restricted cash & cash equivalents, included in Investments 86

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

$7,637

The Boeing Company and Subsidiaries

Summary of Business Segment Data

(Unaudited)

Effective at the beginning of 2019, all revenues and costs associated with military derivative aircraft production are reported in the Defense, Space & Security segment. Revenues and costs associated with military derivative aircraft production were previously reported in the Commercial Airplanes and Defense, Space & Security segments. Business segment data for 2018 reflects the realignment for military derivative aircraft as well as the realignment of certain programs from Defense, Space & Security to Global Services.



Twelve months ended

December 31

Three months ended

December 31 (Dollars in millions) 2019

2018

2019

2018 Revenues:













Commercial Airplanes $32,255

$57,499

$7,462

$16,531 Defense, Space & Security 26,227

26,392

5,962

6,874 Global Services 18,468

17,056

4,648

4,908 Boeing Capital 244

274

37

60 Unallocated items, eliminations and other (635)

(94)

(198)

(32) Total revenues $76,559

$101,127

$17,911

$28,341 (Loss)/earnings from operations:













Commercial Airplanes ($6,657)

$7,830

($2,844)

$2,600 Defense, Space & Security 2,608

1,657

31

771 Global Services 2,697

2,536

684

737 Boeing Capital 28

79

(58)

8 Segment operating (loss)/profit (1,324)

12,102

(2,187)

4,116 Unallocated items, eliminations and other (2,066)

(1,442)

(339)

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

1,327

322

308 (Loss)/earnings from operations (1,975)

11,987

(2,204)

4,175 Other income, net 438

92

104

29 Interest and debt expense (722)

(475)

(242)

(158) (Loss)/earnings before income taxes (2,259)

11,604

(2,342)

4,046 Income tax benefit/(expense) 1,623

(1,144)

1,332

(622) Net (loss)/earnings ($636)

$10,460

($1,010)

$3,424















Research and development expense, net:













Commercial Airplanes $1,956

$2,188

$427

$572 Defense, Space & Security 758

788

189

175 Global Services 121

161

19

42 Other 384

132

114

63 Total research and development expense, net $3,219

$3,269

$749

$852















Unallocated items, eliminations and other:













Share-based plans ($65)

($76)

($8)

($16) Deferred compensation (174)

(19)

(20)

93 Amortization of previously capitalized interest (89)

(92)

(21)

(25) Customer financing impairment (250)











Research and development expense, net (384)

(132)

(97)

(63) Eliminations and other unallocated items (1,104)

(1,123)

(193)

(238) Sub-total (included in core operating earnings) (2,066)

(1,442)

(339)

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

1,005

248

225 Postretirement FAS/CAS service cost adjustment 344

322

74

83 FAS/CAS service cost adjustment 1,415

1,327

$322

$308 Total ($651)

($115)

($17)

$59

The Boeing Company and Subsidiaries Operating and Financial Data (Unaudited)

Deliveries Twelve months ended

December 31



Three months ended

December 31 Commercial Airplanes 2019



2018



2019



2018



737 127



580



9



173



747 7



6



2



1



767 43



27



11



14



777 45 (2)

48



12 (1)

11



787 158



145



45



39



Total 380



806



79



238

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























Defense, Space & Security





















AH-64 Apache (New) 37



—



10



—



AH-64 Apache (Remanufactured) 74



23



18



11



C-17 Globemaster III 1



—



—



—



C-40A 2



—



—



—



CH-47 Chinook (New) 13



13



—



2



CH-47 Chinook (Renewed) 22



17



6



3



F-15 Models 11



10



4



2



F/A-18 Models 23



17



7



7



KC-46 Tanker 28



—



7



—



P-8 Models 18



16



4



6



Commercial and Civil Satellites 2



1



1



—



Military Satellites —



1



—



1





















































Total backlog (Dollars in millions) December 31

2019

December 31 2018 Commercial Airplanes $376,593

$408,140 Defense, Space & Security 63,908

61,277 Global Services 22,902

21,064 Total backlog $463,403

$490,481







Contractual backlog $436,473

$462,070 Unobligated backlog 26,930

28,411 Total backlog $463,403

$490,481

The Boeing Company and Subsidiaries

Reconciliation of Non-GAAP Measures

(Unaudited)

The tables provided below reconcile the non-GAAP financial measures core operating (loss)/earnings, core operating margin, and core (loss)/earnings per share with the most directly comparable GAAP financial measures, (loss)/earnings from operations, operating margin, and diluted (loss)/earnings per share. See page 6 of this release for additional information on the use of these non-GAAP financial measures.

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

Fourth Quarter 2018

$ millions Per Share

$ millions Per Share Revenues 17,911



28,341

(Loss)/earnings from operations (GAAP) (2,204)



4,175

Operating margin (GAAP) (12.3)%



14.7%













FAS/CAS service cost adjustment:









Pension FAS/CAS service cost adjustment (248)



(225)

Postretirement FAS/CAS service cost adjustment (74)



(83)

FAS/CAS service cost adjustment (322)



(308)

Core operating (loss)/earnings (non-GAAP) ($2,526)



$3,867

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



13.6%













Diluted (loss)/earnings per share (GAAP)

($1.79)



$5.93 Pension FAS/CAS service cost adjustment ($248) (0.44)

($225) (0.39) Postretirement FAS/CAS service cost adjustment (74) (0.13)

(83) (0.14) Non-operating pension expense (94) (0.17)

(45) (0.08) Non-operating postretirement expense 27 0.05

24 0.04 Provision for deferred income taxes on adjustments 1 82 0.15

69 0.12 Subtotal of adjustments ($307) ($0.54)

($260) ($0.45) Core (loss)/earnings per share (non-GAAP)

($2.33)



$5.48











Weighted average diluted shares (in millions)

565.4



577.5



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

The Boeing Company and Subsidiaries

Reconciliation of Non-GAAP Measures

(Unaudited)

The tables provided below reconcile the non-GAAP financial measures core operating (loss)/earnings, core operating margin, and core (loss)/earnings per share with the most directly comparable GAAP financial measures, (loss)/earnings from operations, operating margin, and diluted (loss)/earnings per share. See page 6 of this release for additional information on the use of these non-GAAP financial measures.

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

Full Year 2018

$ millions Per Share

$ millions Per Share Revenues 76,559



101,127

(Loss)/earnings from operations (GAAP) (1,975)



11,987

Operating margin (GAAP) (2.6)%



11.9%













FAS/CAS service cost adjustment:









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



(1,005)

Postretirement FAS/CAS service cost adjustment (344)



(322)

FAS/CAS service cost adjustment (1,415)



(1,327)

Core operating (loss)/earnings (non-GAAP) ($3,390)



$10,660

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



10.5%













Diluted (loss)/earnings per share (GAAP)

($1.12)



$17.85 Pension FAS/CAS service cost adjustment ($1,071) (1.89)

($1,005) (1.71) Postretirement FAS/CAS service cost adjustment (344) (0.61)

(322) (0.55) Non-operating pension expense (374) (0.66)

(143) (0.24) Non-operating postretirement expense 107 0.19

101 0.17 Provision for deferred income taxes on adjustments 1 353 0.62

287 0.49 Subtotal of adjustments ($1,329) ($2.35)

($1,082) ($1.84) Core (loss)/earnings per share (non-GAAP)

($3.47)



$16.01











Weighted average diluted shares (in millions)

566.0



586.2



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-300995213.html

SOURCE Boeing