Boeing Reports Third Quarter Results

October 25, 2023

ARLINGTON, Va., Oct. 25, 2023 /PRNewswire/ --

Third Quarter 2023

  • Reaffirm guidance: $4.5-$6.5 billion of operating cash flow and $3.0-$5.0 billion of free cash flow (non-GAAP)
  • Still expect to deliver 70-80 787 and now expect to deliver 375-400 737 airplanes
  • Now transitioning 787 to five per month; plan to complete 737 production transition to 38 per month by year-end
  • Revenue of $18.1 billion reflecting 105 commercial deliveries
  • Total company backlog of $469 billion, including over 5,100 commercial airplanes







































Table 1. Summary Financial Results


Third Quarter




Nine Months



(Dollars in Millions, except per share data)


2023


2022


Change


2023


2022


Change














Revenues


$18,104



$15,956



13 %


$55,776



$46,628



20 %














GAAP













Loss from operations


($808)



($2,792)



NM


($1,056)



($3,174)



NM

Operating margins


(4.5)

%


(17.5)

%


NM


(1.9)

%


(6.8)

%


NM

Net loss


($1,638)



($3,308)



NM


($2,212)



($4,390)



NM

Loss per share


($2.70)



($5.49)



NM


($3.64)



($7.24)



NM

Operating cash flow


$22



$3,190



NM


$2,579



$55



NM

Non-GAAP*













Core operating loss


($1,089)



($3,071)



NM


($1,919)



($4,020)



NM

Core operating margins


(6.0)

%


(19.2)

%


NM


(3.4)

%


(8.6)

%


NM

Core loss per share


($3.26)



($6.18)



NM


($5.35)



($9.31)



NM


*Non-GAAP measure; complete definitions of Boeing's non-GAAP measures are on page 5, "Non-GAAP Measures Disclosures." 

The Boeing Company [NYSE: BA] recorded third quarter revenue of $18.1 billion, GAAP loss per share of ($2.70) and core loss per share (non-GAAP)* of ($3.26) (Table 1). Third quarter results were impacted by unfavorable defense performance and lower 737 deliveries. Boeing reported operating cash flow of $0.0 billion and free cash flow of ($0.3) billion (non-GAAP).

"We continue to progress in our recovery and despite near-term challenges, we remain on track to meet the financial goals we set for this year and for the long term," said Dave Calhoun, Boeing president and chief executive officer. "We are focused on driving stability in our supply chain and improving operational performance as we steadily increase production rates to meet strong demand. The important work we're doing to add rigor around our quality systems and build a culture of transparently bringing forward any issue, no matter the size, can bring short-term challenges – but it is how we set ourselves on the right course for our long-term future. Leading with safety, quality and transparency, we will continue to restore our operational and financial strength."
































Table 2. Cash Flow


Third Quarter


Nine Months





(Millions)


2023


2022


2023


2022





Operating cash flow


$22



$3,190



$2,579



$55






Less additions to property, plant & equipment


($332)



($284)



($1,096)



($896)






Free cash flow*


($310)



$2,906



$1,483



($841)







*Non-GAAP measure; complete definitions of Boeing's non-GAAP measures are on page 5, "Non-GAAP Measures Disclosures." 

Operating cash flow was $0.0 billion in the quarter reflecting less favorable receipt timing, including the absence of a prior year tax refund (Table 2).
















Table 3. Cash, Marketable Securities and Debt Balances


Quarter End

(Billions)


Q3 23


Q2 23

Cash


$6.8



$7.3


Marketable securities 1


$6.6



$6.5


Total


$13.4



$13.8


Consolidated debt


$52.3



$52.3



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

Cash and investments in marketable securities totaled $13.4 billion, compared to $13.8 billion at the beginning of the quarter (Table 3). The company has access to credit facilities of $10.0 billion, which remain undrawn.

Total company backlog at quarter end was $469 billion.

Segment Results

Commercial Airplanes








































Table 4. Commercial Airplanes


Third Quarter




Nine Months



(Dollars in Millions)


2023


2022


Change


2023


2022


Change














Deliveries


105



112



(6) %


371



328



13 %

Revenues


$7,876



$6,303



25 %


$23,420



$16,755



40 %

Loss from operations


($678)



($622)



NM


($1,676)



($1,738)



NM

Operating margins


(8.6)

%


(9.9)

%


NM


(7.2)

%


(10.4)

%


NM

Commercial Airplanes third quarter revenue increased to $7.9 billion driven by higher 787 deliveries (Table 4). Operating margin of (8.6) percent also reflects lower 737 deliveries as well as abnormal costs and period expenses, including research and development.

On the 737 program, during the quarter a supplier non-conformance was identified on the aft pressure bulkhead section of certain 737 airplanes. This is not an immediate safety of flight issue and the in-service fleet can continue operating safely. Near-term deliveries and production will be impacted as the program performs necessary inspections and rework, and the company now expects to deliver 375-400 airplanes this year. On production, suppliers are continuing with planned rate increases, and the company expects to complete the final assembly transition to 38 per month by year-end, with plans to increase to 50 per month in the 2025/2026 timeframe. The estimated cost associated with performing the rework is immaterial and included in third quarter results.

The 787 program is now transitioning production to five per month and plans to increase to 10 per month in the 2025/2026 timeframe. The program still expects to deliver 70-80 airplanes this year.

During the quarter, Commercial Airplanes booked 398 net orders, including 150 737 MAX 10 airplanes for Ryanair, 50 787 airplanes for United Airlines, and 39 787 airplanes for Saudi Arabian Airlines. Commercial Airplanes delivered 105 airplanes during the quarter and backlog included over 5,100 airplanes valued at $392 billion.

Defense, Space & Security








































Table 5. Defense, Space & Security


Third Quarter




Nine Months



(Dollars in Millions)


2023


2022


Change


2023


2022


Change














Revenues


$5,481



$5,307



3 %


$18,187



$16,981



7 %

Loss from operations


($924)



($2,798)



NM


($1,663)



($3,656)



NM

Operating margins


(16.9)

%


(52.7)

%


NM


(9.1)

%


(21.5)

%


NM

Defense, Space & Security third quarter revenue was $5.5 billion. Third quarter operating margin was (16.9) percent, due to a $482 million loss on the VC-25B program driven by higher estimated manufacturing cost related to engineering changes and labor instability, as well as resolution of supplier negotiations. Results were also impacted by $315 million of losses on a satellite contract due to estimated customer considerations and increased costs to enhance the constellation and meet lifecycle commitments.

During the quarter, Defense, Space & Security delivered the first T-7A Red Hawk to the U.S. Air Force and captured an award from the U.S. Army for 21 AH-64E Apaches. Backlog at Defense, Space & Security was $58 billion, of which 29 percent represents orders from customers outside the U.S.

Global Services








































Table 6. Global Services


Third Quarter




Nine Months



(Dollars in Millions)


2023


2022


Change


2023


2022


Change














Revenues


$4,812



$4,432



9 %


$14,278



$13,044



9 %

Earnings from operations


$784



$733



7 %


$2,487



$2,093



19 %

Operating margins


16.3

%


16.5

%


-0.2 pts


17.4

%


16.0

%


1.4 pts

Global Services third quarter revenue of $4.8 billion and operating margin of 16.3 percent reflect higher commercial volume and mix.

During the quarter, Global Services delivered the 150th 737-800 Boeing Converted Freighter, received an order from the U.S. Navy for P-8 trainer upgrades and signed a digital maintenance solution agreement with Philippine Airlines for Airplane Health Management.

Additional Financial Information




























Table 7. Additional Financial Information


Third Quarter


Nine Months

(Dollars in Millions)


2023


2022


2023


2022

Revenues









Unallocated items, eliminations and other


($65)



($86)



($109)



($152)


Earnings/(loss) from operations









FAS/CAS service cost adjustment


$281



$279



$863



$846


Other unallocated items and eliminations


($271)



($384)



($1,067)



($719)


Other income, net


$297



$288



$919



$722


Interest and debt expense


($589)



($628)



($1,859)



($1,921)


Effective tax rate


(48.9)

%


(5.6)

%


(10.8)

%


(0.4)

%

Other unallocated items and eliminations primarily reflects timing of allocations. The third quarter effective tax rate primarily reflects additional tax expense to adjust prior quarters' results to the current estimate of the annual effective tax rate.

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, Core Operating Margin and Core Loss Per Share

Core operating loss is defined as GAAP Loss from operations excluding the FAS/CAS service cost adjustment. The FAS/CAS service cost adjustment represents the difference between the Financial Accounting Standards (FAS) pension and postretirement service costs calculated under GAAP and costs allocated to the business segments. Core operating margin is defined as Core operating loss expressed as a percentage of revenue. Core loss per share is defined as GAAP Diluted loss per share excluding the net loss per share impact of the FAS/CAS service cost adjustment and Non-operating pension and postretirement expenses. Non-operating pension and postretirement expenses represent the components of net periodic benefit costs other than service cost. Pension costs allocated to BDS and BGS businesses supporting government customers are computed in accordance with U.S. Government Cost Accounting Standards (CAS), which employ different actuarial assumptions and accounting conventions than GAAP. CAS costs are allocable to government contracts. Other postretirement benefit costs are allocated to all business segments based on CAS, which is generally based on benefits paid. Management uses core operating loss, core operating margin and core loss per share for purposes of evaluating and forecasting underlying business performance. Management believes these core measures provide investors additional insights into operational performance as they exclude non-service pension and post-retirement costs, which primarily represent costs driven by market factors and costs not allocable to government contracts. A reconciliation between the non-GAAP and GAAP measures is provided on page 12 and page 13.

Free Cash Flow

Free cash flow is GAAP operating cash flow reduced by capital expenditures for property, plant and equipment. Management believes free cash flow provides investors with an important perspective on the cash available for shareholders, debt repayment, and acquisitions after making the capital investments required to support ongoing business operations and long term value creation. Free cash flow does not represent the residual cash flow available for discretionary expenditures as it excludes certain mandatory expenditures such as repayment of maturing debt. Management uses free cash flow as a measure to assess both business performance and overall liquidity. See Table 2 on page 2 and page 14 for reconciliations of free cash flow to GAAP operating cash flow.

Caution Concerning Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "may," "should," "expects," "intends," "projects," "plans," "believes," "estimates," "targets," "anticipates," and similar expressions generally identify these forward-looking statements. Examples of forward-looking statements include statements relating to our future financial condition and operating results, as well as any other statement that does not directly relate to any historical or current fact. Forward-looking statements are based on expectations and assumptions that we believe to be reasonable when made, but that may not prove to be accurate. These statements are not guarantees and are subject to risks, uncertainties, and changes in circumstances that are difficult to predict. Many factors could cause actual results to differ materially and adversely from these forward-looking statements. Among these factors are risks related to: (1) general conditions in the economy and our industry, including those due to regulatory changes; (2) our reliance on our commercial airline customers; (3) the overall health of our aircraft production system, planned commercial aircraft production rate changes, our ability to successfully develop and certify new aircraft or new derivative aircraft, and the ability of our aircraft to meet stringent performance and reliability standards; (4) changing budget and appropriation levels and acquisition priorities of the U.S. government, as well as the potential impact of a government shutdown; (5) our dependence on our subcontractors and suppliers, as well as the availability of highly skilled labor and raw materials; (6) competition within our markets; (7) our non-U.S. operations and sales to non-U.S. customers; (8) changes in accounting estimates; (9) realizing the anticipated benefits of mergers, acquisitions, joint ventures/strategic alliances or divestitures; (10) our dependence on U.S. government contracts; (11) our reliance on fixed-price contracts; (12) our reliance on cost-type contracts; (13) contracts that include in-orbit incentive payments; (14) unauthorized access to our, our customers' and/or our suppliers' information and systems; (15) potential business disruptions, including threats to physical security or our information technology systems, extreme weather (including effects of climate change) or other acts of nature, and pandemics or other public health crises; (16) potential adverse developments in new or pending litigation and/or government inquiries or investigations; (17) potential environmental liabilities; (18) effects of climate change and legal, regulatory or market responses to such change; (19) changes in our ability to obtain debt financing on commercially reasonable terms, at competitive rates and in sufficient amounts; (20) substantial pension and other postretirement benefit obligations; (21) the adequacy of our insurance coverage; (22) customer and aircraft concentration in our customer financing portfolio; and (23) work stoppages or other labor disruptions.

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

Contact:




Investor Relations:


Matt Welch or David Dufault (312) 544-2140

Communications:


Michael Friedman media@boeing.com 

 

The Boeing Company and Subsidiaries

Consolidated Statements of Operations

(Unaudited)


























Nine months ended
September 30


Three months ended
September 30

(Dollars in millions, except per share data)

2023


2022


2023


2022

Sales of products

$46,661



$38,767



$15,060



$13,331


Sales of services

9,115



7,861



3,044



2,625


Total revenues

55,776



46,628



18,104



15,956










Cost of products

(43,140)



(38,237)



(14,464)



(14,541)


Cost of services

(7,609)



(6,725)



(2,475)



(2,230)


Total costs and expenses

(50,749)



(44,962)



(16,939)



(16,771)



5,027



1,666



1,165



(815)


Income/(loss) from operating investments, net

45



(27)



28



(24)


General and administrative expense

(3,633)



(2,757)



(1,043)



(1,226)


Research and development expense, net

(2,496)



(2,058)



(958)



(727)


Gain on dispositions, net

1



2






Loss from operations

(1,056)



(3,174)



(808)



(2,792)


Other income, net

919



722



297



288


Interest and debt expense

(1,859)



(1,921)



(589)



(628)


Loss before income taxes

(1,996)



(4,373)



(1,100)



(3,132)


Income tax expense

(216)



(17)



(538)



(176)


Net loss

(2,212)



(4,390)



(1,638)



(3,308)


Less: net loss attributable to noncontrolling interest

(13)



(89)



(2)



(33)


Net loss attributable to Boeing Shareholders

($2,199)



($4,301)



($1,636)



($3,275)










Basic loss per share

($3.64)



($7.24)



($2.70)



($5.49)










Diluted loss per share

($3.64)



($7.24)



($2.70)



($5.49)










Weighted average diluted shares (millions)

605.0


594.0


607.2


596.3

 

The Boeing Company and Subsidiaries

Consolidated Statements of Financial Position

(Unaudited) 













(Dollars in millions, except per share data)

September 30
2023


December 31
2022

Assets




Cash and cash equivalents

$6,811



$14,614


Short-term and other investments

6,561



2,606


Accounts receivable, net

3,032



2,517


Unbilled receivables, net

9,184



8,634


Current portion of customer financing, net

88



154


Inventories

78,972



78,151


Other current assets, net

2,287



2,847


Total current assets

106,935



109,523


Customer financing, net

963



1,450


Property, plant and equipment, net of accumulated depreciation of $22,085
     and $21,442

10,484



10,550


Goodwill

8,069



8,057


Acquired intangible assets, net

2,143



2,311


Deferred income taxes

64



63


Investments

1,061



983


Other assets, net of accumulated amortization of of $993 and $949

4,562



4,163


Total assets

$134,281



$137,100


Liabilities and equity




Accounts payable

$11,143



$10,200


Accrued liabilities

21,104



21,581


Advances and progress billings

55,924



53,081


Short-term debt and current portion of long-term debt

4,891



5,190


Total current liabilities

93,062



90,052


Deferred income taxes

218



230


Accrued retiree health care

2,385



2,503


Accrued pension plan liability, net

5,713



6,141


Other long-term liabilities

2,239



2,211


Long-term debt

47,381



51,811


Total liabilities

150,998



152,948


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

10,616



9,947


     Treasury stock, at cost - 407,648,773 and 414,671,383 shares

(49,972)



(50,814)


Retained earnings

27,274



29,473


Accumulated other comprehensive loss

(9,708)



(9,550)


Total shareholders' deficit

(16,729)



(15,883)


Noncontrolling interests

12



35


Total equity

(16,717)



(15,848)


Total liabilities and equity

$134,281



$137,100


 

The Boeing Company and Subsidiaries

Consolidated Statements of Cash Flows

(Unaudited)














Nine months ended
September 30

(Dollars in millions)

2023


2022

Cash flows – operating activities:




Net loss

($2,212)



($4,390)


Adjustments to reconcile net loss to net cash provided by operating activities:




Non-cash items – 




Share-based plans expense

548



528


Treasury shares issued for 401(k) contribution

1,204



928


Depreciation and amortization

1,380



1,477


Investment/asset impairment charges, net

12



78


Customer financing valuation adjustments

(4)



39


Gain on dispositions, net

(1)



(2)


Other charges and credits, net

(21)



388


Changes in assets and liabilities – 




Accounts receivable

(523)



(22)


Unbilled receivables

(547)



(678)


Advances and progress billings

2,963



204


Inventories

(940)



(1,164)


Other current assets

707



(860)


Accounts payable

982



590


Accrued liabilities

(574)



2,416


Income taxes receivable, payable and deferred

73



1,382


Other long-term liabilities

(254)



(114)


Pension and other postretirement plans

(785)



(1,053)


Customer financing, net

472



76


Other

99



232


Net cash provided by operating activities

2,579



55


Cash flows – investing activities:




Payments to acquire property, plant and equipment

(1,096)



(896)


Proceeds from disposals of property, plant and equipment

19



19


Acquisitions, net of cash acquired

(19)




Contributions to investments

(14,485)



(2,773)


Proceeds from investments

10,497



10,182


Other

(157)



(11)


Net cash (used)/provided by investing activities

(5,241)



6,521


Cash flows – financing activities:




New borrowings

55



19


Debt repayments

(5,181)



(1,038)


Stock options exercised

45



39


Employee taxes on certain share-based payment arrangements

(52)



(36)


Other

2




Net cash used by financing activities

(5,131)



(1,016)


Effect of exchange rate changes on cash and cash equivalents

(22)



(134)


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

(7,815)



5,426


Cash & cash equivalents, including restricted, at beginning of year

14,647



8,104


Cash & cash equivalents, including restricted, at end of period

6,832



13,530


Less restricted cash & cash equivalents, included in Investments

21



36


Cash & cash equivalents at end of period

$6,811



$13,494


 

The Boeing Company and Subsidiaries

Summary of Business Segment Data

(Unaudited)


























Nine months ended
September 30


Three months ended
September 30

(Dollars in millions)

2023


2022


2023


2022

Revenues:








Commercial Airplanes

$23,420



$16,755



$7,876



$6,303


Defense, Space & Security

18,187



16,981



5,481



5,307


Global Services

14,278



13,044



4,812



4,432


Unallocated items, eliminations and other

(109)



(152)



(65)



(86)


Total revenues

$55,776



$46,628



$18,104



$15,956


Loss from operations:








Commercial Airplanes

($1,676)



($1,738)



($678)



($622)


Defense, Space & Security

(1,663)



(3,656)



(924)



(2,798)


Global Services

2,487



2,093



784



733


Segment operating loss

(852)



(3,301)



(818)



(2,687)


Unallocated items, eliminations and other

(1,067)



(719)



(271)



(384)


FAS/CAS service cost adjustment

863



846



281



279


Loss from operations

(1,056)



(3,174)



(808)



(2,792)


Other income, net

919



722



297



288


Interest and debt expense

(1,859)



(1,921)



(589)



(628)


Loss before income taxes

(1,996)



(4,373)



(1,100)



(3,132)


Income tax expense

(216)



(17)



(538)



(176)


Net loss

(2,212)



(4,390)



(1,638)



(3,308)


Less: net loss attributable to noncontrolling interest

(13)



(89)



(2)



(33)


Net loss attributable to Boeing Shareholders

($2,199)



($4,301)



($1,636)



($3,275)


Research and development expense, net:








Commercial Airplanes

$1,538



$1,102



$623



$409


Defense, Space & Security

652



706



232



240


Global Services

84



89



30



35


Other

222



161



73



43


Total research and development expense, net

$2,496



$2,058



$958



$727


Unallocated items, eliminations and other:








Share-based plans

($33)



($64)



$5



$44


Deferred compensation

(71)



204



25



38


Amortization of previously capitalized interest

(71)



(71)



(24)



(24)


Research and development expense, net

(222)



(161)



(73)



(43)


Eliminations and other unallocated items

(670)



(627)



(204)



(399)


Sub-total (included in Core operating loss)

(1,067)



(719)



(271)



(384)


Pension FAS/CAS service cost adjustment

663



621



218



208


Postretirement FAS/CAS service cost adjustment

200



225



63



71


FAS/CAS service cost adjustment

863



846



$281



$279


Total

($204)



$127



$10



($105)


 

The Boeing Company and Subsidiaries

Operating and Financial Data

(Unaudited)































Deliveries


Nine months ended
September 30


Three months ended
September 30




Commercial Airplanes


2023


2022


2023


2022




737


286



277



70



88





747


1



3









767


17



21



8



9





777


17



18



8



6





787


50



9



19



9





Total


371



328



105



112

































Defense, Space & Security












AH-64 Apache (New)


17



20



5



7




AH-64 Apache (Remanufactured)


38



36



9



8




CH-47 Chinook (New)


8



10



1



1




CH-47 Chinook (Renewed)


7



6



3



2




F-15 Models


6



9





4




F/A-18 Models


16



11



3



3




KC-46 Tanker


4



9



3



1




MH-139


1



4



1



4




P-8 Models


7



10



2



4




     T-7A Red Hawk


1





1






     Commercial Satellites


3



2





2

























































Total backlog (Dollars in millions)













September 30
2023


December 31
2022

Commercial Airplanes













$392,105



$329,824

Defense, Space & Security













57,802



54,373

Global Services













18,441



19,338

Unallocated items, eliminations and other













830



846

Total backlog













$469,178



$404,381

















Contractual backlog













$446,199



$381,977

Unobligated backlog













22,979



22,404

Total backlog













$469,178



$404,381

















 

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

The tables provided below reconcile the non-GAAP financial measures core operating loss, core operating margin, and core loss per share with the most directly comparable GAAP financial measures, loss from operations, operating margin, and diluted loss per share. See page 5 of this release for additional information on the use of these non-GAAP financial measures.






















(Dollars in millions, except per share data)


Third Quarter 2023


Third Quarter 2022



$ millions

Per Share


$ millions

Per Share

Revenues


18,104




15,956



Loss from operations (GAAP)


(808)




(2,792)



Operating margin (GAAP)


(4.5)

%



(17.5)

%









FAS/CAS service cost adjustment:







Pension FAS/CAS service cost adjustment


(218)




(208)



Postretirement FAS/CAS service cost adjustment


(63)




(71)



FAS/CAS service cost adjustment


(281)




(279)



Core operating loss (non-GAAP)


($1,089)




($3,071)



Core operating margin (non-GAAP)


(6.0)

%



(19.2)

%









Diluted loss per share (GAAP)



($2.70)




($5.49)


Pension FAS/CAS service cost adjustment


($218)


(0.36)



($208)


(0.35)


Postretirement FAS/CAS service cost adjustment



(63)


(0.10)




(71)


(0.12)


Non-operating pension expense


(134)


(0.23)



(225)


(0.37)


Non-operating postretirement expense



(15)


(0.02)




(15)


(0.03)


Provision for deferred income taxes on adjustments 1


90


0.15



109


0.18


Subtotal of adjustments


($340)


($0.56)



($410)


($0.69)


Core loss per share (non-GAAP)



($3.26)




($6.18)









Weighted average diluted shares (in millions)



607.2




596.3



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

 

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

The tables provided below reconcile the non-GAAP financial measures core operating loss, core operating margin, and core loss per share with the most directly comparable GAAP financial measures, loss from operations, operating margin, and diluted loss per share. See page 5 of this release for additional information on the use of these non-GAAP financial measures.






















(Dollars in millions, except per share data)


Nine Months 2023


Nine Months 2022



$ millions

Per Share


$ millions

Per Share

Revenues


55,776




46,628



Loss from operations (GAAP)


(1,056)




(3,174)



Operating margin (GAAP)


(1.9)

%



(6.8)

%









FAS/CAS service cost adjustment:







Pension FAS/CAS service cost adjustment


(663)




(621)



Postretirement FAS/CAS service cost adjustment


(200)




(225)



FAS/CAS service cost adjustment


(863)




(846)



Core operating loss (non-GAAP)


(1,919)




(4,020)



Core operating margin (non-GAAP)


(3.4)

%



(8.6)

%









Diluted loss per share (GAAP)



(3.64)




(7.24)


Pension FAS/CAS service cost adjustment


(663)


(1.10)



(621)


(1.04)


Postretirement FAS/CAS service cost adjustment



(200)


(0.33)




(225)


(0.38)


Non-operating pension expense


(402)


(0.66)



(666)


(1.13)


Non-operating postretirement expense



(44)


(0.07)




(44)


(0.07)


Provision for deferred income taxes on adjustments 1


275


0.45



327


0.55


Subtotal of adjustments


($1,034)


($1.71)



($1,229)


($2.07)


Core loss per share (non-GAAP)



($5.35)




($9.31)









Weighted average diluted shares (in millions)



605.0




594.0



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

 

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

The table provided below reconciles the non-GAAP financial measure free cash flow with the most directly comparable GAAP financial measure, operating cash flow. See page 5 of this release for additional information on the use of this non-GAAP financial measure.








Full Year 2023

(Dollars in billions)

Outlook

Operating cash flow

$4.5 - $6.5

Less additions to property, plant & equipment

($1.5)

Free cash flow (non-GAAP)

$3.0 - $5.0

Cision View original content:https://www.prnewswire.com/news-releases/boeing-reports-third-quarter-results-301967194.html

SOURCE Boeing

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