Boeing Reports
First-Quarter Results and Reaffirms 2016 Guidance
CHICAGO, April 27, 2016 --
- Revenue increased to $22.6
billion
- Solid core EPS (non-GAAP)* of $1.74 after $0.24
KC-46 charge; GAAP EPS of $1.83
- Strong operating cash flow of $1.2
billion; repurchased 28.6 million shares for $3.5 billion
- Backlog remains robust at $480
billion with over 5,700 commercial airplane
orders
- Revenue, margins, EPS and operating cash flow guidance
reaffirmed
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Table 1. Summary Financial Results |
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First Quarter |
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(Dollars in Millions, except per share
data) |
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2016 |
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2015 |
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Change |
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Revenues |
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$22,632 |
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$22,149 |
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2% |
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Non-GAAP* |
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Core Operating Earnings |
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$1,694 |
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$2,132 |
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(21)% |
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Core Operating Margin |
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7.5% |
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9.6% |
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(2.1)
Pts |
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Core Earnings Per Share |
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$1.74 |
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$1.97 |
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(12)% |
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GAAP |
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Earnings From Operations |
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$1,788 |
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$2,019 |
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(11)% |
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Operating Margin |
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7.9% |
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9.1% |
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(1.2)
Pts |
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Net Earnings |
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$1,219 |
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$1,336 |
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(9)% |
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Earnings Per Share |
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$1.83 |
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$1.87 |
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(2)% |
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Operating Cash Flow |
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$1,231 |
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$88 |
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1,299% |
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* |
Non-GAAP measures. Complete
definitions of Boeing's non-GAAP measures are on page 6, "Non-GAAP
Measures Disclosures." |
The Boeing Company [NYSE: BA] reported first-quarter revenue
increased 2 percent to $22.6 billion
(Table 1). Core earnings per share (Non-GAAP)* of $1.74 reflect solid core operating performance
that offset a $156 million after-tax
charge ($0.24 per share) on the KC-46
Tanker program to maintain schedule with concurrency between
late-stage development testing and the transition to initial
production. GAAP earnings per share was $1.83.
The company's full year guidance is reaffirmed, primarily driven
by improved performance.
"Higher year-over-year deliveries of military aircraft and
continued solid operating performance on core production programs
drove revenue growth and strong cash flow for Boeing in the first
quarter," said Chairman, President and Chief Executive Officer
Dennis Muilenburg. "This performance
enabled our ongoing investments in new product innovation and in
our people, and the return of significant cash to shareholders
through stock repurchases and dividends."
"Overall, we are pleased with our performance trends and our
outlook for the year remains positive. On the tanker program, we
are making the investments necessary to meet our customer
commitments, deliver the initial production aircraft on schedule,
and transition the program into full production," said
Muilenburg.
"Our teams are focused intensely on delivering on our existing
commitments including the production ramp-up associated with our
large and diverse backlog, accelerating progress on quality, safety
and productivity improvements company wide, returning greater value
to shareholders through profitable growth, and investing in the
future as we enter our second century in business."
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Table 2. Cash Flow |
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First Quarter |
(Millions) |
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2016 |
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2015 |
Operating Cash Flow |
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$1,231 |
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$88 |
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Less Additions to Property, Plant &
Equipment |
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($748) |
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($574) |
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Free Cash Flow* |
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$483 |
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($486) |
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Operating cash flow in the quarter was $1.2 billion, reflecting commercial airplane
production rates, solid core operating performance and the timing
of receipts and expenditures (Table 2). During the quarter, the
company repurchased 28.6 million shares for $3.5 billion, leaving $10.5 billion remaining under the current
repurchase authorization which is expected to be completed over
approximately the next two years. The company also paid
$0.7 billion in dividends, reflecting
an approximately 20 percent increase in dividends per share
compared to the same period of the prior year.
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Table 3. Cash, Marketable Securities and Debt
Balances |
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Quarter-End |
(Billions) |
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Q1
16 |
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Q4
15 |
Cash |
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$7.9 |
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$11.3 |
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Marketable Securities1 |
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$0.5 |
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$0.8 |
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Total |
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$8.4 |
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$12.1 |
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Debt Balances: |
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The Boeing Company, net of intercompany loans to
BCC |
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$7.6 |
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$7.6 |
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Boeing Capital, including intercompany loans |
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$2.4 |
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$2.4 |
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Total Consolidated Debt |
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$10.0 |
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$10.0 |
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1 |
Marketable securities
consists primarily of time deposits due within one year classified
as "short-term investments." |
Cash and investments in marketable securities totaled
$8.4 billion, down from $12.1 billion at the beginning of the quarter,
primarily due to share repurchases and the timing of cash flows.
Debt was $10.0 billion, unchanged
from the beginning of the quarter (Table 3).
Total company backlog at quarter-end was $480 billion, down from $489 billion at the beginning of the quarter, and
included net orders for the quarter of $13
billion.
Segment Results
Commercial Airplanes
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Table 4. Commercial Airplanes |
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First Quarter |
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(Dollars in Millions) |
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2016 |
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2015 |
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Change |
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Commercial Airplanes Deliveries |
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176 |
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184 |
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(4)% |
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Revenues |
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$14,399 |
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$15,381 |
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(6)% |
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Earnings from Operations |
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$1,033 |
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$1,617 |
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(36)% |
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Operating Margin |
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7.2% |
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10.5% |
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(3.3)
Pts |
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Commercial Airplanes first-quarter revenue decreased to
$14.4 billion on lower delivery
volume (Table 4). First-quarter operating margin was 7.2 percent,
reflecting the $162 million pre-tax
charge on the KC-46 Tanker program, higher R&D, mix and a
$70 million pre-tax charge on the 747
program.
During the quarter, the company completed first flight of the
737 MAX. The 737 program has captured nearly 3,100 orders for the
737 MAX since launch. Also during the quarter, the company began
major assembly of the 787-10 ahead of schedule and launched the
Next-Generation 737 freighter conversion program.
Commercial Airplanes booked 121 net orders during the quarter.
Backlog remains strong with over 5,700 airplanes valued at
$424 billion.
Defense, Space & Security
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Table 5. Defense, Space & Security |
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First Quarter |
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(Dollars in Millions) |
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2016 |
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2015 |
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Change |
Revenues1 |
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Boeing Military Aircraft |
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$3,659 |
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$2,726 |
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34% |
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Network & Space Systems |
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$1,735 |
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$1,732 |
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—% |
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Global Services & Support |
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$2,562 |
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$2,251 |
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14% |
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Total BDS Revenues |
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$7,956 |
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$6,709 |
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19% |
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Earnings from Operations1 |
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Boeing Military Aircraft |
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$334 |
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$259 |
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29% |
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Network & Space Systems |
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$148 |
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$167 |
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(11)% |
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Global Services & Support |
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$340 |
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$317 |
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7% |
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Total BDS Earnings from Operations |
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$822 |
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$743 |
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11% |
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Operating Margin |
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10.3% |
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11.1% |
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(0.8)
Pts |
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1 |
During the first quarter of 2016,
certain programs were realigned between Boeing Military Aircraft
and Global Services & Support. |
Defense, Space & Security's first-quarter revenue was
$8.0 billion. First quarter operating
margin was 10.3 percent, reflecting the $81
million pre-tax charge recorded at BMA on the KC-46 Tanker
program partially offset by strong performance on production
programs (Table 5).
Boeing Military Aircraft (BMA) first-quarter revenue increased
to $3.7 billion, reflecting higher
F-15 and C-17 deliveries. Operating margin was 9.1 percent,
reflecting the KC-46 Tanker program charge partially offset by
delivery mix. All four planned KC-46 test aircraft are now flying,
and during the first quarter the KC-46 demonstrated its refueling
capabilities with multiple other aircraft types. Also during the
quarter, BMA was awarded a contract from the U.S. Navy for 20 P-8A
Poseidon aircraft and a contract from the U.S. Army for 117 Apache
helicopters.
Network & Space Systems (N&SS) first-quarter revenue was
$1.7 billion. Operating margin was
8.5 percent, reflecting timing on United Launch Alliance launches.
During the quarter, N&SS successfully launched the first of six
Boeing-built Intelsat Epic satellites.
Global Services & Support (GS&S) first-quarter revenue
increased to $2.6 billion, reflecting
higher volume in Aircraft Modernization & Sustainment and
Training Systems. Operating margin was 13.3 percent, reflecting
program mix. During the quarter, GS&S was awarded a NATO
contract for C-17 training.
Backlog at Defense, Space & Security was $56 billion, of which 37 percent represents
orders from international customers.
Additional Financial Information
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Table 6. Additional Financial
Information |
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First Quarter |
(Dollars in Millions) |
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2016 |
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2015 |
Revenues |
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Boeing Capital |
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$64 |
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$86 |
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Unallocated items, eliminations and other |
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$213 |
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($27) |
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Earnings from Operations |
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Boeing Capital |
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$5 |
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$20 |
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Unallocated pension/postretirement |
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$94 |
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($113) |
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Other unallocated items and eliminations |
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($166) |
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($248) |
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Other income/(loss), net |
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$26 |
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($12) |
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Interest and debt expense |
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($73) |
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($61) |
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Effective tax rate |
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30.0% |
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31.3% |
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At quarter-end, Boeing Capital's net portfolio balance was
$3.2 billion, down from the beginning
of the quarter. Unallocated items and eliminations first quarter
revenue reflects the payoff of two aircraft previously financed by
Boeing Capital. Total pension expense for the first quarter was
$629 million, down from $785 million in the same period of the prior
year. Other unallocated items and eliminations decreased from the
same period in the prior year primarily due to lower deferred
compensation expense.
Outlook
The company's 2016 financial and delivery guidance (Table 7) is
reaffirmed and reflects continued solid performance across the
company.
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Table 7. 2016 Financial Outlook |
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Current |
(Dollars in Billions, except per share
data) |
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Guidance |
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The Boeing Company |
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Revenue |
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$93.0 - 95.0 |
Core Earnings Per Share* |
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$8.15 - 8.35 |
GAAP Earnings Per Share |
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$8.45 - 8.65 |
Operating Cash Flow |
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~$10.0 |
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Commercial Airplanes |
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Deliveries |
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740 - 745 |
Revenue |
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$64.0 - 65.0 |
Operating Margin |
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~9.0% |
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Defense, Space & Security |
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Revenue |
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Boeing Military Aircraft |
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~$12.3 |
Network & Space Systems |
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~$7.3 |
Global Services & Support |
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~$9.4 |
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Total BDS Revenue |
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$28.5 - 29.5 |
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Operating Margin |
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Boeing Military Aircraft |
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~10.0% |
Network & Space Systems |
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~9.0% |
Global Services & Support |
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~11.5% |
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Total BDS Operating Margin |
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>10.0% |
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Boeing Capital |
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Portfolio Size |
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Stable |
Revenue |
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~$0.3 |
Pre-Tax Earnings |
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~$0.05 |
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Research & Development |
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~ $3.6 |
Capital Expenditures |
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~ $2.8 |
Pension Expense 1 |
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~ $2.1 |
Effective Tax Rate |
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~ 30.0% |
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1 |
Approximately ($0.1) billion
is expected to be recorded in unallocated items and
eliminations |
* |
Non-GAAP measures. Complete
definitions of Boeing's non-GAAP measures are on page 6, "Non-GAAP
Measures Disclosures." |
Non-GAAP Measures Disclosures
We supplement the reporting of our financial information
determined under U.S. generally accepted accounting principles
(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 unallocated pension and post-retirement
expense. 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 unallocated
pension and post-retirement expense. Unallocated pension and
post-retirement expense represents the portion of pension and
other post-retirement costs that are not recognized by business
segments for segment reporting purposes. 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 unallocated 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.
Free Cash Flow
Free cash flow is defined as GAAP operating cash flow
without capital expenditures for property, plant and equipment
additions. 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 between GAAP operating cash flow and free
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 are used to 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 our current expectations and assumptions,
which 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 production rate increases
across multiple commercial airline programs, our commercial
development and derivative aircraft programs, and our aircraft
being subject to stringent performance and reliability standards;
(4) changing budget and appropriation levels and acquisition
priorities of the U.S. government; (5) our dependence on U.S.
government contracts; (6) our reliance on fixed-price contracts;
(7) our reliance on cost-type contracts; (8) uncertainties
concerning contracts that include in-orbit incentive payments; (9)
our dependence on our subcontractors and suppliers, as well as the
availability of raw materials, (10) changes in accounting
estimates; (11) changes in the competitive landscape in our
markets; (12) our non-U.S. operations, including sales to non-U.S.
customers; (13) potential adverse developments in new or pending
litigation and/or government investigations; (14) customer and
aircraft concentration in Boeing Capital's customer financing
portfolio; (15) changes in our ability to obtain debt on
commercially reasonable terms and at competitive rates in order to
fund our operations and contractual commitments; (16) realizing the
anticipated benefits of mergers, acquisitions, joint
ventures/strategic alliances or divestitures; (17) the adequacy of
our insurance coverage to cover significant risk exposures; (18)
potential business disruptions, including those related to physical
security threats, information technology or cyber-attacks,
epidemics, sanctions or natural disasters; (19) work stoppages or
other labor disruptions; (20) significant changes in discount rates
and actual investment return on pension assets; (21) potential
environmental liabilities; and (22) threats to the security of our
or our customers' information.
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:
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Investor Relations: |
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Troy Lahr or Ben Hackman (312)
544-2140 |
Communications: |
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Bernard Choi (312) 544-2002 |
The Boeing Company and Subsidiaries |
Consolidated Statements of Operations |
(Unaudited) |
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Three months ended
March 31 |
(Dollars in millions, except per
share data) |
2016 |
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2015 |
|
Sales of products |
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$19,885 |
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$19,485 |
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Sales of services |
2,747 |
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|
2,664 |
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Total revenues |
22,632 |
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|
22,149 |
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Cost of products |
(16,945) |
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|
(16,380) |
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Cost of services |
(2,136) |
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|
(2,100) |
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Boeing Capital interest expense |
(16) |
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|
(16) |
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Total costs and expenses |
(19,097) |
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|
(18,496) |
|
|
3,535 |
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|
3,653 |
|
Income from operating investments,
net |
54 |
|
|
79 |
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General and administrative
expense |
(888) |
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|
(945) |
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Research and development expense,
net |
(917) |
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|
(769) |
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Gain on dispositions, net |
4 |
|
|
1 |
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Earnings from operations |
1,788 |
|
|
2,019 |
|
Other income/(loss), net |
26 |
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(12) |
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Interest and debt expense |
(73) |
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|
(61) |
|
Earnings before income
taxes |
1,741 |
|
|
1,946 |
|
Income tax expense |
(522) |
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|
(610) |
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Net earnings |
|
$1,219 |
|
|
|
$1,336 |
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Basic earnings per share |
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$1.85 |
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|
$1.89 |
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Diluted earnings per share |
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$1.83 |
|
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|
$1.87 |
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Cash dividends paid per
share |
|
$1.09 |
|
|
|
$0.91 |
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|
|
|
Weighted average diluted shares
(millions) |
665.8 |
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|
714.2 |
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The
Boeing Company and Subsidiaries |
Consolidated Statements of Financial Position |
(Unaudited) |
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(Dollars in millions, except per share
data) |
March 31
2016 |
|
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December 31
2015 |
|
Assets |
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|
Cash and cash equivalents |
|
$7,886 |
|
|
|
$11,302 |
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Short-term and other investments |
466 |
|
|
750 |
|
Accounts receivable, net |
9,711 |
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|
8,713 |
|
Current portion of customer financing, net |
258 |
|
|
212 |
|
Inventories, net of advances and progress
billings |
47,266 |
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|
47,257 |
|
Total current assets |
65,587 |
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|
68,234 |
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Customer financing, net |
2,980 |
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|
3,358 |
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Property, plant and equipment, net of accumulated
depreciation of $16,476 and $16,286 |
12,269 |
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|
12,076 |
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Goodwill |
5,132 |
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|
5,126 |
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Acquired intangible assets, net |
2,594 |
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|
2,657 |
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Deferred income taxes |
267 |
|
|
265 |
|
Investments |
1,297 |
|
|
1,284 |
|
Other assets, net of accumulated amortization of
$478 and $451 |
1,421 |
|
|
1,408 |
|
Total assets |
|
$91,547 |
|
|
|
$94,408 |
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Liabilities and equity |
|
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Accounts payable |
|
$11,558 |
|
|
|
$10,800 |
|
Accrued liabilities |
12,790 |
|
|
14,014 |
|
Advances and billings in excess of related
costs |
23,926 |
|
|
24,364 |
|
Short-term debt and current portion of long-term
debt |
1,243 |
|
|
1,234 |
|
Total current liabilities |
49,517 |
|
|
50,412 |
|
Deferred income taxes |
2,297 |
|
|
2,392 |
|
Accrued retiree health care |
6,614 |
|
|
6,616 |
|
Accrued pension plan liability, net |
18,196 |
|
|
17,783 |
|
Other long-term liabilities |
2,096 |
|
|
2,078 |
|
Long-term debt |
8,721 |
|
|
8,730 |
|
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 |
4,784 |
|
|
4,834 |
|
Treasury stock, at cost - 372,446,158 and
345,637,354 shares |
(32,939) |
|
|
(29,568) |
|
Retained earnings |
39,975 |
|
|
38,756 |
|
Accumulated other comprehensive loss |
(12,838) |
|
|
(12,748) |
|
Total shareholders' equity |
4,043 |
|
|
6,335 |
|
Noncontrolling interests |
63 |
|
|
62 |
|
Total equity |
4,106 |
|
|
6,397 |
|
Total liabilities and equity |
|
$91,547 |
|
|
|
$94,408 |
|
The Boeing Company and Subsidiaries |
Consolidated Statements of Cash Flows |
(Unaudited) |
|
|
|
|
|
|
|
|
|
Three months ended
March 31 |
(Dollars in millions) |
2016 |
|
|
2015 |
|
Cash flows – operating
activities: |
|
|
|
Net earnings |
|
$1,219 |
|
|
|
$1,336 |
|
Adjustments to reconcile net earnings to net cash
provided by operating activities: |
|
|
|
Non-cash items – |
|
|
|
Share-based plans expense |
51 |
|
|
50 |
|
Depreciation and amortization |
443 |
|
|
459 |
|
Investment/asset impairment charges, net |
33 |
|
|
17 |
|
Customer financing valuation benefit |
(2) |
|
|
(2) |
|
Gain on dispositions, net |
(4) |
|
|
(1) |
|
Other charges and credits, net |
84 |
|
|
76 |
|
Excess tax benefits from share-based payment
arrangements |
(44) |
|
|
(112) |
|
Changes in assets and liabilities – |
|
|
|
Accounts receivable |
(1,002) |
|
|
(389) |
|
Inventories, net of advances and progress
billings |
(56) |
|
|
(1,822) |
|
Accounts payable |
960 |
|
|
848 |
|
Accrued liabilities |
(467) |
|
|
(900) |
|
Advances and billings in excess of related
costs |
(435) |
|
|
(422) |
|
Income taxes receivable, payable and deferred |
273 |
|
|
443 |
|
Other long-term liabilities |
(116) |
|
|
(82) |
|
Pension and other postretirement plans |
79 |
|
|
608 |
|
Customer financing, net |
276 |
|
|
31 |
|
Other |
(61) |
|
|
(50) |
|
Net cash provided by operating
activities |
1,231 |
|
|
88 |
|
Cash flows – investing activities: |
|
|
|
Property, plant and equipment additions |
(748) |
|
|
(574) |
|
Property, plant and equipment reductions |
11 |
|
|
|
|
Contributions to investments |
(204) |
|
|
(807) |
|
Proceeds from investments |
493 |
|
|
1,159 |
|
Other |
10 |
|
|
8 |
|
Net cash used by investing
activities |
(438) |
|
|
(214) |
|
Cash flows – financing activities: |
|
|
|
New borrowings |
115 |
|
|
761 |
|
Debt repayments |
(128) |
|
|
(813) |
|
Stock options exercised |
42 |
|
|
231 |
|
Excess tax benefits from share-based payment
arrangements |
44 |
|
|
112 |
|
Employee taxes on certain share-based payment
arrangements |
(76) |
|
|
(87) |
|
Common shares repurchased |
(3,501) |
|
|
(2,500) |
|
Dividends paid |
(717) |
|
|
(639) |
|
Net cash used by financing
activities |
(4,221) |
|
|
(2,935) |
|
Effect of exchange rate changes on cash and cash
equivalents |
12 |
|
|
(17) |
|
Net decrease in cash and cash
equivalents |
(3,416) |
|
|
(3,078) |
|
Cash and cash equivalents at beginning of
year |
11,302 |
|
|
11,733 |
|
Cash and cash equivalents at end of
period |
|
$7,886 |
|
|
|
$8,655 |
|
The Boeing Company and Subsidiaries |
Summary of Business Segment Data |
(Unaudited) |
|
|
|
|
|
|
|
|
|
Three months ended
March 31 |
(Dollars in millions) |
2016 |
|
|
2015 |
|
Revenues: |
|
|
|
Commercial Airplanes |
|
$14,399 |
|
|
|
$15,381 |
|
Defense, Space &
Security: |
|
|
|
Boeing Military Aircraft |
3,659 |
|
|
2,726 |
|
Network & Space Systems |
1,735 |
|
|
1,732 |
|
Global Services &
Support |
2,562 |
|
|
2,251 |
|
Total Defense, Space &
Security |
7,956 |
|
|
6,709 |
|
Boeing Capital |
64 |
|
|
86 |
|
Unallocated items, eliminations and
other |
213 |
|
|
(27) |
|
Total revenues |
|
$22,632 |
|
|
|
$22,149 |
|
Earnings from operations: |
|
|
|
Commercial Airplanes |
|
$1,033 |
|
|
|
$1,617 |
|
Defense, Space &
Security: |
|
|
|
Boeing Military Aircraft |
334 |
|
|
259 |
|
Network & Space Systems |
148 |
|
|
167 |
|
Global Services &
Support |
340 |
|
|
317 |
|
Total Defense, Space &
Security |
822 |
|
|
743 |
|
Boeing Capital |
5 |
|
|
20 |
|
Segment operating profit |
1,860 |
|
|
2,380 |
|
Unallocated items, eliminations and
other |
(72) |
|
|
(361) |
|
Earnings from operations |
1,788 |
|
|
2,019 |
|
Other income/(loss), net |
26 |
|
|
(12) |
|
Interest and debt expense |
(73) |
|
|
(61) |
|
Earnings before income
taxes |
1,741 |
|
|
1,946 |
|
Income tax expense |
(522) |
|
|
(610) |
|
Net earnings |
|
$1,219 |
|
|
|
$1,336 |
|
|
|
|
|
Research and development expense,
net: |
|
|
|
Commercial Airplanes |
|
$671 |
|
|
|
$543 |
|
Defense, Space &
Security |
258 |
|
|
224 |
|
Other |
(12) |
|
|
2 |
|
Total research and development
expense, net |
|
$917 |
|
|
|
$769 |
|
|
|
|
|
Unallocated items, eliminations and
other: |
|
|
|
Share-based plans |
|
($23) |
|
|
|
($21) |
|
Deferred compensation |
16 |
|
|
(58) |
|
Amortization of previously capitalized
interest |
(30) |
|
|
(29) |
|
Eliminations and other unallocated
items |
(129) |
|
|
(140) |
|
Sub-total (included in core
operating earnings) |
(166) |
|
|
(248) |
|
Pension |
45 |
|
|
(152) |
|
Postretirement |
49 |
|
|
39 |
|
Total unallocated items,
eliminations and other |
|
($72) |
|
|
|
($361) |
|
The Boeing Company and Subsidiaries |
Operating and Financial Data |
(Unaudited) |
|
|
|
|
|
|
|
Deliveries |
Three months ended
March 31 |
|
Commercial Airplanes |
2016 |
|
|
2015 |
|
|
737 |
121 |
|
|
121 |
|
|
747 |
1 |
|
|
4 |
|
|
767 |
1 |
|
|
5 |
|
|
777 |
23 |
|
|
24 |
|
|
787 |
30 |
|
|
30 |
|
|
Total |
176 |
|
|
184 |
|
|
Note: Deliveries under operating
lease are identified by parentheses. |
|
|
|
|
|
Defense, Space & Security |
|
|
|
|
Boeing Military Aircraft |
|
|
|
|
AH-64 Apache (New) |
7 |
|
|
6 |
|
|
AH-64 Apache (Remanufactured) |
11 |
|
|
10 |
|
|
C-17 Globemaster III |
3 |
|
|
1 |
|
|
CH-47 Chinook (New) |
3 |
|
|
6 |
|
|
CH-47 Chinook (Renewed) |
9 |
|
|
4 |
|
|
F-15 Models |
4 |
|
|
1 |
|
|
F/A-18 Models |
8 |
|
|
11 |
|
|
P-8 Models |
4 |
|
|
2 |
|
|
|
|
|
|
|
Global Services & Support |
|
|
|
|
AEW&C |
|
|
|
|
|
|
C-40A |
|
|
|
1 |
|
|
|
|
|
|
|
Network & Space Systems |
|
|
|
|
Commercial and Civil Satellites |
1 |
|
|
|
|
Military Satellites |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contractual backlog (Dollars in
billions) |
|
March 31
2016 |
|
|
December 31
2015 |
|
Commercial Airplanes |
|
|
$423.0 |
|
|
|
$431.4 |
|
Defense, Space & Security: |
|
|
|
|
Boeing Military Aircraft |
|
22.1 |
|
|
19.9 |
|
Network & Space Systems |
|
8.0 |
|
|
7.4 |
|
Global Services & Support |
|
17.1 |
|
|
17.9 |
|
Total Defense, Space & Security |
|
47.2 |
|
|
45.2 |
|
Total contractual backlog |
|
|
$470.2 |
|
|
|
$476.6 |
|
Unobligated backlog |
|
|
$9.8 |
|
|
|
$12.7 |
|
Total backlog |
|
|
$480.0 |
|
|
|
$489.3 |
|
Workforce |
|
159,100 |
|
|
161,400 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The
Boeing Company and Subsidiaries |
Reconciliation of Non-GAAP Measures |
Core Operating Earnings, Core Operating Margin and Core Earnings
Per Share |
(Unaudited) |
|
The tables provided below reconcile
the non-GAAP financial measures core operating earnings, core
operating margin and core earnings per share with the most directly
comparable GAAP financial measures, earnings from operations,
operating margin and diluted earnings per share. See page 6 of this
release for additional information on the use of these non-GAAP
financial measures. |
|
|
|
|
|
|
|
|
|
|
|
|
|
First Quarter |
|
Guidance |
|
2016 |
|
2015 |
|
2016 |
Revenues |
|
$22,632 |
|
|
|
$22,149 |
|
|
|
|
|
|
|
|
|
GAAP Earnings From Operations |
|
$1,788 |
|
|
|
$2,019 |
|
|
|
GAAP Operating Margin |
7.9% |
|
|
9.1% |
|
|
|
|
|
|
|
|
|
Unallocated Pension/Postretirement
Expense |
|
($94) |
|
|
|
$113 |
|
|
~($300) |
|
Core Operating Earnings (non-GAAP) |
|
$1,694 |
|
|
|
$2,132 |
|
|
|
Core Operating Margin (non-GAAP) |
7.5% |
|
|
9.6% |
|
|
|
|
|
|
|
|
|
Increase/(Decrease) in GAAP Earnings From
Operations |
(11%) |
|
|
|
|
|
Increase/(Decrease) in Core Operating Earnings
(non-GAAP) |
(21%) |
|
|
|
|
|
|
|
|
|
|
|
GAAP Diluted Earnings Per Share |
|
$1.83 |
|
|
|
$1.87 |
|
|
$8.45 -
$8.65 |
|
Unallocated Pension/Postretirement
Expense1 |
|
($0.09) |
|
|
|
$0.10 |
|
|
|
($0.30) |
|
Core Earnings Per Share (non-GAAP) |
|
$1.74 |
|
|
|
$1.97 |
|
|
$8.15 -
$8.35 |
|
|
|
|
|
|
|
Weighted Average Diluted Shares
(millions) |
665.8 |
|
|
714.2 |
|
|
645 - 650 |
|
Increase/(Decrease) in GAAP Earnings Per
Share |
(2%) |
|
|
|
|
|
|
Increase/(Decrease) in Core Earnings Per Share
(non-GAAP) |
(12%) |
|
|
|
|
|
|
|
|
1 |
Earnings per share impact is
presented net of the federal statutory tax rate of 35.0
percent. |
|
|
|
|
|
|
|
|
|
|
|
|
|