Boeing Reports Third Quarter Results

 

ARLINGTON,   Va., Oct. 23, 2024 --

Third Quarter 2024

    --  Financials reflect impacts of the International Association of
        Machinists and Aerospace Workers (IAM) work stoppage and previously
        announced charges on commercial and defense programs
    --  Revenue of $17.8 billion, GAAP loss per share of ($9.97) and core
        (non-GAAP)* loss per share of ($10.44)
    --  Operating cash flow of ($1.3) billion and free cash flow of ($2.0)
        billion (non-GAAP)*
    --  Total company backlog of $511 billion, including over 5,400 commercial
        airplanes

Table 1.
Summary       Third Quarter                         Nine Months
Financial
Results

(Dollars
in
Millions,     2024          2023          Change    2024          2023          Change
except per
share
data)

Revenues      $17,840$18,104       (1)%      $51,275$55,776       (8)%

GAAP

Loss from     ($5,761)      ($808)        NM        ($6,937)      ($1,056)      NM
operations

Operating     (32.3)   %    (4.5)    %    NM        (13.5)   %    (1.9)    %    NM
margins

Net loss      ($6,174)      ($1,638)      NM        ($7,968)      ($2,212)      NM

Basic loss    ($9.97)       ($2.70)       NM        ($12.91)      ($3.64)       NM
per share

Operating     ($1,345)      $22           NM        ($8,630)      $2,579        NM
cash flow

Non-GAAP*

Core
operating     ($5,989)      ($1,089)      NM        ($7,769)      ($1,919)      NM
loss

Core
operating     (33.6)   %    (6.0)    %    NM        (15.2)   %    (3.4)    %    NM
margins

Core loss     ($10.44)      ($3.26)       NM        ($14.52)      ($5.35)       NM
per share

*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 $17.8   billion, GAAP loss per share of ($9.97) and core loss per share (non-GAAP)* of ($10.44) (Table 1) primarily reflecting impacts of the IAM work stoppage and previously announced charges on commercial and defense programs. Boeing reported operating cash flow of ($1.3)   billion and free cash flow of ($2.0) billion (non-GAAP)*.

"It will take time to return Boeing to its former legacy, but with the right focus and culture, we can be an iconic company and aerospace leader once again," said Kelly Ortberg, Boeing President and Chief Executive Officer. "Going forward, we will be focused on fundamentally changing the culture, stabilizing the business, and improving program execution, while setting the foundation for the future of Boeing."  

Table 2. Cash Flow     Third Quarter           Nine Months

(Millions)             2024         2023       2024          2023

Operating cash flow    ($1,345)     $22        ($8,630)      $2,579

Less additions to
property, plant &      ($611)       ($332)     ($1,582)      ($1,096)
equipment

Free cash flow*        ($1,956)     ($310)     ($10,212)     $1,483

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

Operating cash flow was ($1.3) billion in the quarter reflecting lower commercial widebody deliveries, as well as unfavorable working capital timing, including the impact of the IAM work stoppage (Table 2).

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

(Billions)                                                3Q 2024    2Q 2024

Cash                                                      $10.0$10.9

Marketable securities1                                    $0.5$1.7

Total                                                     $10.5$12.6

Consolidated debt                                         $57.7$57.9

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

Cash and investments in marketable securities totaled $10.5 billion, compared to $12.6 billion at the beginning of the quarter driven by free cash flow usage in the quarter (Table 3). In October, the company entered into a new $10.0 billion short-term credit facility and now has access to total credit facilities of $20.0 billion, which remain undrawn.

Total company backlog at quarter end was $511 billion.

Segment Results

Commercial Airplanes

Table 4.
Commercial    Third Quarter                       Nine Months
Airplanes

(Dollars
in            2024          2023        Change    2024          2023          Change
Millions)

Deliveries    116           105         10%       291           371           (22)%

Revenues      $7,443$7,876      (5)%      $18,099$23,420       (23)%

Loss from     ($4,021)      ($678)      NM        ($5,879)      ($1,676)      NM
operations

Operating     (54.0)   %    (8.6)  %    NM        (32.5)   %    (7.2)    %    NM
margins

Commercial Airplanes third quarter revenue of $7.4   billion and operating margin of (54.0) percent reflect previously announced pre-tax charges of $3.0 billion on the 777X and 767 programs as well as the IAM work stoppage and higher period expense, including research and development (Table 4).

The 787 program is currently producing at 4 per month and maintains plans to return to 5 per month by year end. In the quarter, Commercial Airplanes booked 49 net orders and delivered 116 airplanes, with backlog of over 5,400 airplanes valued at $428 billion.

Defense, Space   & Security

Table 5.
Defense,      Third Quarter                       Nine Months
Space &
Security

(Dollars
in            2024          2023        Change    2024          2023          Change
Millions)

Revenues      $5,536$5,481      1%        $18,507$18,187       2%

Loss from     ($2,384)      ($924)      NM        ($3,146)      ($1,663)      NM
operations

Operating     (43.1)   %    (16.9) %    NM        (17.0)   %    (9.1)    %    NM
margins

Defense, Space & Security third quarter revenue of $5.5 billion and operating margin of (43.1) percent reflect the previously announced pre-tax charges of $2.0 billion on the T-7A, KC-46A Tanker, Commercial Crew, and MQ-25 programs. Results also reflect unfavorable performance on other programs.

During the quarter, Defense, Space & Security delivered the first production MH-139A to the U.S. Air Force and definitized a contract for two E-7A Wedgetails from the U.S. Air Force. Backlog at Defense, Space & Security was $62 billion, of which 28 percent represents orders from customers outside the U.S.

Global Services

Table 6.
Global        Third Quarter                     Nine Months
Services

(Dollars
in            2024        2023        Change    2024         2023         Change
Millions)

Revenues      $4,901$4,812      2%        $14,835$14,278      4%

Earnings
from          $834$784        6%        $2,620$2,487       5%
operations

Operating     17.0   %    16.3   %    0.7       17.7    %    17.4    %    0.3
margins                               pts                                 pts

Global Services third quarter revenue of $4.9 billion and operating margin of 17.0 percent reflect higher commercial volume and mix.  

During the quarter, Global Services secured agreements for Landing Gear Exchange Program and Integrated Material Management with All Nippon Airways and a KC-135 spares contract from the U.S. Air Force.

Additional Financial Information

Table 7. Additional            Third Quarter           Nine Months
Financial Information

(Dollars in Millions)          2024        2023        2024          2023

Revenues

Unallocated items,             ($40)       ($65)       ($166)        ($109)
eliminations and other

Loss from operations

Other unallocated items and    ($418)      ($271)      ($1,364)      ($1,067)
eliminations

FAS/CAS service cost           $228$281$832$863
adjustment

Other income, net              $265$297$790$919

Interest and debt expense      ($728)      ($589)      ($1,970)      ($1,859)

Effective tax rate             0.8    %    (48.9) %    1.8      %    (10.8)   %

Other unallocated items and eliminations primarily reflects timing of allocations.

Non-GAAP Measures Disclosures

We supplement the reporting of our financial information determined under Generally Accepted Accounting Principles in the United States of America (GAAP) with certain non-GAAP financial information. The non-GAAP financial information presented excludes certain significant items that may not be indicative of, or are unrelated to, results from our ongoing business operations. We believe that these non-GAAP measures provide investors with additional insight into the company's ongoing business performance. These non-GAAP measures should not be considered in isolation or as a substitute for the related GAAP measures, and other companies may define such measures differently. We encourage investors to review our financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure. The following definitions are provided:  

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

Core operating earnings/(loss) is defined as GAAP   Earnings/( l oss) 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 earnings/(loss) expressed as a percentage of revenue. Core earnings/(loss) per share is defined as GAAP Diluted earnings/(loss) per share excluding the net earnings/(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 earnings/(loss), core operating margin and core earnings/(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 of these non-GAAP measures to the most directly comparable GAAP measure is provided on page 12 and 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 for reconciliation of free cash flow to GAAP operating cash flow.

Boeing President and CEO Kelly Ortberg's prepared remarks for the third quarter results webcast can be accessed here:

https://investors.boeing.com/investors/events-presentations/event-details/2024/Q3-2024-The-Boeing-Company-Earnings-Conference-Call/default.aspx

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 other similar words or expressions, or the negative thereof, generally can be used to help 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, production quality issues, commercial airplane production rates, 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) our pending acquisition of Spirit AeroSystems Holdings, Inc. (Spirit), including the satisfaction of closing conditions in the expected timeframe or at all, (5) changing budget and appropriation levels and acquisition priorities of the U.S. government, as well as significant delays in U.S. government appropriations; (6) our dependence on our subcontractors and suppliers, as well as the availability of highly skilled labor and raw materials; (7) work stoppages or other labor disruptions; (8) competition within our markets; (9) our non-U.S. operations and sales to non-U.S. customers; (10) changes in accounting estimates; (11) realizing the anticipated benefits of mergers, acquisitions, joint ventures/strategic alliances or divestitures, including anticipated synergies and quality improvements related to our pending acquisition of Spirit; (12) our dependence on U.S. government contracts; (13) our reliance on fixed-price contracts; (14) our reliance on cost-type contracts; (15) contracts that include in-orbit incentive payments; (16) unauthorized access to our, our customers' and/or our suppliers' information and systems; (17) 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; (18) potential adverse developments in new or pending litigation and/or government inquiries or investigations; (19) potential environmental liabilities; (20) effects of climate change and legal, regulatory or market responses to such change; (21) credit rating agency actions and changes in our ability to obtain debt financing on commercially reasonable terms, at competitive rates and in sufficient amounts; (22) substantial pension and other postretirement benefit obligations; (23) the adequacy of our insurance coverage; and (24) customer and aircraft concentration in our customer financing portfolio.

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 DufaultBoeingInvestorRelations@boeing.com

Communications:      Michael Friedmanmedia@boeing.com

 

        The Boeing Company and Subsidiaries

Consolidated Statements of Operations

(Unaudited)

                                      Nine months ended     Three months ended
                                      September 30          September 30

(Dollars in millions, except per      2024       2023       2024       2023
share data)

Sales of products                     $41,326$46,661$14,534$15,060

Sales of services                     9,949      9,115      3,306      3,044

Total revenues                        51,275     55,776     17,840     18,104

Cost of products                      (43,384)   (43,140)   (18,413)   (14,464)

Cost of services                      (8,293)    (7,609)    (2,934)    (2,475)

Total costs and expenses              (51,677)   (50,749)   (21,347)   (16,939)

                                      (402)      5,027      (3,507)    1,165

Income/(loss) from operating          59         45         (15)       28
investments, net

General and administrative expense    (3,623)    (3,633)    (1,085)    (1,043)

Research and development expense, net (2,976)    (2,496)    (1,154)    (958)

Gain on dispositions, net             5          1

Loss from operations                  (6,937)    (1,056)    (5,761)    (808)

Other income, net                     790        919        265        297

Interest and debt expense             (1,970)    (1,859)    (728)      (589)

Loss before income taxes              (8,117)    (1,996)    (6,224)    (1,100)

Income tax benefit/(expense)          149        (216)      50         (538)

Net loss                              (7,968)    (2,212)    (6,174)    (1,638)

Less: net loss attributable to        (16)       (13)       (4)        (2)
noncontrolling interest

Net loss attributable to Boeing       ($7,952)   ($2,199)   ($6,170)   ($1,636)
Shareholders

Basic loss per share                  ($12.91)   ($3.64)    ($9.97)    ($2.70)

Diluted loss per share                ($12.91)   ($3.64)    ($9.97)    ($2.70)

Weighted average diluted shares       616.1      605.0      618.8      607.2
(millions)

 

        The Boeing Company and Subsidiaries

Consolidated Statements of Financial Position

(Unaudited)

(Dollars in millions, except per share data)         September 30   December 31
                                                     2024           2023

Assets

Cash and cash equivalents                            $9,961$12,691

Short-term and other investments                     509            3,274

Accounts receivable, net                             2,894          2,649

Unbilled receivables, net                            9,356          8,317

Current portion of financing receivables, net        457            99

Inventories                                          83,341         79,741

Other current assets, net                            2,918          2,504

Total current assets                                 109,436        109,275

Financing receivables and operating lease equipment, 321            860
net

Property, plant and equipment, net of accumulated    11,236         10,661
depreciation of $22,923 and $22,245

Goodwill                                             8,112          8,093

Acquired intangible assets, net                      2,011          2,094

Deferred income taxes                                44             59

Investments                                          1,030          1,035

Other assets, net of accumulated amortization of     5,505          4,935
$1,054 and $1,046

Total assets                                         $137,695$137,012

Liabilities and equity

Accounts payable                                     $12,267$11,964

Accrued liabilities                                  22,628         22,331

Advances and progress billings                       57,931         56,328

Short-term debt and current portion of long-term     4,474          5,204
debt

Total current liabilities                            97,300         95,827

Deferred income taxes                                249            229

Accrued retiree health care                          2,121          2,233

Accrued pension plan liability, net                  6,097          6,516

Other long-term liabilities                          2,314          2,332

Long-term debt                                       53,176         47,103

Total liabilities                                    161,257        154,240

Shareholders' equity:

    Common stock, par value $5.00 – 1,200,000,000    5,061          5,061
shares authorized; 1,012,261,159 shares issued

Additional paid-in capital                           10,925         10,309

    Treasury stock, at cost - 394,465,404 and        (48,564)       (49,549)
402,746,136 shares

Retained earnings                                    19,299         27,251

Accumulated other comprehensive loss                 (10,273)       (10,305)

Total shareholders' deficit                          (23,552)       (17,233)

Noncontrolling interests                             (10)           5

Total equity                                         (23,562)       (17,228)

Total liabilities and equity                         $137,695$137,012

 

        The Boeing Company and Subsidiaries

Consolidated Statements of Cash Flows
(Unaudited)

                                                            Nine months ended
                                                            September 30

(Dollars in millions)                                       2024       2023

Cash flows–operating activities:

Net loss                                                    ($7,968)   ($2,212)

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

Non-cash items –

Share-based plans expense                                   310        548

Treasury shares issued for 401(k) contribution              1,315      1,204

Depreciation and amortization                               1,327      1,380

Investment/asset impairment charges, net                    48         12

Gain on dispositions, net                                   (5)        (1)

777X and 767 reach-forward losses                           3,006

Other charges and credits, net                              270        (25)

Changes in assets and liabilities –

Accounts receivable                                         (275)      (523)

Unbilled receivables                                        (1,042)    (547)

Advances and progress billings                              1,666      2,963

Inventories                                                 (6,854)    (940)

Other current assets                                        (26)       707

Accounts payable                                            122        982

Accrued liabilities                                         327        (574)

Income taxes receivable, payable and deferred               (282)      73

Other long-term liabilities                                 (228)      (254)

Pension and other postretirement plans                      (736)      (785)

Financing receivables and operating lease equipment, net    258        472

Other                                                       137        99

Net cash (used)/provided by operating activities            (8,630)    2,579

Cash flows – investing activities:

Payments to acquire property, plant and equipment           (1,582)    (1,096)

Proceeds from disposals of property, plant and equipment    46         19

Acquisitions, net of cash acquired                          (50)       (19)

Contributions to investments                                (1,751)    (14,485)

Proceeds from investments                                   4,546      10,497

Supplier notes receivable                                   (494)      (162)

Repayments on supplier notes receivable                     40

Purchase of distribution rights                             (88)

Other                                                       (14)       5

Net cash provided/(used) by investing activities            653        (5,241)

Cash flows – financing activities:

New borrowings                                              10,120     55

Debt repayments                                             (4,824)    (5,181)

Stock options exercised                                                45

Employee taxes on certain share-based payment arrangements  (73)       (52)

Other                                                       15         2

Net cash provided/(used) by financing activities            5,238      (5,131)

Effect of exchange rate changes on cash and cash            8          (22)
equivalents

Net decrease in cash & cash equivalents, including          (2,731)    (7,815)
restricted

Cash & cash equivalents, including restricted, at beginning 12,713     14,647
of year

Cash & cash equivalents, including restricted, at end of    9,982      6,832
period

Less restricted cash & cash equivalents, included in        21         21
Investments

Cash & cash equivalents at end of period                    $9,961$6,811

 

        The Boeing Company and Subsidiaries

Summary of Business Segment Data

(Unaudited)

                                Nine months ended         Three months ended
                                September 30              September 30

(Dollars in millions)           2024         2023         2024         2023

Revenues:

Commercial Airplanes            $18,099$23,420$7,443$7,876

Defense, Space & Security       18,507       18,187       5,536        5,481

Global Services                 14,835       14,278       4,901        4,812

Unallocated items, eliminations (166)        (109)        (40)         (65)
and other

Total revenues                  $51,275$55,776$17,840$18,104

Loss from operations:

Commercial Airplanes            ($5,879)     ($1,676)     ($4,021)     ($678)

Defense, Space & Security       (3,146)      (1,663)      (2,384)      (924)

Global Services                 2,620        2,487        834          784

Segment operating loss          (6,405)      (852)        (5,571)      (818)

Unallocated items, eliminations (1,364)      (1,067)      (418)        (271)
and other

FAS/CAS service cost adjustment 832          863          228          281

Loss from operations            (6,937)      (1,056)      (5,761)      (808)

Other income, net               790          919          265          297

Interest and debt expense       (1,970)      (1,859)      (728)        (589)

Loss before income taxes        (8,117)      (1,996)      (6,224)      (1,100)

Income tax benefit/(expense)    149          (216)        50           (538)

Net loss                        (7,968)      (2,212)      (6,174)      (1,638)

Less: net loss attributable to  (16)         (13)         (4)          (2)
noncontrolling interest

Net loss attributable to Boeing ($7,952)     ($2,199)     ($6,170)     ($1,636)
Shareholders

Research and development
expense, net:

Commercial Airplanes            $1,852$1,538$779$623

Defense, Space & Security       728          652          234          232

Global Services                 103          84           36           30

Other                           293          222          105          73

Total research and development  $2,976$2,496$1,154$958
expense, net

Unallocated items, eliminations
and other:

Share-based plans               $118         ($33)        $65$5

Deferred compensation           (100)        (71)         (51)         25

Amortization of previously      (70)         (71)         (24)         (24)
capitalized interest

Research and development        (293)        (222)        (105)        (73)
expense, net

Eliminations and other          (1,019)      (670)        (303)        (204)
unallocated items

Sub-total (included in Core     (1,364)      (1,067)      (418)        (271)
operating loss)

Pension FAS/CAS service cost    608          663          148          218
adjustment

Postretirement FAS/CAS service  224          200          80           63
cost adjustment

FAS/CAS service cost adjustment 832          863          $228$281

Total                           ($532)       ($204)       ($190)       $10

 

        The Boeing Company and Subsidiaries

Operating and Financial Data

(Unaudited)

Deliveries          Nine months ended    Three months ended
                    September 30         September 30

Commercial          2024     2023        2024          2023
Airplanes

737                 229      286         92            70

747                 —        1           —             —

767                 15       17          6             8

777                 11       17          4             8

787                 36       50          14            19

Total               291      371         116           105

Defense, Space &
Security

AH-64 Apache        10       17          7             5
(New)

AH-64 Apache        24       38          11            9
(Remanufactured)

CH-47 Chinook       2        8           —             1
(New)

CH-47 Chinook       7        7           2             3
(Renewed)

F-15 Models         10       6           3             —

F/A-18 Models       5        16          1             3

KC-46 Tanker        10       4           5             3

MH-139              3        1           3             1

P-8 Models          4        7           1             2

    T-7A Red        1        1           1             1
Hawk

    Commercial      —        3           —             —
Satellites

Total1              76       108         34            28

1 Deliveries of new-build production units, including remanufactures and
modifications

Total backlog                            September     December
(Dollars in                              30            31
millions)                                2024          2023

Commercial                               $427,733$440,507
Airplanes

Defense, Space &                         61,621        59,012
Security

Global Services                          20,449        19,869

Unallocated
items,                                   706           807
eliminations and
other

Total backlog                            $510,509$520,195

Contractual                              $489,325$497,094
backlog

Unobligated                              21,184        23,101
backlog

Total backlog                            $510,509$520,195

 

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 of 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        Third Quarter 2024      Third Quarter 2023
per share data)

                                    $ millions Per Share    $ millions Per Share

Revenues                            $17,840$18,104

Loss from operations (GAAP)         (5,761)                 (808)

Operating margins (GAAP)            (32.3)   %              (4.5)    %

FAS/CAS service cost
adjustment:

 Pension FAS/CAS service cost       (148)                   (218)
adjustment

 Postretirement FAS/CAS             (80)                    (63)
service cost adjustment

FAS/CAS service cost                (228)                   (281)
adjustment

Core operating loss (non-GAAP)      ($5,989)                ($1,089)

Core operating margins              (33.6)   %              (6.0)    %
(non-GAAP)

Diluted loss per share (GAAP)                  ($9.97)                 ($2.70)

 Pension FAS/CAS service cost       ($148)     ($0.24)      ($218)     ($0.36)
adjustment

 Postretirement FAS/CAS             (80)       (0.13)       (63)        (0.10)
service cost adjustment

    Non-operating pension           (123)      (0.20)       (134)      (0.23)
income

    Non-operating                   (18)       (0.03)       (15)        (0.02)
postretirement income

    Provision for deferred          77         0.13         90         0.15
income taxes on adjustments 1

Subtotal of adjustments             ($292)     ($0.47)      ($340)     ($0.56)

Core loss per share (non-GAAP)                 ($10.44)                ($3.26)

Weighted average diluted                       618.8                   607.2
shares (in millions)

1The 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 of 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        Nine Months 2024        Nine Months 2023
per share data)

                                    $ millions Per Share    $ millions Per Share

Revenues                            $51,275$55,776

Loss from operations (GAAP)         (6,937)                 (1,056)

Operating margins (GAAP)            (13.5)   %              (1.9)    %

FAS/CAS service cost
adjustment:

 Pension FAS/CAS service cost       (608)                   (663)
adjustment

 Postretirement FAS/CAS             (224)                   (200)
service cost adjustment

FAS/CAS service cost                (832)                   (863)
adjustment

Core operating loss (non-GAAP)      ($7,769)                ($1,919)

Core operating margins              (15.2)   %              (3.4)    %
(non-GAAP)

Diluted loss per share (GAAP)                  ($12.91)                ($3.64)

 Pension FAS/CAS service cost       ($608)     ($0.99)      ($663)     ($1.10)
adjustment

 Postretirement FAS/CAS             (224)      (0.36)       (200)      (0.33)
service cost adjustment

    Non-operating pension           (368)      (0.60)       (402)      (0.66)
income

    Non-operating                   (55)       (0.09)       (44)       (0.07)
postretirement income

    Provision for deferred          264        0.43         275        0.45
income taxes on adjustments 1

Subtotal of adjustments             ($991)     ($1.61)      ($1,034)   ($1.71)

Core loss per share (non-GAAP)                 ($14.52)                ($5.35)

Weighted average diluted                       616.1                   605.0
shares (in millions)

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

 

 SOURCE:  Boeing