Boeing Company - 2nd Quarter Financial Results

Boeing Reports Second Quarter Results ARLINGTON,Va., July 31, 2024 -- Second Quarter 2024 · Submitted comprehensive safety and quality plan to the Federal Aviation Administration · Announced agreement to acquire Spirit AeroSystems in July; transaction expected to close mid-2025 · Revenue of $16.9 billion, GAAP loss per share of ($2.33) and core (non -GAAP)* loss per share of ($2.90) · Operating cash flow of ($3.9) billion and free cash flow of ($4.3) billion (non-GAAP)* · Total company backlog of $516 billion, including over 5,400 commercial airplanes Table 1. Second First Summary Quarter Half Financial Results (Dollars 2024 2023 Change 2024 2023 Change in Millions, except per share data) Revenues $16,866 $19,751 (15)% $33,435 $37,672 (11)% GAAP Loss from ($1,090) ($99) NM ($1,176) ($248) NM operations Operating (6.5) % (0.5) % NM (3.5) % (0.7) % NM margins Net loss ($1,439) ($149) NM ($1,794) ($574) NM Loss per ($2.33) ($0.25) NM ($2.90) ($0.93) NM share Operating ($3,923) $2,875 NM ($7,285) $2,557 NM cash flow Non-GAAP* Core ($1,392) ($390) NM ($1,780) ($830) NM operating loss Core (8.3) % (2.0) % NM (5.3) % (2.2) % NM operating margins Core loss ($2.90) ($0.82) NM ($4.04) ($2.08) 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 second quarter revenue of $16.9billion, GAAP loss per share of ($2.33) and core loss per share (non-GAAP)* of ($2.90) (Table 1). Boeing reported operating cash flow of ($3.9)billion and free cash flow of ($4.3) billion (non-GAAP)*. Results primarily reflect lower commercial delivery volume and losses on fixed-price defense development programs. "Despite a challenging quarter, we are making substantial progress strengthening our quality management system and positioning our company for the future," said Dave Calhoun, Boeing president and chief executive officer. "We are executing on our comprehensive safety and quality plan and have reached an agreement to acquire Spirit AeroSystems. While we have more work ahead, the steps we're taking will help stabilize our operations and ensure Boeing is the company the world needs it to be. We are making important progress in our recovery and will continue to build trust through action and transparency." Table 2. Second First Cash Flow Quarter Half (Millions) 2024 2023 2024 2023 Operating ($3,923) $2,875 ($7,285) $2,557 cash flow Less ($404) ($296) ($971) ($764) additions to property, plant & equipment Free cash ($4,327) $2,579 ($8,256) $1,793 flow* *Non-GAAP measure; complete definitions of Boeing's non-GAAP measures are on page 5, "Non-GAAP Measures Disclosures." Operating cash flow was ($3.9) billion in the quarter reflecting lower commercial deliveries, as well as unfavorable working capital timing (Table 2). Table 3. Quarter End Cash, Marketable Securities and Debt Balances (Billions) Q2 24 Q1 24 Cash $10.9 $6.9 Marketable $1.7 $0.6 securities1 Total $12.6 $7.5 Consolidated $57.9 $47.9 debt 1 Marketable securities consist primarily of time deposits due within one year classified as "short-term investments." Cash and investments in marketable securities totaled $12.6 billion, compared to $7.5 billion at the beginning of the quarter driven by the $10.0 billion issuance of new debt partially offset by the usage of free cash flow in the quarter (Table 3). Debt was $57.9billion, up from $47.9billion at the beginning of the quarter due to the issuance of new debt. The company has access to credit facilities of $10.0 billion, which remain undrawn. Total company backlog at quarter end was $516 billion. Segment Results Commercial Airplanes Table 4. Commercial Airplanes Second Quarter First Half (Dollars in Millions) 2024 2023 Change 2024 2023 Change Deliveries 92 136 (32)% 175 266 (34)% Revenues $6,003 $8,840 (32)% $10,656 $15,544 (31)% Loss from operations ($715) ($383) NM ($1,858) ($998) NM Operating margins (11.9) % (4.3) % NM (17.4) % (6.4) % NM Commercial Airplanes second quarter revenue of $6.0billion and operating margin of (11.9) percent primarily reflect lower deliveries and planned higher period costs, including research and development (Table 4). During the quarter, the company submitted its comprehensive safety and quality plan to the Federal Aviation Administration (FAA). The 737 program gradually increased production during the quarter and still plans to increase production to 38 per month by year end. The 787 program maintains plans to return to 5 per month by year end. In July, the company announced an agreement to acquire Spirit AeroSystems, and the 777X program began FAA certification flight testing after obtaining type inspection authorization. Commercial Airplanes delivered 92 airplanes during the quarter and backlog included over 5,400 airplanes valued at $437 billion. Defense, Space& Security Table 5. Second First Defense, Quarter Half Space & Security (Dollars 2024 2023 Change 2024 2023 Change in Millions) Revenues $6,021 $6,167 (2)% $12,971 $12,706 2% Loss from ($913) ($527) NM ($762) ($739) NM operations Operating (15.2) % (8.5) % NM (5.9) % (5.8) % NM margins Defense, Space & Security second quarter revenue was $6.0 billion. Second quarter operating margin of (15.2) percent primarily reflects $1.0 billion of losses on certain fixed-price development programs, including a $391 million loss on the KC-46A program largely driven by a slowdown of commercial production and supply chain constraints. Losses recorded on the T-7A, VC-25B, and Commercial Crew programs reflect higher estimated engineering and manufacturing costs, as well as technical challenges. During the quarter, Defense, Space & Security captured an award for seven MH -139A helicopters from the U.S. Air Force and delivered the first CH-47F Block II Chinook to the U.S. Army. Backlog at Defense, Space & Security was $59 billion, of which 31 percent represents orders from customers outside the U.S. Global Services Table 6. Global Services Second Quarter First Half (Dollars in Millions) 2024 2023 Change 2024 2023 Change Revenues $4,889 $4,746 3% $9,934 $9,466 5% Earnings from operations $870 $856 2% $1,786 $1,703 5% Operating margins 17.8 % 18.0 % -0.2 pts 18.0 % 18.0 % 0.0 pts Global Services second quarter revenue of $4.9 billion and operating margin of 17.8 percent reflect higher commercial volume and mix. During the quarter, Global Services secured an Apache performance-based logistics contract from the U.S. Army and captured FliteDeck Pro service contracts with Hainan Airlines and Ryanair. Additional Financial Information Table 7. Second First Additional Quarter Half Financial Information (Dollars in 2024 2023 2024 2023 Millions) Revenues Unallocated ($47) ($2) ($126) ($44) items, eliminations and other (Loss)/earnin gs from operations Other ($634) ($336) ($946) ($796) unallocated items and eliminations FAS/CAS $302 $291 $604 $582 service cost adjustment Other $248 $320 $525 $622 income, net Interest and ($673) ($621) ($1,242) ($1,270) debt expense Effective 5.0 % 62.8 % 5.2 % 35.9 % tax rate Other unallocated items and eliminations include an earnings charge of $244 million that reflects a fine that would be paid to the U.S. Department of Justice pursuant to an agreement that was recently filed in federal district court, if the agreement is approved. 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 GAAPEarnings/(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 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 GAAPoperating 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. 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: InvestorRelations: Matt Welch or David Dufault BoeingInvestorRelations@boeing.com Communications: Michael Friedman media@boeing.com The Boeing Company and Subsidiaries Consolidated Statements of Operations (Unaudited) Six Three months months ended ended June 30 June 30 (Dollars in 2024 2023 2024 2023 millions, except per share data) Sales of $26,792 $31,601 $13,524 $16,687 products Sales of 6,643 6,071 3,342 3,064 services Total revenues 33,435 37,672 16,866 19,751 Cost of (24,971) (28,676) (12,907) (15,123) products Cost of (5,359) (5,134) (2,730) (2,689) services Total costs (30,330) (33,810) (15,637) (17,812) and expenses 3,105 3,862 1,229 1,939 Income from 74 17 7 44 operating investments, net General and (2,538) (2,590) (1,377) (1,286) administrative expense Research and (1,822) (1,538) (954) (797) development expense, net Gain on 5 1 5 1 dispositions, net Loss from (1,176) (248) (1,090) (99) operations Other income, 525 622 248 320 net Interest and (1,242) (1,270) (673) (621) debt expense Loss before (1,893) (896) (1,515) (400) income taxes Income tax 99 322 76 251 benefit Net loss (1,794) (574) (1,439) (149) Less: net loss (12) (11) attributable to noncontrolling interest Net loss ($1,782) ($563) ($1,439) ($149) attributable to Boeing Shareholders Basic loss per ($2.90) ($0.93) ($2.33) ($0.25) share Diluted loss ($2.90) ($0.93) ($2.33) ($0.25) per share Weighted 614.8 603.9 616.6 605.5 average diluted shares (millions) The Boeing Company and Subsidiaries Consolidated Statements of Financial Position (Unaudited) (Dollars in June 30 December millions, 2024 31 except per 2023 share data) Assets Cash and cash $10,894 $12,691 equivalents Short-term and 1,727 3,274 other investments Accounts 3,155 2,649 receivable, net Unbilled 9,660 8,317 receivables, net Current 60 99 portion of financing receivables, net Inventories 85,661 79,741 Other current 3,282 2,504 assets, net Total current 114,439 109,275 assets Financing 785 860 receivables and operating lease equipment, net Property, 10,976 10,661 plant and equipment, net of accumulated depreciation of $22,640 and $22,245 Goodwill 8,108 8,093 Acquired 2,067 2,094 intangible assets, net Deferred 59 income taxes Investments 1,026 1,035 Other assets, 5,319 4,935 net of accumulated amortization of $1,001 and $1,046 Total assets $142,720 $137,012 Liabilities and equity Accounts $11,864 $11,964 payable Accrued 21,850 22,331 liabilities Advances and 58,151 56,328 progress billings Short-term 4,765 5,204 debt and current portion of long-term debt Total current 96,630 95,827 liabilities Deferred 291 229 income taxes Accrued 2,159 2,233 retiree health care Accrued 6,248 6,516 pension plan liability, net Other long 2,212 2,332 -term liabilities Long-term debt 53,162 47,103 Total 160,702 154,240 liabilities Shareholders' equity: Common stock, 5,061 5,061 par value $5.00 - 1,200,000,000 shares authorized; 1,012,261,159 shares issued Additional 10,727 10,309 paid-in capital Treasury (48,841) (49,549) stock, at cost - 396,730,470 and 402,746,136 shares Retained 25,469 27,251 earnings Accumulated (10,392) (10,305) other comprehensive loss Total (17,976) (17,233) shareholders' deficit Noncontrolling (6) 5 interests Total equity (17,982) (17,228) Total $142,720 $137,012 liabilities and equity The Boeing Company and Subsidiaries Consolidated Statements of Cash Flows (Unaudited) Six months ended June 30 (Dollars in 2024 2023 millions) Cash flows-operating activities: Net loss ($1,794) ($574) Adjustments to reconcile net loss to net cash (used)/provided by operating activities: Non-cash items - Share-based 208 381 plans expense Treasury shares 953 862 issued for 401(k) contribution Depreciation 883 913 and amortization Investment/asset 34 12 impairment charges, net Gain on (5) (1) dispositions, net Other charges (34) 30 and credits, net Changes in assets and liabilities - Accounts (522) (433) receivable Unbilled (1,345) (721) receivables Advances and 1,886 2,228 progress billings Inventories (5,937) (241) Other current (320) 313 assets Accounts (222) 852 payable Accrued (443) (399) liabilities Income taxes (188) (424) receivable, payable and deferred Other long-term (148) (180) liabilities Pension and (491) (520) other postretirement plans Financing 149 419 receivables and operating lease equipment, net Other 51 40 Net cash (7,285) 2,557 used/(provided) by operating activities Cash flows - investing activities: Payments to (971) (764) acquire property, plant and equipment Proceeds from 30 13 disposals of property, plant and equipment Acquisitions, (50) net of cash acquired Contributions (1,617) (9,496) to investments Proceeds from 3,173 5,567 investments Supplier notes (486) (162) receivable Purchase of (88) distribution rights Other (17) 4 Net cash used (26) (4,838) by investing activities Cash flows - financing activities: New borrowings 10,089 38 Debt repayments (4,481) (5,123) Stock options 44 exercised Employee taxes (67) (48) on certain share-based payment arrangements Other (3) (4) Net cash 5,538 (5,093) provided/(used) by financing activities Effect of (25) 2 exchange rate changes on cash and cash equivalents Net decrease in (1,798) (7,372) cash & cash equivalents, including restricted Cash & cash 12,713 14,647 equivalents, including restricted, at beginning of year Cash & cash 10,915 7,275 equivalents, including restricted, at end of period Less restricted 21 21 cash & cash equivalents, included in Investments Cash & cash $10,894 $7,254 equivalents at end of period The Boeing Company and Subsidiaries Summary of Business Segment Data (Unaudited) Six Three months months ended ended June 30 June 30 (Dollars in 2024 2023 2024 2023 millions) Revenues: Commercial $10,656 $15,544 $6,003 $8,840 Airplanes Defense, Space 12,971 12,706 6,021 6,167 & Security Global 9,934 9,466 4,889 4,746 Services Unallocated (126) (44) (47) (2) items, eliminations and other Total revenues $33,435 $37,672 $16,866 $19,751 Loss from operations: Commercial ($1,858) ($998) ($715) ($383) Airplanes Defense, Space (762) (739) (913) (527) & Security Global 1,786 1,703 870 856 Services Segment (834) (34) (758) (54) operating (loss)/earnings Unallocated (946) (796) (634) (336) items, eliminations and other FAS/CAS 604 582 302 291 service cost adjustment Loss from (1,176) (248) (1,090) (99) operations Other income, 525 622 248 320 net Interest and (1,242) (1,270) (673) (621) debt expense Loss before (1,893) (896) (1,515) (400) income taxes Income tax 99 322 76 251 expense Net loss (1,794) (574) (1,439) (149) Less: net loss (12) (11) attributable to noncontrolling interest Net loss ($1,782) ($563) ($1,439) ($149) attributable to Boeing Shareholders Research and development expense, net: Commercial $1,073 $915 $555 $471 Airplanes Defense, Space 494 420 259 225 & Security Global 67 54 41 28 Services Other 188 149 99 73 Total research $1,822 $1,538 $954 $797 and development expense, net Unallocated items, eliminations and other: Share-based $53 ($38) $43 $14 plans Deferred (49) (96) (19) (42) compensation Amortization (46) (47) (23) (24) of previously capitalized interest Research and (188) (149) (99) (73) development expense, net Eliminations (716) (466) (536) (211) and other unallocated items Sub-total (946) (796) (634) (336) (included in Core operating loss) Pension 460 445 230 222 FAS/CAS service cost adjustment Postretirement 144 137 72 69 FAS/CAS service cost adjustment FAS/CAS 604 582 $302 $291 service cost adjustment Total ($342) ($214) ($332) ($45) The Boeing Company and Subsidiaries Operating and Financial Data (Unaudited) Deliveries Six Three months months ended ended June June 30 30 Commercial 2024 2023 2024 2023 Airplanes 737 137 216 70 103 747 - 1 - - 767 9 9 6 8 777 7 9 7 5 787 22 31 9 20 Total 175 266 92 136 Defense, Space & Security AH-64 Apache 3 12 3 5 (New) AH-64 Apache 13 29 7 16 (Remanufactured) CH-47 Chinook 2 7 1 2 (New) CH-47 Chinook 5 4 4 3 (Renewed) F-15 Models 7 6 6 4 F/A-18 Models 4 13 3 6 KC-46 Tanker 5 1 2 - P-8 Models 3 5 2 2 Commercial - 3 - - Satellites Total1 42 80 28 38 1 Deliveries of new-build production units, including remanufactures and modifications Total backlog June 30 December (Dollars in 2024 31 millions) 2023 Commercial $436,574 $440,507 Airplanes Defense, Space & 59,055 59,012 Security Global Services 19,487 19,869 Unallocated 758 807 items, eliminations and other Total backlog $515,874 $520,195 Contractual $495,358 $497,094 backlog Unobligated 20,516 23,101 backlog Total backlog $515,874 $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 Second Second millions, Quarter Quarter except per 2024 2023 share data) $ million Per $ million Per s Share s Share Revenues 16,866 19,751 Loss from (1,090) (99) operations (GAAP) Operating (6.5) % (0.5) % margins (GAAP) FAS/CAS service cost adjustment: Pension (230) (222) FAS/CAS service cost adjustment Postretirement (72) (69) FAS/CAS service cost adjustment FAS/CAS (302) (291) service cost adjustment Core operating ($1,392) ($390) loss (non -GAAP) Core operating (8.3) % (2.0) % margins (non -GAAP) Diluted loss ($2.33) ($0.25) per share (GAAP) Pension ($230) (0.37) ($222) (0.37) FAS/CAS service cost adjustment Postretirement (72) (0.12) (69) (0.11) FAS/CAS service cost adjustment Non-operating (122) (0.20) (134) (0.22) pension expense Non-operating (19) (0.03) (14) (0.02) postretirement expense Provision for 93 0.15 92 0.15 deferred income taxes on adjustments 1 Subtotal of ($350) ($0.57) ($347) ($0.57) adjustments Core loss per ($2.90) ($0.82) share (non -GAAP) Weighted 616.6 605.5 average diluted shares (in millions) 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 First First millions, Half Half except per 2024 2023 share data) $ million Per $ million Per s Share s Share Revenues 33,435 37,672 Loss from (1,176) (248) operations (GAAP) Operating (3.5) % (0.7) % margin (GAAP) FAS/CAS service cost adjustment: Pension (460) (445) FAS/CAS service cost adjustment Postretirement (144) (137) FAS/CAS service cost adjustment FAS/CAS (604) (582) service cost adjustment Core operating (1,780) (830) loss (non -GAAP) Core operating (5.3) % (2.2) % margin (non -GAAP) Diluted loss (2.90) (0.93) per share (GAAP) Pension (460) (0.75) (445) (0.73) FAS/CAS service cost adjustment Postretirement (144) (0.23) (137) (0.23) FAS/CAS service cost adjustment Non-operating (245) (0.40) (268) (0.45) pension expense Non-operating (37) (0.06) (29) (0.05) postretirement expense Provision for 186 0.30 185 0.31 deferred income taxes on adjustments 1 Subtotal of ($700) ($1.14) ($694) ($1.15) adjustments Core loss per ($4.04) ($2.08) share (non -GAAP) Weighted 614.8 603.9 average diluted shares (in millions) 1 The income tax impact is calculated using the U.S. corporate statutory tax rate. 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