Boeing Company - 3rd Quarter Results

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. Third Nine Summary Quarter Months Financial Results (Dollars 2024 2023 Change 2024 2023 Change in Millions, 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 ($5,989) ($1,089) NM ($7,769) ($1,919) NM operating loss Core (33.6) % (6.0) % NM (15.2) % (3.4) % NM operating 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 $17.8billion, 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. Third Nine Cash Flow Quarter Months (Millions) 2024 2023 2024 2023 Operating ($1,345) $22 ($8,630) $2,579 cash flow Less ($611) ($332) ($1,582) ($1,096) additions to property, plant & equipment Free cash ($1,956) ($310) ($10,212) $1,483 flow* *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. Quarter End Cash, Marketable Securities and Debt Balances (Billions) 3Q 2024 2Q 2024 Cash $10.0 $10.9 Marketable $0.5 $1.7 securities1 Total $10.5 $12.6 Consolidated $57.7 $57.9 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 $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 Airplanes Third Quarter Nine Months (Dollars in Millions) 2024 2023 Change 2024 2023 Change Deliveries 116 105 10% 291 371 (22)% Revenues $7,443 $7,876 (5)% $18,099 $23,420 (23)% Loss from operations ($4,021) ($678) NM ($5,879) ($1,676) NM Operating margins (54.0) % (8.6) % NM (32.5) % (7.2) % NM Commercial Airplanes third quarter revenue of $7.4billion 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. Third Nine Defense, Quarter Months Space & Security (Dollars 2024 2023 Change 2024 2023 Change in 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 Services Third Quarter Nine Months (Dollars in Millions) 2024 2023 Change 2024 2023 Change Revenues $4,901 $4,812 2% $14,835 $14,278 4% Earnings from operations $834 $784 6% $2,620 $2,487 5% Operating margins 17.0 % 16.3 % 0.7 pts 17.7 % 17.4 % 0.3 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. Third Nine Additional Quarter Months Financial Information (Dollars in 2024 2023 2024 2023 Millions) Revenues Unallocated ($40) ($65) ($166) ($109) items, eliminations and other Loss from operations Other ($418) ($271) ($1,364) ($1,067) unallocated items and eliminations FAS/CAS $228 $281 $832 $863 service cost adjustment Other $265 $297 $790 $919 income, net Interest and ($728) ($589) ($1,970) ($1,859) debt expense Effective 0.8 % (48.9) % 1.8 % (10.8) % tax rate 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 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. 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 (https://c212.net/c/link/?t=0&l=en&o=4284734 -1&h=2890094330&u=https%3A%2F%2Finvestors.boeing.com%2Finvestors%2Fevents -presentations%2Fevent-details%2F2024%2FQ3-2024-The-Boeing-Company-Earnings -Conference -Call%2Fdefault.aspx&a=https%3A%2F%2Finvestors.boeing.com%2Finvestors%2Fevents -presentations%2Fevent-details%2F2024%2FQ3-2024-The-Boeing-Company-Earnings -Conference-Call%2Fdefault.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: 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) Nine Three months months ended ended September September 30 30 (Dollars in 2024 2023 2024 2023 millions, except per share data) Sales of $41,326 $46,661 $14,534 $15,060 products Sales of 9,949 9,115 3,306 3,044 services Total revenues 51,275 55,776 17,840 18,104 Cost of (43,384) (43,140) (18,413) (14,464) products Cost of (8,293) (7,609) (2,934) (2,475) services Total costs (51,677) (50,749) (21,347) (16,939) and expenses (402) 5,027 (3,507) 1,165 Income/(loss) 59 45 (15) 28 from operating investments, net General and (3,623) (3,633) (1,085) (1,043) administrative expense Research and (2,976) (2,496) (1,154) (958) development expense, net Gain on 5 1 dispositions, net Loss from (6,937) (1,056) (5,761) (808) operations Other income, 790 919 265 297 net Interest and (1,970) (1,859) (728) (589) debt expense Loss before (8,117) (1,996) (6,224) (1,100) income taxes Income tax 149 (216) 50 (538) benefit/(expens e) Net loss (7,968) (2,212) (6,174) (1,638) Less: net loss (16) (13) (4) (2) attributable to noncontrolling interest Net loss ($7,952) ($2,199) ($6,170) ($1,636) attributable to Boeing Shareholders Basic loss per ($12.91) ($3.64) ($9.97) ($2.70) share Diluted loss ($12.91) ($3.64) ($9.97) ($2.70) per share Weighted 616.1 605.0 618.8 607.2 average diluted shares (millions) The Boeing Company and Subsidiaries Consolidated Statements of Financial Position (Unaudited) (Dollars in millions, except per share data) September December 31 30 2023 2024 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 321 860 equipment, net Property, plant and equipment, net of 11,236 10,661 accumulated 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 5,505 4,935 of $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 4,474 5,204 -term 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) 1,315 1,204 contribution 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 (282) 73 deferred Other long-term liabilities (228) (254) Pension and other postretirement plans (736) (785) Financing receivables and operating lease 258 472 equipment, net Other 137 99 Net cash (used)/provided by operating (8,630) 2,579 activities Cash flows - investing activities: Payments to acquire property, plant and (1,582) (1,096) equipment Proceeds from disposals of property, plant 46 19 and equipment 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 653 (5,241) activities 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 (73) (52) payment arrangements Other 15 2 Net cash provided/(used) by financing 5,238 (5,131) activities Effect of exchange rate changes on cash and 8 (22) cash equivalents Net decrease in cash & cash equivalents, (2,731) (7,815) including restricted Cash & cash equivalents, including 12,713 14,647 restricted, at beginning of year Cash & cash equivalents, including 9,982 6,832 restricted, at end of period Less restricted cash & cash equivalents, 21 21 included in Investments Cash & cash equivalents at end of period $9,961 $6,811 The Boeing Company and Subsidiaries Summary of Business Segment Data (Unaudited) Nine Three months months ended ended September September 30 30 (Dollars in 2024 2023 2024 2023 millions) Revenues: Commercial $18,099 $23,420 $7,443 $7,876 Airplanes Defense, Space 18,507 18,187 5,536 5,481 & Security Global 14,835 14,278 4,901 4,812 Services Unallocated (166) (109) (40) (65) items, eliminations and other Total revenues $51,275 $55,776 $17,840 $18,104 Loss from operations: Commercial ($5,879) ($1,676) ($4,021) ($678) Airplanes Defense, Space (3,146) (1,663) (2,384) (924) & Security Global 2,620 2,487 834 784 Services Segment (6,405) (852) (5,571) (818) operating loss Unallocated (1,364) (1,067) (418) (271) items, eliminations and other FAS/CAS 832 863 228 281 service cost adjustment Loss from (6,937) (1,056) (5,761) (808) operations Other income, 790 919 265 297 net Interest and (1,970) (1,859) (728) (589) debt expense Loss before (8,117) (1,996) (6,224) (1,100) income taxes Income tax 149 (216) 50 (538) benefit/(expens e) Net loss (7,968) (2,212) (6,174) (1,638) Less: net loss (16) (13) (4) (2) attributable to noncontrolling interest Net loss ($7,952) ($2,199) ($6,170) ($1,636) attributable to Boeing Shareholders Research and development expense, net: Commercial $1,852 $1,538 $779 $623 Airplanes Defense, Space 728 652 234 232 & Security Global 103 84 36 30 Services Other 293 222 105 73 Total research $2,976 $2,496 $1,154 $958 and development expense, net Unallocated items, eliminations and other: Share-based $118 ($33) $65 $5 plans Deferred (100) (71) (51) 25 compensation Amortization (70) (71) (24) (24) of previously capitalized interest Research and (293) (222) (105) (73) development expense, net Eliminations (1,019) (670) (303) (204) and other unallocated items Sub-total (1,364) (1,067) (418) (271) (included in Core operating loss) Pension 608 663 148 218 FAS/CAS service cost adjustment Postretirement 224 200 80 63 FAS/CAS service cost adjustment FAS/CAS 832 863 $228 $281 service cost adjustment Total ($532) ($204) ($190) $10 The Boeing Company and Subsidiaries Operating and Financial Data (Unaudited) Deliveries Nine Three months months ended ended September September 30 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 Hawk 1 1 1 1 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 706 807 items, 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 Third Third millions, Quarter Quarter except per 2024 2023 share data) $ million Per $ million Per s Share s Share Revenues $17,840 $18,104 Loss from (5,761) (808) operations (GAAP) Operating (32.3) % (4.5) % margins (GAAP) FAS/CAS service cost adjustment: Pension (148) (218) FAS/CAS service cost adjustment Postretirement (80) (63) FAS/CAS service cost adjustment FAS/CAS (228) (281) service cost adjustment Core operating ($5,989) ($1,089) loss (non -GAAP) Core operating (33.6) % (6.0) % margins (non -GAAP) Diluted loss ($9.97) ($2.70) per share (GAAP) Pension ($148) ($0.24) ($218) ($0.36) FAS/CAS service cost adjustment Postretirement (80) (0.13) (63) (0.10) FAS/CAS service cost adjustment Non-operating (123) (0.20) (134) (0.23) pension income Non-operating (18) (0.03) (15) (0.02) postretirement income Provision for 77 0.13 90 0.15 deferred income taxes on adjustments 1 Subtotal of ($292) ($0.47) ($340) ($0.56) adjustments Core loss per ($10.44) ($3.26) share (non -GAAP) Weighted 618.8 607.2 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 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 Nine Nine millions, Months Months except per 2024 2023 share data) $ million Per $ million Per s Share s Share Revenues $51,275 $55,776 Loss from (6,937) (1,056) operations (GAAP) Operating (13.5) % (1.9) % margins (GAAP) FAS/CAS service cost adjustment: Pension (608) (663) FAS/CAS service cost adjustment Postretirement (224) (200) FAS/CAS service cost adjustment FAS/CAS (832) (863) service cost adjustment Core operating ($7,769) ($1,919) loss (non -GAAP) Core operating (15.2) % (3.4) % margins (non -GAAP) Diluted loss ($12.91) ($3.64) per share (GAAP) Pension ($608) ($0.99) ($663) ($1.10) FAS/CAS service cost adjustment Postretirement (224) (0.36) (200) (0.33) FAS/CAS service cost adjustment Non-operating (368) (0.60) (402) (0.66) pension income Non-operating (55) (0.09) (44) (0.07) postretirement income Provision for 264 0.43 275 0.45 deferred income taxes on adjustments 1 Subtotal of ($991) ($1.61) ($1,034) ($1.71) adjustments Core loss per ($14.52) ($5.35) share (non -GAAP) Weighted 616.1 605.0 average diluted shares (in millions) 1 The income tax impact is calculated using the U.S. corporate statutory tax rate.  SOURCE:  Boeing This information was brought to you by Cision http://news.cision.com

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