THE BOEING COMPANY | ||||||||
(Exact name of registrant as specified in its charter) |
Delaware | 1-442 | 91-0425694 | ||||||||||||||||||
(State or other jurisdiction of incorporation or organization) |
(Commission file number) | (I.R.S. Employer Identification No.) |
929 Long Bridge Drive, Arlington, VA |
22202 | |||||||
(Address of principal executive offices) | (Zip Code) |
(703) 465-3500 | ||
(Registrant's telephone number, including area code) |
☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | ||||
☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | ||||
☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | ||||
☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Common Stock, $5.00 Par Value | BA | New York Stock Exchange |
Exhibit Number |
Description | |||||||
99.1 | ||||||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
THE BOEING COMPANY | ||||||||
(Registrant) | ||||||||
April 24, 2024 | /s/ Michael J. Cleary | |||||||
(Date) | Michael J. Cleary |
|||||||
Senior Vice President and Controller |
Table 1. Summary Financial Results | First Quarter | |||||||||||||||||||
(Dollars in Millions, except per share data) | 2024 | 2023 | Change | |||||||||||||||||
Revenues | $16,569 | $17,921 | (8)% | |||||||||||||||||
GAAP | ||||||||||||||||||||
Loss from operations |
($86) | ($149) | NM | |||||||||||||||||
Operating margins | (0.5) | % | (0.8) | % | NM | |||||||||||||||
Net loss | ($355) | ($425) | NM | |||||||||||||||||
Loss per share |
($0.56) | ($0.69) | NM | |||||||||||||||||
Operating cash flow | ($3,362) | ($318) | NM | |||||||||||||||||
Non-GAAP* | ||||||||||||||||||||
Core operating loss |
($388) | ($440) | NM | |||||||||||||||||
Core operating margins | (2.3) | % | (2.5) | % | NM | |||||||||||||||
Core loss per share | ($1.13) | ($1.27) | NM |
Table 2. Cash Flow |
First Quarter | |||||||||||||
(Millions) | 2024 | 2023 | ||||||||||||
Operating cash flow | ($3,362) | ($318) | ||||||||||||
Less additions to property, plant & equipment | ($567) | ($468) | ||||||||||||
Free cash flow* | ($3,929) | ($786) |
Table 3. Cash, Marketable Securities and Debt Balances |
Quarter End | |||||||||||||
(Billions) | Q1 24 |
Q4 23 |
||||||||||||
Cash | $6.9 | $12.7 | ||||||||||||
Marketable securities1 |
$0.6 | $3.3 | ||||||||||||
Total | $7.5 | $16.0 | ||||||||||||
Consolidated debt | $47.9 | $52.3 |
Table 4. Commercial Airplanes | First Quarter | |||||||||||||||||||
(Dollars in Millions) | 2024 | 2023 | Change | |||||||||||||||||
Deliveries | 83 | 130 | (36)% | |||||||||||||||||
Revenues | $4,653 | $6,704 | (31)% | |||||||||||||||||
Loss from operations |
($1,143) | ($615) | NM | |||||||||||||||||
Operating margins | (24.6) | % | (9.2) | % | NM |
Table 5. Defense, Space & Security |
First Quarter | |||||||||||||||||||
(Dollars in Millions) | 2024 | 2023 | Change | |||||||||||||||||
Revenues | $6,950 | $6,539 | 6% | |||||||||||||||||
Earnings/(loss) from operations |
$151 | ($212) | NM | |||||||||||||||||
Operating margins | 2.2 | % | (3.2) | % | NM |
Table 6. Global Services |
First Quarter | |||||||||||||||||||
(Dollars in Millions) | 2024 | 2023 | Change | |||||||||||||||||
Revenues | $5,045 | $4,720 | 7% | |||||||||||||||||
Earnings from operations | $916 | $847 | 8% | |||||||||||||||||
Operating margins | 18.2 | % | 17.9 | % | 0.3 pts |
Table 7. Additional Financial Information |
First Quarter | |||||||||||||
(Dollars in Millions) | 2024 | 2023 | ||||||||||||
Revenues | ||||||||||||||
Unallocated items, eliminations and other | ($79) | ($42) | ||||||||||||
Earnings/(loss) from operations | ||||||||||||||
FAS/CAS service cost adjustment | $302 | $291 | ||||||||||||
Other unallocated items and eliminations | ($312) | ($460) | ||||||||||||
Other income, net | $277 | $302 | ||||||||||||
Interest and debt expense | ($569) | ($649) | ||||||||||||
Effective tax rate | 6.1 | % | 14.3 | % |
Investor Relations: | Matt Welch or David Dufault BoeingInvestorRelations@boeing.com |
|||||||
Communications: | Michael Friedman media@boeing.com |
Three months ended March 31 | Three months ended March 31 | ||||||||||||||||||||||
(Dollars in millions, except per share data) | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||
Sales of products | $13,268 | $14,914 | $13,268 | $14,914 | |||||||||||||||||||
Sales of services | 3,301 | 3,007 | 3,301 | 3,007 | |||||||||||||||||||
Total revenues | 16,569 | 17,921 | 16,569 | 17,921 | |||||||||||||||||||
Cost of products | (12,064) | (13,553) | (12,064) | (13,553) | |||||||||||||||||||
Cost of services | (2,629) | (2,445) | (2,629) | (2,445) | |||||||||||||||||||
Total costs and expenses | (14,693) | (15,998) | (14,693) | (15,998) | |||||||||||||||||||
1,876 | 1,923 | 1,876 | 1,923 | ||||||||||||||||||||
Income/(loss) from operating investments, net | 67 | (27) | 67 | (27) | |||||||||||||||||||
General and administrative expense | (1,161) | (1,304) | (1,161) | (1,304) | |||||||||||||||||||
Research and development expense, net | (868) | (741) | (868) | (741) | |||||||||||||||||||
Loss from operations |
(86) | (149) | (86) | (149) | |||||||||||||||||||
Other income, net | 277 | 302 | 277 | 302 | |||||||||||||||||||
Interest and debt expense | (569) | (649) | (569) | (649) | |||||||||||||||||||
Loss before income taxes | (378) | (496) | (378) | (496) | |||||||||||||||||||
Income tax benefit | 23 | 71 | 23 | 71 | |||||||||||||||||||
Net loss | (355) | (425) | (355) | (425) | |||||||||||||||||||
Less: net loss attributable to noncontrolling interest | (12) | (11) | (12) | (11) | |||||||||||||||||||
Net loss attributable to Boeing Shareholders | ($343) | ($414) | ($343) | ($414) | |||||||||||||||||||
Basic loss per share | ($0.56) | ($0.69) | ($0.56) | ($0.69) | |||||||||||||||||||
Diluted loss per share | ($0.56) | ($0.69) | ($0.56) | ($0.69) | |||||||||||||||||||
Weighted average diluted shares (millions) | 613.2 | 602.5 | 613.2 | 602.5 |
(Dollars in millions, except per share data) | March 31 2024 |
December 31 2023 |
|||||||||
Assets | |||||||||||
Cash and cash equivalents | $6,914 | $12,691 | |||||||||
Short-term and other investments | 615 | 3,274 | |||||||||
Accounts receivable, net | 2,959 | 2,649 | |||||||||
Unbilled receivables, net | 9,673 | 8,317 | |||||||||
Current portion of financing receivables, net | 57 | 99 | |||||||||
Inventories | 83,471 | 79,741 | |||||||||
Other current assets, net | 2,843 | 2,504 | |||||||||
Total current assets | 106,532 | 109,275 | |||||||||
Financing receivables and operating lease equipment, net | 833 | 860 | |||||||||
Property, plant and equipment, net of accumulated depreciation of $22,414 and $22,245 |
10,696 | 10,661 | |||||||||
Goodwill | 8,089 | 8,093 | |||||||||
Acquired intangible assets, net | 2,034 | 2,094 | |||||||||
Deferred income taxes | 68 | 59 | |||||||||
Investments | 1,042 | 1,035 | |||||||||
Other assets, net of accumulated amortization of of $1,098 and $1,046 |
5,190 | 4,935 | |||||||||
Total assets | $134,484 | $137,012 | |||||||||
Liabilities and equity | |||||||||||
Accounts payable | $11,616 | $11,964 | |||||||||
Accrued liabilities | 21,607 | 22,331 | |||||||||
Advances and progress billings | 58,972 | 56,328 | |||||||||
Short-term debt and current portion of long-term debt | 1,063 | 5,204 | |||||||||
Total current liabilities | 93,258 | 95,827 | |||||||||
Deferred income taxes | 223 | 229 | |||||||||
Accrued retiree health care | 2,196 | 2,233 | |||||||||
Accrued pension plan liability, net | 6,400 | 6,516 | |||||||||
Other long-term liabilities | 2,546 | 2,332 | |||||||||
Long-term debt | 46,877 | 47,103 | |||||||||
Total liabilities | 151,500 | 154,240 | |||||||||
Shareholders’ equity: | |||||||||||
Common stock, par value $5.00 – 1,200,000,000 shares authorized; 1,012,261,159 shares issued |
5,061 | 5,061 | |||||||||
Additional paid-in capital | 10,539 | 10,309 | |||||||||
Treasury stock, at cost - 398,878,880 and 402,746,136 shares |
(49,105) | (49,549) | |||||||||
Retained earnings | 26,908 | 27,251 | |||||||||
Accumulated other comprehensive loss | (10,412) | (10,305) | |||||||||
Total shareholders’ deficit | (17,009) | (17,233) | |||||||||
Noncontrolling interests | (7) | 5 | |||||||||
Total equity | (17,016) | (17,228) | |||||||||
Total liabilities and equity | $134,484 | $137,012 |
Three months ended March 31 | |||||||||||
(Dollars in millions) | 2024 | 2023 | |||||||||
Cash flows – operating activities: | |||||||||||
Net loss | ($355) | ($425) | |||||||||
Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||||||
Non-cash items – | |||||||||||
Share-based plans expense | 119 | 222 | |||||||||
Treasury shares issued for 401(k) contribution | 606 | 553 | |||||||||
Depreciation and amortization | 442 | 457 | |||||||||
Investment/asset impairment charges, net | 21 | 11 | |||||||||
Other charges and credits, net | 10 | 33 | |||||||||
Changes in assets and liabilities – | |||||||||||
Accounts receivable | (328) | (341) | |||||||||
Unbilled receivables | (1,357) | (1,055) | |||||||||
Advances and progress billings | 2,718 | 1,417 | |||||||||
Inventories | (3,778) | (390) | |||||||||
Other current assets | (249) | 82 | |||||||||
Accounts payable | (264) | 231 | |||||||||
Accrued liabilities | (666) | (769) | |||||||||
Income taxes receivable, payable and deferred | (59) | (122) | |||||||||
Other long-term liabilities | (83) | (117) | |||||||||
Pension and other postretirement plans | (261) | (244) | |||||||||
Financing receivables and operating lease equipment, net | 79 | 101 | |||||||||
Other | 43 | 38 | |||||||||
Net cash used by operating activities |
(3,362) | (318) | |||||||||
Cash flows – investing activities: | |||||||||||
Payments to acquire property, plant and equipment | (567) | (468) | |||||||||
Proceeds from disposals of property, plant and equipment | 11 | 5 | |||||||||
Contributions to investments | (243) | (3,561) | |||||||||
Proceeds from investments | 2,907 | 2,203 | |||||||||
Other | (34) | (2) | |||||||||
Net cash provided/(used) by investing activities |
2,074 | (1,823) | |||||||||
Cash flows – financing activities: | |||||||||||
New borrowings | 27 | 17 | |||||||||
Debt repayments | (4,442) | (1,699) | |||||||||
Stock options exercised | 44 | ||||||||||
Employee taxes on certain share-based payment arrangements | (65) | (42) | |||||||||
Other | 18 | ||||||||||
Net cash used by financing activities | (4,462) | (1,680) | |||||||||
Effect of exchange rate changes on cash and cash equivalents | (28) | 10 | |||||||||
Net decrease in cash & cash equivalents, including restricted |
(5,778) | (3,811) | |||||||||
Cash & cash equivalents, including restricted, at beginning of year | 12,713 | 14,647 | |||||||||
Cash & cash equivalents, including restricted, at end of period | 6,935 | 10,836 | |||||||||
Less restricted cash & cash equivalents, included in Investments | 21 | 24 | |||||||||
Cash & cash equivalents at end of period | $6,914 | $10,812 |
Three months ended March 31 | |||||||||||
(Dollars in millions) | 2024 | 2023 | |||||||||
Revenues: | |||||||||||
Commercial Airplanes | $4,653 | $6,704 | |||||||||
Defense, Space & Security | 6,950 | 6,539 | |||||||||
Global Services | 5,045 | 4,720 | |||||||||
Unallocated items, eliminations and other | (79) | (42) | |||||||||
Total revenues | $16,569 | $17,921 | |||||||||
Loss from operations: | |||||||||||
Commercial Airplanes | ($1,143) | ($615) | |||||||||
Defense, Space & Security | 151 | (212) | |||||||||
Global Services | 916 | 847 | |||||||||
Segment operating (loss)/earnings |
(76) | 20 | |||||||||
Unallocated items, eliminations and other | (312) | (460) | |||||||||
FAS/CAS service cost adjustment | 302 | 291 | |||||||||
Loss from operations |
(86) | (149) | |||||||||
Other income, net | 277 | 302 | |||||||||
Interest and debt expense | (569) | (649) | |||||||||
Loss before income taxes | (378) | (496) | |||||||||
Income tax expense |
23 | 71 | |||||||||
Net loss | (355) | (425) | |||||||||
Less: net loss attributable to noncontrolling interest | (12) | (11) | |||||||||
Net loss attributable to Boeing Shareholders | ($343) | ($414) | |||||||||
Research and development expense, net: | |||||||||||
Commercial Airplanes | $518 | $444 | |||||||||
Defense, Space & Security | 235 | 195 | |||||||||
Global Services | 26 | 26 | |||||||||
Other | 89 | 76 | |||||||||
Total research and development expense, net | $868 | $741 | |||||||||
Unallocated items, eliminations and other: | |||||||||||
Share-based plans | $10 | ($52) | |||||||||
Deferred compensation | (30) | (54) | |||||||||
Amortization of previously capitalized interest | (23) | (23) | |||||||||
Research and development expense, net | (89) | (76) | |||||||||
Eliminations and other unallocated items | (180) | (255) | |||||||||
Sub-total (included in Core operating loss) |
(312) | (460) | |||||||||
Pension FAS/CAS service cost adjustment | 230 | 223 | |||||||||
Postretirement FAS/CAS service cost adjustment | 72 | 68 | |||||||||
FAS/CAS service cost adjustment | 302 | 291 | |||||||||
Total | ($10) | ($169) |
Deliveries | Three months ended March 31 | |||||||||||||
Commercial Airplanes | 2024 | 2023 | ||||||||||||
737 | 67 | 113 | ||||||||||||
747 | — | 1 | ||||||||||||
767 | 3 | 1 | ||||||||||||
777 | — | 4 | ||||||||||||
787 | 13 | 11 | ||||||||||||
Total | 83 | 130 | ||||||||||||
Defense, Space & Security | ||||||||||||||
AH-64 Apache (New) | — | 7 | ||||||||||||
AH-64 Apache (Remanufactured) | 6 | 13 | ||||||||||||
CH-47 Chinook (New) | 1 | 5 | ||||||||||||
CH-47 Chinook (Renewed) | 1 | 1 | ||||||||||||
F-15 Models | 1 | 2 | ||||||||||||
F/A-18 Models | 1 | 7 | ||||||||||||
KC-46 Tanker | 3 | 1 | ||||||||||||
P-8 Models | 1 | 3 | ||||||||||||
Commercial Satellites |
— | 3 | ||||||||||||
Total1 |
14 | 42 | ||||||||||||
Total backlog (Dollars in millions) |
March 31 2024 |
December 31 2023 |
||||||||||||
Commercial Airplanes | $447,533 | $440,507 | ||||||||||||
Defense, Space & Security | 60,744 | 59,012 | ||||||||||||
Global Services | 19,693 | 19,869 | ||||||||||||
Unallocated items, eliminations and other | 779 | 807 | ||||||||||||
Total backlog | $528,749 | $520,195 | ||||||||||||
Contractual backlog | $505,918 | $497,094 | ||||||||||||
Unobligated backlog | 22,831 | 23,101 | ||||||||||||
Total backlog | $528,749 | $520,195 | ||||||||||||
(Dollars in millions, except per share data) | First Quarter 2024 | First Quarter 2023 | ||||||||||||||||||
$ millions | Per Share | $ millions | Per Share | |||||||||||||||||
Revenues | 16,569 | 17,921 | ||||||||||||||||||
Loss from operations (GAAP) |
(86) | (149) | ||||||||||||||||||
Operating margins (GAAP) | (0.5) | % | (0.8) | % | ||||||||||||||||
FAS/CAS service cost adjustment: | ||||||||||||||||||||
Pension FAS/CAS service cost adjustment | (230) | (223) | ||||||||||||||||||
Postretirement FAS/CAS service cost adjustment | (72) | (68) | ||||||||||||||||||
FAS/CAS service cost adjustment | (302) | (291) | ||||||||||||||||||
Core operating loss (non-GAAP) |
($388) | ($440) | ||||||||||||||||||
Core operating margins (non-GAAP) | (2.3) | % | (2.5) | % | ||||||||||||||||
Diluted loss per share (GAAP) | ($0.56) | ($0.69) | ||||||||||||||||||
Pension FAS/CAS service cost adjustment | ($230) | (0.37) | ($223) | (0.37) | ||||||||||||||||
Postretirement FAS/CAS service cost adjustment | (72) | (0.12) | (68) | (0.11) | ||||||||||||||||
Non-operating pension expense | (123) | (0.20) | (134) | (0.23) | ||||||||||||||||
Non-operating postretirement expense | (18) | (0.03) | (15) | (0.02) | ||||||||||||||||
Provision for deferred income taxes on adjustments 1 |
93 | 0.15 | 92 | 0.15 | ||||||||||||||||
Subtotal of adjustments | ($350) | ($0.57) | ($348) | ($0.58) | ||||||||||||||||
Core loss per share (non-GAAP) | ($1.13) | ($1.27) | ||||||||||||||||||
Weighted average diluted shares (in millions) | 613.2 | 602.5 |