Boeing Reports Record 2014 Revenue, Core EPS and Backlog and Provides 2015 Guidance

Fourth-Quarter 2014

Core EPS (non-GAAP) rose 23 percent* to $2.31 on strong operating performance; GAAP EPS of $2.02

Operating cash flow increased to $5.0 billion on higher deliveries and timing of receipts and expenditures

Full Year 2014

Core EPS increased 22 percent* to a record $8.60 on record revenue of $90.8 billion; GAAP EPS of $7.38

Solid operating cash flow of $8.9 billion; strong liquidity of $13.1 billion in cash and marketable securities

Backlog grew to a record $502 billion, including a record $152 billion of net orders during the year

Outlook for 2015

2015 Core EPS guidance of between $8.20 and $8.40; GAAP EPS guidance of between $8.10 and $8.30

Revenue guidance of between $94.5 and $96.5 billion with commercial deliveries of between 750 and 755

Operating cash flow guidance of greater than $9.0 billion

Jan 28, 2015, 07:30 ET from Boeing

CHICAGO, Jan. 28, 2015 /PRNewswire/ --
























Table 1. Summary Financial Results


Fourth Quarter




Full Year



(Dollars in Millions, except per share data)


2014


2013


Change


2014


2013


Change














Revenues



$24,468




$23,785



3%



$90,762




$86,623



5%















Non-GAAP*













Core Operating Earnings



$2,344




$1,838



28%



$8,860




$7,876



12%


Core Operating Margin


9.6%



7.7%



1.9 Pts


9.8%



9.1%



0.7 Pts


Core Earnings Per Share



$2.31




$1.88



23%



$8.60




$7.07



22%


Operating Cash Flow Before Pension Contributions



$5,032




$1,409



257%



$9,642




$9,721



(1)%


GAAP













Earnings From Operations



$2,025




$1,515



34%



$7,473




$6,562



14%


Operating Margin


8.3%



6.4%



1.9 Pts


8.2%



7.6%



0.6 Pts


Net Earnings



$1,466




$1,233



19%



$5,446




$4,585



19%


Earnings Per Share



$2.02




$1.61



25%



$7.38




$5.96



24%


Operating Cash Flow



$4,998




$1,380



262%



$8,858




$8,179



8%


* Non-GAAP measures. Complete definitions of Boeing's non-GAAP measures are on page 7, "Non-GAAP Measures Disclosures."

The Boeing Company [NYSE: BA] reported record fourth-quarter revenue of $24.5 billion on higher deliveries (Table 1) and core earnings per share (non-GAAP) that increased 23 percent* to $2.31, reflecting strong performance across the company. Fourth-quarter 2014 core operating earnings (non-GAAP)* increased to $2.3 billion and GAAP earnings from operations increased to $2.0 billion. Fourth-quarter 2013 results included a $406 million non-cash charge ($0.34 per share) related to the A-12 settlement.

Revenue rose 5 percent in the full year to a record $90.8 billion and core earnings per share (non-GAAP) increased 22 percent* to $8.60 on record deliveries. Full-year 2014 GAAP earnings per share was $7.38.

Core earnings per share guidance for 2015 is set at between $8.20 and $8.40, while GAAP earnings per share guidance is established at between $8.10 and $8.30. Revenue guidance is between $94.5 and $96.5 billion, including commercial deliveries of between 750 and 755. Operating cash flow is expected to be greater than $9.0 billion.

"Strong operating performance in the final quarter of 2014 propelled us to some of our best-ever results and sealed a fifth consecutive year of core operating earnings growth. By responding to strong demand with market-leading and proven products and capabilities, and delivering them more efficiently, we are strengthening a powerful business platform that is providing increased returns for our shareholders," said Boeing Chairman and Chief Executive Officer Jim McNerney.

"Our Commercial Airplanes business successfully increased production rates and set an industry record for annual deliveries while also growing its backlog to new highs on record new orders for the year. Our Defense, Space & Security team navigated a challenging market environment to achieve solid revenue and healthy margins while also winning significant new contracts," said McNerney.

"For 2015, we will continue to build on our commercial airplanes market leadership, strengthening and repositioning our defense, space and security business and working to better meet the needs of our customers by focusing on improving productivity, executing to development plans and delivering our industry-leading portfolio of innovative aerospace products and services."



















Table 2. Cash Flow


Fourth Quarter


Full Year

(Millions)


2014


2013


2014


2013

Operating Cash Flow Before Pension Contributions*



$5,032




$1,409




$9,642




$9,721


    Pension Contributions



($34)




($29)




($784)




($1,542)


Operating Cash Flow



$4,998




$1,380




$8,858




$8,179


Less Additions to Property, Plant & Equipment



($668)




($638)




($2,236)




($2,098)


Free Cash Flow*



$4,330




$742




$6,622




$6,081


Operating cash flow in the quarter was $5.0 billion, reflecting commercial airplane production rates, strong operating performance and timing of receipts and expenditures (Table 2). During the quarter, the company repurchased 7.8 million shares for $1 billion and paid $0.5 billion in dividends. Based on the strong cash generation and outlook, in December, the board of directors increased the share repurchase authorization to a total of $12 billion, replacing the authorization approved in 2013 of which approximately $4.8 billion was remaining, and raised the quarterly dividend 25 percent. Share repurchases are expected to be made over the next two to three years.











Table 3. Cash, Marketable Securities and Debt Balances


Quarter-End

(Billions)


Q4 14


Q3 14

Cash



$11.7




$6.7


Marketable Securities1



$1.4




$3.4


Total



$13.1




$10.1


Debt Balances:





The Boeing Company, net of intercompany loans to BCC



$6.7




$6.4


Boeing Capital, including intercompany loans



$2.4




$2.5


Total Consolidated Debt



$9.1




$8.9


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

Cash and investments in marketable securities totaled $13.1 billion at quarter-end (Table 3), up from $10.1 billion at the beginning of the quarter. Debt was $9.1 billion, up from $8.9 billion at the beginning of the quarter, primarily due to the issuance of new debt.

Total company backlog at quarter-end was a record $502 billion, up from $490 billion at the beginning of the quarter, and included net orders for the quarter of $37 billion. Backlog is up $61 billion from prior year-end, reflecting $152 billion of net orders in 2014.

Segment Results

Commercial Airplanes
























Table 4. Commercial Airplanes


Fourth Quarter




Full Year



(Dollars in Millions)


2014


2013


Change


2014


2013


Change














Commercial Airplanes Deliveries


195



172



13%



723



648



12%















Revenues



$16,839




$14,680



15%




$59,990




$52,981



13%


Earnings from Operations



$1,562




$1,506



4%




$6,411




$5,795



11 %


Operating Margin


9.3%



10.3%



(1.0) Pts



10.7%



10.9%



(0.2) Pts


Commercial Airplanes fourth-quarter revenue increased 15 percent to a record $16.8 billion on higher delivery volume and mix. Fourth-quarter operating margin was 9.3 percent, reflecting higher planned period costs and the dilutive impact of 787 deliveries partially offset by the delivery volume (Table 4).

During the quarter, the company began production on the fuselage stringers of the first 737 MAX airplane. The 737 program has won over 2,600 firm orders for the 737 MAX since launch. Also during the quarter, the company began final assembly of the 787-9 Dreamliner at the South Carolina facility and broke ground on the 777X composite centers in Everett and St. Louis.

Commercial Airplanes booked 432 net orders during the quarter with a record 1,432 orders in 2014. Backlog remains strong with nearly 5,800 airplanes valued at a record $440 billion.

Defense, Space & Security























Table 5. Defense, Space & Security

Fourth Quarter




Full Year



(Dollars in Millions)

2014


2013


Change


2014


2013


Change

Revenues1












Boeing Military Aircraft


$2,993




$4,226



(29)%




$13,511




$15,285



(12)%


Network & Space Systems


$2,180




$2,272



(4)%




$8,003




$8,512



(6)%


Global Services & Support


$2,415




$2,357



2%




$9,367




$9,400



0%


Total BDS Revenues


$7,588




$8,855



(14)%




$30,881




$33,197



(7)%


Earnings from Operations1












Boeing Military Aircraft


$367




$446



(18)%




$1,304




$1,504



(13)%


Network & Space Systems


$191




$233



(18)%




$698




$719



(3)%


Global Services & Support


$359




$275



31%




$1,131




$1,012



12%


Total BDS Earnings from Operations


$917




$954



(4)%




$3,133




$3,235



(3)%


Operating Margin

12.1%



10.8%



1.3 Pts



10.1%



9.7%



0.4 Pts


1 During the first quarter of 2014, certain programs were realigned between Boeing Military Aircraft and Global Services & Support.

Defense, Space & Security's fourth-quarter revenue was $7.6 billion with an operating margin of 12.1 percent (Table 5).

Boeing Military Aircraft (BMA) fourth-quarter revenue was $3.0 billion, reflecting lower planned F-15 and C-17 deliveries. Operating margin increased to 12.3 percent, reflecting strong operating performance. During the quarter, BMA completed the first flight of the 767-2C test aircraft for the KC-46 tanker program and Congress approved funding for 15 EA-18G Growlers.

Network & Space Systems (N&SS) fourth-quarter revenue was $2.2 billion, reflecting lower government satellite volume, and operating margin was 8.8 percent. During the quarter, N&SS completed the first two all-electric propulsion 702SP satellites.

Global Services & Support (GS&S) fourth-quarter revenue increased to $2.4 billion on higher volume in maintenance, modification and upgrades (MM&U). Operating margin increased to 14.9 percent reflecting strong operating performance across the segment and mix within MM&U. During the quarter, GS&S was awarded a 25-year order from the Australian government to train navy and army rotary wing aircrew.

Backlog at Defense, Space & Security was $62 billion, of which 36 percent represents orders with international customers.

Additional Financial Information


















Table 6. Additional Financial Information


Fourth Quarter


Full Year

(Dollars in Millions)


2014


2013


2014


2013

Revenues









Boeing Capital



$153




$105




$416




$408


Unallocated items, eliminations and other



($112)




$145




($525)




$37


Earnings from Operations









Boeing Capital



$26




$9




$92




$107


    Unallocated items, eliminations and other excluding unallocated pension/postretirement



($161)




($631)




($776)




($1,261)


    Unallocated pension/postretirement



($319)




($323)




($1,387)




($1,314)


Other (loss)/income, net



($14)




$15




($3)




$56


Interest and debt expense



($81)




($96)




($333)




($386)


Effective tax rate


24.0%



14.0%



23.7%



26.4%


At quarter-end, Boeing Capital's net portfolio balance was $3.5 billion. Unallocated items, eliminations and other fourth-quarter revenue decreased from the same period in the prior year due to the timing of eliminations for intercompany aircraft deliveries (Table 6).

Unallocated items, eliminations and other excluding unallocated pension/postretirement in the fourth quarter of 2013 included a $406 million charge associated with the A-12 settlement. Total pension expense for the fourth quarter was $772 million, up from $717 million in the same period of the prior year. The company's income tax expense was $464 million in the quarter, compared to $201 million in the same period of the prior year primarily due to higher earnings. Fourth-quarter 2014 results include the full year 2014 U.S. research and development tax credit of $188 million; fourth-quarter 2013 results include a $212 million benefit for a tax regulation change.

Outlook

The company's 2015 financial guidance (Table 7) reflects continued strong performance across the company.




Table 7. 2015 Financial Outlook


(Dollars in Billions, except per share data)

2015



The Boeing Company


  Revenue

$94.5 - 96.5

        Core Earnings Per Share*

$8.20 - 8.40

  GAAP Earnings Per Share

$8.10 - 8.30

Operating Cash Flow

> $9



Commercial Airplanes


Deliveries

750 - 755

  Revenue

$64.5 - 65.5

  Operating Margin

9.5% - 10.0%



Defense, Space & Security (revised for business realignment)


Revenue


Boeing Military Aircraft

~$12.5

Network & Space Systems

~$8.0

Global Services & Support

~$9.5



Total BDS Revenue

$29.5 - 30.5



Operating Margin


Boeing Military Aircraft

~9.5%

Network & Space Systems

~9.0%

Global Services & Support

~11.0%



Total BDS Operating Margin

9.75% - 10.0%



Boeing Capital


Portfolio Size

Stable

Revenue

~$0.3

Pre-Tax Earnings

~$0.05



Research & Development

~ $3.5

Capital Expenditures

~ $2.8

Pension Expense 1

~ $2.1

Effective Tax Rate 2

~ 30.5%

1 Approximately $0.3 billion is expected to be recorded in unallocated items and eliminations

2 Assumes the extension of the research and development tax credit

* Non-GAAP measures. Complete definitions of Boeing's non-GAAP measures are on page 7, "Non-GAAP Measures Disclosures."

 

Non-GAAP Measures Disclosures

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

Core Operating Earnings, Core Operating Margin and Core Earnings Per Share

Core operating earnings is defined as GAAP earnings from operations excluding unallocated pension and post-retirement expense. Core operating margin is defined as core operating earnings expressed as a percentage of revenue. Core earnings per share is defined as GAAP diluted earnings per share excluding the net earnings per share impact of unallocated pension and post-retirement expense. Unallocated pension and post-retirement expense represents the portion of pension and other post-retirement costs that are not recognized by business segments for segment reporting purposes. Management uses core operating earnings, core operating margin and core earnings per share for purposes of evaluating and forecasting underlying business performance. Management believes these core earnings measures provide investors additional insights into operational performance as they exclude unallocated pension and post-retirement costs, which primarily represent costs driven by market factors and costs not allocable to government contracts. A reconciliation between the GAAP and non-GAAP measures is provided on page 14.

Operating Cash Flow Before Pension Contributions

Operating cash flow before pension contributions is defined as GAAP operating cash flow without pension contributions. Management believes operating cash flow before pension contributions provides additional insights into underlying business performance. Management uses operating cash flow before pension contributions as a measure to assess both business performance and overall liquidity. Table 2 provides a reconciliation between GAAP operating cash flow and operating cash flow before pension contributions.

Free Cash Flow

Free cash flow is defined as GAAP operating cash flow without capital expenditures for property, plant and equipment additions. Management believes free cash flow provides investors with an important perspective on the cash available for shareholders, debt repayment, and acquisitions after making the capital investments required to support ongoing business operations and long term value creation. Free cash flow does not represent the residual cash flow available for discretionary expenditures as it excludes certain mandatory expenditures such as repayment of maturing debt. Management uses free cash flow as a measure to assess both business performance and overall liquidity. Table 2 provides a reconciliation between GAAP operating cash flow and free cash flow.

Caution Concerning Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "may," "should," "expects," "intends," "projects," "plans," "believes," "estimates," "targets," "anticipates," and similar expressions are used to identify these forward-looking statements. Examples of forward-looking statements include statements relating to our future financial condition and operating results, as well as any other statement that does not directly relate to any historical or current fact. Forward-looking statements are based on our current expectations and assumptions, which may not prove to be accurate. These statements are not guarantees and are subject to risks, uncertainties, and changes in circumstances that are difficult to predict. Many factors could cause actual results to differ materially and adversely from these forward-looking statements. Among these factors are risks related to: (1) general conditions in the economy and our industry, including those due to regulatory changes; (2) our reliance on our commercial airline customers; (3) the overall health of our aircraft production system, planned production rate increases across multiple commercial airline programs, our commercial development and derivative aircraft programs, and our aircraft being subject to stringent performance and reliability standards; (4) changing budget and appropriation levels and acquisition priorities of the U.S. government; (5) our dependence on U.S. government contracts; (6) our reliance on fixed-price contracts; (7) our reliance on cost-type contracts; (8) uncertainties concerning contracts that include in-orbit incentive payments; (9) our dependence on our subcontractors and suppliers, as well as the availability of raw materials, (10) changes in accounting estimates; (11) changes in the competitive landscape in our markets; (12) our non-U.S. operations, including sales to non-U.S. customers; (13) potential adverse developments in new or pending litigation and/or government investigations; (14) customer and aircraft concentration in Boeing Capital's customer financing portfolio; (15) changes in our ability to obtain debt on commercially reasonable terms and at competitive rates in order to fund our operations and contractual commitments; (16) realizing the anticipated benefits of mergers, acquisitions, joint ventures/strategic alliances or divestitures; (17) the adequacy of our insurance coverage to cover significant risk exposures; (18) potential business disruptions, including those related to physical security threats, information technology or cyber-attacks or natural disasters; (19) work stoppages or other labor disruptions; (20) significant changes in discount rates and actual investment return on pension assets; (21) potential environmental liabilities; and (22) threats to the security of our or our customers' information.

Additional information concerning these and other factors can be found in our filings with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Any forward-looking statement speaks only as of the date on which it is made, and we assume no obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise, except as required by law.

Contact:




Investor Relations:


Troy Lahr or Rob Martin (312) 544-2140

Communications:


Chaz Bickers (312) 544-2002

 

 

The Boeing Company and Subsidiaries
Consolidated Statements of Operations
(Unaudited)


















Twelve months ended December 31


Three months ended December 31

(Dollars in millions, except per share data)

2014



2013



2014



2013


Sales of products


$80,688




$76,792




$21,768




$21,482


Sales of services

10,074



9,831



2,700



2,303


Total revenues

90,762



86,623



24,468



23,785










Cost of products

(68,551)



(65,640)



(18,528)



(18,610)


Cost of services

(8,132)



(7,553)



(2,167)



(1,758)


Boeing Capital interest expense

(69)



(75)



(16)



(20)


Total costs and expenses

(76,752)



(73,268)



(20,711)



(20,388)



14,010



13,355



3,757



3,397


Income from operating investments, net

287



214



75



67


General and administrative expense

(3,767)



(3,956)



(1,040)



(1,100)


Research and development expense, net

(3,047)



(3,071)



(755)



(848)


(Loss)/gain on dispositions, net

(10)



20



(12)



(1)


Earnings from operations

7,473



6,562



2,025



1,515


Other (loss)/income, net

(3)



56



(14)



15


Interest and debt expense

(333)



(386)



(81)



(96)


Earnings before income taxes

7,137



6,232



1,930



1,434


Income tax expense

(1,691)



(1,646)



(464)



(201)


Net earnings from continuing operations

5,446



4,586



1,466



1,233


Net loss on disposal of discontinued operations, net of taxes of $0, $0, $0 and $0




(1)








Net earnings


$5,446




$4,585




$1,466




$1,233


Basic earnings per share from continuing operations


$7.47




$6.03




$2.05




$1.63


Net loss on disposal of discontinued operations, net of taxes








Basic earnings per share


$7.47




$6.03




$2.05




$1.63


Diluted earnings per share from continuing operations


$7.38




$5.96




$2.02




$1.61


Net loss on disposal of discontinued operations, net of taxes








Diluted earnings per share


$7.38




$5.96




$2.02




$1.61


Cash dividends paid per share


$2.92




$1.94




$0.73




$0.485


Weighted average diluted shares (millions)

738.0



769.5



724.8



768.4


 

 

The Boeing Company and Subsidiaries
Consolidated Statements of Financial Position
(Unaudited)









(Dollars in millions, except per share data)

December 31 2014



December 31 2013


Assets




Cash and cash equivalents


$11,733




$9,088


Short-term and other investments

1,359



6,170


Accounts receivable, net

7,729



6,546


Current portion of customer financing, net

190



344


Deferred income taxes

18



14


Inventories, net of advances and progress billings

46,756



42,912


Total current assets

67,785



65,074


Customer financing, net

3,371



3,627


Property, plant and equipment, net of accumulated depreciation of $15,689 and $15,070

11,007



10,224


Goodwill

5,119



5,043


Acquired intangible assets, net

2,869



3,052


Deferred income taxes

6,576



2,939


Investments

1,154



1,204


Other assets, net of accumulated amortization of $479 and $448

1,317



1,500


Total assets


$99,198




$92,663


Liabilities and equity




Accounts payable


$10,667




$9,498


Accrued liabilities

13,343



14,131


Advances and billings in excess of related costs

23,175



20,027


Deferred income taxes and income taxes payable

8,603



6,267


Short-term debt and current portion of long-term debt

929



1,563


Total current liabilities

56,717



51,486


Accrued retiree health care

6,802



6,528


Accrued pension plan liability, net

17,182



10,474


Non-current income taxes payable

358



156


Other long-term liabilities

1,208



950


Long-term debt

8,141



8,072


Shareholders' equity:




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

5,061



5,061


Additional paid-in capital

4,625



4,415


Treasury stock, at cost – 305,533,606 and 264,882,461 shares

(23,298)



(17,671)


Retained earnings

36,180



32,964


Accumulated other comprehensive loss

(13,903)



(9,894)


Total shareholders' equity

8,665



14,875


Noncontrolling interests

125



122


Total equity

8,790



14,997


Total liabilities and equity


$99,198




$92,663


 

 

The Boeing Company and Subsidiaries
Consolidated Statements of Cash Flows
(Unaudited)










Twelve months ended December 31

(Dollars in millions)

2014



2013


Cash flows – operating activities:




Net earnings


$5,446




$4,585


Adjustments to reconcile net earnings to net cash provided by operating activities:




Non-cash items –




Share-based plans expense

195



206


Depreciation and amortization

1,906



1,844


Investment/asset impairment charges, net

229



96


Customer financing valuation benefit

(28)



(11)


Loss on disposal of discontinued operations




1


Loss/(gain) on dispositions, net

10



(20)


Other charges and credits, net

317



528


Excess tax benefits from share-based payment arrangements

(114)



(128)


Changes in assets and liabilities –




Accounts receivable

(1,328)



(879)


Inventories, net of advances and progress billings

(4,330)



(5,562)


Accounts payable

1,339



(298)


Accrued liabilities

(1,088)



883


Advances and billings in excess of related costs

3,145



3,353


Income taxes receivable, payable and deferred

1,325



1,445


Other long-term liabilities

36



2


Pension and other postretirement plans

1,186



1,720


Customer financing, net

578



391


Other

34



23


Net cash provided by operating activities

8,858



8,179


Cash flows – investing activities:




Property, plant and equipment additions

(2,236)



(2,098)


Property, plant and equipment reductions

34



51


Acquisitions, net of cash acquired

(163)



(26)


Contributions to investments

(8,617)



(15,394)


Proceeds from investments

13,416



12,453


Purchase of distribution rights




(140)


Other

33





Net cash provided/(used) by investing activities

2,467



(5,154)


Cash flows – financing activities:




New borrowings

962



571


Debt repayments

(1,601)



(1,434)


Payments to noncontrolling interests

(12)





Repayments of distribution rights and other asset financing

(185)



(280)


Stock options exercised, other

343



1,097


Excess tax benefits from share-based payment arrangements

114



128


Employee taxes on certain share-based payment arrangements

(98)



(63)


Common shares repurchased

(6,001)



(2,801)


Dividends paid

(2,115)



(1,467)


Net cash used by financing activities

(8,593)



(4,249)


Effect of exchange rate changes on cash and cash equivalents

(87)



(29)


Net increase/(decrease) in cash and cash equivalents

2,645



(1,253)


Cash and cash equivalents at beginning of year

9,088



10,341


Cash and cash equivalents at end of period


$11,733




$9,088


 

 

The Boeing Company and Subsidiaries
Summary of Business Segment Data
(Unaudited)


















Twelve months ended December 31


Three months ended December 31

(Dollars in millions)

2014



2013



2014



2013


Revenues:








Commercial Airplanes


$59,990




$52,981




$16,839




$14,680


Defense, Space & Security:








Boeing Military Aircraft

13,511



15,285



2,993



4,226


Network & Space Systems

8,003



8,512



2,180



2,272


Global Services & Support

9,367



9,400



2,415



2,357


Total Defense, Space & Security

30,881



33,197



7,588



8,855


Boeing Capital

416



408



153



105


Unallocated items, eliminations and other

(525)



37



(112)



145


Total revenues


$90,762




$86,623




$24,468




$23,785


Earnings from operations:








Commercial Airplanes


$6,411




$5,795




$1,562




$1,506


Defense, Space & Security:








Boeing Military Aircraft

1,304



1,504



367



446


Network & Space Systems

698



719



191



233


Global Services & Support

1,131



1,012



359



275


Total Defense, Space & Security

3,133



3,235



917



954


Boeing Capital

92



107



26



9


Unallocated items, eliminations and other

(2,163)



(2,575)



(480)



(954)


Earnings from operations

7,473



6,562



2,025



1,515


Other (loss)/income, net

(3)



56



(14)



15


Interest and debt expense

(333)



(386)



(81)



(96)


Earnings before income taxes

7,137



6,232



1,930



1,434


Income tax expense

(1,691)



(1,646)



(464)



(201)


Net earnings from continuing operations

5,446



4,586



1,466



1,233


Net loss on disposal of discontinued operations, net of taxes of $0, $0, and $0 and $0



(1)







Net earnings


$5,446




$4,585




$1,466




$1,233










Research and development expense, net:








Commercial Airplanes


$1,881




$1,807




$459




$510


Defense, Space & Security

1,158



1,215



292



323


Other

8



49



4



15


Total research and development expense, net


$3,047




$3,071




$755




$848










Unallocated items, eliminations and other:








Share-based plans


($67)




($95)




($1)




($21)


Deferred compensation

(44)



(238)



(22)



(73)


Amortization of previously capitalized interest

(72)



(69)



(17)



(17)


Eliminations and other unallocated items

(593)



(859)



(121)



(520)


   Sub-total (included in core operating earnings)

(776)



(1,261)



(161)



(631)


Pension

(1,469)



(1,374)



(334)



(329)


Postretirement

82



60



15



6


Total unallocated items, eliminations and other


($2,163)




($2,575)




($480)




($954)


 

 

The Boeing Company and Subsidiaries
Operating and Financial Data
(Unaudited)















Deliveries


Twelve months ended December 31


Three months ended December 31

Commercial Airplanes


2014



2013



2014



2013



737


485



440



126



110



747


19


(3)

24



7


(1)

8



767


6



21



3



4



777


99



98



24



25



787


114



65


(1)

35



25



Total


723



648



195



172



Note: Deliveries under operating lease are identified by parentheses.















Defense, Space & Security










Boeing Military Aircraft










F/A-18 Models


44



48



8



12



F-15 Models


14



14



4



11



C-17 Globemaster III


7



10






2



CH-47 Chinook


54



44



8



12



AH-64 Apache


45



37



15



6



P-8 Models


11



11



5



4













Global Services & Support










AEW&C


3












C-40A


1






1
















Network & Space Systems










Commercial and Civil Satellites


5



3



2



2



Military Satellites




4





3



























Contractual backlog (Dollars in billions)


December 31
2014



September 30
2014



December 31
2013


   Commercial Airplanes



$440.1




$429.6




$373.0


   Defense, Space & Security:







      Boeing Military Aircraft


21.1



21.2



23.6


      Network & Space Systems


8.9



8.8



9.8


      Global Services & Support


16.9



15.5



16.2


   Total Defense, Space & Security


46.9



45.5



49.6


Total contractual backlog



$487.0




$475.1




$422.6


Unobligated backlog



$15.3




$14.9




$18.3


Total backlog



$502.3




$490.0




$440.9


Workforce


165,500



168,000



168,400
























 

The Boeing Company and Subsidiaries
Reconciliation of Non-GAAP Measures
Core Operating Earnings, Core Operating Margin and Core Earnings Per Share
(Unaudited)


The tables provided below reconcile the non-GAAP financial measures core operating earnings, core operating margin and core earnings per share with the most directly comparable GAAP financial measures, earnings from operations, operating margin and diluted earnings per share. See page 7 of this release for additional information on the use of these non-GAAP financial measures.























Fourth Quarter


Full Year


Guidance


2014


2013


2014


2013


2015

Revenues


$24,468




$23,785




$90,762




$86,623














GAAP Earnings From Operations


$2,025




$1,515




$7,473




$6,562




GAAP Operating Margin

8.3%



6.4%



8.2%



7.6%














Unallocated Pension/Postretirement Expense


$319




$323




$1,387




$1,314




$110


Core Operating Earnings (non-GAAP)


$2,344




$1,838




$8,860




$7,876




Core Operating Margin (non-GAAP)

9.6%



7.7%



9.8%



9.1%














Increase/(Decrease) in GAAP Earnings From Operations

34%





14%






Increase/(Decrease) in Core Operating Earnings (non-GAAP)

28%





12%
















GAAP Diluted Earnings Per Share


$2.02




$1.61




$7.38




$5.96



$8.10 - $8.30


Unallocated Pension/Postretirement Expense1


$0.29




$0.27




$1.22




$1.11




$0.10


Core Earnings Per Share (non-GAAP)


$2.31




$1.88




$8.60




$7.07



$8.20 - $8.40












Weighted Average Diluted Shares (millions)

724.8



768.4



738.0



769.5



695 - 700


Increase/(Decrease) in GAAP Earnings Per Share

25%





24%







Increase/(Decrease) in Core Earnings Per Share (non-GAAP)

23%





22%







1 Earnings per share impact is presented net of the federal statutory tax rate of 35.0 percent.

 

SOURCE Boeing



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