CHICAGO, July 27, 2011 /PRNewswire-FirstCall/ --
Table 1. Summary Financial Results | |||||||
Second Quarter | First Half | ||||||
(Dollars in Millions, except per share data) | 2011 | 2010 | Change | 2011 | 2010 | Change | |
Revenues | $16,543 | $15,573 | 6% | $31,453 | $30,789 | 2% | |
Earnings From Operations | $1,534 | $1,307 | 17% | $2,534 | $2,481 | 2% | |
Operating Margin | 9.3% | 8.4% | 0.9 Pts | 8.1% | 8.1% | - Pts | |
Net Income | $941 | $787 | 20% | $1,527 | $1,306 | 17% | |
Earnings per Share | $1.25 | $1.06 | 18% | $2.04 | $1.76 | 16% | |
Operating Cash Flow | $1,596 | $266 | NM | $643 | ($19) | NM | |
The Boeing Company (NYSE: BA) reported second-quarter net income of $0.9 billion, or $1.25 per share, on revenue of $16.5 billion. Operating margin of 9.3 percent reflects higher Commercial Airplanes volume and strong core performance across the company's businesses, partially offset by higher pension expense. The company increased its 2011 earnings per share guidance to between $3.90 and $4.10 per share reflecting the strong core performance. Total company 2011 revenue and cash flow guidance is unchanged.
"Strong operational performance drove double-digit margins at both of our major businesses and produced outstanding results in the quarter," said Jim McNerney, Boeing chairman, president and chief executive officer. "We also made major progress toward certification and delivery of the 787 Dreamliner and 747-8 and continued our disciplined increases in commercial airplane production rates. Our outlook for the year has strengthened as our team continues its relentless focus on productivity improvement, cash management and program execution."
Table 2. Cash Flow | |||||
Second Quarter | First Half | ||||
(Millions) | 2011 | 2010 | 2011 | 2010 | |
Operating Cash Flow | $1,596 | $266 | $643 | ($19) | |
Less Additions to Property, Plant & Equipment | ($345) | ($257) | ($762) | ($443) | |
Free Cash Flow* | $1,251 | $9 | ($119) | ($462) | |
* Non-GAAP measure. A complete definition and reconciliation of Boeing's use of non-GAAP measures, identified by an asterisk (*), is found on page 7, "Non-GAAP Measure Disclosure." | |||||
Boeing's quarterly operating cash flow was $1.6 billion, reflecting strong operating performance and continued investment in development programs. Free cash flow* was $1.3 billion in the quarter (Table 2).
Table 3. Cash, Marketable Securities and Debt Balances | |||
Quarter-End | |||
(Billions) | 2Q11 | 1Q11 | |
Cash | $5.0 | $5.7 | |
Marketable Securities(1) | $3.8 | $2.1 | |
Total | $8.8 | $7.8 | |
Debt Balances: | |||
The Boeing Company | $8.9 | $9.0 | |
Boeing Capital Corporation | $2.7 | $2.7 | |
Total Consolidated Debt | $11.6 | $11.7 | |
(1) Marketable securities consists primarily of time deposits due within one year classified as "short-term investments." | |||
Cash and investments in marketable securities totaled $8.8 billion at quarter-end (Table 3), up from $7.8 billion at the beginning of the quarter. Debt was essentially unchanged in the quarter.
Total company backlog at quarter-end was $323 billion, down from $329 billion at the beginning of the quarter. Net orders for the quarter were $12 billion and included a significant mix of wide-body commercial airplanes. Backlog is up $2.7 billion from year-end, reflecting $35 billion of net orders in the first half of 2011.
Segment Results
Commercial Airplanes
Table 4. Commercial Airplanes Operating Results | |||||||
Second Quarter | First Half | ||||||
(Dollars in Millions) | 2011 | 2010 | Change | 2011 | 2010 | Change | |
Commercial Airplanes Deliveries | 118 | 114 | 4% | 222 | 222 | 0% | |
Revenues | $8,843 | $7,433 | 19% | $15,961 | $14,901 | 7% | |
Earnings from Operations | $920 | $683 | 35% | $1,429 | $1,362 | 5% | |
Operating Margins | 10.4% | 9.2% | 1.2 Pts | 9.0% | 9.1% | (0.1)Pts | |
Boeing Commercial Airplanes second-quarter revenue increased by 19 percent to $8.8 billion on higher deliveries, improved model mix and higher services volume. Operating margin was 10.4 percent, reflecting the higher revenue and strong operating performance, partially offset by higher R&D (Table 4).
Flight testing activities on the 787 and 747-8 Freighter programs are nearing completion. During the quarter, both programs entered into Function and Reliability testing, while the 787 program also began Extended Operations testing. First deliveries of the 787 and 747-8 Freighter are expected later in the third quarter.
Total firm orders for the 787 at quarter-end were 827 airplanes from 57 customers. Commercial Airplanes booked 65 net orders during the quarter and 171 during the first half of 2011. Backlog remains strong with more than 3,300 airplanes valued at $262 billion.
Boeing Defense, Space & Security
Table 5. Defense, Space & Security Operating Results | |||||||
Second Quarter | First Half | ||||||
(Dollars in Millions) | 2011 | 2010 | Change | 2011 | 2010 | Change | |
Revenues | |||||||
Boeing Military Aircraft | $3,642 | $3,580 | 2% | $7,034 | $6,821 | 3% | |
Network & Space Systems | $2,081 | $2,354 | (12%) | $4,430 | $4,677 | (5%) | |
Global Services & Support | $1,965 | $2,049 | (4%) | $3,841 | $4,098 | (6%) | |
Total BDS Revenues | $7,688 | $7,983 | (4%) | $15,305 | $15,596 | (2%) | |
Earnings from Operations | |||||||
Boeing Military Aircraft | $386 | $353 | 9% | $755 | $623 | 21% | |
Network & Space Systems | $198 | $167 | 19% | $341 | $341 | 0% | |
Global Services & Support | $214 | $191 | 12% | $373 | $411 | (9%) | |
Total BDS Earnings from Operations | $798 | $711 | 12% | $1,469 | $1,375 | 7% | |
Operating Margins | 10.4% | 8.9% | 1.5 Pts | 9.6% | 8.8% | 0.8 Pts | |
Boeing Defense, Space & Security's second-quarter revenue was $7.7 billion, while operating margin was 10.4 percent (Table 5).
Boeing Military Aircraft (BMA) second-quarter revenue was $3.6 billion. Operating margin was 10.6 percent, reflecting strong operating performance. Last year's results were impacted by a charge on the Airborne Early Warning & Control program. During the quarter, India signed an agreement for ten C-17s, which are expected to be on contract later this year, and BMA was awarded the U.S. Navy's study contract for the Unmanned Carrier-Launched Airborne Surveillance and Strike Program.
Network & Space Systems (N&SS) second-quarter revenue decreased to $2.1 billion, due to funding reductions in Brigade Combat Team Modernization and lower SBInet volume. Operating margin was 9.5 percent, reflecting United Launch Alliance performance and a gain on the sale of property. During the quarter, the GPS Operational Control Segment entered service with the U.S. Air Force and the High Energy Laser program completed system integration.
Global Services & Support (GS&S) second-quarter revenue was $2.0 billion. Operating margin was 10.9 percent, reflecting strong performance in integrated logistics. During the quarter, GS&S was awarded modernization and upgrade contracts from the U.S. Air Force.
Backlog at Defense, Space & Security decreased to $61 billion on run-off of multi-year contracts, and remains nearly two times the unit's expected 2011 revenue.
Additional Financial Information
Table 6. Additional Financial Information | |||||||
Second Quarter | First Half | ||||||
(Dollars in Millions) | 2011 | 2010 | Change | 2011 | 2010 | Change | |
Revenues | |||||||
Boeing Capital Corporation | $147 | $162 | (9%) | $290 | $324 | (10%) | |
Other segment | $38 | $44 | $74 | $80 | |||
Unallocated items and eliminations | ($173) | ($49) | ($177) | ($112) | |||
Earnings from Operations | |||||||
Boeing Capital Corporation | $62 | $55 | 13% | $114 | $101 | 13% | |
Other segment | ($58) | ($72) | ($80) | ($122) | |||
Unallocated items and eliminations | ($188) | ($70) | ($398) | ($235) | |||
Other income, net | $14 | $35 | $27 | $33 | |||
Interest and debt expense | ($123) | ($132) | ($253) | ($254) | |||
Effective tax rate | 33.9% | 34.8% | 33.7% | 42.1% | |||
During the quarter, Boeing Capital Corporation's (BCC) portfolio balance declined to $4.4 billion, down from $4.5 billion at the beginning of the quarter on run-off and asset sales. BCC's debt-to-equity ratio was unchanged at 5.0-to-1.
The "Other" segment includes unallocated activities of Engineering, Operations and Technology, Shared Services Group as well as certain intercompany guarantees provided to BCC.
The loss in unallocated items and eliminations increased primarily due to higher pension expense. Total pension expense for the second quarter was $389 million, as compared to $283 million in the same period last year. A total of $326 million was allocated to the operating segments in the quarter, up from $305 million in the same period last year, and $63 million was recognized in unallocated items, compared to a benefit of $22 million in the same period last year.
Outlook
The company's 2011 financial guidance (Table 7) has been updated to reflect the strong core performance in both businesses.
Table 7. Financial Outlook | 2011 | |
The Boeing Company | ||
Revenue | $68 - 71 | |
Earnings Per Share (GAAP) | $3.90 - 4.10 | |
Operating Cash Flow (1) | > $2.5 | |
Boeing Commercial Airplanes | ||
Deliveries (2) | 485 - 495 | |
Revenue | $36 - 38 | |
Operating Margin | 8.0% - 8.5% | |
Boeing Defense, Space & Security | ||
Revenue | ||
Boeing Military Aircraft | $14.7 - 15.0 | |
Network & Space Systems | $8.7 - 9.1 | |
Global Services & Support | $8.1 - 8.4 | |
Total BDS Revenue | $31.5 - 32.5 | |
Operating Margin | ||
Boeing Military Aircraft | ~ 9.5% | |
Network & Space Systems | ~ 7% | |
Global Services & Support | ~ 10.5% | |
Total BDS Operating Margin | ~ 9% | |
Boeing Capital Corporation | ||
Portfolio Size | Lower | |
Revenue | ~ $0.5 | |
Return on Assets | > 1% | |
Research & Development | $3.7 - 3.9 | |
Capital Expenditures | ~ $2.0 | |
Pension Expense | $1.8 | |
(1) After cash pension contributions of $0.5 billion and assuming new aircraft financings under $0.5 billion. | ||
(2) 2011 is sold out and includes the initial 787 and 747-8 deliveries (combined 25 to 30 units). | ||
Boeing's 2011 earnings per share guidance is increased to between $3.90 and $4.10 per share, up from between $3.80 and $4.00 per share.
Commercial Airplanes' deliveries guidance is now between 485 and 495, down from between 485 and 500, on lower planned deliveries on development programs (now a combined 25 to 30 787 and 747-8 units, from 25 to 40 units). Operating margin is improved to between 8.0 and 8.5 percent, from between 7.5 and 8.5 percent, reflecting strong core performance and the lower planned development program deliveries.
Defense, Space & Security's revenue guidance for 2011 is now between $31.5 and $32.5, from between $31.5 to $33 billion, on the current business environment. Defense, Space & Security's operating margin is improved to approximately 9 percent, from between 8.5 and 9 percent, reflecting the strong performance to date.
Capital expenditures for 2011 have been reduced to approximately $2.0 billion, down from approximately $2.3 billion.
Non-GAAP Measure Disclosure
Management believes that the non-GAAP (Generally Accepted Accounting Principles) measures (indicated by an asterisk *) used in this report provide investors with important perspectives into the company's ongoing business performance. The company does not intend for the information to be considered in isolation or as a substitute for the related GAAP measures. Other companies may define the measures differently. The following definitions are provided:
Free Cash Flow
Free cash flow is defined as GAAP operating cash flow less 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 internally to assess both business performance and overall liquidity. Table 2 provides a reconciliation between GAAP operating cash flow and free cash flow.
Forward-Looking Statements
This document contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "may," "will," "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 customers, our suppliers and the worldwide market; (3) our commercial development programs, including the 787 and 747-8 commercial aircraft programs; (4) changing 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) changes in accounting estimates; (10) changes in the competitive landscape in our markets; (11) our non-U.S. operations, including sales to non-U.S. customers; (12) potential adverse developments in new or pending litigation and/or government investigations; (13) customer and aircraft concentration in Boeing Capital Corporation's customer financing portfolio; (14) changes in our ability to obtain debt on commercially reasonable terms and at competitive rates in order to fund our operations and contractual commitments; (15) realizing the anticipated benefits of mergers, acquisitions, joint ventures, strategic alliances or divestitures; (16) the adequacy of our insurance coverage to cover significant risk exposures; (17) potential business disruptions related to physical security threats, information technology attacks or natural disasters; (18) work stoppages or other labor disruptions; (19) significant changes in discount rates and actual investment return on pension assets; and (20) potential environmental liabilities.
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: Scott Fitterer or Jennifer Mack (312) 544-2140
Communications: Chaz Bickers (312) 544-2002
The Boeing Company and Subsidiaries | |||||
Consolidated Statements of Operations | |||||
(Unaudited) | |||||
Six months ended | Three months ended | ||||
June 30 | June 30 | ||||
(Dollars in millions, except per share data) | 2011 | 2010 | 2011 | 2010 | |
Sales of products | $25,534 | $24,940 | $13,640 | $12,624 | |
Sales of services | 5,919 | 5,849 | 2,903 | 2,949 | |
Total revenues | 31,453 | 30,789 | 16,543 | 15,573 | |
Cost of products | (20,329) | (19,937) | (10,823) | (10,115) | |
Cost of services | (4,858) | (4,665) | (2,348) | (2,384) | |
Boeing Capital Corporation interest expense | (62) | (82) | (29) | (41) | |
Total costs and expenses | (25,249) | (24,684) | (13,200) | (12,540) | |
6,204 | 6,105 | 3,343 | 3,033 | ||
Income from operating investments, net | 150 | 113 | 88 | 54 | |
General and administrative expense | (1,736) | (1,731) | (870) | (778) | |
Research and development expense, net | (2,104) | (2,001) | (1,047) | (1,001) | |
Gain/(loss) on dispositions, net | 20 | (5) | 20 | (1) | |
Earnings from operations | 2,534 | 2,481 | 1,534 | 1,307 | |
Other income, net | 27 | 33 | 14 | 35 | |
Interest and debt expense | (253) | (254) | (123) | (132) | |
Earnings before income taxes | 2,308 | 2,260 | 1,425 | 1,210 | |
Income tax expense | (778) | (952) | (483) | (421) | |
Net earnings from continuing operations | 1,530 | 1,308 | 942 | 789 | |
Net loss on disposal of discontinued operations, net of taxes of $1, $1, $0 and $1 | (3) | (2) | (1) | (2) | |
Net earnings | $1,527 | $1,306 | $941 | $787 | |
Basic earnings per share from continuing operations | $2.06 | $1.78 | $1.27 | $1.07 | |
Net loss on disposal of discontinued operations, net of taxes | |||||
Basic earnings per share | $2.06 | $1.78 | $1.27 | $1.07 | |
Diluted earnings per share from continuing operations | $2.04 | $1.76 | $1.25 | $1.06 | |
Net loss on disposal of discontinued operations, net of taxes | |||||
Diluted earnings per share | $2.04 | $1.76 | $1.25 | $1.06 | |
Cash dividends paid per share | $0.84 | $0.84 | $0.42 | $0.42 | |
Weighted average diluted shares (millions) | 750.8 | 741.9 | 752.6 | 742.9 | |
The Boeing Company and Subsidiaries | |||
Consolidated Statements of Financial Position | |||
(Unaudited) | |||
June 30 | December 31 | ||
(Dollars in millions, except per share data) | 2011 | 2010 | |
Assets | |||
Cash and cash equivalents | $ 5,050 | $ 5,359 | |
Short-term and other investments | 3,752 | 5,158 | |
Accounts receivable, net | 6,162 | 5,422 | |
Current portion of customer financing, net | 260 | 285 | |
Deferred income taxes | 35 | 31 | |
Inventories, net of advances and progress billings | 29,094 | 24,317 | |
Total current assets | 44,353 | 40,572 | |
Customer financing, net | 4,217 | 4,395 | |
Property, plant and equipment, net of accumulated | |||
depreciation of $13,570 and $13,322 | 9,044 | 8,931 | |
Goodwill | 4,949 | 4,937 | |
Acquired intangible assets, net | 3,141 | 2,979 | |
Deferred income taxes | 3,697 | 4,031 | |
Investments | 1,117 | 1,111 | |
Pension plan assets, net | 5 | 6 | |
Other assets, net of accumulated amortization of $659 and $630 | 1,596 | 1,603 | |
Total assets | $ 72,119 | $ 68,565 | |
Liabilities and equity | |||
Accounts payable | $ 8,262 | $ 7,715 | |
Accrued liabilities | 13,570 | 13,802 | |
Advances and billings in excess of related costs | 12,948 | 12,323 | |
Deferred income taxes and income taxes payable | 1,286 | 607 | |
Short-term debt and current portion of long-term debt | 1,304 | 948 | |
Total current liabilities | 37,370 | 35,395 | |
Accrued retiree health care | 8,036 | 8,025 | |
Accrued pension plan liability, net | 10,155 | 9,800 | |
Non-current income taxes payable | 383 | 418 | |
Other long-term liabilities | 1,027 | 592 | |
Long-term debt | 10,324 | 11,473 | |
Shareholders' equity: | |||
Common stock, par value $5.00 – 1,200,000,000 shares authorized; | 5,061 | 5,061 | |
Additional paid-in capital | 3,945 | 3,866 | |
Treasury stock, at cost – 271,689,849 and 277,002,059 shares | (16,859) | (17,187) | |
Retained earnings | 25,681 | 24,784 | |
Accumulated other comprehensive loss | (13,095) | (13,758) | |
Total shareholders’ equity | 4,733 | 2,766 | |
Noncontrolling interest | 91 | 96 | |
Total equity | 4,824 | 2,862 | |
Total liabilities and equity | $ 72,119 | $ 68,565 | |
The Boeing Company and Subsidiaries | |||
Consolidated Statements of Cash Flows | |||
(Unaudited) | |||
Six months ended | |||
June 30 | |||
(Dollars in millions) | 2011 | 2010 | |
Cash flows - operating activities: | |||
Net earnings | $ 1,527 | $ 1,306 | |
Adjustments to reconcile net earnings to net cash provided/(used) | |||
by operating activities: | |||
Non-cash items – | |||
Share-based plans expense | 96 | 130 | |
Depreciation | 710 | 743 | |
Amortization of acquired intangible assets | 99 | 111 | |
Amortization of debt discount/premium and issuance costs | 7 | 10 | |
Investment/asset impairment charges, net | 16 | 20 | |
Customer financing valuation provision | (65) | 5 | |
Loss on disposal of discontinued operations | 4 | 3 | |
(Gain)/loss on dispositions, net | (20) | 5 | |
Other charges and credits, net | 223 | 45 | |
Excess tax benefits from share-based payment arrangements | (32) | (15) | |
Changes in assets and liabilities – | |||
Accounts receivable | (747) | (827) | |
Inventories, net of advances and progress billings | (4,889) | (3,425) | |
Accounts payable | 1,134 | (129) | |
Accrued liabilities | (268) | 266 | |
Advances and billings in excess of related costs | 626 | (66) | |
Income taxes receivable, payable and deferred | 685 | 760 | |
Other long-term liabilities | 54 | 255 | |
Pension and other postretirement plans | 1,199 | 705 | |
Customer financing, net | 210 | 279 | |
Other | 74 | (200) | |
Net cash provided/(used) by operating activities | 643 | (19) | |
Cash flows - investing activities: | |||
Property, plant and equipment additions | (762) | (443) | |
Property, plant and equipment reductions | 19 | 22 | |
Acquisitions, net of cash acquired | (16) | (24) | |
Contributions to investments | (4,454) | (7,101) | |
Proceeds from investments | 5,902 | 3,557 | |
Reimbursement of Sea Launch guarantee payments | 40 | ||
Receipt of economic development program funds | 69 | 57 | |
Net cash provided/(used) by investing activities | 758 | (3,892) | |
Cash flows - financing activities: | |||
New borrowings | 36 | 26 | |
Debt repayments | (851) | (88) | |
Repayments of distribution rights financing | (406) | (137) | |
Stock options exercised, other | 80 | 61 | |
Excess tax benefits from share-based payment arrangements | 32 | 15 | |
Employee taxes on certain share-based payment arrangements | (18) | (18) | |
Dividends paid | (620) | (637) | |
Net cash used by financing activities | (1,747) | (778) | |
Effect of exchange rate changes on cash and cash equivalents | 37 | (58) | |
Net decrease in cash and cash equivalents | (309) | (4,747) | |
Cash and cash equivalents at beginning of year | 5,359 | 9,215 | |
Cash and cash equivalents at end of period | $ 5,050 | $ 4,468 | |
The Boeing Company and Subsidiaries | |||||
Summary of Business Segment Data | |||||
(Unaudited) | |||||
Six months ended | Three months ended | ||||
June 30 | June 30 | ||||
(Dollars in millions) | 2011 | 2010 | 2011 | 2010 | |
Revenues: | |||||
Commercial Airplanes | $ 15,961 | $ 14,901 | $ 8,843 | $ 7,433 | |
Boeing Defense, Space & Security: | |||||
Boeing Military Aircraft | 7,034 | 6,821 | 3,642 | 3,580 | |
Network & Space Systems | 4,430 | 4,677 | 2,081 | 2,354 | |
Global Services & Support | 3,841 | 4,098 | 1,965 | 2,049 | |
Total Boeing Defense, Space & Security | 15,305 | 15,596 | 7,688 | 7,983 | |
Boeing Capital Corporation | 290 | 324 | 147 | 162 | |
Other segment | 74 | 80 | 38 | 44 | |
Unallocated items and eliminations | (177) | (112) | (173) | (49) | |
Total revenues | $ 31,453 | $ 30,789 | $ 16,543 | $ 15,573 | |
Earnings from operations: | |||||
Commercial Airplanes | $ 1,429 | $ 1,362 | $ 920 | $ 683 | |
Boeing Defense, Space & Security: | |||||
Boeing Military Aircraft | 755 | 623 | 386 | 353 | |
Network & Space Systems | 341 | 341 | 198 | 167 | |
Global Services & Support | 373 | 411 | 214 | 191 | |
Total Boeing Defense, Space & Security | 1,469 | 1,375 | 798 | 711 | |
Boeing Capital Corporation | 114 | 101 | 62 | 55 | |
Other segment | (80) | (122) | (58) | (72) | |
Unallocated items and eliminations | (398) | (235) | (188) | (70) | |
Earnings from operations | 2,534 | 2,481 | 1,534 | 1,307 | |
Other income, net | 27 | 33 | 14 | 35 | |
Interest and debt expense | (253) | (254) | (123) | (132) | |
Earnings before income taxes | 2,308 | 2,260 | 1,425 | 1,210 | |
Income tax expense | (778) | (952) | (483) | (421) | |
Net earnings from continuing operations | 1,530 | 1,308 | 942 | 789 | |
Net loss on disposal of discontinued operations, net of taxes of $1, $1, $0 and $1 | (3) | (2) | (1) | (2) | |
Net earnings | $ 1,527 | $ 1,306 | $ 941 | $ 787 | |
Research and development expense, net: | |||||
Commercial Airplanes | $ 1,558 | $ 1,391 | $ 771 | $ 693 | |
Boeing Defense, Space & Security: | |||||
Boeing Military Aircraft | 250 | 320 | 125 | 158 | |
Network & Space Systems | 211 | 221 | 107 | 115 | |
Global Services & Support | 62 | 69 | 30 | 35 | |
Total Boeing Defense, Space & Security | 523 | 610 | 262 | 308 | |
Other segment | 23 | 14 | |||
Total research and development expense, net | $ 2,104 | $ 2,001 | $ 1,047 | $ 1,001 | |
Unallocated items and eliminations: | |||||
Share-based plans | $ (44) | $ (90) | $ (22) | $ (43) | |
Deferred compensation | (60) | (37) | (10) | 44 | |
Pension | (158) | 43 | (63) | 22 | |
Post-retirement | (33) | (24) | (14) | (13) | |
Capitalized interest | (31) | (28) | (16) | (18) | |
Eliminations and other | (72) | (99) | (63) | (62) | |
Total | $ (398) | $ (235) | $ (188) | $ (70) | |
The Boeing Company and Subsidiaries | ||||||||
Operating and Financial Data | ||||||||
(Unaudited) | ||||||||
Six months ended | Three months ended | |||||||
Deliveries | June 30 | June 30 | ||||||
Commercial Airplanes | 2011 | 2010 | 2011 | 2010 | ||||
737 | 181 | 181 | 94 | 95 | ||||
767 | 9 | 6 | 5 | 3 | ||||
777 | 32 | 35 | 19 | 16 | ||||
Total | 222 | 222 | 118 | 114 | ||||
Boeing Defense, Space & Security | ||||||||
Boeing Military Aircraft | ||||||||
F/A-18 Models | 25 | 24 | 12 | 11 | ||||
F-15E Eagle | 8 | 7 | 4 | 4 | ||||
C-17 Globemaster | 7 | 6 | 4 | 3 | ||||
KC-767 Tanker | 1 | |||||||
CH-47 Chinook | 16 | 8 | 9 | 6 | ||||
AH-64 Apache | 9 | 5 | ||||||
AEW&C | 3 | 3 | ||||||
Network & Space Systems | ||||||||
Delta IV | 1 | |||||||
Commercial and Civil Satellites | 2 | 1 | ||||||
Military Satellites | 1 | 1 | 1 | |||||
June 30 | March 31 | December 31 | ||||
Contractual backlog (Dollars in billions) | 2011 | 2011 | 2010 | |||
Commercial Airplanes | $259.9 | $260.9 | $255.6 | |||
Boeing Defense, Space & Security: | ||||||
Boeing Military Aircraft | 25.7 | 26.5 | 25.1 | |||
Network & Space Systems | 9.4 | 9.4 | 9.6 | |||
Global Services & Support | 13.0 | 13.9 | 13.7 | |||
Total Boeing Defense, Space & Security | 48.1 | 49.8 | 48.4 | |||
Total contractual backlog | $308.0 | $310.7 | $304.0 | |||
Unobligated backlog | $15.6 | $18.3 | $16.9 | |||
Total backlog | $323.6 | $329.0 | $320.9 | |||
Workforce | 166,900 | 163,800 | 160,500 | |||
SOURCE Boeing