Boeing

Boeing Reports Third-Quarter Results and Raises 2011 EPS Guidance

CHICAGO, Oct. 26, 2011 /PRNewswire/ --

  • Earnings per share of $1.46 reported on revenue of $17.7 billion
  • Backlog grew to $332 billion, including $26 billion in orders during the quarter
  • Operating cash flow of $0.4 billion reflects continued investment in development programs and $0.5 billion of pension funding
  • Cash and marketable securities of $9.2 billion provide strong liquidity
  • 2011 earnings per share guidance increased to between $4.30 and $4.40 per share on strong core performance across businesses

Table 1.  Summary Financial Results

Third Quarter

Nine Months

(Dollars in Millions, except per share data)

2011

2010

Change

2011

2010

Change

Revenues

$17,727

$16,967

4%

$49,180

$47,756

3%

Earnings From Operations

$1,714

$1,387

24%

$4,247

$3,868

10%

Operating Margin

9.7%

8.2%

1.5 Pts

8.6%

8.1%

0.5 Pts

Net Income

$1,098

$837

31%

$2,625

$2,143

22%

Earnings per Share

$1.46

$1.12

30%

$3.49

$2.89

21%

Operating Cash Flow

$449

$1,855

(76%)

$1,092

$1,836

(41%)

The Boeing Company (NYSE: BA) reported third-quarter net income of $1.1 billion, or $1.46 per share, on revenue of $17.7 billion.  Operating margin of 9.7 percent reflects continued 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 $4.30 and $4.40 per share reflecting the strong core performance.  Total company 2011 revenue is narrowed to between $68 and $70 billion.  Operating cash flow guidance is unchanged.

"Strong operational performance drove double-digit margins in both of our major businesses and produced an outstanding quarter," said Boeing chairman, president and chief executive officer, Jim McNerney.  "We also strengthened our foundation for accelerated growth by completing development and certification of the 787-8 Dreamliner and 747-8 Freighter, launching the new 737 MAX, and continuing our disciplined ramp up in commercial airplane production rates.  Our improved outlook for earnings reflects confidence in our market positions, and our team's relentless focus on productivity and disciplined execution."

Table 2.  Cash Flow

Third Quarter

Nine Months

(Millions)

2011

2010

2011

2010

Operating Cash Flow

$449

$1,855

$1,092

$1,836

  Less Additions to Property, Plant & Equipment

($380)

($282)

($1,142)

($725)

Free Cash Flow*

$69

$1,573

($50)

$1,111

* Non-GAAP measure.  A complete definition and reconciliation of Boeing's use of non-GAAP measures, identified by an asterisk (*), is found on page 8, "Non-GAAP Measure Disclosure."

Boeing's quarterly operating cash flow was $0.4 billion, with strong operating performance more than offsetting continued investment in development programs and discretionary pension funding of $0.5 billion.  Free cash flow* was $0.1 billion in the quarter (Table 2).

Table 3.  Cash, Marketable Securities and Debt Balances

Quarter-End

(Billions)

3Q11

2Q11

Cash

$5.9

$5.0

Marketable Securities(1)

$3.3

$3.8

  Total

$9.2

$8.8

Debt Balances:

The Boeing Company

$9.0

$8.9

Boeing Capital Corporation

$3.4

$2.7

  Total Consolidated Debt

$12.4

$11.6

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


Cash and investments in marketable securities totaled $9.2 billion at quarter-end (Table 3), up from $8.8 billion at the beginning of the quarter.  Debt balances grew to $12.4 billion at quarter-end, up from $11.6 billion, due to the issuance of new debt at Boeing Capital Corporation.

Total company backlog at quarter-end was $332 billion, up from $323 billion at the beginning of the quarter.  Net orders for the quarter were $26 billion and included a significant mix of wide-body commercial airplanes.  Backlog is up $10.7 billion from year-end, reflecting $61 billion of net orders in the first nine months of 2011.

Segment Results  

Commercial Airplanes

Table 4. Commercial Airplanes Operating Results

Third Quarter

Nine Months

(Dollars in Millions)

2011

2010

Change

2011

2010

Change

Commercial Airplanes Deliveries

127

124

2%

349

346

1%

Revenues

$9,515

$8,749

9%

$25,476

$23,650

8%

Earnings from Operations

$1,085

$1,017

7%

$2,514

$2,379

6%

Operating Margins

11.4%

11.6%

(0.2)Pts

9.9%

10.1%

(0.2)Pts

Boeing Commercial Airplanes third-quarter revenue increased by 9 percent to $9.5 billion on higher deliveries and improved mix.  Operating margin was 11.4 percent, reflecting continued strong operating performance (Table 4).  

During the quarter, the 787-8 and 747-8 Freighter completed flight testing activities and achieved FAA certification.  In September, the first 787 Dreamliner was delivered to launch customer, ANA, and, in October, the first 747-8 Freighter was delivered to Cargolux.  

At quarter end, the 787 had 821 units sold firm and approximately 200 options.  The company established the initial accounting quantity for the 787 program at 1,100 units, consistent with accounting practices applied on other new airplane programs.  

Also during third quarter, the company launched the 737 MAX, the new engine variant of the 737.  At the time of launch, the company had received nearly 500 order commitments.

Commercial Airplanes booked 255 net orders during the quarter and 426 during the first nine months of 2011.  Backlog remains strong with more than 3,500 airplanes valued at $273 billion.

Boeing Defense, Space & Security

Table 5.  Defense, Space & Security Operating Results

Third Quarter

Nine Months

(Dollars in Millions)

2011

2010

Change

2011

2010

Change

Revenues

  Boeing Military Aircraft

$3,964

$3,790

5%

$10,998

$10,611

4%

  Network & Space Systems

$2,276

$2,344

(3%)

$6,706

$7,021

(4%)

  Global Services & Support

$1,960

$2,048

(4%)

$5,801

$6,146

(6%)

Total BDS Revenues

$8,200

$8,182

0%

$23,505

$23,778

(1%)

Earnings from Operations

  Boeing Military Aircraft

$397

$312

27%

$1,152

$935

23%

  Network & Space Systems

$179

$152

18%

$520

$493

5%

  Global Services & Support

$248

$220

13%

$621

$631

(2%)

Total BDS Earnings from Operations

$824

$684

20%

$2,293

$2,059

11%

Operating Margins

10.0%

8.4%

1.6 Pts

9.8%

8.7%

1.1 Pts

Boeing Defense, Space & Security's third-quarter revenue was $8.2 billion, while operating margin was 10.0 percent (Table 5).

Boeing Military Aircraft (BMA) third-quarter revenue increased to $4.0 billion, due to higher Airborne Early Warning & Control deliveries and C-17 mix.  Operating margin was 10.0 percent, reflecting strong operating performance and changes in delivery mix.  During the quarter, BMA was awarded a contract from the U.K. Ministry of Defence to provide 14 CH-47 Chinook helicopters and associated support to the Royal Air Force and the KC-46A Tanker program successfully completed the Integrated Baseline Review with the U.S. Air Force.

Network & Space Systems (N&SS) third-quarter revenue was $2.3 billion. Operating margin was 7.9 percent, reflecting improved performance on the commercial satellite programs.  During the quarter, N&SS was awarded a contract modification with the U.S. Air Force for the full production, launch and on-orbit activation of the seventh Wideband Global SATCOM satellite.

Global Services & Support (GS&S) third-quarter revenue was $2.0 billion.  Operating margin was 12.7 percent, reflecting improved performance in integrated logistics.  During the quarter, GS&S was awarded a contract from the U.S. Air Force for support and logistics to India's recently announced acquisition of 10 C-17 airlifters and a contract modification from the U.S. Navy for P-8A low rate initial production lot II support award.

Backlog at Defense, Space & Security decreased to $59 billion on run-off of multi-year contracts.

Additional Financial Information

Table 6.  Additional Financial Information

Third Quarter

Nine Months

(Dollars in Millions)

2011

2010

Change

2011

2010

Change

Revenues

   Boeing Capital Corporation

$126

$170

(26%)

$416

$494

(16%)

   Other segment

$33

$27

$107

$107

   Unallocated items and eliminations

($147)

($161)

($324)

($273)

Earnings from Operations

   Boeing Capital Corporation

$19

$45

(58%)

$133

$146

(9%)

   Other segment

$92

($132)

$11

($254)

   Unallocated items and eliminations

($306)

($227)

($704)

($462)

Other income/(expense), net

$49

($13)

$76

$20

Interest and debt expense

($121)

($130)

($374)

($384)

Effective tax rate

33.4%

32.7%

33.6%

38.8%

During the quarter, Boeing Capital Corporation's (BCC) portfolio balance declined to $4.3 billion, down from $4.4 billion at the beginning of the quarter on portfolio run-off and asset sales.  BCC's earnings decreased due to a smaller portfolio and higher asset impairments.  BCC's debt-to-equity ratio rose to 6.2-to-1 on pre-funding of an early 2012 debt maturity.

The "Other" segment includes unallocated activities of Engineering, Operations and Technology, Shared Services Group as well as certain intercompany guarantees provided to BCC.  During the quarter, Other segment earnings improved by $141 million as a result of assigning an upgraded credit rating to financing receivables with AirTran.

The loss in unallocated items and eliminations increased due to a one-time accounting adjustment for post-retiree medical of $161 million and higher pension expense.  Total pension expense for the third quarter was $389 million, as compared to $280 million in the same period last year.  A total of $331 million was allocated to the operating segments in the quarter, up from $301 million in the same period last year, and $58 million was recognized in unallocated items, compared to a benefit of $21 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
(Dollars in Billions, except per-share data)

2011

The Boeing Company

 Revenue

$68 - 70

 Earnings Per Share (GAAP)

$4.30 - 4.40

 Operating Cash Flow (1)

> $2.5

Boeing Commercial Airplanes

 Deliveries (2)

~ 480

 Revenue

$36 - 37

 Operating Margin

9.0% - 9.5%

Boeing Defense, Space & Security

 Revenue

   Boeing Military Aircraft

$14.9 - 15.2

   Network & Space Systems

$8.5 - 8.9

   Global Services & Support

$8.1 - 8.4

 Total BDS Revenue

$31.5 - 32.5

 Operating Margin

   Boeing Military Aircraft

10.0 - 10.5%

   Network & Space Systems

7.0 - 7.5%

   Global Services & Support

9.5 - 10.0%

 Total BDS Operating Margin

9.0% - 9.5%

Boeing Capital Corporation

 Portfolio Size

Lower

 Revenue

~ $0.5

 Return on Assets

> 1%

Research & Development

$3.7 - 3.9

Capital Expenditures

~ $1.7

Pension Expense

$1.7

(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 15 to 20 units, of which approximately two-thirds are anticipated to be 747-8s).

Boeing's 2011 earnings per share guidance is increased to between $4.30 and $4.40 per share, up from between $3.90 and $4.10 per share.  Total company 2011 revenue is narrowed to between $68 and $70 billion.  

Commercial Airplanes' deliveries guidance is now approximately 480, down from between 485 and 495, on lower planned deliveries on development programs (now a combined 15 to 20 787 and 747-8 units, from 25 to 30 units).  Approximately two-thirds of the development programs deliveries are anticipated to be 747-8s.  Operating margin is improved to between 9.0 and 9.5 percent, from between 8.0 and 8.5 percent, reflecting strong core performance and the lower planned development program deliveries.

Defense, Space & Security's operating margin is improved to between 9.0 and 9.5 percent, from approximately 9 percent, reflecting the strong performance to date.

BCC's debt-to-equity ratio is expected to return to 5.0-to-1 in the first quarter of 2012 due to the repayment of maturing debt.  

The company's 2011 R&D forecast is unchanged at between $3.7 and $3.9 billion.  2012 R&D is expected to decrease by approximately $0.3 to $0.5 billion.

Capital expenditures for 2011 have been reduced to approximately $1.7 billion, down from approximately $2.0 billion.  

Pension expense for 2011 is now expected to be $1.7 billion, down from $1.8 billion.  Based on current interest rates and market conditions, pension expense in 2012 is estimated to be approximately $2.6 billion, of which approximately $1.0 billion is expected to be recorded in unallocated items and eliminations.  2012 pension expense will be determined at year end based on market conditions at that time.

Non-GAAP Measure Disclosure

Management believes that the non-GAAP (Generally Accepted Accounting Principles) measure (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 measure.  Other companies may define the measure differently.  The following definition is 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," "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)

Nine months ended

Three months ended

September 30

September 30

(Dollars in millions, except per share data)

2011

2010

2011

2010

Sales of products

$40,441

$39,017

$14,907

$14,077

Sales of services

8,739

8,739

2,820

2,890

Total revenues

49,180

47,756

17,727

16,967

Cost of products  

(32,335)

(31,169)

(12,006)

(11,232)

Cost of services

(7,177)

(7,137)

(2,319)

(2,472)

Boeing Capital Corporation interest expense

(94)

(124)

(32)

(42)

Total costs and expenses

(39,606)

(38,430)

(14,357)

(13,746)

9,574

9,326

3,370

3,221

Income from operating investments, net

202

187

52

74

General and administrative expense

(2,544)

(2,667)

(807)

(936)

Research and development expense, net

(3,005)

(2,987)

(901)

(986)

Gain on dispositions, net

20

9

14

Earnings from operations

4,247

3,868

1,714

1,387

Other income/(expense), net

76

20

49

(13)

Interest and debt expense

(374)

(384)

(121)

(130)

Earnings before income taxes

3,949

3,504

1,642

1,244

Income tax expense

(1,325)

(1,359)

(548)

(407)

Net earnings from continuing operations

2,624

2,145

1,094

837

Net gain/(loss) on disposal of discontinued operations, net of taxes of $0, $1, ($2) and $0

1

(2)

4

Net earnings

$2,625

$2,143

$1,098

$837

Basic earnings per share from continuing operations

$3.52

$2.91

$1.47

$1.13

Net gain/(loss) on disposal of discontinued operations, net of taxes

Basic earnings per share

$3.52

$2.91

$1.47

$1.13

Diluted earnings per share from continuing operations

$3.49

$2.89

$1.46

$1.12

Net gain/(loss) on disposal of discontinued operations, net of taxes

Diluted earnings per share

$3.49

$2.89

$1.46

$1.12

Cash dividends paid per share

$1.26

$1.26

$0.42

$0.42

Weighted average diluted shares (millions)

751.8

743.0

753.9

744.6

The Boeing Company and Subsidiaries

Consolidated Statements of Financial Position

(Unaudited)

September 30

December 31

(Dollars in millions, except per share data)

2011

2010

Assets

Cash and cash equivalents

$  5,954

$  5,359

Short-term and other investments

3,279

5,158

Accounts receivable, net

6,296

5,422

Current portion of customer financing, net

294

285

Deferred income taxes

31

31

Inventories, net of advances and progress billings

30,493

24,317

Total current assets

46,347

40,572

Customer financing, net

4,313

4,395

Property, plant and equipment, net of accumulated depreciation of $13,778 and $13,322

9,190

8,931

Goodwill

4,939

4,937

Acquired intangible assets, net

3,095

2,979

Deferred income taxes

3,709

4,031

Investments

1,109

1,111

Pension plan assets, net

6

6

Other assets, net of accumulated amortization of $697 and $630

1,455

1,603

Total assets

$ 74,163

$ 68,565

Liabilities and equity

Accounts payable

$ 8,502

$ 7,715

Accrued liabilities

11,213

13,802

Advances and billings in excess of related costs

14,320

12,323

Deferred income taxes and income taxes payable

1,955

607

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

1,603

948

Total current liabilities

37,593

35,395

Accrued retiree health care

8,335

8,025

Accrued pension plan liability, net

9,848

9,800

Non-current income taxes payable

390

418

Other long-term liabilities

1,159

592

Long-term debt

10,777

11,473

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

3,988

3,866

Treasury stock, at cost – 269,377,718 and 277,002,059 shares

(16,715)

(17,187)

Retained earnings

26,779

24,784

Accumulated other comprehensive loss

(13,146)

(13,758)

Total shareholders’ equity

5,967

2,766

Noncontrolling interest

94

96

Total equity

6,061

2,862

Total liabilities and equity

$ 74,163

$ 68,565

The Boeing Company and Subsidiaries

Consolidated Statements of Cash Flows

(Unaudited)

Nine months ended

September 30

(Dollars in millions)

2011

2010

Cash flows - operating activities:

   Net earnings

$ 2,625

$ 2,143

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

     Non-cash items –

          Share-based plans expense

141

172

          Depreciation

1,075

1,101

          Amortization of acquired intangible assets

151

169

          Amortization of debt discount/premium and issuance costs

11

15

          Investment/asset impairment charges, net

50

127

          Customer financing valuation provision

(220)

24

          (Gain)/loss on disposal of discontinued operations

(1)

3

          Gain on dispositions, net

(20)

(9)

          Other charges and credits, net

358

103

          Excess tax benefits from share-based payment arrangements

(35)

(17)

      Changes in assets and liabilities –

          Accounts receivable

(911)

(701)

          Inventories, net of advances and progress billings

(8,245)

(4,686)

          Accounts payable

1,447

235

          Accrued liabilities

(449)

397

          Advances and billings in excess of related costs

1,996

(303)

          Income taxes receivable, payable and deferred

1,314

1,133

          Other long-term liabilities

107

276

          Pension and other postretirement plans

1,445

973

          Customer financing, net

171

559

          Other

82

122

Net cash provided by operating activities

1,092

1,836

Cash flows - investing activities:

   Property, plant and equipment additions

(1,142)

(725)

   Property, plant and equipment reductions

54

47

   Acquisitions, net of cash acquired

(42)

(867)

   Contributions to investments

(6,089)

(12,745)

   Proceeds from investments

8,006

7,657

   Reimbursement of Sea Launch guarantee payments

40

   Receipt of economic development program funds

69

115

   Purchase of distribution rights

(2)

Net cash provided/(used) by investing activities

856

(6,480)

Cash flows - financing activities:

   New borrowings

789

30

   Debt repayments

(895)

(655)

   Repayments of distribution rights financing

(436)

(137)

   Stock options exercised, other

106

71

   Excess tax benefits from share-based payment arrangements

35

17

   Employee taxes on certain share-based payment arrangements

(21)

(26)

   Dividends paid

(932)

(945)

Net cash used by financing activities

(1,354)

(1,645)

Effect of exchange rate changes on cash and cash equivalents

1

(62)

Net increase/(decrease) in cash and cash equivalents

595

(6,351)

Cash and cash equivalents at beginning of year

5,359

9,215

Cash and cash equivalents at end of period

$ 5,954

$ 2,864

The Boeing Company and Subsidiaries

Summary of Business Segment Data

(Unaudited)

Nine months ended

Three months ended

September 30

September 30

(Dollars in millions)

2011

2010

2011

2010

Revenues:

  Commercial Airplanes

$ 25,476

$ 23,650

$ 9,515

$ 8,749

  Boeing Defense, Space & Security:

     Boeing Military Aircraft

10,998

10,611

3,964

3,790

     Network & Space Systems

6,706

7,021

2,276

2,344

     Global Services & Support

5,801

6,146

1,960

2,048

  Total Boeing Defense, Space & Security

23,505

23,778

8,200

8,182

  Boeing Capital Corporation

416

494

126

170

  Other segment

107

107

33

27

  Unallocated items and eliminations

(324)

(273)

(147)

(161)

Total revenues

$ 49,180

$ 47,756

$ 17,727

$ 16,967

Earnings from operations:

  Commercial Airplanes

$    2,514

$  2,379

$  1,085

$  1,017

  Boeing Defense, Space & Security:

     Boeing Military Aircraft

1,152

935

397

312

     Network & Space Systems

520

493

179

152

     Global Services & Support

621

631

248

220

  Total Boeing Defense, Space & Security

2,293

2,059

824

684

  Boeing Capital Corporation

133

146

19

45

  Other segment

11

(254)

92

(132)

  Unallocated items and eliminations

(704)

(462)

(306)

(227)

Earnings from operations

4,247

3,868

1,714

1,387

Other income/(expense), net

76

20

49

(13)

Interest and debt expense

(374)

(384)

(121)

(130)

Earnings before income taxes

3,949

3,504

1,642

1,244

Income tax expense

(1,325)

(1,359)

(548)

(407)

Net earnings from continuing operations

2,624

2,145

1,094

837

Net gain/(loss) on disposal of discontinued operations, net of taxes of $0, $1, ($2) and $0

1

(2)

4

Net earnings

$    2,625

$  2,143

$    1,098

$  837

Research and development expense, net:

  Commercial Airplanes

$    2,191

$  2,102

$  633

$  711

  Boeing Defense, Space & Security:

     Boeing Military Aircraft

369

459

119

139

     Network & Space Systems

320

327

109

106

     Global Services & Support

84

99

22

30

  Total Boeing Defense, Space & Security

773

885

250

275

  Other segment

41

18

Total research and development expense, net

$    3,005

$    2,987

$    901

$  986

Unallocated items and eliminations:

  Share-based plans

$     (63)

$  (112)

$  (19)

$  (22)

  Deferred compensation

4

(84)

64

(47)

  Pension

(216)

64

(58)

21

  Post-retirement

(208)

(36)

(175)

(12)

  Capitalized interest

(39)

(41)

(8)

(13)

  Eliminations and other

(182)

(253)

(110)

(154)

Total

$     (704)

$  (462)

$     (306)

$  (227)

The Boeing Company and Subsidiaries

Operating and Financial Data

(Unaudited)

Nine months ended

Three months ended

Deliveries

September 30

September 30

Commercial Airplanes

2011

2010

2011

2010

    737

281

281

100

100

    767

14

9

5

3

    777

53

56

21

21

    787

1

1

   Total

349

346

127

124

Boeing Defense, Space & Security

Boeing Military Aircraft

    F/A-18 Models

38

39

13

15

    F-15E Eagle

11

10

3

3

    C-17 Globemaster

11

10

4

4

    KC-767 International Tanker

1

    CH-47 Chinook

22

13

6

5

    AH-64 Apache

11

2

    AEW&C

2

3

2

Network & Space Systems

    Delta IV

1

    Commercial and Civil Satellites

2

    Military Satellites

2

1

1

September 30

June 30

March 31

December 31

Contractual backlog (Dollars in billions)

2011

2011

2011

2010

  Commercial Airplanes

$270.3

$259.9

$260.9

$255.6

  Boeing Defense, Space & Security:

    Boeing Military Aircraft

24.2

25.7

26.5

25.1

    Network & Space Systems

9.5

9.4

9.4

9.6

    Global Services & Support

12.9

13.0

13.9

13.7

  Total Boeing Defense, Space & Security

46.6

48.1

49.8

48.4

Total contractual backlog

$316.9

$308.0

$310.7

$304.0

Unobligated backlog

$14.7

$15.6

$18.3

$16.9

Total backlog

$331.6

$323.6

$329.0

$320.9

Workforce

170,600

166,900

163,800

160,500

SOURCE The Boeing Company