Arlington, Virginia, January 9, 2024 – The Boeing Company (NYSE: BA) announced today major program deliveries across its commercial and defense operations for the fourth quarter of 2023.
The company will provide detailed fourth-quarter financial results on January 31. Major program deliveries during the fourth quarter were as follows:
This press release may contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including expected delivery dates. Such statements are based on current expectations and projections about our future results, prospects and opportunities and are not guarantees of future performance. Such statements will not be updated unless required by law. Actual results and performance may differ materially from those expressed or forecasted in forward-looking statements due to a number of factors, including those discussed in our filings with the Securities and Exchange Commission.
ARLINGTON, Virginia, July 11, 2023 /PRNewswire/ – The Boeing Company [NYSE: BA] announced today major program deliveries across its commercial and defense operations for the second quarter of 2023.
The company will provide detailed second quarter financial results on July 26. Major program deliveries during the second quarter were as follows:
Major Programs
2nd Quarter 2023
Year-to-Date 2023
Commercial Airplanes Programs
737
103
216
747
—
1
767
8
9
777
5
9
787
20
31
Total
136
266
Defense, Space & Security Programs
AH-64 Apache (New)
5
12
AH-64 Apache (Remanufactured)
16
29
CH-47 Chinook (New)
2
7
CH-47 Chinook (Renewed)
3
4
F-15 Models
4
6
F/A-18 Models
6
13
KC-46 Tanker
—
1
P-8 Models
2
5
Commercial and Civil Satellites
—
3
Note: Delivery information is not considered final until quarterly financial results are issued.
Contact Matt Welch Boeing Investor Relations (312) 544-2140
David Dufault Boeing Investor Relations (312) 544-2140
JACKSONVILLE, Fla., Oct. 28, 2021 — Boeing [NYSE: BA] today broke ground to begin construction of a new 370,000 square-foot maintenance, repair and overhaul (MRO) facility located at Cecil Airport that, once complete, will support Boeing’s ability to deliver readiness outcomes for U.S. government customers.
The facility will include eight new hangars, additional work space and offices where Boeing maintainers, engineers and data analysts will support U.S. Navy and Air Force aircraft. The facility’s close proximity to Naval Air Station Jacksonville, Boeing’s Training Systems Center of Excellence in west Jacksonville, and local academic institutions make it a leading location for the development and delivery of innovative product support, underpinned by collaborative research and engineering.
The groundbreaking ceremony celebrates a 25-year lease agreement between Boeing and the Jacksonville Aviation Authority (JAA). Under the agreement, the JAA will construct and lease to Boeing new facilities on approximately 30 acres located on the northeast side of Cecil Airport, near Boeing’s existing MRO site. Construction is anticipated to be completed in 2023.
Since opening its existing MRO facilities at Cecil Airport in 1999, Boeing teammates have maintained, modified and upgraded 1,030 aircraft for the U.S. Navy and Marine Corps, including the F/A-18 A-D Hornet, F/A-18 E/F Super Hornet and EA-18G Growler. The Boeing team at the site also converts F/A-18 Super Hornets into flight demonstration aircraft for the U.S. Navy’s Blue Angel squadron as well as modifies retired F-16s into the next generation of autonomous aerial targets for the U.S. Air Force. The facility is also home to a Flight Control Repair Center that provides structural repairs to F/A-18 A-F and EA-18G flight control surfaces.
F/A-18 Block III Delivery_Building 75, Aircraft Delivery Service Center_St. Louis, MO. MSF21-0031 Series.
Arlington, Virginia, September 27, 2021 – Boeing [NYSE: BA] delivered the first of 78 contracted Block III F/A-18 Super Hornets to the U.S. Navy. Block III gives the Navy the most networked and survivable F/A-18 built with a technology insertion plan that will outpace future threats.
Block III’s new adjunct processor translates to a fighter that will do more work and in far less time increasing a pilot’s situational awareness. The jet is ready to receive apps-based solutions that will allow upgrades to the aircraft throughout its life span.
Boeing will continue to deliver Block III capabilities to the Navy through the mid-2030s from three lines. One new build production, and two Service Life Modification lines extending the life and eventually upgrading Block II Super Hornets to Block III. The first aircraft delivered will complete the U.S. Navy flight test program before deploying to a squadron.
F/A-18 Block III Delivery_Building 75, Aircraft Delivery Service Center_St. Louis, MO. MSF21-0031 Series.
ST. LOUIS, Missouri, September 17, 2021 – Boeing [NYSE: BA] will build the Navy’s newest carrier-based aircraft at a new high-tech facility in Illinois, bringing the benefits of digital aircraft design and production to the Navy and up to 300 advanced manufacturing jobs to the greater St. Louis region.
The new 300,000 square-foot facility at MidAmerica St. Louis Airport, scheduled for completion in 2024, initially will employ approximately 150 mechanics, engineers and support staff who will build the MQ-25TM StingrayTM, the Navy’s first operational, carrier-based unmanned aircraft. Employment could reach up to 300 with additional orders.
Boeing digitally engineered the entire MQ-25 aircraft and its systems, resulting in high-fidelity models that are used to drive quality, efficiency and flexibility throughout the production and sustainment process. The new MQ-25 facility will include state-of-the-art manufacturing processes and tools, including robotic automation and advanced assembly techniques, to improve product quality and employee ergonomics.
For two years, Boeing and the Navy have been flight testing the Boeing-owned MQ-25 test asset from MidAmerica Airport, where in recent history-making missions T1 has refueled an F/A-18 Super Hornet, an E-2D Hawkeye and an F-35C Lightning II.
The U.S. Navy intends to procure more than 70 MQ-25 aircraft to help extend the range of the carrier air wing, and the majority of those will be built in the new facility. Boeing is currently producing the first seven MQ-25 aircraft, plus two ground test articles, at its St. Louis facilities, and they will be transported to MidAmerica for flight test. The MQ-25 program office, including its core engineering team, will remain based in St. Louis.
The new MQ-25 facility will be in addition to existing manufacturing operations at Boeing St. Clair, which produces components for the CH-47 Chinook, F/A-18 Super Hornet, F-15 and other defense products.
The U.S. Navy and Boeing [NYSE: BA] have completed a second carrier-based aircraft unmanned refueling mission with the Boeing-owned MQ-25TM T1 test asset, this time refueling a Navy E-2D Hawkeye command and control aircraft.
During a test flight from MidAmerica St. Louis Airport on Aug. 18, pilots from the Navy’s Air Test and Evaluation Squadron VX-20 conducted a successful wake survey behind MQ-25 T1 to ensure performance and stability before making contact with T1’s aerial refueling drogue. The E-2D received fuel from T1’s aerial refueling store during the flight.
The MQ-25 StingrayTM will be assigned to the carrier airborne early warning squadron within the carrier air wing, which currently operates the E-2 C/D aircraft – known as the “digital quarterback” of the fleet for its role in joint battle management and command and control.
This is the second aerial refueling mission the MQ-25 team has conducted this summer. On June 4, the MQ-25 T1 test asset became the first unmanned aircraft to refuel another aircraft, a U.S. Navy Super Hornet. Both flights were conducted at operationally relevant speeds and altitudes, with the E-2D and F/A-18 performing maneuvers in close proximity to T1.
Boeing is currently manufacturing the first two of seven MQ-25 test aircraft and two ground test articles currently under contract. The Boeing-owned MQ-25 T1 test asset is a predecessor to these aircraft. The MQ-25 is leveraging advancements in model-based digital engineering and design, and ongoing flights are intended to test aircraft design and performance much earlier than traditional programs.
Boeing is the world’s largest aerospace company and leading provider of commercial airplanes, defense, space and security systems, and global services. As the top U.S. exporter, the company supports commercial and government customers in more than 150 countries and leverages the talents of a global supplier base. Building on a legacy of aerospace leadership, Boeing continues to lead in technology and innovation, deliver for its customers and invest in its people and future growth.
MQ-25 and Stingray are trademarks of the Department of the Navy.
The Boeing Company [NYSE: BA] announced today major program deliveries across its commercial and defense operations for the second quarter of 2021.
“We continue the work to deliver on our commitments to our commercial, defense, space and services customers, while positioning our business for a stable and strong recovery from the pandemic. In the second quarter, we made progress in safely returning the 737 MAX to service in more international markets and increasing the pace of 737 deliveries,” the company said.
As Boeing has previously shared, the company has been engaged in detailed discussions with the FAA on verification methodology for 787 fuselages, and conducting associated inspections and rework. In connection with these efforts, the company has identified additional rework that will be required on undelivered 787s. Based on our assessment of the time required to complete this work, Boeing is reprioritizing production resources for a few weeks to support the inspection and rework. As that work is performed, the 787 production rate will temporarily be lower than five per month and will gradually return to that rate. Boeing now expects to deliver fewer than half of the 787s currently in inventory this year.
“We will continue to take the necessary time to ensure Boeing airplanes meet the highest quality prior to delivery. Across the enterprise, our teams remain focused on safety and integrity as we drive stability, first-time quality and productivity in our operations,” the company added.
Major program deliveries during the second quarter were as follows:
Major Programs
2nd Quarter 2021
Year-to- Date 2021
Commercial Airplanes Programs
737
50
113
747
1
2
767
8
13
777
8
14
787
12
14
Total
79
156
Defense, Space & Security Programs
AH-64 Apache (New)
6
15
AH-64 Apache (Remanufactured)
16
31
CH-47 Chinook (New)
3
6
CH-47 Chinook (Renewed)
1
4
F-15 Models
5
8
F/A-18 Models
7
11
KC-46 Tanker
2
4
P-8 Models
3
6
Commercial and Civil Satellites
—
—
Military Satellites
—
—
Note: Delivery information is not considered final until quarterly financial results are issued.
PRNewswire/ — For the first time in history, the U.S. Navy and Boeing [NYSE: BA] have demonstrated air-to-air refueling using an unmanned aircraft – the Boeing-owned MQ-25™ T1 test asset – to refuel another aircraft.
During a test flight on June 4, MQ-25 T1 successfully extended the hose and drogue from its U.S. Navy-issued aerial refueling store (ARS) and safely transferred jet fuel to a U.S. Navy F/A-18 Super Hornet, demonstrating the MQ-25 Stingray’s ability to carry out its primary aerial refueling mission.
During the initial part of the flight, the F/A-18 test pilot flew in close formation behind MQ-25 to ensure performance and stability prior to refueling – a maneuver that required as little as 20 feet of separation between the MQ-25 T1 air vehicle and the F/A-18 refueling probe. Both aircraft were flying at operationally relevant speeds and altitudes. With the evaluation safely completed, the MQ-25 drogue was extended, and the F/A-18 pilot moved in to “plug” with the unmanned aircraft and receive the scheduled fuel offload.
The milestone comes after 25 T1 flights, testing both aircraft and ARS aerodynamics across the flight envelope, as well as extensive simulations of aerial refueling using MQ-25 digital models. MQ-25 T1 will continue flight testing prior to being shipped to Norfolk, Virginia, for deck handling trials aboard a U.S. Navy carrier later this year.
The Boeing-owned T1 test asset is a predecessor to the seven test aircraft Boeing is manufacturing under a 2018 contract award. The MQ-25 will assume the tanking role currently performed by F/A-18s, allowing for better use of the combat strike fighters and helping extend the range of the carrier air wing.
Getafe19 April 2021 – The Airbus A400M new generation airlifter has successfully conducted a major helicopter air-to-air refueling certification campaign, completing the majority of its development and certification objectives. Airbus Defence and Space aims to achieve full helicopter air-to-air refuelling certification later this year with the conclusion of all mandatory night operation trials.
The flight tests, performed in coordination with the French Armament General Directorate (DGA), involved operations with two French Air Force H225M helicopters.
The campaign took place in day and night conditions over the west coast of France at between 1,000 ft and 10,000 ft and flight speeds as low as 105 knots. During those flights, a total of 81 wet contacts and transfers of 6.5 tonnes of fuel were achieved, which included simultaneous refuelling of two helicopters for the first time. The tests confirmed the positive results of the dry and wet contact operations conducted in 2019 and 2020.
Helicopter air-to-air refuelling is a unique military capability and key for Special Forces operations, involving aircraft with different flight profiles and sharing a very limited common flight envelope, requiring close formation flying patterns at low altitudes and night time conditions.
With this capability the A400M becomes one of the few tanker aircraft in the world capable of such operations. The multi-purpose H225M is one of the few helicopters in the world capable of in-flight refuelling, extending the standard 700 NM range by up to 10 hours flight time.
A400M as tanker
The A400M is certified as standard to be quickly configured as a tanker. Carrying up to 50.8 tonnes of fuel in its wings and centre wing box, without compromising any cargo hold area, two additional cargo hold tanks can also be installed, providing an additional 5.7 tonnes of fuel each. The separate cargo-hold tanks allows for the use of different types of fuel, enabling the A400M to cater for the needs of different types of receiver aircraft.
As a tanker, the A400M has already demonstrated its ability to refuel fighter receivers such as Eurofighter, Rafale, Tornado or F/A-18 at their preferred speeds and altitudes, and is also able to refuel other large aircraft such as another A400M for buddy refuelling, C295 or C-130.
– Financial results continue to be significantly impacted by COVID-19 and the 737 MAX grounding
– Proactively managing liquidity and transforming for the future
– Revenue of $14.1 billion, GAAP loss per share of ($0.79) and core (non-GAAP)* loss per share of ($1.39)
– Operating cash flow of ($4.8) billion; cash and marketable securities of $27.1 billion
– Total backlog of $393 billion, including more than 4,300 commercial airplanes
Table 1. Summary Financial Results
Third Quarter
Nine Months
(Dollars in Millions, except per share data)
2020
2019
Change
2020
2019
Change
Revenues
$14,139
$19,980
(29)%
$42,854
$58,648
(27)%
GAAP
(Loss)/Earnings From Operations
($401)
$1,259
NM
($4,718)
$229
NM
Operating Margin
(2.8)%
6.3%
NM
(11.0)%
0.4%
NM
Net (Loss)/Earnings
($466)
$1,167
NM
($3,502)
$374
NM
(Loss)/Earnings Per Share
($0.79)
$2.05
NM
($6.10)
$0.66
NM
Operating Cash Flow
($4,819)
($2,424)
NM
($14,401)
($226)
NM
Non-GAAP*
Core Operating (Loss)/Earnings
($754)
$895
NM
($5,773)
($864)
NM
Core Operating Margin
(5.3)%
4.5%
NM
(13.5)%
(1.5)%
NM
Core (Loss)/Earnings Per Share
($1.39)
$1.45
NM
($7.88)
($1.13)
NM
*Non-GAAP measure; complete definitions of Boeing’s non-GAAP measures are on page 5, “Non-GAAP Measures Disclosures.”
The Boeing Company [NYSE: BA] reported third-quarter revenue of $14.1 billion, GAAP loss per share of ($0.79) and core loss per share (non-GAAP)* of ($1.39), reflecting lower commercial deliveries and services volume primarily due to COVID-19 (Table 1). Boeing recorded operating cash flow of ($4.8) billion.
“The global pandemic continued to add pressure to our business this quarter, and we’re aligning to this new reality by closely managing our liquidity and transforming our enterprise to be sharper, more resilient and more sustainable for the long term,” said Boeing President and Chief Executive Officer Dave Calhoun. “Our diverse portfolio, including our government services, defense and space programs, continues to provide some stability for us as we adapt and rebuild for the other side of the pandemic. We remain focused on the health and safety of our employees and their communities. I’m proud of the dedication and commitment our teams have demonstrated as they continued to deliver for our customers in this challenging environment. Despite the near-term headwinds, we remain confident in our long term future and are focused on sustaining critical investments in our business and the meaningful actions we are taking to strengthen our safety culture, improve transparency and rebuild trust.”
Following the lead of global regulators, Boeing made steady progress toward the safe return to service of the 737 MAX, including rigorous certification and validation flights conducted by the U.S. Federal Aviation Administration, Transport Canada and the European Union Aviation Safety Agency. The Joint Operational Evaluation Board, featuring civil aviation authorities from the United States, Canada, Brazil, and the European Union, also conducted its evaluations of updated crew training. The 737 MAX has now completed around 1,400 test and check flights and more than 3,000 flight hours as it progresses through the robust and comprehensive certification process.
To adapt to the market impacts of COVID-19 and position the company for the future, Boeing continued its business transformation across five key areas including its infrastructure footprint, overhead and organizational structure, portfolio and investment mix, supply chain health and operational excellence. As the company resizes its operations to align with market realities, Boeing expects to continue lowering overall staffing levels through natural attrition as well as voluntary and involuntary workforce reductions, and recorded additional severance costs in the third quarter.
Table 2. Cash Flow
Third Quarter
Nine Months
(Millions)
2020
2019
2020
2019
Operating Cash Flow
($4,819)
($2,424)
($14,401)
($226)
Less Additions to Property, Plant & Equipment
($262)
($465)
($1,038)
($1,387)
Free Cash Flow*
($5,081)
($2,889)
($15,439)
($1,613)
*Non-GAAP measure; complete definitions of Boeing’s non-GAAP measures are on page 5, “Non-GAAP Measures Disclosures.”
Operating cash flow was ($4.8) billion in the quarter, reflecting lower commercial deliveries and services volume primarily due to COVID-19, as well as timing of receipts and expenditures (Table 2).
Table 3. Cash, Marketable Securities and Debt Balances
Quarter-End
(Billions)
Q3 20
Q2 20
Cash
$10.6
$20.0
Marketable Securities1
$16.5
$12.4
Total
$27.1
$32.4
Debt Balances:
The Boeing Company, net of intercompany loans to BCC
$59.1
$59.5
Boeing Capital, including intercompany loans
$1.9
$1.9
Total Consolidated Debt
$61.0
$61.4
1Marketable securities consists primarily of time deposits due within one year classified as “short-term investments.”
Cash and investments in marketable securities decreased to $27.1 billion, compared to $32.4 billion at the beginning of the quarter, primarily driven by operating cash outflows (Table 3). Debt was $61.0 billion, down from $61.4 billion at the beginning of the quarter due to the repayment of maturing debt.
Total company backlog at quarter-end was $393 billion.
Segment Results
Commercial Airplanes
Table 4. Commercial Airplanes
Third Quarter
Nine Months
(Dollars in Millions)
2020
2019
Change
2020
2019
Change
Commercial Airplanes Deliveries
28
62
(55)%
98
301
(67)%
Revenues
$3,596
$8,249
(56)%
$11,434
$24,793
(54)%
Loss from Operations
($1,369)
($40)
NM
($6,199)
($3,813)
NM
Operating Margin
(38.1)%
(0.5)%
NM
(54.2)%
(15.4)%
NM
Commercial Airplanes third-quarter revenue decreased to $3.6 billion, reflecting lower delivery volume primarily due to COVID-19 impacts as well as 787 quality issues and associated rework. Third-quarter operating margin decreased to (38.1) percent, primarily driven by lower delivery volume, as well as $590 million of abnormal production costs related to the 737 program.
Commercial Airplanes added the final 777X flight test airplane to the test program and the GE9X engine received FAA certification. In October, the company decided it will consolidate 787 production in South Carolina in mid-2021, which did not have a significant financial impact on the program in the third quarter. Commercial Airplanes delivered 28 airplanes during the quarter, and backlog included over 4,300 airplanes valued at $313 billion.
Defense, Space & Security
Table 5. Defense, Space & Security
Third Quarter
Nine Months
(Dollars in Millions)
2020
2019
Change
2020
2019
Change
Revenues
$6,848
$7,002
(2)%
$19,478
$20,168
(3)%
Earnings from Operations
$628
$754
(17)%
$1,037
$2,581
(60)%
Operating Margin
9.2%
10.8%
(1.6) Pts
5.3%
12.8%
(7.5) Pts
Defense, Space & Security third-quarter revenue decreased to $6.8 billion, primarily due to derivative aircraft award timing, partially offset by higher fighter volume (Table 5). Third-quarter operating margin decreased to 9.2 percent reflecting less favorable performance, including a $67 million KC-46A Tanker charge.
During the quarter, Defense, Space & Security received an award for eight F-15EX advanced fighter aircraft for the U.S. Air Force and a contract extension for the International Space Station for NASA, as well as contracts for nine additional MH-47G Block II Chinook helicopters for the U.S. Army Special Operations and four additional 702X satellites. Also in the quarter, the U.S. Air Force and Boeing team was awarded the Collier Trophy for aerospace excellence for the X-37B autonomous spaceplane. Significant milestones included inducting the 20th U.S. Navy F/A-18 into the Service Life Modification program as well as delivering the firstBell Boeing V-22 Osprey to Japan and the first MH-47G Block II Chinook to the U.S. Army Special Operations.
Backlog at Defense, Space & Security was $62 billion, of which 30 percent represents orders from customers outside the U.S.
Global Services
Table 6. Global Services
Third Quarter
Nine Months
(Dollars in Millions)
2020
2019
Change
2020
2019
Change
Revenues
$3,694
$4,658
(21)%
$11,810
$13,820
(15)%
Earnings from Operations
$271
$673
(60)%
$307
$2,013
(85%)
Operating Margin
7.3%
14.4%
(7.1) Pts
2.6%
14.6%
(12.0) Pts
Global Services third-quarter revenue decreased to $3.7 billion, driven by lower commercial services volume due to COVID-19, partially offset by higher government services volume (Table 6). Third-quarter operating margin decreased to 7.3 percent primarily due to lower commercial services volume and additional severance costs.
During the quarter, Global Services signed an agreement with GECAS for 11 737-800 Boeing Converted Freighters, secured a six-year P-8A support contract for the Royal Australian Air Force, and was awarded F-15EX training and services support contracts by the U.S. Air Force. Global Services also delivered the first P-8A Operational Flight Trainer for the United Kingdom Royal Air Force.
Additional Financial Information
Table 7. Additional Financial Information
Third Quarter
Nine Months
(Dollars in Millions)
2020
2019
2020
2019
Revenues
Boeing Capital
$71
$66
$205
$207
Unallocated items, eliminations and other
($70)
$5
($73)
($340)
Earnings from Operations
Boeing Capital
$30
$29
$47
$86
FAS/CAS service cost adjustment
$353
$364
$1,055
$1,093
Other unallocated items and eliminations
($314)
($521)
($965)
($1,731)
Other income, net
$119
$121
$325
$334
Interest and debt expense
($643)
($203)
($1,458)
($480)
Effective tax rate
49.6%
0.8%
40.1%
(350.6)%
At quarter-end, Boeing Capital’s net portfolio balance was $2.0 billion. The change in revenue and earnings from other unallocated items and eliminations was primarily due to the timing of cost allocations. Earnings from other unallocated items and eliminations was also impacted by lower enterprise research and development expense. Interest and debt expense increased due to higher debt balances. The third quarter effective tax rate reflects tax benefits related to the five year net operating loss carryback provision in the Coronavirus Aid, Relief, and Economic Security (CARES) Act as well as the impact of pre-tax losses.
Non-GAAP Measures Disclosures
We supplement the reporting of our financial information determined under Generally Accepted Accounting Principles in the United States of America (GAAP) with certain non-GAAP financial information. The non-GAAP financial information presented excludes certain significant items that may not be indicative of, or are unrelated to, results from our ongoing business operations. We believe that these non-GAAP measures provide investors with additional insight into the company’s ongoing business performance. These non-GAAP measures should not be considered in isolation or as a substitute for the related GAAP measures, and other companies may define such measures differently. We encourage investors to review our financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure. The following definitions are provided:
Core Operating Earnings, Core Operating Margin and Core Earnings Per Share
Core operating earnings is defined as GAAP earnings from operations excluding the FAS/CAS service cost adjustment. The FAS/CAS service cost adjustment represents the difference between the FAS pension and postretirement service costs calculated under GAAP and costs allocated to the business segments. Core operating margin is defined as core operating earnings 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 the FAS/CAS service cost adjustment and Non-operating pension and postretirement expenses. Non-operating pension and postretirement expenses represent the components of net periodic benefit costs other than service cost. Pension costs, comprising service and prior service costs computed in accordance with GAAP are allocated to Commercial Airplanes and BGS businesses supporting commercial customers. Pension costs allocated to BDS and BGS businesses supporting government customers are computed in accordance with U.S. Government Cost Accounting Standards (CAS), which employ different actuarial assumptions and accounting conventions than GAAP. CAS costs are allocable to government contracts. Other postretirement benefit costs are allocated to all business segments based on CAS, which is generally based on benefits paid. Management uses core operating earnings, 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 non-service 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 pages 12-13.
Free Cash Flow
Free cash flow is GAAP operating cash flow reduced by capital expenditures for property, plant and equipment. Management believes free cash flow provides investors with an important perspective on the cash available for shareholders, debt repayment, and acquisitions after making the capital investments required to support ongoing business operations and long term value creation. Free cash flow does not represent the residual cash flow available for discretionary expenditures as it excludes certain mandatory expenditures such as repayment of maturing debt. Management uses free cash flow as a measure to assess both business performance and overall liquidity. Table 2 provides a reconciliation of free cash flow to GAAP operating 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 generally identify these forward-looking statements. Examples of forward-looking statements include statements relating to our future financial condition and operating results, as well as any other statement that does not directly relate to any historical or current fact. Forward-looking statements are based on expectations and assumptions that we believe to be reasonable when made, but that may not prove to be accurate. These statements are not guarantees and are subject to risks, uncertainties, and changes in circumstances that are difficult to predict. Many factors could cause actual results to differ materially and adversely from these forward-looking statements. Among these factors are risks related to: (1) the COVID-19 pandemic and related government actions, including with respect to our operations, our liquidity, the health of our customers and suppliers, and future demand for our products and services; (2) the 737 MAX, including the timing and conditions of 737 MAX regulatory approvals, lower than planned production rates and/or delivery rates, and increased considerations to customers and suppliers, (3) general conditions in the economy and our industry, including those due to regulatory changes; (4) our reliance on our commercial airline customers; (5) the overall health of our aircraft production system, planned commercial aircraft production rate changes, our commercial development and derivative aircraft programs, and our aircraft being subject to stringent performance and reliability standards; (6) changing budget and appropriation levels and acquisition priorities of the U.S. government; (7) our dependence on U.S. government contracts; (8) our reliance on fixed-price contracts; (9) our reliance on cost-type contracts; (10) uncertainties concerning contracts that include in-orbit incentive payments; (11) our dependence on our subcontractors and suppliers, as well as the availability of raw materials; (12) changes in accounting estimates; (13) changes in the competitive landscape in our markets; (14) our non-U.S. operations, including sales to non-U.S. customers; (15) threats to the security of our or our customers’ information; (16) potential adverse developments in new or pending litigation and/or government investigations; (17) customer and aircraft concentration in our customer financing portfolio; (18) changes in our ability to obtain debt financing on commercially reasonable terms and at competitive rates; (19) realizing the anticipated benefits of mergers, acquisitions, joint ventures/strategic alliances or divestitures; (20) the adequacy of our insurance coverage to cover significant risk exposures; (21) potential business disruptions, including those related to physical security threats, information technology or cyber-attacks, epidemics, sanctions or natural disasters; (22) work stoppages or other labor disruptions; (23) substantial pension and other postretirement benefit obligations; and (24) 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.
