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Boeing Reports Strong Second-Quarter Results and Raises 2013 EPS Guidance CHICAGO, July 24, 2013 -- * Core EPS (non-GAAP)* rose 13 percent to $1.67 on strong operating performance; GAAP EPS of $1.41 * Revenue increased 9 percent to $21.8 billion reflecting higher deliveries on the 787 and 737 programs * Backlog grew to a record $410 billion, including $40 billion of net orders during the quarter * Operating cash flow before pension contributions* more than doubled to $3.5 billion * 2013 Core EPS guidance increased to between $6.20 and $6.40; GAAP EPS to between $5.10 and $5.30 Table 1. SummaryFinancial Results Second Quarter First Half (Dollars inMillions, except 2013 2012 Change 2013 2012 Changeper share data) Revenues $21,815 $20,005 9% $40,708 $39,388 3% Non-GAAP*Core Operating Earnings $2,028 $1,787 13% $3,895 $3,560 9%Core Operating Margin 9.3% 8.9% 0.4 Pts 9.6% 9.0% 0.6 PtsCore Earnings Per Share $1.67 $1.48 13% $3.40 $2.88 18%Operating Cash Flow Before Pension Contributions $3,480 $1,671 108% $4,004 $2,508 60% GAAPEarnings From Operations $1,716 $1,542 11% $3,244 $3,107 4%Operating Margin 7.9% 7.7% 0.2 Pts 8.0% 7.9% 0.1 PtsNet Earnings $1,088 $967 13% $2,194 $1,890 16%Earnings Per Share $1.41 $1.27 11% $2.85 $2.49 14%Operating Cash Flow $3,467 $908 282% $3,991 $1,745 129% * Non-GAAP measures (core operating earnings, core operating margin and coreearnings per share) exclude certain components of pension and post retirementbenefit expense that the company believes are not reflective of underlyingbusiness performance. Complete definitions of Boeing's non-GAAP measures beginon page 6, "Non-GAAP Measures Disclosures." The Boeing Company (NYSE: BA) reported second-quarter core earnings per share(non-GAAP) increased 13 percent* to $1.67, driven by strong performance acrossthe company's businesses (Table 1). Second-quarter core operating earnings(non-GAAP) also increased 13 percent* to $2.0 billion from the same period ofthe prior year. Second-quarter revenue was $21.8 billion, GAAP earnings fromoperations was $1.7 billion and earnings per share was $1.41. Core earnings pershare guidance increased to between $6.20 and $6.40 and GAAP earnings per shareguidance increased to between $5.10 and $5.30, reflecting the strongperformance. The company also increased its revenue guidance to between $83 and$86 billion on higher Defense, Space & Security revenues, and reaffirmed its2013 operating cash flow outlook. "Continued strong core operating performance drove higher earnings, revenue andoperating cash flow during the quarter, and we returned significant value toshareholders through share repurchases and increased dividends," said BoeingChairman, President and CEO Jim McNerney. "We also further strengthened ourmarket-leading position in commercial airplanes with the successful launch ofthe 787-10 and $40 billion of new orders, while our defense, space and securitybusiness delivered improved margins and market share in a tough market.Overall, our strong first-half performance and positive outlook allows us toraise our 2013 earnings and revenue guidance, and our team remains intenselyfocused on execution, productivity and quality to meet our customer commitmentsand further drive growth." Table 2. Cash Flow Second Quarter First Half(Millions) 2013 2012 2013 2012 Operating Cash Flow Before Pension Contributions* $3,480 $1,671 $4,004 $2,508 Pension Contributions ($13) ($763) ($13) ($763)Operating Cash Flow $3,467 $908 $3,991 $1,745 Less Additions to Property, Plant & Equipment ($455) ($356) ($976) ($780)Free Cash Flow* $3,012 $552 $3,015 $965 Operating cash flow in the quarter was $3.5 billion, reflecting highercommercial airplane production rates, strong core operating performance andtiming of receipts and expenditures (Table 2). During the quarter, the companyrepurchased 10.2 million shares for $1 billion and paid $0.4 billion individends, reflecting a 12 percent increase in dividends paid compared to theprior period. Table 3. Cash, Marketable Securities and Debt Balances Quarter-End(Billions) Q2 13 Q1 13Cash $8.7 $8.3Marketable Securities(1) $5.6 $3.5 Total $14.3 $11.8Debt Balances:The Boeing Company, net of intercompany loans to BCC $7.0 $6.7Boeing Capital Corporation, including intercompany loans $2.6 $2.5 Total Consolidated Debt $9.6 $9.2 (1) Marketable securities consists primarily of time deposits due within one year classified as "short-term investments." Cash and investments in marketable securities totaled $14.3 billion atquarter-end (Table 3), up from $11.8 billion at the beginning of the quarter.Debt was $9.6 billion, up from $9.2 billion at the beginning of the quarter,primarily due to the issuance of new debt. Total company backlog at quarter-end was a record $410 billion, up from $392billion at the beginning of the quarter, and included net orders for thequarter of $40 billion. Segment Results Commercial Airplanes Table 4. Commercial Airplanes Second Quarter First Half(Dollars in Millions) 2013 2012 Change 2013 2012 Change Commercial Airplanes Deliveries 169 150 13% 306 287 7% Revenues $13,624 $11,843 15% $24,314 $22,780 7%Earnings from Operations $1,453 $1,211 20% $2,672 $2,292 17%Operating Margins 10.7% 10.2% 0.5 Pts 11.0% 10.1% 0.9 Pts Boeing Commercial Airplanes second-quarter revenue increased to $13.6 billionon higher delivery volume. Second-quarter operating margin improved to 10.7%,reflecting lower R&D and the higher deliveries partially offset by the dilutiveimpact of 787 deliveries (Table 4). During the quarter, the company completed the retrofit of 787 batteryenhancements on previously delivered airplanes and delivered sixteen 787airplanes. Also during the quarter, the 787-9 Dreamliner began final assemblyand the launch of the 787-10 was announced. Commercial Airplanes booked 481 net orders during the quarter. Backlog remainsstrong with nearly 4,800 airplanes valued at a record $339 billion. Boeing Defense, Space & Security Table 5. Defense, Space & Security Second Quarter First Half(Dollars in Millions) 2013 2012 Change 2013 2012 Change Revenues Boeing Military Aircraft $3,889 $4,050 (4)% $7,998 $8,272 (3)% Network & Space Systems $2,049 $1,960 5% $4,009 $3,832 5% Global Services & Support $2,248 $2,182 3% $4,289 $4,321 (1)% Total BDS Revenues $8,186 $8,192 - $16,296 $16,425 (1)% Earnings from Operations Boeing Military Aircraft $373 $353 6% $803 $752 7% Network & Space Systems $137 $136 1% $293 $245 20% Global Services & Support $266 $259 3% $512 $493 4%Total BDS Earnings from Operations $776 $748 4% $1,608 $1,490 8% Operating Margins 9.5% 9.1% 0.4 Pts 9.9% 9.1% 0.8 Pts Boeing Defense, Space & Security's second-quarter revenue was $8.2 billion,while operating margin was 9.5 percent (Table 5). Boeing Military Aircraft (BMA) second-quarter revenue was $3.9 billion,primarily reflecting lower delivery volume. Operating margin increased to 9.6percent, as the prior year included an inventory adjustment on A-160. Duringthe quarter, BMA was awarded CH-47 Chinook and V-22 Osprey multi-yearcontracts. Network & Space Systems (N&SS) second-quarter revenue was $2.0 billion,reflecting higher revenue in commercial satellites and the Space Launch Systemprogram. Operating margin was 6.7 percent, reflecting lower earnings inelectronic & information solutions. During the quarter, N&SS was awarded acontract by ViaSat to design and deliver one 702HP spacecraft and was alsoawarded a contract for four 702MP satellites for Intelsat S.A. Global Services & Support (GS&S) second-quarter revenue was $2.2 billion, dueto higher volume in maintenance, modifications & upgrades. Operating margin was11.8 percent, reflecting strong performance. During the quarter, GS&S wasawarded a contract by the Royal Netherlands Air Force for maintenance and spareparts for Chinook and Apache helicopters. Backlog at Defense, Space & Security increased to $71 billion, of which 37percent represents orders with international customers. Additional Financial Information Table 6. Additional Financial Information Second Quarter First Half(Dollars in Millions) 2013 2012 2013 2012Revenues Boeing Capital Corporation $104 $113 $209 $238 Other segment $27 $28 $54 $52 Unallocated items and eliminations ($126) ($171) ($165) ($107)Earnings from Operations Boeing Capital Corporation $19 $39 $63 $72 Other segment expense ($43) ($64) ($101) ($143) Unallocated items and eliminations included in core operating earnings ($177) ($147) ($347) ($151) Unallocated pension/postretirement expense ($312) ($245) ($651) ($453)Other income, net $13 $10 $22 $22Interest and debt expense ($96) ($106) ($195) ($220)Effective tax rate 33.4% 33.1% 28.6% 35.0% At quarter-end, Boeing Capital Corporation's (BCC) net portfolio balance was$4.1 billion and debt-to-equity ratio was 5.0-to-1. Unallocated items andeliminations included in core operating earnings increased in the secondquarter of 2013 due to higher deferred compensation expense as a result ofstock price appreciation. Total pension expense for the second quarter was $753million, up from $593 million in the same period last year. Outlook The company's 2013 financial guidance (Table 7) has been updated to reflectcontinued strong performance in both businesses, generating an expected 7percent year over year increase in core earnings per share (non-GAAP). Table 7. Financial Outlook(Dollars in Billions, except per share data) 2013 The Boeing Company Revenue $83 - 86 Core Earnings Per Share* $6.20 - 6.40 Earnings Per Share $5.10 - 5.30 Operating Cash Flow Before Pension Contributions* greater than $8 Operating Cash Flow (1) greater than $6.5 Boeing Commercial Airplanes Deliveries (2) 635 - 645 Revenue $51 - 53 Operating Margin greater than 9.5% Boeing Defense, Space & Security Revenue Boeing Military Aircraft ~$16.0 Network & Space Systems ~$7.8 Global Services & Support ~$8.2 Total BDS Revenue $31.5 - 32.5 Operating Margin Boeing Military Aircraft ~ 9.0% Network & Space Systems ~ 7.5% Global Services & Support ~ 10.5% Total BDS Operating Margin greater than 9.0% Boeing Capital Corporation Portfolio Size Lower Revenue ~ $0.3 Pre-Tax Earnings ~ $0.05 Research & Development ~ $3.3Capital Expenditures ~ $2.3Pension Expense (3) ~ $3.2Effective Tax Rate ~ 31% (1) After discretionary cash pension contributions of $1.5 billion and assuming new aircraft financings under $0.5 billion.(2) Assumes greater than 60 787 deliveries.(3) Approximately $1.4 billion is expected to be recorded in unallocated items and eliminations.* Non-GAAP measures. Complete definitions of Boeing's use of non-GAAP measuresbegin on page 6, "Non-GAAP Measures Disclosures." Core earnings per share guidance for 2013 increased to between $6.20 and $6.40,up from between $6.10 and $6.30, and earnings per share guidance increased tobetween $5.10 and $5.30, up from between $5.00 and $5.20, both reflecting thestrong operating performance. Total company 2013 revenue increased to between$83 and $86 billion, from between $82 and $85 billion, on higher Defense, Space& Security revenue. Commercial Airplanes' operating margin increased to greater than 9.5 percent,up from approximately 9.5 percent. Defense, Space & Security's revenue guidance increased to between $31.5 and$32.5 billion, from between $30.5 and $31.5 billion, reflecting internationalvolume and mix. Research and development expense for 2013 is now expected to be approximately$3.3 billion, down from approximately $3.4 billion. Capital expenditures for2013 is revised to approximately $2.3 billion, down from between $2.3 and $2.5billion. The 2013 effective tax rate is now expected to be approximately 31percent, up from approximately 30 percent. 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 financialinformation. The non-GAAP financial information presented excludes certainsignificant items that may not be indicative of, or are unrelated to, resultsfrom our ongoing business operations. We believe that these non-GAAP measuresprovide investors with additional insight into the company's ongoing businessperformance. These non-GAAP measures should not be considered in isolation oras a substitute for the related GAAP measures, and other companies may definesuch measures differently. We encourage investors to review our financialstatements and publicly-filed reports in their entirety and not to rely on anysingle 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 excludingunallocated pension and post-retirement expense. Core operating margin isdefined as core operating earnings expressed as a percentage of revenue. Coreearnings per share is defined as GAAP diluted earnings per share excluding thenet earnings per share impact of unallocated pension and post-retirementexpense. Unallocated pension and post-retirement expense represents the portionof pension and other post-retirement costs that are not recognized by businesssegments for segment reporting purposes. Management uses core operatingearnings, core operating margin and core earnings per share for purposes ofevaluating and forecasting underlying business performance. Management believesthese core earnings measures provide investors additional insights intooperational performance as they exclude unallocated pension and post-retirementcosts, which primarily represent costs driven by market factors and costs notallocable to government contracts. Operating Cash Flow Before Pension Contributions Operating cash flow before pension contributions is defined as GAAP operatingcash flow less pension contributions. Management believes operating cash flowbefore pension contributions provides additional insights into underlyingbusiness performance. Management uses operating cash flow before pensioncontributions as a measure to assess both business performance and overallliquidity. Table 2 provides a reconciliation between GAAP operating cash flowand operating cash flow before pension contributions. Free Cash Flow Free cash flow is defined as GAAP operating cash flow less capital expendituresfor property, plant and equipment additions. Management believes free cash flowprovides investors with an important perspective on the cash available forshareholders, debt repayment, and acquisitions after making the capitalinvestments required to support ongoing business operations and long term valuecreation. Free cash flow does not represent the residual cash flow availablefor discretionary expenditures as it excludes certain mandatory expendituressuch as repayment of maturing debt. Management uses free cash flow as a measureto assess both business performance and overall liquidity. Table 2 provides areconciliation between GAAP operating cash flow and free cash flow. Caution Concerning Forward-Looking Statements This press release contains "forward-looking statements" within the meaning ofthe 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 theseforward-looking statements. Examples of forward-looking statements includestatements relating to our future financial condition and operating results, aswell as any other statement that does not directly relate to any historical orcurrent fact. Forward-looking statements are based on our current expectationsand assumptions, which may not prove to be accurate. These statements are notguarantees and are subject to risks, uncertainties, and changes incircumstances that are difficult to predict. Many factors could cause actualresults to differ materially and adversely from these forward-lookingstatements. Among these factors are risks related to: (1) general conditions inthe economy and our industry, including those due to regulatory changes; (2)our reliance on our commercial airline customers; (3) the overall health of ouraircraft production system, planned production rate increases across multiplecommercial airline programs, our commercial development and derivative aircraftprograms, and our aircraft being subject to stringent performance andreliability standards; (4) changing acquisition priorities of the U.S.government; (5) our dependence on U.S. government contracts; (6) our relianceon 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 theavailability 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 adversedevelopments in new or pending litigation and/or government investigations;(14) customer and aircraft concentration in Boeing Capital's customer financingportfolio; (15) changes in our ability to obtain debt on commerciallyreasonable terms and at competitive rates in order to fund our operations andcontractual commitments; (16) realizing the anticipated benefits of mergers,acquisitions, joint ventures/strategic alliances or divestitures; (17) theadequacy of our insurance coverage to cover significant risk exposures; (18)potential business disruptions, including those related to physical securitythreats, information technology or cyber-attacks or natural disasters; (19)work stoppages or other labor disruptions; (20) significant changes in discountrates and actual investment return on pension assets; (21) potentialenvironmental liabilities; and (22) threats to the security of our or ourcustomers' information. Additional information concerning these and other factors can be found in ourfilings with the Securities and Exchange Commission, including our most recentAnnual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reportson Form 8-K. Any forward-looking statement speaks only as of the date on whichit is made, and we assume no obligation to update or revise any forward-lookingstatement, whether as a result of new information, future events, or otherwise,except as required by law. Contact: Investor Relations: Troy Lahr or Matt Welch (312) 544-2140Communications: 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) 2013 2012 2013 2012Sales of products $35,556 $34,026 $19,238 $17,341Sales of services 5,152 5,362 2,577 2,664Total revenues 40,708 39,388 21,815 20,005 Cost of products (30,165) (28,420) (16,437) (14,759)Cost of services (4,004) (4,342) (1,995) (1,962)Boeing Capital interest expense (37) (58) (18) (25)Total costs and expenses (34,206) (32,820) (18,450) (16,746) 6,502 6,568 3,365 3,259 Income from operating investments, net 88 91 43 45General and administrative expense (1,900) (1,858) (929) (903)Research and development expense, net (1,468) (1,692) (763) (857)Gain/(loss) on dispositions, net 22 (2) (2) Earnings from operations 3,244 3,107 1,716 1,542Other income, net 22 22 13 10Interest and debt expense (195) (220) (96) (106)Earnings before income taxes 3,071 2,909 1,633 1,446Income tax expense (878) (1,018) (546) (479)Net earnings from continuing operations 2,193 1,891 1,087 967Net gain/(loss) on disposal of discontinued operations, net of taxes of $0, $1, $0 and $0 1 (1) 1 Net earnings $2,194 $1,890 $1,088 $967 Basic earnings per share from continuing operations $2.88 $2.51 $1.43 $1.28Net gain/(loss) on disposal of discontinued operations, net of taxesBasic earnings per share $2.88 $2.51 $1.43 $1.28Diluted earnings per share from continuing operations $2.85 $2.49 $1.41 $1.27Net gain/(loss) on disposal of discontinued operations, net of taxes Diluted earnings per share $2.85 $2.49 $1.41 $1.27Cash dividends paid per share $0.97 $0.88 $0.485 $0.44Weighted average diluted shares (millions) 770.1 760.7 771.8 762.0 The Boeing Company and Subsidiaries Consolidated Statements of Financial Position (Unaudited) June 30 December 31(Dollars in millions, except per share data) 2013 2012 AssetsCash and cash equivalents $8,694 $10,341Short-term and other investments 5,631 3,217Accounts receivable, net 6,406 5,608Current portion of customer financing, net 320 364Deferred income taxes 25 28Inventories, net of advances and progress billings 40,234 37,751 Total current assets 61,310 57,309 Customer financing, net 3,991 4,056Property, plant and equipment, net of accumulated depreciation of $14,717 and $14,645 9,814 9,660Goodwill 5,043 5,035Acquired intangible assets, net 3,011 3,111Deferred income taxes 6,307 6,753Investments 1,166 1,180Other assets, net of accumulated amortization of 1,449 1,792 $464 and $504 Total assets $92,091 $88,896 Liabilities and equityAccounts payable $10,437 $9,394Accrued liabilities 12,412 12,995Advances and billings in excess of related costs 18,145 16,672Deferred income taxes and income taxes payable 5,072 4,485Short-term debt and current portion of long-term debt 883 1,436 Total current liabilities 46,949 44,982 Accrued retiree health care 7,431 7,528Accrued pension plan liability, net 20,070 19,651Non-current income taxes payable 275 366Other long-term liabilities 1,039 1,429Long-term debt 8,695 8,973Shareholders' 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 4,181 4,122 Treasury stock, at cost - 258,226,771 and 256,630,628 shares (16,412) (15,937) Retained earnings 31,490 30,037 Accumulated other comprehensive loss (16,794) (17,416) Total shareholders' equity 7,526 5,867 Noncontrolling interest 106 100 Total equity 7,632 5,967 Total liabilities and equity $92,091 $88,896 The Boeing Company and Subsidiaries Consolidated Statements of Cash Flows (Unaudited) Six months ended June 30(Dollars in millions) 2013 2012Cash flows - operating activities:Net earnings $2,194 $1,890Adjustments to reconcile net earnings to net cash provided by operating activities: Non-cash items - Share-based plans expense 107 99 Depreciation and amortization 865 848 Investment/asset impairment charges, net 26 45 Customer financing valuation benefit (5) (1) (Gain)/loss on disposal of discontinued operations (1) 2 (Gain)/loss on dispositions, net (22) 2 Other charges and credits, net 31 361 Excess tax benefits from share-based payment arrangements (47) (39) Changes in assets and liabilities - Accounts receivable (550) (310) Inventories, net of advances and progress billings (2,614) (2,737) Accounts payable 848 742 Accrued liabilities (682) (594) Advances and billings in excess of related costs 1,472 (152) Income taxes receivable, payable and deferred 608 705 Other long-term liabilities (60) (15) Pension and other postretirement plans 1,638 686 Customer financing, net 188 216 Other (5) (3) Net cash provided by operating activities 3,991 1,745 Cash flows - investing activities: Property, plant and equipment additions (976) (780) Property, plant and equipment reductions 44 16 Acquisitions, net of cash acquired (26) (18) Contributions to investments (7,045) (6,396) Proceeds from investments 4,632 3,596 Purchase of distribution rights (6) Net cash used by investing activities (3,371) (3,588)Cash flows - financing activities: New borrowings 531 24 Debt repayments (1,361) (1,233) Repayments of distribution rights financing (139) (72) Stock options exercised, other 484 71 Excess tax benefits from share-based payment arrangements 47 39 Employee taxes on certain share-based payment arrangements (57) (68) Common shares repurchased (1,000) Dividends paid (735) (658) Net cash used by financing activities (2,230) (1,897)Effect of exchange rate changes on cash and cash (37) (4) equivalentsNet decrease in cash and cash equivalents (1,647) (3,744)Cash and cash equivalents at beginning of year $10,341 $10,049Cash and cash equivalents at end of period $8,694 $6,305 The Boeing Company and Subsidiaries Summary of Business Segment Data (Unaudited) Six months ended Three months ended June 30 June 30(Dollars in millions) 2013 2012 2013 2012Revenues: Commercial Airplanes $24,314 $22,780 $13,624 $11,843 Defense, Space & Security: Boeing Military Aircraft 7,998 8,272 3,889 4,050 Network & Space Systems 4,009 3,832 2,049 1,960 Global Services & Support 4,289 4,321 2,248 2,182 Total Defense, Space & Security 16,296 16,425 8,186 8,192 Boeing Capital 209 238 104 113 Other segment 54 52 27 28 Unallocated items and eliminations (165) (107) (126) (171)Total revenues $40,708 $39,388 $21,815 $20,005Earnings from operations: Commercial Airplanes $2,672 $2,292 $1,453 $1,211Defense, Space & Security: Boeing Military Aircraft 803 752 373 353 Network & Space Systems 293 245 137 136 Global Services & Support 512 493 266 259 Total Defense, Space & Security 1,608 1,490 776 748 Boeing Capital 63 72 19 39 Other segment (101) (143) (43) (64) Unallocated items and eliminations (998) (604) (489) (392)Earnings from operations 3,244 3,107 1,716 1,542Other income, net 22 22 13 10Interest and debt expense (195) (220) (96) (106)Earnings before income taxes 3,071 2,909 1,633 1,446Income tax expense (878) (1,018) (546) (479)Net earnings from continuing 2,193 1,891 1,087 967operationsNet gain/(loss) on disposal of discontinued operations, net of taxes of $0, $1, $0 and $0 1 (1) 1Net earnings $2,194 $1,890 $1,088 $967 Research and development expense, net: Commercial Airplanes $865 $1,104 $446 $560 Defense, Space & Security 579 562 307 281 Other 24 26 10 16Total research and development expense, net $1,468 $1,692 $763 $857 Unallocated items and eliminations: Share-based plans ($53) ($41) (22) (19) Deferred compensation (102) (34) (46) 2 Capitalized interest (34) (37) (17) (16) Eliminations and other (158) (39) (92) (114) Sub-total (included in core (347) (151) (177) (147) operating earnings) Pension (689) (404) (331) (215) Postretirement 38 (49) 19 (30)Total unallocated items and ($998) ($604) ($489) ($392)eliminations The Boeing Company and Subsidiaries Operating and Financial Data Unaudited) Deliveries Six months ended June 30 Three months ended June 30Commercial Airplanes 2013 2012 2013 2012737 218 208 116 109747 12 13 6 7767 12 13 8 6777 47 42 23 22787 17 (1) 11 16 (1) 6Total 306 287 169 150 Note: Deliveries under operating lease are identified by parentheses. Defense, Space & SecurityBoeing Military Aircraft F/A-18 Models 24 24 12 12 F-15E Eagle 3 8 3 C-17 Globemaster III 6 5 3 3 CH-47 Chinook 17 22 8 12 AH-64 Apache 20 3 5 3 P-8 Models 5 1 3 AEW&C 2 2 Network & Space Systems Commercial and Civil Satellites 1 1 Military Satellites 3 1 June 30 March 31 December 31Contractual backlog (Dollars in billions) 2013 2013 2012 Commercial Airplanes $337.7 $322.0 $317.3Defense, Space & Security: Boeing Military Aircraft 26.5 26.6 29.2 Network & Space Systems 10.2 9.6 10.1 Global Services & Support 14.8 15.4 15.8 Total Defense, Space & Security 51.5 51.6 55.1Total contractual backlog $389.2 $373.6 $372.4Unobligated backlog $21.1 $18.1 $17.9Total backlog $410.3 $391.7 $390.3Workforce 172,200 173,100 174,400 The Boeing Company and Subsidiaries Reconciliation of Non-GAAP MeasuresCore Operating Earnings, Core Operating Margin and Core Earnings Per Share (Unaudited) The tables provided below reconcile the non-GAAP financial measures coreoperating earnings, core operating margin and core earnings per share with themost directly comparable GAAP financial measures, earnings from operations,operating margin and diluted earnings per share. See page 6 of this release foradditional information on the use of these non-GAAP financial measures. Six months ended June 30 Three months ended June 30 2013 2012 2013 2012 Revenues $40,708 $39,388 $21,815 $20,005 GAAP Earnings From Operations $3,244 $3,107 $1,716 $1,542GAAP Operating Margin 8.0% 7.9% 7.9% 7.7% Unallocated Pension/ Postretirement Expense $651 $453 $312 $245 Core Operating Earnings $3,895 $3,560 $2,028 $1,787 (non-GAAP)Core Operating Margin (non-GAAP) 9.6% 9.0% 9.3% 8.9% GAAP Diluted Earnings Per Share $2.85 $2.49 $1.41 $1.27 Unallocated Pension/ Postretirement Expense(1) $0.55 $0.39 $0.26 $0.21 Core Earnings Per Share (non-GAAP) $3.40 $2.88 $1.67 $1.48 Weighted Average Diluted Shares (millions) 770.1 760.7 771.8 762.0 Increase in GAAP Earnings Per Share 14% 11%Increase in Core Earnings Per Share 18% 13% (1) Earnings per share impact is presented net of the federal statutory tax rateof 35.0 percent. The Boeing Company and Subsidiaries Reconciliation of Non-GAAP Measures 2013 Increase in Core Earnings Per Share (Unaudited) The tables provided below reconcile the non-GAAP financial measures coreoperating earnings, core operating margin and core earnings per share with themost directly comparable GAAP financial measures, earnings from operations,operating margin and diluted earnings per share. See page 6 of this release foradditional information on the use of these non-GAAP financial measures. Year Ended December 31, Year Ended December 31, 2013 2012 Guidance Earnings Per Share Earnings Per Share GAAP Diluted Earnings Per $5.11 $5.10 - 5.30 Share Unallocated Pension/ Postretirement Expense 0.77 a 1.10 b Core Earnings Per Share (non-GAAP) $5.88 $6.20 - 6.40 Weighted average diluted shares 763.8 768.0 (millions) 2013 Change in GAAP Earnings per ~ 2% Share 2013 Increase in Core Earnings per ~ 7% Share a Represents the net earnings per share impact of unallocated pension and postretirement expense of $899 million, net of the federal statutory tax rate of 35.0 percent. b Represents the net earnings per share impact of unallocated pension and postretirement expense of approximately $1.3 billion, net of the federal statutory tax rate of 35.0 percent. SOURCE Boeing