Boeing 2015 Annual Report Download - page 59

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43
Off-Balance Sheet Arrangements
We are a party to certain off-balance sheet arrangements including certain guarantees. For discussion of
these arrangements, see Note 12 to our Consolidated Financial Statements.
Non-GAAP Measures
Core Operating Earnings, Core Operating Margin and Core Earnings Per Share
Our Consolidated Financial Statements are prepared in accordance with Generally Accepted Accounting
Principles in the United States of America (GAAP) which we supplement with certain non-GAAP financial
information. 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. Core operating earnings, core operating margin and core earnings per share
exclude the impact of certain pension and other postretirement benefit expenses that are not allocated to
business segments - see Note 21 to our Consolidated Financial Statements. 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 unallocated pension and other
postretirement benefit cost primarily represent costs driven by market factors and costs not allocable to
U.S. government contracts.
Reconciliation of GAAP Measures to Non-GAAP Measures
The table below reconciles the non-GAAP financial measures of core operating earnings, core operating
margin and core earnings per share with the most directly comparable GAAP financial measures of earnings
from operations, operating margins and diluted earnings per share.
(Dollars in millions, except per share data)
Years ended December 31, 2015 2014 2013
Revenues $96,114 $90,762 $86,623
Earnings from operations, as reported $7,443 $7,473 $6,562
Operating margins 7.7% 8.2% 7.6%
Unallocated pension and other postretirement benefit expense $298 $1,387 $1,314
Core operating earnings (non-GAAP) $7,741 $8,860 $7,876
Core operating margins (non-GAAP) 8.1% 9.8% 9.1%
Diluted earnings per share, as reported $7.44 $7.38 $5.96
Unallocated pension and other postretirement benefit expense(1) $0.28 $1.22 $1.11
Core earnings per share (non-GAAP) $7.72 $8.60 $7.07
Weighted average diluted shares (in millions) 696.1 738.0 769.5
(1) Earnings per share impact is presented net of the federal statutory rate of 35.0%.