Summary
The Boeing Company (BA) has filed an 8-K report on November 25, 2003, disclosing a significant IRS tax settlement. This settlement pertains to tax years 1992-1997 and has resulted in Boeing receiving a federal income tax refund and related interest totaling approximately $1.1 billion. This event is expected to positively impact Boeing's financial position, specifically strengthening its cash balances. For the fourth quarter of 2003, the company estimates this settlement will lead to a net income increase of approximately $700 million, or $0.87 per share. Furthermore, it is projected to boost operating cash flow by around $1.1 billion in the same quarter. Investors should note that this settlement was not factored into the company's previously issued 2003 earnings per share and cash flow guidance and further details will be provided when full fourth quarter and annual results are released in January 2004.
Key Highlights
- 1Boeing received a $1.1 billion federal income tax refund and interest from a partial settlement with the IRS for tax years 1992-1997.
- 2The settlement is expected to strengthen the company's cash balances.
- 3An estimated $700 million (or $0.87 per share) positive impact on fourth quarter 2003 net income is anticipated.
- 4Operating cash flow in the fourth quarter of 2003 is projected to increase by approximately $1.1 billion due to the settlement.
- 5The financial impact of this settlement was not included in previous 2003 earnings and cash flow guidance.
- 6Final financial impact will be disclosed in the fourth quarter and full-year 2003 earnings release in January 2004.