Earnings Per Share

3 Months Ended

Mar. 31, 2021

Earnings Per Share

Basic and diluted earnings per share are computed using the two-class method, which is an earnings allocation method that determines earnings per share for common shares and participating securities. The undistributed earnings are allocated between common shares and participating securities as if all earnings had been distributed during the period. Participating securities and common shares have equal rights to undistributed earnings.

Basic earnings per share is calculated by taking net earnings, less earnings available to participating securities, divided by the basic weighted average common shares outstanding.

Diluted earnings per share is calculated by taking net earnings, less earnings available to participating securities, divided by the diluted weighted average common shares outstanding.

The elements used in the computation of basic and diluted earnings per share were as follows:


(In millions - except per share amounts)	Three months ended March 31
	2021	2020
Net loss attributable to Boeing Shareholders	($537)	($628)
Less: earnings available to participating securities
Net loss available to common shareholders	($537)	($628)
Basic
Basic weighted average shares outstanding	585.4	565.9
Less: participating securities	0.4	0.5
Basic weighted average common shares outstanding	585.0	565.4
Diluted
Basic weighted average shares outstanding	585.4	565.9
Dilutive potential common shares(1)
Diluted weighted average shares outstanding	585.4	565.9
Less: participating securities	0.4	0.5
Diluted weighted average common shares outstanding	585.0	565.4
Net loss per share:
Basic	($0.92)	($1.11)
Diluted	(0.92)	(1.11)

(1)Diluted earnings per share includes any dilutive impact of stock options, restricted stock units, performance-based restricted stock units and performance awards.

As a result of incurring a net loss for the three months ended March 31, 2021 and 2020, potential common shares of 1.7 million and 2.3 million were excluded from diluted loss per share because the effect would have been antidilutive. In addition, the following table includes the number of shares that may

be dilutive potential common shares in the future. These shares were not included in the computation of diluted loss per share because the effect was either antidilutive or the performance condition was not met.


(Shares in millions)	Three months ended March 31
	2021	2020
Performance awards	2.6	6.7
Performance-based restricted stock units	0.7	1.4
Restricted stock units	1.4
Stock options	0.2