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Item 8. Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 
 
 Index to the Consolidated Financial Statements 
 
 Page 
 Consolidated Statements of Operations 
 58 
 
 Consolidated Statements of Comprehensive Income 
 59 
 
 Consolidated Statements of Financial Position 
 60 
 
 Consolidated Statements of Cash Flows 
 61 
 
 Consolidated Statements of Equity 
 62 
 
 Summary of Business Segment Data 
 63 
 
 Note 1 - Summary of Significant Accounting Policies 
 64 
 
 Note 2 - Goodwill and Acquired Intangibles 
 77 
 
 Note 3 - Earnings Per Share 
 78 
 
 Note 4 - Income Taxes 
 80 
 
 Note 5 - Accounts Receivable 
 84 
 
 Note 6 - Allowance for Losses on Financial Assets 
 84 
 
 Note 7 - Inventories 
 85 
 
 Note 8 - Contracts with Customers 
 86 
 
 Note 9 - Customer Financing 
 87 
 
 Note 10 - Property, Plant and Equipment 
 89 
 
 Note 11 - Investments 
 90 
 
 Note 12 - Leases 
 90 
 
 Note 13 - Liabilities, Commitments and Contingencies 
 92 
 
 Note 14 - Arrangements with Off-Balance Sheet Risk 
 97 
 
 Note 15 - Debt 
 98 
 
 Note 16 - Postretirement Plans 
 99 
 
 Note 17 - Share-Based Compensation and Other Compensation Arrangements 
 108 
 
 Note 18 - Shareholders’ Equity 
 112 
 
 Note 19 - Derivative Financial Instruments 
 113 
 
 Note 20 - Fair Value Measurements 
 115 
 
 Note 21 - Legal Proceedings 
 117 
 
 Note 22 - Segment and Revenue Information 
 118 
 
 
 Reports of Independent Registered Public Accounting Firm 
 124 
 

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 The Boeing Company and Subsidiaries 
 Consolidated Statements of Operations 
 
 (Dollars in millions, except per share data) 
 Years ended December 31, 2021 2020 2019 
 Sales of products $ 51,386 $ 47,142 $ 66,094 
 Sales of services 10,900 11,016 10,465 
 Total revenues 62,286 58,158 76,559 
 
 Cost of products ( 49,954 ) ( 54,568 ) ( 62,877 ) 
 Cost of services ( 9,283 ) ( 9,232 ) ( 9,154 ) 
 Boeing Capital interest expense ( 32 ) ( 43 ) ( 62 ) 
 Total costs and expenses ( 59,269 ) ( 63,843 ) ( 72,093 ) 
 3,017 ( 5,685 ) 4,466 
 Income/(loss) from operating investments, net 210 9 ( 4 ) 
 General and administrative expense ( 4,157 ) ( 4,817 ) ( 3,909 ) 
 Research and development expense, net ( 2,249 ) ( 2,476 ) ( 3,219 ) 
 Gain on dispositions, net 277 202 691 
 Loss from operations ( 2,902 ) ( 12,767 ) ( 1,975 ) 
 Other income, net 551 447 438 
 Interest and debt expense ( 2,682 ) ( 2,156 ) ( 722 ) 
 Loss before income taxes ( 5,033 ) ( 14,476 ) ( 2,259 ) 
 Income tax benefit 743 2,535 1,623 
 
 
 Net loss ( 4,290 ) ( 11,941 ) ( 636 ) 
 Less: net loss attributable to noncontrolling interest ( 88 ) ( 68 ) 
 Net loss attributable to Boeing Shareholders ($ 4,202 ) ($ 11,873 ) ($ 636 ) 
 
 
 
 Basic loss per share ($ 7.15 ) ($ 20.88 ) ($ 1.12 ) 
 
 
 
 Diluted loss per share ($ 7.15 ) ($ 20.88 ) ($ 1.12 ) 

 See Notes to the Consolidated Financial Statements on pages 64 – 123. 
 
 
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 The Boeing Company and Subsidiaries 
 Consolidated Statements of Comprehensive Income 
 
 (Dollars in millions) 
 Years ended December 31, 2021 2020 2019 
 Net loss ($ 4,290 ) ($ 11,941 ) ($ 636 ) 
 Other comprehensive income/(loss), net of tax: 
 Currency translation adjustments ( 75 ) 98 ( 27 ) 
 Unrealized gain on certain investments, net of tax of $ 0 , $ 0 and $ 0 
 1 
 Derivative instruments: 
 Unrealized gain/(loss) arising during period, net of tax of ($ 16 ), ($ 4 ) and $ 13 
 55 14 ( 48 ) 
 Reclassification adjustment for (gain)/loss included in net earnings, net of tax of $ 2 , ($ 7 ) and ($ 7 ) 
 ( 6 ) 27 26 
 Total unrealized gain/(loss) on derivative instruments, net of tax 49 41 ( 22 ) 
 Defined benefit pension plans & other postretirement benefits: 
 Net actuarial gain/(loss) arising during the period, net of tax of ($ 32 ), $ 111 and $ 405 
 4,262 ( 1,956 ) ( 1,413 ) 
 Amortization of actuarial losses included in net periodic pension cost, net of tax of ($ 8 ), ($ 52 ) and ($ 133 ) 
 1,155 917 464 
 Settlements included in net income, net of tax of ($ 2 ), $ 0 and $ 0 
 191 5 
 Amortization of prior service credits included in net periodic pension cost, net of tax of $ 1 , $ 6 and $ 25 
 ( 114 ) ( 112 ) ( 89 ) 
 Prior service cost/(credit) arising during the period, net of tax of $ 0 , ($ 2 ) and $ 0 
 27 ( 1 ) 
 Pension and postretirement benefit related to our equity method investments, net of tax of ($ 2 ), $ 0 and ($ 5 ) 
 6 17 
 Total defined benefit pension plans & other postretirement benefits, net of tax 5,500 ( 1,119 ) ( 1,022 ) 
 Other comprehensive income/(loss), net of tax 5,474 ( 980 ) ( 1,070 ) 
 Comprehensive loss related to noncontrolling interests ( 41 ) 
 Comprehensive income/(loss), net of tax 1,184 ( 12,921 ) ( 1,747 ) 
 Less: Comprehensive loss related to noncontrolling interest ( 88 ) ( 68 ) ( 41 ) 
 Comprehensive income/(loss) attributable to Boeing Shareholders, net of tax $ 1,272 ($ 12,853 ) ($ 1,706 ) 

 See Notes to the Consolidated Financial Statements on pages 64 – 123. 
 
 
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 The Boeing Company and Subsidiaries 
 Consolidated Statements of Financial Position 
 
 (Dollars in millions, except per share data) 
 December 31, 2021 2020 
 Assets 
 Cash and cash equivalents $ 8,052 $ 7,752 
 Short-term and other investments 8,192 17,838 
 Accounts receivable, net 2,641 1,955 
 Unbilled receivables, net 8,620 7,995 
 Current portion of customer financing, net 117 101 
 Inventories 78,823 81,715 
 Other current assets, net 2,221 4,286 
 Total current assets 108,666 121,642 
 Customer financing, net 1,695 1,936 
 Property, plant and equipment, net 10,918 11,820 
 Goodwill 8,068 8,081 
 Acquired intangible assets, net 2,562 2,843 
 Deferred income taxes 77 86 
 Investments 975 1,016 
 Other assets, net of accumulated amortization of $ 975 and $ 729 
 5,591 4,712 
 Total assets $ 138,552 $ 152,136 
 Liabilities and equity 
 Accounts payable $ 9,261 $ 12,928 
 Accrued liabilities 18,455 22,171 
 Advances and progress billings 52,980 50,488 
 Short-term debt and current portion of long-term debt 1,296 1,693 
 Total current liabilities 81,992 87,280 
 Deferred income taxes 218 1,010 
 Accrued retiree health care 3,528 4,137 
 Accrued pension plan liability, net 9,104 14,408 
 Other long-term liabilities 1,750 1,486 
 Long-term debt 56,806 61,890 
 Total liabilities 153,398 170,211 
 Shareholders’ 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 9,052 7,787 
 Treasury stock, at cost ( 51,861 ) ( 52,641 ) 
 Retained earnings 34,408 38,610 
 Accumulated other comprehensive loss ( 11,659 ) ( 17,133 ) 
 Total shareholders’ deficit ( 14,999 ) ( 18,316 ) 
 Noncontrolling interests 153 241 
 Total equity ( 14,846 ) ( 18,075 ) 
 Total liabilities and equity $ 138,552 $ 152,136 

 See Notes to the Consolidated Financial Statements on pages 64 – 123. 
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 The Boeing Company and Subsidiaries 
 Consolidated Statements of Cash Flows 
 
 (Dollars in millions) 
 Years ended December 31, 2021 2020 2019 
 Cash flows – operating activities: 
 Net loss ($ 4,290 ) ($ 11,941 ) ($ 636 ) 
 Adjustments to reconcile net loss to net cash used by operating activities: 
 Non-cash items – 
 Share-based plans expense 833 250 212 
 Treasury shares issued for 401(k) contribution 1,233 195 
 Depreciation and amortization 2,144 2,246 2,271 
 Investment/asset impairment charges, net 98 410 443 
 Customer financing valuation adjustments 12 250 
 
 
 Gain on dispositions, net ( 277 ) ( 202 ) ( 691 ) 
 787 and 777X reach-forward losses 3,460 6,493 
 Other charges and credits, net 360 1,462 334 
 
 Changes in assets and liabilities – 
 Accounts receivable ( 713 ) 909 603 
 Unbilled receivables ( 586 ) 919 982 
 Advances and progress billings 2,505 ( 1,060 ) 737 
 Inventories ( 1,127 ) ( 11,002 ) ( 12,391 ) 
 Other current assets 345 372 ( 682 ) 
 Accounts payable ( 3,783 ) ( 5,363 ) 1,600 
 Accrued liabilities ( 3,687 ) 1,074 7,781 
 Income taxes receivable, payable and deferred 733 ( 2,576 ) ( 2,476 ) 
 Other long-term liabilities ( 206 ) ( 222 ) ( 621 ) 
 Pension and other postretirement plans ( 972 ) ( 794 ) ( 777 ) 
 Customer financing, net 210 173 419 
 Other 304 235 196 
 Net cash used by operating activities ( 3,416 ) ( 18,410 ) ( 2,446 ) 
 Cash flows – investing activities: 
 Payments to acquire property, plant and equipment ( 980 ) ( 1,303 ) ( 1,834 ) 
 Proceeds from disposals of property, plant and equipment 529 296 334 
 Acquisitions, net of cash acquired ( 6 ) ( 455 ) 
 Proceeds from dispositions 464 
 Contributions to investments ( 35,713 ) ( 37,616 ) ( 1,658 ) 
 Proceeds from investments 45,489 20,275 1,759 
 Purchase of distribution rights ( 127 ) 
 Other 5 ( 18 ) ( 13 ) 
 Net cash provided/(used) by investing activities 9,324 ( 18,366 ) ( 1,530 ) 
 Cash flows – financing activities: 
 New borrowings 9,795 47,248 25,389 
 Debt repayments ( 15,371 ) ( 10,998 ) ( 12,171 ) 
 
 Contributions from noncontrolling interests 7 
 
 Stock options exercised 42 36 58 
 
 Employee taxes on certain share-based payment arrangements ( 66 ) ( 173 ) ( 248 ) 
 Common shares repurchased ( 2,651 ) 
 Dividends paid ( 1,158 ) ( 4,630 ) 
 Other ( 15 ) 
 Net cash (used)/provided by financing activities ( 5,600 ) 34,955 5,739 
 Effect of exchange rate changes on cash and cash equivalents ( 39 ) 85 ( 5 ) 
 Net increase/(decrease) in cash & cash equivalents, including restricted 269 ( 1,736 ) 1,758 
 Cash & cash equivalents, including restricted, at beginning of year 7,835 9,571 7,813 
 Cash & cash equivalents, including restricted, at end of year 8,104 7,835 9,571 
 Less restricted cash & cash equivalents, included in Investments 52 83 86 
 Cash and cash equivalents at end of year $ 8,052 $ 7,752 $ 9,485 

 See Notes to the Consolidated Financial Statements on pages 64 – 123. 
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 The Boeing Company and Subsidiaries 
 Consolidated Statements of Equity 
 
 Boeing shareholders 
 (Dollars in millions, except per share data) Common
Stock Additional
Paid-In
Capital Treasury 
Stock Retained
Earnings Accumulated
Other 
Comprehensive 
Loss Non-
controlling
Interest Total 
 Balance at January 1, 2019 $ 5,061 $ 6,768 ($ 52,348 ) $ 55,941 ($ 15,083 ) $ 71 $ 410 
 Net loss ( 636 ) ( 41 ) ( 677 ) 
 Other comprehensive loss, net of tax of $ 298 
 ( 1,070 ) ( 1,070 ) 
 Share-based compensation and related dividend equivalents 
 245 ( 33 ) 212 
 
 Treasury shares issued for stock options exercised, net 
 ( 47 ) 104 57 
 Treasury shares issued for other share-based plans, net 
 ( 221 ) ( 19 ) ( 240 ) 
 
 Common shares repurchased 
 ( 2,651 ) ( 2,651 ) 
 Cash dividends declared ($ 8.22 per share) 
 ( 4,628 ) ( 4,628 ) 
 Changes in noncontrolling interests 287 287 
 Balance at December 31, 2019 $ 5,061 $ 6,745 ($ 54,914 ) $ 50,644 ($ 16,153 ) $ 317 ($ 8,300 ) 
 Impact of ASU 2016-13 ( 162 ) ( 162 ) 
 Balance at January 1, 2020 $ 5,061 $ 6,745 ($ 54,914 ) $ 50,482 ($ 16,153 ) $ 317 ($ 8,462 ) 
 Net loss 
 ( 11,873 ) ( 68 ) ( 11,941 ) 
 Other comprehensive loss, net of tax of $ 52 
 ( 980 ) ( 980 ) 
 Share-based compensation 250 250 
 
 Treasury shares issued for stock options exercised, net 
 ( 26 ) 63 37 
 Treasury shares issued for other share-based plans, net 
 ( 214 ) 47 ( 167 ) 
 Treasury shares contributed to pension plans 
 952 2,048 3,000 
 
 
 Treasury shares issued for 401(k) contribution 80 115 195 
 Changes in noncontrolling interests ( 8 ) ( 8 ) 
 Other 1 1 
 Balance at December 31, 2020 $ 5,061 $ 7,787 ($ 52,641 ) $ 38,610 ($ 17,133 ) $ 241 ($ 18,075 ) 
 Net loss 
 ( 4,202 ) ( 88 ) ( 4,290 ) 
 Other comprehensive income, net of tax of ($ 57 ) 
 5,474 5,474 
 Share-based compensation 833 833 
 
 Treasury shares issued for stock options exercised, net 
 ( 28 ) 70 42 
 Treasury shares issued for other share-based plans, net 
 ( 98 ) 35 ( 63 ) 
 
 
 
 Treasury shares issued for 401(k) contribution 558 675 1,233 
 
 
 Balance at December 31, 2021 $ 5,061 $ 9,052 ($ 51,861 ) $ 34,408 ($ 11,659 ) $ 153 ($ 14,846 ) 

 See Notes to the Consolidated Financial Statements on pages 64 – 123. 
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 The Boeing Company and Subsidiaries 
 Notes to the Consolidated Financial Statements 
 Summary of Business Segment Data 
 
 (Dollars in millions) 
 Years ended December 31, 
 2021 2020 2019 
 Revenues: 
 Commercial Airplanes $ 19,493 $ 16,162 $ 32,255 
 Defense, Space & Security 26,540 26,257 26,095 
 Global Services 16,328 15,543 18,468 
 Boeing Capital 272 261 244 
 Unallocated items, eliminations and other ( 347 ) ( 65 ) ( 503 ) 
 Total revenues $ 62,286 $ 58,158 $ 76,559 
 Earnings/(loss) from operations: 
 Commercial Airplanes ($ 6,475 ) ($ 13,847 ) ($ 6,657 ) 
 Defense, Space & Security 1,544 1,539 2,615 
 Global Services 2,017 450 2,697 
 Boeing Capital 106 63 28 
 Segment operating loss ( 2,808 ) ( 11,795 ) ( 1,317 ) 
 Unallocated items, eliminations and other ( 1,267 ) ( 2,355 ) ( 2,073 ) 
 FAS/CAS service cost adjustment 1,173 1,383 1,415 
 Loss from operations ( 2,902 ) ( 12,767 ) ( 1,975 ) 
 Other income, net 551 447 438 
 Interest and debt expense ( 2,682 ) ( 2,156 ) ( 722 ) 
 Loss before income taxes ( 5,033 ) ( 14,476 ) ( 2,259 ) 
 Income tax benefit 743 2,535 1,623 
 
 
 Net loss ( 4,290 ) ( 11,941 ) ( 636 ) 
 Less: net loss attributable to noncontrolling interest ( 88 ) ( 68 ) 
 Net loss attributable to Boeing Shareholders ($ 4,202 ) ($ 11,873 ) ($ 636 ) 

 
 This information is an integral part of the Notes to the Consolidated Financial Statements. See Note 22 for further segment results. 
 
 
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 The Boeing Company and Subsidiaries 
 Notes to the Consolidated Financial Statements 
 Years ended December 31, 2021, 2020 and 2019 
 (Dollars in millions, except otherwise stated) 
 
 Note 1 – Summary of Significant Accounting Policies 
 Principles of Consolidation and Basis of Presentation 
 The Consolidated Financial Statements included in this report have been prepared by management of The Boeing Company (herein referred to as “Boeing,” the “Company,” “we,” “us” or “our”). These statements include the accounts of all majority-owned subsidiaries and variable interest entities that are required to be consolidated. All significant intercompany accounts and transactions have been eliminated. As described in Note 22, we operate in four reportable segments: Commercial Airplanes (BCA), Defense, Space & Security (BDS), Global Services (BGS) and Boeing Capital (BCC). 
 Liquidity Matters 
 The global outbreak of COVID-19, 787 production issues and associated rework, and the residual impacts of the 737 MAX grounding continue to have significant adverse impacts on our business and are expected to continue to negatively impact revenue, earnings and operating cash flow in future quarters. The COVID-19 pandemic has caused an unprecedented shock to demand for air travel, creating a tremendous challenge for our customers, our business and the entire commercial aerospace manufacturing and services sector. We continue to expect commercial air travel to return to 2019 levels in 2023 to 2024. We expect it will take a few years beyond that for the industry to return to long-term trend growth. There is significant uncertainty with respect to when commercial air traffic levels will recover, and whether, and at what point capacity will return to and/or exceed pre-COVID-19 levels. 
 
 
 During 2021, net cash used by operating activities was $ 3.4 billion. Our operating cash flows continue to be impacted by lower commercial airplane deliveries and concessions paid to 737 MAX customers. We expect negative operating cash flows until commercial deliveries ramp up. In 2021, we issued $ 9.8 billion of fixed rate senior notes that mature between 2023 and 2026. We used the net proceeds of these note issuances to repay the $ 13.8 billion outstanding under our two-year delayed draw term loan credit agreement. In 2021, we also repaid $ 1.5 billion of term notes. As a result, our cash and short-term investment balance was $ 16.2 billion and our debt balance was $ 58.1 billion at December 31, 2021. In addition, we have term notes of $ 1.2 billion maturing in 2022. 
 As of December 31, 2021, our unused borrowing capacity on revolving credit agreements is $ 14.7 billion. We anticipate that these revolving credit lines will remain undrawn and primarily serve as backup liquidity to support our general corporate borrowing needs. Our borrowing capacity includes a $ 3.1 billion 364-day revolving credit facility, which is set to expire in October 2022. See Note 15. 
 In 2021, our short-term and long-term credit ratings by the major credit rating agencies remained unchanged from 2020. There is risk for further downgrades. 
 At December 31, 2021 and 2020, trade payables included $ 2.3 billion and $ 3.8 billion payable to suppliers who have elected to participate in supply chain financing programs. While access to supply chain financing has been reduced due to our current credit ratings and debt levels, we do not believe that these or future changes in the availability of supply chain financing will have a significant impact on our liquidity. 
 In addition to our debt issuances, we have taken a number of actions to improve liquidity. During 2020, our Board of Directors terminated its prior authorization to repurchase shares of the Company’s outstanding common stock and suspended the declaration and/or payment of dividends until further 
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 notice. We have also reduced production rates in our commercial business to reflect the impact of COVID-19 on the industry. We rationalized our workforce through a combination of voluntary and involuntary layoffs and natural turnover. In the fourth quarter of 2020, we began using our common stock in lieu of cash to fund Company contributions to our 401(k) plans. In December 2020, we awarded most of our employees a one-time stock grant that will vest in three years in lieu of merit pay increases. We have reduced discretionary spending, including reducing or deferring research and development and capital expenditures. We expect these actions to further enable the Company to conserve cash. 
 We are also working with our customers and supply chain to accelerate receipts and conserve cash. For example, the United States Department of Defense (U.S. DoD) has taken steps to work with its industry partners to increase liquidity in the form of increased progress payment rates and reductions in withholds among other initiatives. In addition, the Coronavirus Aid, Relief, and Economic Security (CARES) Act included a five-year net operating loss carryback provision which enabled us to benefit from certain 2020 losses and resulted in tax refunds of $ 1.7 billion in 2021. 
 We continue to transform and improve our business processes. These activities are not intended to constrain our capacity but to enable the Company to emerge stronger and be more resilient when the market recovers. 
 Based on our current best estimates of market demand, planned production rates, timing of cash receipts and expenditures, our ability to successfully implement further actions to improve liquidity as well as our ability to access additional liquidity, if needed, we believe it is probable that we will be able to fund our operations for the foreseeable future. 
 
 
 Use of Estimates 
 The preparation of financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. We believe that the accounting estimates and assumptions are appropriate, however, given the increased uncertainties surrounding the severity and duration of the impacts of the COVID-19 pandemic actual results could differ from those estimates. 
 Operating Cycle 
 For classification of certain current assets and liabilities, we use the duration of the related contract or program as our operating cycle, which is generally longer than one year. 
 Revenue and Related Cost Recognition 
 Commercial aircraft contracts The majority of our BCA segment revenue is derived from commercial aircraft contracts. For each contract, we determine the transaction price based on the consideration expected to be received. We allocate the transaction price to each commercial aircraft performance obligation based on relative standalone selling prices adjusted by an escalation formula as specified in the customer agreement. Revenue is recognized for each commercial aircraft performance obligation at the point in time when the aircraft is completed and accepted by the customer. We use program accounting to determine the amount reported as cost of sales. 
 In certain situations, where an aircraft is still in our possession, and title and risk of loss has passed to the customer (known as a bill-and-hold arrangement), revenue will be recognized when all specific requirements for transfer of control under a bill-and-hold arrangement have been met. 
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 Payments for commercial aircraft sales are received in accordance with the customer agreement, which generally includes a deposit upon order and additional payments in accordance with a payment schedule, with the balance being due immediately prior to or at aircraft delivery. Advances and progress billings (contract liabilities) are normal and customary for commercial aircraft contracts and not considered a significant financing component as they are intended to protect us from the other party failing to adequately complete some or all of its obligations under the contract. 
 Long-term contracts Substantially all contracts at BDS and certain contracts at BGS are long-term contracts with the U.S. government and other customers that generally extend over several years. Products sales under long-term contracts primarily include fighter jets, rotorcraft, cybersecurity products, surveillance suites, advanced weapons, missile defense, military derivative aircraft, satellite systems and modification of commercial passenger aircraft to cargo freighters. Services sales under long-term contracts primarily include support and maintenance agreements associated with our commercial and defense products and space travel on Commercial Crew. 
 For each long-term contract, we determine the transaction price based on the consideration expected to be received. We allocate the transaction price to each distinct performance obligation to deliver a good or service, or a collection of goods and/or services, based on the relative standalone selling prices. A long-term contract will typically represent a single distinct performance obligation due to the highly interdependent and interrelated nature of the underlying goods and/or services and the significant service of integration that we provide. While the scope and price on certain long-term contracts may be modified over their life, the transaction price is based on current rights and obligations under the contract and does not include potential modifications until they are agreed upon with the customer. When applicable, a cumulative adjustment or separate recognition for the additional scope and price may result. Long-term contracts can be negotiated with a fixed price or a price in which we are reimbursed for costs incurred plus an agreed upon profit. The Federal Acquisition Regulations provide guidance on the types of cost that will be reimbursed in establishing the price for contracts with the U.S. government. Certain long-term contracts include in the transaction price variable consideration, such as incentive and award fees, if specified targets are achieved. The amount included in the transaction price represents the expected value, based on a weighted probability, or the most likely amount. 
 Long-term contract revenue is recognized over the contract term (over time) as the work progresses, either as products are produced or as services are rendered. We generally recognize revenue over time as we perform on long-term contracts because of continuous transfer of control to the customer. For U.S. government contracts, this continuous transfer of control to the customer is supported by clauses in the contract that allow the customer to unilaterally terminate the contract for convenience, pay us for costs incurred plus a reasonable profit and take control of any work in process. Similarly, for non-U.S. government contracts, the customer typically controls the work in process as evidenced either by contractual termination clauses or by our rights to payment of the transaction price associated with work performed to date on products or services that do not have an alternative use to the Company. 
 The accounting for long-term contracts involves a judgmental process of estimating total sales, costs and profit for each performance obligation. Cost of sales is recognized as incurred. The amount reported as revenues is determined by adding a proportionate amount of the estimated profit to the amount reported as cost of sales. Recognizing revenue as costs are incurred provides an objective measure of progress on the long-term contract and thereby best depicts the extent of transfer of control to the customer. 
 For long-term contracts for which revenue is recognized over time, changes in estimated revenues, cost of sales and the related effect on operating income are recognized using a cumulative catch-up adjustment which recognizes in the current period the cumulative effect of the changes on current and prior periods based on a long-term contract’s percentage-of-completion. When the current estimates of 
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 total sales and costs for a long-term contract indicate a loss, a provision for the entire reach-forward loss on the long-term contract is recognized. 
 Net cumulative catch-up adjustments to prior years' revenue and earnings, including certain reach-forward losses, across all long-term contracts were as follows: 
 
 2021 2020 2019 
 Increase/(Decrease) to Revenue ($ 379 ) ($ 359 ) $ 54 
 Increase to Loss from operations ($ 880 ) ($ 942 ) ($ 111 ) 
 Decrease to Diluted EPS ($ 1.28 ) ($ 1.37 ) ($ 0.06 ) 

 Significant adjustments during the three years ended December 31, 2021 included losses on KC-46A Tanker, Commercial Crew and VC-25B. 
 Due to the significance of judgment in the estimation process, changes in underlying assumptions/estimates, supplier performance or circumstances may adversely or positively affect financial performance in future periods. 
 Payments under long-term contracts may be received before or after revenue is recognized. The U.S. government customer typically withholds payment of a small portion of the contract price until contract completion. Therefore, long-term contracts typically generate Unbilled receivables (contract assets) but may generate Advances and progress billings (contract liabilities). Long-term contract Unbilled receivables and Advances and progress billings are not considered a significant financing component because they are intended to protect either the customer or the Company in the event that some or all of the obligations under the contract are not completed. 
 Commercial spare parts contracts Certain contracts at our BGS segment include sales of commercial spare parts. For each contract, we determine the transaction price based on the consideration expected to be received. The spare parts have discrete unit prices that represent fair value. We generally consider each spare part to be a separate performance obligation. Revenue is recognized for each commercial spare part performance obligation at the point in time of delivery to the customer. We may provide our customers with a right to return a commercial spare part where a customer may receive a full or partial refund, a credit applied to amounts owed, a different product in exchange, or any combination of these items. We consider the potential for customer returns in the estimated transaction price. The amount reported as cost of sales is recorded at average cost. Payments for commercial spare parts sales are typically received shortly after delivery. 
 Other service revenue contracts Certain contracts at our BGS segment are for sales of services to commercial customers including maintenance, training, data analytics and information-based services. We recognize revenue for these service performance obligations over time as the services are rendered. The method of measuring progress (such as straight-line or billable amount) varies depending upon which method best depicts the transfer of control to the customer based on the type of service performed. Cost of sales is recorded as incurred. 
 Concession Sharing Arrangements We account for sales concessions to our customers in consideration of their purchase of products and services as a reduction of the transaction price and the revenue that is recognized for the related performance obligations. The sales concessions incurred may be partially reimbursed by certain suppliers in accordance with concession sharing arrangements. We record these reimbursements, which are presumed to represent reductions in the price of the vendor’s products or services, as a reduction in Cost of products. 
 Unbilled Receivables and Advances and Progress Billings Unbilled receivables (contract assets) arise when the Company recognizes revenue for amounts which cannot yet be billed under terms of the 
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 contract with the customer. Advances and progress billings (contract liabilities) arise when the Company receives payments from customers in advance of recognizing revenue. The amount of Unbilled receivables or Advances and progress billings is determined for each contract. 
 Financial Services Revenue We record financial services revenue associated with sales-type/finance leases, operating leases and loans in Sales of services on the Consolidated Statements of Operations. For sales-type leases, we recognize revenue if collection of the lease payments is probable. For sales-type and finance leases, we record customer financing receivables at lease inception. A customer financing receivable is recorded at the aggregate of future minimum lease payments, estimated residual value of the leased equipment, and any deferred incremental direct costs less unearned income. Income is recognized over the life of the lease to approximate a level rate of return on the net investment. For notes receivable, notes are recorded as customer financing receivables net of any unamortized discounts and deferred incremental direct costs. Interest income and amortization of any discounts are recorded ratably over the related term of the note. 
 Income recognition is generally suspended for customer financing receivables that are uncollectible. We determine that a customer financing receivable is uncollectible when, based on current information and events, it is probable that we will be unable to collect amounts due according to the original contractual terms. We determine a customer financing receivable is past due when cash has not been received upon the due date specified in the contract. 
 We evaluate the collectability of customer financing receivables at commencement and on a recurring basis. If a customer financing receivable is determined to be uncollectible, the customer is categorized as non-accrual status. When a customer is in non-accrual status at commencement, sales-type lease revenue is deferred until substantially all cash has been received or the customer is removed from non-accrual status. If we have a direct finance lease and/or a note receivable with a customer that is in non-accrual status, or a sales-type lease with a customer that changes to non-accrual status after commencement, we recognize contractual interest income as payments are received to the extent there is sufficient collateral and payments exceed past due principal payments. 
 
 
 Residual values, which are reviewed periodically, represent the estimated amount we expect to receive at lease termination from the disposition of the leased equipment. Actual residual values realized could differ from these estimates. Declines in estimated residual value that are deemed other-than-temporary are recognized in the period in which the declines occur. 
 
 
 For operating leases, revenue on leased aircraft and equipment is recorded on a straight-line basis over the term of the lease. Operating lease assets, included in Customer financing, net, are recorded at cost and depreciated to an estimated residual value using the straight-line method over the period that we project we will hold the asset. We periodically review our estimates of residual value and recognize forecasted changes by prospectively adjusting depreciation expense. 
 Reinsurance Revenue Our wholly-owned insurance subsidiary, Astro Ltd., participates in a reinsurance pool for workers’ compensation. The member agreements and practices of the reinsurance pool minimize any participating members’ individual risk. Reinsurance revenues were $ 126 , $ 129 and $ 151 during 2021, 2020 and 2019, respectively. Reinsurance costs related to premiums and claims paid to the reinsurance pool were $ 129 , $ 136 and $ 150 during 2021, 2020 and 2019, respectively. Revenues and costs are presented net in Cost of sales in the Consolidated Statements of Operations. 
 Fleet Support 
 We provide assistance and support to facilitate efficient and safe aircraft operation to the operators of all our commercial airplane models. Collectively known as fleet support, these activities and support services include flight and maintenance training, field service support, engineering support, and 
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 technical data and documents. Fleet support activity begins prior to aircraft delivery as the customer receives training, manuals, and technical consulting support. This activity continues throughout the aircraft’s operational life. Services provided after delivery include field service support, consulting on maintenance, repair and operational issues brought forth by the customer or regulators, updating manuals and engineering data, and the issuance of service bulletins that impact the entire model’s fleet. Field service support involves our personnel located at customer facilities providing and coordinating fleet support activities and requests. The costs for fleet support are expensed as incurred as Cost of services. 
 Research and Development 
 Research and development includes costs incurred for experimentation, design and testing, as well as bid and proposal efforts related to government products and services, which are expensed as incurred unless the costs are related to certain contractual arrangements with customers. Costs that are incurred pursuant to such contractual arrangements are recorded over the period that revenue is recognized, consistent with our long-term contract accounting policy. We have certain research and development arrangements that meet the requirement for best efforts research and development accounting. Accordingly, the amounts funded by the customer are recognized as an offset to our research and development expense rather than as contract revenues. Research and development expense included bid and proposal costs of $ 213 , $ 224 and $ 214 in 2021, 2020 and 2019, respectively. 
 Share-Based Compensation 
 We provide various forms of share-based compensation to our employees. For awards settled in shares, we measure compensation expense based on the grant-date fair value net of estimated forfeitures. For awards settled in cash, or that may be settled in cash, we measure compensation expense based on the fair value at each reporting date net of estimated forfeitures. The expense is recognized over the requisite service period, which is generally the vesting period of the award. 
 Income Taxes 
 Provisions for U.S. federal, state and local, and non-U.S. income taxes are calculated on reported Loss before income taxes based on current tax law and also include, in the current period, the cumulative effect of any changes in tax rates from those used previously in determining deferred tax assets and liabilities. Such provisions differ from the amounts currently receivable or payable because certain items of income and expense are recognized in different time periods for financial reporting purposes than for income tax purposes. Significant judgment is required in determining income tax provisions and evaluating tax positions. 
 The accounting for uncertainty in income taxes requires a more-likely-than-not threshold for financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. We record a liability for the difference between the benefit recognized and measured for financial statement purposes and the tax position taken or expected to be taken on our tax return. To the extent that our assessment of such tax positions changes, the change in estimate is recorded in the period in which the determination is made. Tax-related interest and penalties are classified as a component of Income tax benefit. 
 We also assess the likelihood that we will be able to recover our deferred tax assets against future sources of taxable income and reduce the carrying amounts of deferred tax assets by recording a valuation allowance if, based on the available evidence, it is more likely than not that all or a portion of such assets will not be realized. Changes in our estimates and judgments regarding realization of deferred tax assets may result in an increase or decrease to our tax expense and/or other comprehensive income, which would be recorded in the period in which the change occurs. 
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 Postretirement Plans 
 Many of our employees have earned benefits under defined benefit pension plans. Nonunion and the majority of union employees that had participated in defined benefit pension plans transitioned to a company-funded defined contribution retirement savings plan in 2016. Additional union employees transitioned to company-funded defined contribution retirement savings plans effective January 1, 2019. We also provide postretirement benefit plans other than pensions, consisting principally of health care coverage to eligible retirees and qualifying dependents. Benefits under the pension and other postretirement benefit plans are generally based on age at retirement and years of service and, for some pension plans, benefits are also based on the employee’s annual earnings. The net periodic cost of our pension and other postretirement plans is determined using the projected unit credit method and several actuarial assumptions, the most significant of which are the discount rate, the long-term rate of asset return and medical trend (rate of growth for medical costs). A portion of the service cost component of net periodic pension and other postretirement income or expense is not recognized in net earnings in the year incurred because it is allocated to production as product costs and reflected in inventory at the end of a reporting period. Actuarial gains and losses, which occur when actual experience differs from actuarial assumptions, are reflected in Shareholders’ equity (net of taxes). If actuarial gains and losses exceed ten percent of the greater of plan assets or plan liabilities, we amortize them over the average expected future lifetime of participants. The funded status of our pension and postretirement plans is reflected on the Consolidated Statements of Financial Position. 
 Postemployment Plans 
 We record a liability for postemployment benefits, such as severance or job training, when payment is probable, the amount is reasonably estimable, and the obligation relates to rights that have vested or accumulated. 
 Environmental Remediation 
 We are subject to federal and state requirements for protection of the environment, including those for discharge of hazardous materials and remediation of contaminated sites. We routinely assess, based on in-depth studies, expert analyses and legal reviews, our contingencies, obligations and commitments for remediation of contaminated sites, including assessments of ranges and probabilities of recoveries from other responsible parties and/or insurance carriers. Our policy is to accrue and charge to current expense identified exposures related to environmental remediation sites when it is probable that a liability has been incurred and the amount can be reasonably estimated. The amount of the liability is based on our best estimate or the low end of a range of reasonably possible exposure for investigation, cleanup and monitoring costs to be incurred. Estimated remediation costs are not discounted to present value as the timing of payments cannot be reasonably estimated. We may be able to recover a portion of the remediation costs from insurers or other third parties. Such recoveries are recorded when realization of the claim for recovery is deemed probable. 
 Cash and Cash Equivalents 
 Cash and cash equivalents consist of highly liquid instruments, such as commercial paper, time deposits, and other money market instruments, which have original maturities of three months or less. We aggregate our cash balances by bank where conditions for right of set-off are met, and reclassify any negative balances, consisting mainly of uncleared checks, to Accounts payable. Negative balances reclassified to Accounts payable were $ 47 and $ 74 at December 31, 2021 and 2020. 
 Inventories 
 Inventoried costs on commercial aircraft programs and long-term contracts include direct engineering, production and tooling and other non-recurring costs, and applicable overhead, which includes fringe 
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 benefits, production related indirect and plant management salaries and plant services, not in excess of estimated net realizable value. To the extent a material amount of such costs are related to an abnormal event or are fixed costs not appropriately attributable to our programs or contracts, they are expensed in the current period rather than inventoried. Inventoried costs include amounts relating to programs and contracts with long-term production cycles, a portion of which is not expected to be realized within one year. Included in inventory for federal government contracts is an allocation of allowable costs related to manufacturing process reengineering. 
 Commercial aircraft programs inventory includes deferred production costs and supplier advances. Deferred production costs represent actual costs incurred for production of early units that exceed the estimated average cost of all units in the program accounting quantity. Higher production costs are experienced at the beginning of a new or derivative airplane program. Units produced early in a program require substantially more effort (labor and other resources) than units produced later in a program because of volume efficiencies and the effects of learning. We expect that these deferred costs will be fully recovered when all units included in the accounting quantity are delivered as the expected unit cost for later deliveries is below the estimated average cost of all units in the program. Supplier advances represent payments for parts we have contracted to receive from suppliers in the future. As parts are received, supplier advances are amortized to work in process. 
 The determination of net realizable value of long-term contract costs is based upon quarterly reviews that estimate costs to be incurred to complete all contract requirements. When actual contract costs and the estimate to complete exceed total estimated contract revenues, a loss provision is recorded. The determination of net realizable value of commercial aircraft program costs is based upon quarterly program reviews that estimate revenue and cost to be incurred to complete the program accounting quantity. When estimated costs to complete exceed estimated program revenues to go, a program loss provision is recorded in the current period for the estimated loss on all undelivered units in the accounting quantity. 
 Used aircraft purchased by the Commercial Airplanes segment and general stock materials are stated at cost not in excess of net realizable value. See ‘Aircraft Valuation’ within this Note for a discussion of our valuation of used aircraft. Spare parts inventory is stated at lower of average unit cost or net realizable value. We review our commercial spare parts and general stock materials quarterly to identify impaired inventory, including excess or obsolete inventory, based on historical sales trends, expected production usage, and the size and age of the aircraft fleet using the part. Impaired inventories are charged to Cost of products in the period the impairment occurs. 
 Included in inventory for commercial aircraft programs are amounts paid or credited in cash, or other consideration to certain airline customers, that are referred to as early issue sales consideration. Early issue sales consideration is recognized as a reduction to revenue when the delivery of the aircraft under contract occurs. If an airline customer does not perform and take delivery of the contracted aircraft, we believe that we would have the ability to recover amounts paid. However, to the extent early issue sales consideration exceeds advances and is not considered to be otherwise recoverable, it would be written off in the current period. 
 Precontract Costs 
 We may, from time to time, incur costs in excess of the amounts required for existing contracts. If we determine the costs are probable of recovery from future orders, then we capitalize the precontract costs we incur, excluding start-up costs which are expensed as incurred. Capitalized precontract costs are included in Inventories in the accompanying Consolidated Statements of Financial Position. Should future orders not materialize or we determine the costs are no longer probable of recovery, the capitalized costs would be written off. 
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 Property, Plant and Equipment 
 Property, plant and equipment are recorded at cost, including applicable construction-period interest, less accumulated depreciation and are depreciated principally over the following estimated useful lives: new buildings and land improvements, from 10 to 40 years; and new machinery and equipment, from 4 to 20 years. The principal methods of depreciation are as follows: buildings and land improvements, 150% declining balance; and machinery and equipment, sum-of-the-years’ digits. Capitalized internal use software is included in Other assets and amortized using the straight line method over 5 years. Capitalized software as a service is included in Other assets and amortized using the straight line method over the term of the hosting arrangement, which is typically no greater than 10 years. We periodically evaluate the appropriateness of remaining depreciable lives assigned to long-lived assets, including assets that may be subject to a management plan for disposition. 
 Long-lived assets held for sale are stated at the lower of cost or fair value less cost to sell. Long-lived assets held for use are subject to an impairment assessment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If the carrying value is no longer recoverable based upon the undiscounted future cash flows of the asset, the amount of the impairment is the difference between the carrying amount and the fair value of the asset. 
 Leases We determine if an arrangement is, or contains, a lease at the inception date. Operating leases are included in Other assets, with the related liabilities included in Accrued liabilities and Other long-term liabilities. Assets under finance leases, which primarily represent computer equipment, are included in Property, plant and equipment, net, with the related liabilities included in Short-term debt and current portion of long-term debt and Long-term debt on the Consolidated Statements of Financial Position. 
 Operating lease assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease assets and liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term. We use our estimated incremental borrowing rate in determining the present value of lease payments. Variable components of the lease payments such as fair market value adjustments, utilities and maintenance costs are expensed as incurred and not included in determining the present value. Our lease terms include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense is recognized on a straight-line basis over the lease term. 
 We have real property lease agreements with lease and non-lease components which are accounted for as a single lease component. 
 Asset Retirement Obligations 
 We record all known asset retirement obligations for which the liability’s fair value can be reasonably estimated, including certain asbestos removal, asset decommissioning and contractual lease restoration obligations. Recorded amounts are not material. 
 We also have known conditional asset retirement obligations, such as certain asbestos remediation and asset decommissioning activities to be performed in the future, that are not reasonably estimable due to insufficient information about the timing and method of settlement of the obligation. Accordingly, these obligations have not been recorded in the Consolidated Financial Statements. A liability for these obligations will be recorded in the period when sufficient information regarding timing and method of settlement becomes available to make a reasonable estimate of the liability’s fair value. In addition, there may be conditional asset retirement obligations that we have not yet discovered (e.g. asbestos may exist in certain buildings but we have not become aware of it through the normal course of 
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 business), and therefore, these obligations also have not been included in the Consolidated Financial Statements. 
 Goodwill and Other Acquired Intangibles 
 Goodwill and other acquired intangible assets with indefinite lives are not amortized, but are tested for impairment annually and when an event occurs or circumstances change such that it is more likely than not that an impairment may exist. Our annual testing date is April 1. 
 We test goodwill for impairment by performing a qualitative assessment or using a quantitative test. If we choose to perform a qualitative assessment and determine it is more likely than not that the carrying value of the net assets is more than the fair value of the related operations, the quantitative test is then performed; otherwise, no further testing is required. For operations where the quantitative test is used, we compare the carrying value of net assets to the estimated fair value of the related operations. If the fair value is determined to be less than carrying value, the shortfall up to the carrying value of the goodwill represents the amount of goodwill impairment. 
 Indefinite-lived intangibles consist of a brand and trade name and in-process research and development (IPR&D) acquired in business combinations. IPR&D is initially capitalized at fair value as an intangible asset with an indefinite life and assessed for impairment thereafter. IPR&D is reclassified to finite-lived acquired intangible assets when a project is completed and then amortized on a straight-line basis over the asset’s estimated useful life. We test these intangibles for impairment by comparing the carrying values to current projections of related discounted cash flows. Any excess carrying value over the amount of discounted cash flows represents the amount of the impairment. 
 Our finite-lived acquired intangible assets are amortized on a straight-line basis over their estimated useful lives as follows: developed technology, from 4 to 14 years; product know-how, from 6 to 30 years; customer base, from 3 to 17 years; distribution rights, from 3 to 27 years; and other, from 1 to 32 years. We evaluate the potential impairment of finite-lived acquired intangible assets whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If the carrying value is no longer recoverable based upon the undiscounted future cash flows of the asset, the amount of the impairment is the difference between the carrying amount and the fair value of the asset. 
 Investments 
 Time deposits are held-to-maturity investments that are carried at cost. 
 Available-for-sale debt securities include commercial paper, U.S. government agency securities and corporate debt securities. Available-for-sale debt securities are recorded at fair value, and unrealized gains and losses are recorded, net of tax, as a component of accumulated other comprehensive income. Realized gains and losses on available-for-sale debt securities are recognized based on the specific identification method. Available-for-sale debt securities are assessed for impairment quarterly. 
 The equity method of accounting is used to account for investments for which we have the ability to exercise significant influence, but not control, over an investee. Significant influence is generally deemed to exist if we have an ownership interest in the voting stock of an investee of between 20 % and 50 %. The cumulative earnings approach is used for cash flow classification of distributions received from equity method investments. 
 Other Equity investments are recorded at fair value, with gains and losses recorded through net earnings. Equity investments without readily determinable fair value are measured at cost, less impairments, plus or minus observable price changes. Equity investments without readily determinable fair value are assessed for impairment quarterly. 
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 We classify investment income and loss on our Consolidated Statements of Operations based on whether the investment is operating or non-operating in nature. Operating investments align strategically and are integrated with our operations. Earnings from operating investments, including our share of income or loss from equity method investments, dividend income from other equity investments, and any impairments or gain/loss on the disposition of these investments, are recorded in Income from operating investments, net. Non-operating investments are those we hold for non-strategic purposes. Earnings from non-operating investments, including interest and dividends on marketable securities, and any impairments or gain/loss on the disposition of these investments are recorded in Other income/(loss), net. 
 Derivatives 
 All derivative instruments are recognized in the financial statements and measured at fair value regardless of the purpose or intent of holding them. We use derivative instruments to principally manage a variety of market risks. For our cash flow hedges, the derivative’s gain or loss is initially reported in comprehensive income and is subsequently reclassified into earnings in the same period(s) during which the hedged forecasted transaction affects earnings. We have agreements to purchase and sell aluminum to address long-term strategic sourcing objectives and non-U.S. business requirements. These agreements are derivatives for accounting purposes but are not designated for hedge accounting treatment. We also hold certain derivative instruments for economic purposes that are not designated for hedge accounting treatment. For these aluminum agreements and for other derivative instruments not designated for hedge accounting treatment, the changes in their fair value are recorded in earnings immediately. 
 Allowances for Losses on Certain Financial Assets 
 We establish allowances for credit losses on accounts receivable, unbilled receivables, customer financing receivables and certain other financial assets. The adequacy of these allowances is assessed quarterly through consideration of factors such as customer credit ratings, bankruptcy filings, published or estimated credit default rates, age of the receivable, expected loss rates and collateral exposures. We determine the creditworthiness of our customers by assigning internal credit ratings based upon publicly available information and information obtained directly from the customers. Our rating categories are comparable to those used by major credit rating agencies. 
 Aircraft Valuation 
 Used aircraft under trade-in commitments and aircraft under repurchase commitments In conjunction with signing a definitive agreement for the sale of new aircraft (Sale Aircraft), we have entered into trade-in commitments with certain customers that give them the right to trade in used aircraft at a specified price upon the purchase of Sale Aircraft. Additionally, we have entered into contingent repurchase commitments with certain customers wherein we agree to repurchase the Sale Aircraft at a specified price, generally 10 to 15 years after delivery of the Sale Aircraft. Our repurchase of the Sale Aircraft is contingent upon a future, mutually acceptable agreement for the sale of additional new aircraft. If we execute an agreement for the sale of additional new aircraft, and if the customer exercises its right to sell the Sale Aircraft to us, a contingent repurchase commitment would become a trade-in commitment. Our historical experience is that contingent repurchase commitments infrequently become trade-in commitments. 
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 Exposure related to trade-in commitments may take the form of: 
 (1) adjustments to revenue for the difference between the contractual trade-in price in the definitive agreement and our best estimate of the fair value of the trade-in aircraft as of the date of such agreement, which would be recognized upon delivery of the Sale Aircraft, and/or 
 (2) charges to cost of products for adverse changes in the fair value of trade-in aircraft that occur subsequent to signing of a definitive agreement for Sale Aircraft but prior to the purchase of the used trade-in aircraft. Estimates based on current aircraft values would be included in Accrued liabilities. 
 The fair value of trade-in aircraft is determined using aircraft-specific data such as model, age and condition, market conditions for specific aircraft and similar models, and multiple valuation sources. This process uses our assessment of the market for each trade-in aircraft, which in most instances begins years before the return of the aircraft. There are several possible markets in which we continually pursue opportunities to place used aircraft. These markets include, but are not limited to, the resale market, which could potentially include the cost of long-term storage; the leasing market, with the potential for refurbishment costs to meet the leasing customer’s requirements; or the scrap market. Trade-in aircraft valuation varies significantly depending on which market we determine is most likely for each aircraft. On a quarterly basis, we update our valuation analysis based on the actual activities associated with placing each aircraft into a market or using current published third-party aircraft valuations based on the type and age of the aircraft, adjusted for individual attributes and known conditions. 
 Used aircraft acquired by the Commercial Airplanes segment are included in Inventories at the lower of cost or net realizable value as it is our intent to sell these assets. To mitigate costs and enhance marketability, aircraft may be placed on operating lease. While on operating lease, the assets are included in Customer financing. 
 Customer financing Customer financing includes operating lease equipment, notes receivable and sales-type/finance leases. Sales-type/finance leases are treated as receivables, and allowances for losses are established as necessary. Customer financing is collateralized by security in the related asset. 
 We assess the fair value of equipment under operating leases, assets held for sale or re-lease, and collateral underlying receivables to determine if their fair values are less than the related customer financing assets’ carrying values. Differences between carrying values and fair values of sales-type/finance leases and notes and other receivables, as determined by collateral value, are considered in determining the allowance for losses on receivables. 
 We use a median calculated from published collateral values from multiple third-party aircraft value publications based on the type and age of the aircraft to determine the fair value of aircraft. Under certain circumstances, we apply judgment based on the attributes of the specific aircraft or equipment, usually when the features or use of the aircraft vary significantly from the more generic aircraft attributes covered by outside publications. 
 
 
 Impairment review for assets under operating leases and held for sale or re-lease We evaluate for impairment assets under operating lease or assets held for sale or re-lease when events or changes in circumstances indicate that the expected undiscounted cash flow from the asset may be less than the carrying value. We use various assumptions when determining the expected undiscounted cash flow, including our intentions for how long we will hold an asset subject to operating lease before it is sold, the expected future lease rates, lease terms, residual value of the asset, periods in which the asset may be held in preparation for a follow-on lease, maintenance costs, remarketing costs and the remaining 
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 economic life of the asset. We record assets held for sale at the lower of carrying value or fair value less costs to sell. 
 When we determine that impairment is indicated for an asset, the amount of impairment expense recorded is the excess of the carrying value over the fair value of the asset. 
 Allowance for losses on customer financing receivables We record the estimated allowance for potential losses on customer financing receivables in a valuation account. The four primary factors influencing the level of our allowance for losses on customer financing receivables are collateral values, internal customer credit ratings, default rates and expected loss rate. 
 We review the adequacy of the allowance for losses by assessing the collateral exposure, the applicable default rate and expected loss rate. Collateral exposure for a particular receivable is the excess of the carrying value of the receivable over the fair value of the related collateral. A receivable with an estimated fair value in excess of the carrying value is considered to have no collateral exposure. The applicable default rate is determined using two components: internal customer credit ratings and weighted average remaining contract term. We assign internal credit ratings for all customers and determine the creditworthiness of each customer based upon publicly available information and information obtained directly from our customers. Our rating categories are comparable to those used by the major credit rating agencies. We apply an expected loss rate, based on publicly available information, to the applicable default rate. 
 We have entered into agreements with certain customers that would entitle us to look beyond the specific collateral underlying the receivable for purposes of determining the collateral exposure as described above. Should the proceeds from the sale of the underlying collateral asset resulting from a default condition be insufficient to cover the carrying value of our receivable (creating a shortfall condition), these agreements would, for example, permit us to take the actions necessary to sell or retain certain other assets in which the customer has an equity interest and use the proceeds to cover the shortfall. 
 Each quarter we review the assigned internal customer credit ratings, published historical credit default rates for different rating categories and multiple third-party aircraft value publications as a basis to validate the reasonableness of the allowance for losses on customer financing receivables. There can be no assurance that actual results will not differ from estimates or that the consideration of these factors in the future will not result in an increase or decrease to the allowance for losses on customer financing receivables. 
 Warranties 
 In conjunction with certain product sales, we provide warranties that cover factors such as non-conformance to specifications and defects in material and design. The majority of our warranties are issued by our BCA segment. Generally, aircraft sales are accompanied by a 3 to 4 -year standard warranty for systems, accessories, equipment, parts, and software manufactured by us or manufactured to certain standards under our authorization. These warranties are included in the programs’ estimate at completion. On occasion we have made commitments beyond the standard warranty obligation to correct fleet-wide major issues of a particular model, resulting in additional accrued warranty expense. Warranties issued by our BDS segment principally relate to sales of military aircraft and weapons systems. These sales are generally accompanied by a six month to two -year warranty period and cover systems, accessories, equipment, parts and software manufactured by us to certain contractual specifications. Estimated costs related to standard warranties are recorded in the period in which the related product delivery occurs. The warranty liability recorded at each balance sheet date reflects the estimated number of months of warranty coverage outstanding for products delivered times the average of historical monthly warranty payments, as well as additional amounts for 
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 certain major warranty issues that exceed a normal claims level. Estimated costs of these additional warranty issues are considered changes to the initial liability estimate. 
 We provide guarantees to certain commercial airplane customers which include compensation provisions for failure to meet specified aircraft performance targets. We account for these performance guarantees as warranties. The estimated liability for these warranties is based on known and anticipated operational characteristics and forecasted customer operation of the aircraft relative to contractually specified performance targets, and anticipated settlements when contractual remedies are not specified. Estimated payments are recorded as a reduction of revenue at delivery of the related aircraft. We have agreements that require certain suppliers to compensate us for amounts paid to customers for failure of supplied equipment to meet specified performance targets. Claims against suppliers under these agreements are included in Inventories and recorded as a reduction in Cost of products at delivery of the related aircraft. These performance warranties and claims against suppliers are included in the programs’ estimate at completion. 
 Supplier Penalties 
 We record an accrual for supplier penalties when an event occurs that makes it probable that a supplier penalty will be incurred and the amount is reasonably estimable. Until an event occurs, we fully anticipate accepting all products procured under production-related contracts. 
 Guarantees 
 We record a liability in Accrued liabilities for the fair value of guarantees. For credit guarantees, the liability is equal to the present value of the expected loss. We determine the expected loss by multiplying the creditor’s default rate by the guarantee amount reduced by the expected recovery, if applicable. At inception of a guarantee, and adjusted each quarter, we also recognize a liability for the expected contingent loss. 
 
 Note 2 – Goodwill and Acquired Intangibles 
 Changes in the carrying amount of goodwill for the years ended December 31, 2021 and 2020 were as follows: 
 
 Commercial
Airplanes Defense, Space & Security Global Services Other Total 
 Balance at December 31, 2019 $ 1,313 $ 3,219 $ 3,441 $ 87 $ 8,060 
 
 
 Goodwill adjustments 3 5 13 21 
 Balance at December 31, 2020 $ 1,316 $ 3,224 $ 3,454 $ 87 $ 8,081 
 
 
 Goodwill adjustments ( 11 ) ( 2 ) ( 13 ) 
 Balance at December 31, 2021 $ 1,316 $ 3,224 $ 3,443 $ 85 $ 8,068 

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 As of December 31, 2021 and 2020, we had indefinite-lived intangible assets with carrying amounts of $ 197 relating to trade names. During 2019, we recorded an impairment of $ 293 within Cost of Sales, as a result of our decision to retire the Aviall brand and trade name. As of December 31, 2021 and 2020, we had an indefinite-lived intangible asset with a carrying amount of $ 202 related to in process research and development for a next-generation air vehicle. 
 The gross carrying amounts and accumulated amortization of our acquired finite-lived intangible assets were as follows at December 31: 
 
 2021 2020 
 Gross
Carrying
Amount Accumulated
Amortization Gross
Carrying
Amount Accumulated
Amortization 
 Distribution rights $ 2,554 $ 1,321 $ 2,812 $ 1,427 
 Product know-how 553 413 553 384 
 Customer base 1,360 721 1,373 672 
 Developed technology 626 526 626 502 
 Other 301 250 303 238 
 Total $ 5,394 $ 3,231 $ 5,667 $ 3,223 

 During 2020, we recorded impairments of $ 178 within Cost of Sales related to our distribution rights, primarily driven by airlines' decisions to retire certain aircraft. Amortization expense for acquired finite-lived intangible assets for the years ended December 31, 2021 and 2020 was $ 284 and $ 317 . Estimated amortization expense for the five succeeding years is as follows: 
 
 2022 2023 2024 2025 2026 
 Estimated amortization expense $ 245 $ 236 $ 221 $ 195 $ 192 

 
 
 Note 3 – 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. 
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 The elements used in the computation of basic and diluted earnings per share were as follows: 
 
 (In millions - except per share amounts) 
 
 Years ended December 31, 2021 2020 2019 
 Net loss attributable to Boeing Shareholders ($ 4,202 ) ($ 11,873 ) ($ 636 ) 
 Less: earnings available to participating securities 
 Net loss available to common shareholders ($ 4,202 ) ($ 11,873 ) ($ 636 ) 
 Basic 
 Basic weighted average shares outstanding 
 588.0 569.0 566.0 
 Less: participating securities (2) 
 0.4 0.4 0.6 
 Basic weighted average common shares outstanding 
 587.6 568.6 565.4 
 Diluted 
 Basic weighted average shares outstanding 
 588.0 569.0 566.0 
 Dilutive potential common shares (1) 
 
 Diluted weighted average shares outstanding 
 588.0 569.0 566.0 
 Less: participating securities (2) 
 0.4 0.4 0.6 
 Diluted weighted average common shares outstanding 
 587.6 568.6 565.4 
 Net loss per share: 
 Basic 
 ($ 7.15 ) ($ 20.88 ) ($ 1.12 ) 
 Diluted 
 ( 7.15 ) ( 20.88 ) ( 1.12 ) 

 (1) Diluted loss per share includes any dilutive impact of stock options, restricted stock units, performance-based restricted stock units and performance awards. 
 (2) Participating securities include certain instruments in our deferred compensation plan. 
 As a result of incurring a net loss for the years ended December 31, 2021, 2020 and 2019, potential common shares of 2.6 million, 1.6 million and 4.1 million, respectively, were excluded from diluted loss per share because the effect would have been antidilutive. In addition, t he 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) 
 Years ended December 31, 2021 2020 2019 
 
 Performance awards 2.9 5.7 2.8 
 Performance-based restricted stock units 0.8 1.3 0.6 
 Restricted stock units 0.4 1.0 
 Stock options 0.3 

 
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 Note 4 – Income Taxes 
 The components of Loss before income taxes were: 
 
 Years ended December 31, 2021 2020 2019 
 U.S. ($ 5,475 ) ($ 14,882 ) ($ 2,792 ) 
 Non-U.S. 442 406 533 
 Total ($ 5,033 ) ($ 14,476 ) ($ 2,259 ) 

 Income tax benefit consisted of the following: 
 
 Years ended December 31, 2021 2020 2019 
 Current tax (benefit)/expense 
 U.S. federal ($ 89 ) ($ 3,968 ) ($ 308 ) 
 Non-U.S. 147 148 169 
 U.S. state 42 21 ( 161 ) 
 Total current 100 ( 3,799 ) ( 300 ) 
 Deferred tax (benefit)/expense 
 U.S. federal ( 855 ) 652 ( 953 ) 
 Non-U.S. ( 12 ) ( 3 ) 
 U.S. state 24 612 ( 367 ) 
 Total deferred ( 843 ) 1,264 ( 1,323 ) 
 Total income tax (benefit)/expense ($ 743 ) ($ 2,535 ) ($ 1,623 ) 

 Net income tax (refunds)/payments were ($ 1,480 ), $ 37 and $ 837 in 2021, 2020 and 2019, respectively. 
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 The following is a reconciliation of the U.S. federal statutory tax to actual income tax (benefit)/expense: 
 
 Years ended December 31, 2021 2020 2019 
 Amount Rate Amount Rate Amount Rate 
 U.S. federal statutory tax ($ 1,057 ) 21.0 % ($ 3,039 ) 21.0 % ($ 474 ) 21.0 % 
 Valuation allowance 512 ( 10.2 ) 2,603 ( 18.0 ) 25 ( 1.1 ) 
 Research and development credits ( 189 ) 3.8 ( 284 ) 2.0 ( 382 ) 16.9 
 State income tax provision, net of effects on U.S. federal tax ( 94 ) 1.9 ( 168 ) 1.2 ( 45 ) 2.0 
 Tax on non-U.S. activities 47 ( 0.9 ) 7 ( 0.1 ) 20 ( 0.9 ) 
 Impact of CARES Act (1) 
 3 ( 0.1 ) ( 1,175 ) 8.1 
 Other provision adjustments 41 ( 0.9 ) 234 ( 1.7 ) 66 ( 3.0 ) 
 Excess tax benefits (2) 
 ( 6 ) 0.1 ( 82 ) 0.6 ( 180 ) 8.0 
 Audit settlements (3) 
 ( 587 ) 4.1 ( 371 ) 16.4 
 Foreign derived intangible income (4) 
 ( 31 ) 0.2 ( 229 ) 10.1 
 Tax deductible dividends ( 13 ) 0.1 ( 53 ) 2.4 
 
 
 Income tax (benefit)/expense ($ 743 ) 14.7 % ($ 2,535 ) 17.5 % ($ 1,623 ) 71.8 % 

 (1) On March 27, 2020, the CARES Act was enacted, which includes a five year net operating loss (NOL) carryback provision which enabled us to benefit from the 2020 U.S. federal tax NOL at the former federal tax rate of 35 %. In 2021 and 2020, we recorded tax expense of $ 3 and tax benefits of $ 1,175 related to the NOL carryback provision. 
 (2) I n 2021, 2020 and 2019, we recorded excess tax benefits related to employee share-based payments of $ 6 , $ 82 and $ 180 , respectively. 
 (3) In the fourth quarter of 2020, we recorded a tax benefit of $ 587 related to the settlement of the 2015-2017 federal tax audit. In the fourth quarter of 2019, we recorded a tax benefit of $ 371 related to the settlement of state tax audits spanning 15 tax years. 
 (4) In 2020 and 2019, we recorded tax benefits related to foreign derived intangible income of $ 31 and $ 229 , respectively which effectively apply a lower U.S. tax rate to intangible income derived from serving non-U.S. markets. 
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 Significant components of our deferred tax assets/(liabilities) at December 31 were as follows: 
 
 2021 2020 
 Inventory and long-term contract methods of income recognition ($ 3,827 ) ($ 4,313 ) 
 Pension benefits 1,739 3,029 
 Fixed assets, intangibles and goodwill ( 1,657 ) ( 1,645 ) 
 Federal net operating loss, credit, interest and other carryovers (1) 
 1,522 317 
 Other employee benefits 991 957 
 State net operating loss, credit, interest and other carryovers (2) 
 929 777 
 Other postretirement benefit obligations 913 1,023 
 Accrued expenses and reserves 763 808 
 737 MAX customer concessions and other considerations 682 1,253 
 Other 227 ( 36 ) 
 Gross deferred tax assets/(liabilities) before valuation allowance $ 2,282 $ 2,170 
 Valuation allowance ( 2,423 ) ( 3,094 ) 
 Net deferred tax assets/(liabilities) after valuation allowance ($ 141 ) ($ 924 ) 

 (1) Of the deferred tax asset for federal net operating loss, credit, interest and other carryovers, $ 536 expires on or before December 31, 2041 and $ 986 may be carried over indefinitely. 
 (2) Of the deferred tax asset for state net operating loss, credit, interest and other carryovers, $ 453 expires on or before December 31, 2041 and $ 476 may be carried over indefinitely. 
 
 
 Net deferred tax assets/(liabilities) at December 31 were as follows: 
 
 2021 2020 
 Deferred tax assets $ 11,258 $ 11,600 
 Deferred tax liabilities ( 8,976 ) ( 9,430 ) 
 Valuation allowance ( 2,423 ) ( 3,094 ) 
 Net deferred tax assets/(liabilities) ($ 141 ) ($ 924 ) 

 The Company’s deferred income tax assets of $ 11,258 can be used in future years to offset taxable income and reduce income taxes payable. The Company’s deferred income tax liabilities of $ 8,976 will partially offset deferred income tax assets and result in higher taxable income in future years and increase income taxes payable. Tax law determines whether future reversals of temporary differences will result in taxable and deductible amounts that offset each other in future years. The particular years in which temporary differences result in taxable or deductible amounts generally are determined by the timing of the recovery of the related asset or settlement of the related liability. The deferred income tax assets and liabilities relate primarily to U.S. federal and state tax jurisdictions. From a U.S. federal tax perspective, the Company generated a tax NOL in 2020 that was carried back to prior years when the tax rate was 35 % due to the CARES Act benefit as described above. The Company generated tax NOL and interest carryovers in 2021 that can be carried forward indefinitely and federal research and development credits that can be carried forward 20 years. 
 In the fourth quarter of 2020 and throughout 2021, the Company was in a three-year cumulative pre-tax loss position. We also normalized earnings and other comprehensive income (OCI) for certain non-recurring items and reached a normalized three-year cumulative loss position in 2021. Adjustments to normalize earnings included non-recurring items for certain 737 MAX expenses, an agreement with the Department of Justice, severance costs and remeasurement gains and losses from the annual 
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 remeasurement of pension and other postretirement benefit obligations. For purposes of assessing the recoverability of deferred tax assets, the Company determined that it could not include future projected earnings in the analysis due to recent history of losses. 
 As of December 31, 2021 and 2020, the Company has recorded valuation allowances of $ 2,423 and $ 3,094 primarily for certain federal deferred tax assets, as well as for certain federal and state net operating loss and tax credit carryforwards. To measure the valuation allowance, the Company estimated in what year each of its deferred tax assets and liabilities would reverse using systematic and logical methods to estimate the reversal patterns. Based on these methods, deferred tax liabilities are assumed to reverse and generate taxable income over the next 5 to 10 years while deferred tax assets related to pension and other postretirement benefit obligations are assumed to reverse and generate tax deductions over the next 15 to 20 years. The valuation allowance primarily results from not having sufficient income from deferred tax liability reversals in the appropriate future periods to support the realization of deferred tax assets. 
 During 2021, the Company decreased the valuation allowance by $ 671 . This reflects a tax benefit of $ 1,206 included in OCI primarily due to the net actuarial gains that resulted from the annual remeasurement of pension assets and liabilities. This was partially offset by tax expense of $ 512 recorded in continuing operations and an increase of $ 23 related to the associated federal benefit of state impacts. 
 Until the Company generates sustained levels of profitability, additional valuation allowances may have to be recorded with corresponding adverse impacts on earnings and/or OCI. 
 The Tax Cuts and Jobs Act (TCJA) one-time repatriation tax and Global Intangible Low Tax Income liabilities effectively taxed the undistributed earnings previously deferred from U.S. income taxes. We have not provided for deferred income taxes on the undistributed earnings from certain non-U.S. subsidiaries because such earnings are considered to be indefinitely reinvested. If such earnings were to be distributed, any deferred income taxes would not be significant. 
 As of December 31, 2021 and 2020, the amounts accrued for the payment of income tax-related interest and penalties included in the Consolidated Statements of Financial Position were not significant. The amounts of interest included in the Consolidated Statements of Operations were not significant for the years ended December 31, 2021, 2020 and 2019. 
 A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: 
 
 2021 2020 2019 
 Unrecognized tax benefits – January 1 $ 966 $ 1,476 $ 2,412 
 Gross increases – tax positions in prior periods 64 44 100 
 Gross decreases – tax positions in prior periods ( 245 ) ( 581 ) ( 1,418 ) 
 Gross increases – current period tax positions 73 136 344 
 Gross decreases – current period tax positions ( 1 ) 
 Settlements ( 109 ) 39 
 Statute Lapse 
 Unrecognized tax benefits – December 31 $ 858 $ 966 $ 1,476 

 As of December 31, 2021, 2020 and 2019, the total amount of unrecognized tax benefits include $ 790 , $ 734 and $ 1,287 , respectively, that would affect the effective tax rate, if recognized. As of December 31, 2021, these amounts are primarily associated with the amount of research tax credits claimed and various other matters. 
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 Federal income tax audits have been settled for all years prior to 2018. The Internal Revenue Service (IRS) began the 2018-2019 federal tax audit in the first quarter of 2021 and recently added tax year 2020 to the audit. We are also subject to examination in major state and international jurisdictions for the 2008-2020 tax years. We believe appropriate provisions for all outstanding tax issues have been made for all jurisdictions and all open years. 
 
 Note 5 – Accounts Receivable, net 
 Accounts receivable at December 31 consisted of the following: 
 
 2021 2020 
 U.S. government contracts (1) 
 $ 1,180 $ 811 
 Commercial Airplanes 279 17 
 Global Services (2) 
 1,456 1,437 
 Defense, Space, & Security (2) 
 111 120 
 Other 5 14 
 Less valuation allowance ( 390 ) ( 444 ) 
 Total $ 2,641 $ 1,955 

 (1) Includes foreign military sales through the U.S. government 
 (2) Excludes U.S. government contracts 
 
 Note 6 – Allowances for Losses on Financial Assets 
 The change in allowances for expected credit losses for the years ended December 31, 2021 and 2020 consisted of the following: 
 
 Accounts receivable Unbilled receivables Other Current Assets Customer financing Other Assets Total 
 Balance at January 1, 2020 ($ 138 ) ($ 81 ) ($ 38 ) ($ 5 ) ($ 75 ) ($ 337 ) 
 Changes in estimates ( 314 ) ( 48 ) ( 34 ) ( 12 ) ( 66 ) ( 474 ) 
 Write-offs 8 8 
 
 Recoveries 1 1 
 Balance at December 31, 2020 ( 444 ) ( 129 ) ( 72 ) ( 17 ) ( 140 ) ( 802 ) 
 
 Balance at January 1, 2021 ( 444 ) ( 129 ) ( 72 ) ( 17 ) ( 140 ) ( 802 ) 
 Changes in estimates ( 24 ) ( 11 ) 6 ( 1 ) ( 59 ) ( 89 ) 
 Write-offs 77 49 4 13 143 
 
 Recoveries 1 1 
 Balance at December 31, 2021 ($ 390 ) ($ 91 ) ($ 62 ) ($ 18 ) ($ 186 ) ($ 747 ) 

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 Note 7 – Inventories 
 Inventories at December 31 consisted of the following: 
 
 2021 2020 
 Long-term contracts in progress $ 872 $ 823 
 Commercial aircraft programs 68,106 70,153 
 Commercial spare parts, used aircraft, general stock materials and other 9,845 10,739 
 Total $ 78,823 $ 81,715 

 Commercial spare parts, used aircraft, general stock materials and other includes capitalized precontract costs of $ 648 at December 31, 2021 and $ 733 at December 31, 2020 primarily related to KC-46A Tanker and Commercial Crew. See Note 13. 
 Commercial Aircraft Programs 
 The decrease in commercial aircraft programs inventory during 2021 reflects lower 737 MAX inventory due to resumption of deliveries and a reach-forward loss on the 787 program. These decreases were partially offset by a continued buildup of 787 aircraft, as well as growth in 777X inventory. Commercial aircraft programs inventory includes approximately 335 737 MAX aircraft and 110 787 aircraft at December 31, 2021 as compared with 425 737 MAX aircraft and 80 787 aircraft at December 31, 2020. 
 A number of customers have requested to defer deliveries or to cancel orders. We are currently remarketing certain aircraft and may have to remarket additional aircraft in future periods. If we are unable to successfully remarket the aircraft, determine further production rate reductions are necessary, and/or contract the program accounting quantities, future earnings may be reduced and/or additional reach-forward losses may have to be recorded. 
 At December 31, 2021 and 2020, commercial aircraft programs inventory included the following amounts related to the 737 program: deferred production costs of $ 1,296 and $ 2,159 and unamortized tooling and other non-recurring costs of $ 617 and $ 480 . At December 31, 2021, $ 1,906 of 737 deferred production costs, unamortized tooling and other non-recurring costs are expected to be recovered from units included in the program accounting quantity that have firm orders, and $ 7 is expected to be recovered from units included in the program accounting quantity that represent expected future orders. 
 At December 31, 2021 and 2020, commercial aircraft programs inventory included the following amounts related to the 777X program: $ 3,363 and $ 1,727 of work in process and $ 3,521 and $ 3,295 of unamortized tooling and other non-recurring costs. 
 During the fourth quarter of 2020, we determined that estimated costs to complete the 777X program plus costs already included in 777X inventory exceed estimated revenues from the program. The resulting reach-forward loss of $ 6,493 was recorded as a reduction to deferred production costs. As a result, 777X deferred production costs were immaterial at December 31, 2020 and remain immaterial at December 31, 2021. The level of profitability on the 777X program will be subject to a number of factors. These factors include continued market uncertainty, the impacts of COVID-19 on our production system as well as impacts on our supply chain and customers, further production rate adjustments for the 777X or other commercial aircraft programs, any contraction of the accounting quantity and potential risks associated with the testing program and the timing of aircraft certification. One or more of these factors could result in additional reach-forward losses on the 777X program in future periods. 
 During the fourth quarter of 2021, we determined that estimated costs to complete the 787 program plus costs already included in 787 inventory exceed estimated revenues from the program. The resulting reach-forward loss of $ 3,460 was recorded as a reduction to deferred production costs. At 
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 December 31, 2021 and 2020, commercial aircraft programs inventory included the following amounts related to the 787 program: deferred production costs of $ 11,693 and $ 14,976 , $ 1,907 and $ 1,865 of supplier advances, and $ 1,815 and $ 1,863 of unamortized tooling and other non-recurring costs. At December 31, 2021, $ 9,024 of 787 deferred production costs, unamortized tooling and other non-recurring costs are expected to be recovered from units included in the program accounting quantity that have firm orders, and $ 4,484 is expected to be recovered from units included in the program accounting quantity that represent expected future orders. 
 Commercial aircraft programs inventory included amounts credited in cash or other consideration (early issue sales consideration) to airline customers totaling $ 3,290 and $ 2,992 at December 31, 2021 and 2020. 
 
 Note 8 – Contracts with Customers 
 Unbilled receivables increased from $ 7,995 at December 31, 2020 to $ 8,620 at December 31, 2021, primarily driven by revenue recognized at BDS and BGS in excess of billings. 
 Advances and progress billings increased from $ 50,488 at December 31, 2020 to $ 52,980 at December 31, 2021, primarily driven by advances on orders received at BDS, BCA and BGS, partially offset by revenue recognized and the return of customer advances at BCA. 
 Revenues recognized for the years ended December 31, 2021 and 2020 from amounts recorded as Advances and progress billings at the beginning of each year were $ 11,336 and $ 10,360 . 
 The following table summarizes our contract assets under long-term contracts that were unbillable or related to outstanding claims as of December 31: 
 
 Unbilled Claims 
 2021 2020 2021 2020 
 Current $ 5,870 $ 5,628 $ 4 
 Expected to be collected after one year 2,841 2,496 11 $ 18 
 Less valuation allowance ( 91 ) ( 129 ) 
 Total $ 8,620 $ 7,995 $ 15 $ 18 

 Unbilled receivables related to commercial customer incentives expected to be collected after one year were $ 131 and $ 178 at December 31, 2021 and 2020. Unbilled receivables related to claims are items that we believe are earned, but are subject to uncertainty concerning their determination or ultimate realization. 
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 Note 9 – Customer Financing 
 Customer financing primarily relates to our BCC segment. Financing arrangements typically range in terms from 1 to 12 years and may include options to extend or terminate the lease. Certain leases include provisions to allow the lessee to purchase the underlying aircraft at a specified price. 
 Customer financing consisted of the following at December 31: 
 
 2021 2020 
 Financing receivables: 
 Investment in sales-type/finance leases $ 944 $ 919 
 Notes 412 420 
 Total financing receivables 1,356 1,339 
 Less allowance for losses on receivables ( 18 ) ( 17 ) 
 Financing receivables, net 1,338 1,322 
 Operating lease equipment, at cost, less accumulated depreciation of $ 58 and $ 209 
 474 715 
 
 Total $ 1,812 $ 2,037 

 The components of investment in sales-type/finance leases at December 31 were as follows: 
 
 2021 2020 
 Minimum lease payments receivable $ 1,099 $ 756 
 Estimated residual value of leased assets 110 299 
 Unearned income ( 265 ) ( 136 ) 
 Total $ 944 $ 919 

 At December 31, 2021 and 2020, $ 378 and $ 380 were determined to be uncollectible financing receivables and placed on non-accrual status. We recorded no allowance for losses on these uncollectible financing receivables as the collateral values exceeded the carrying values of the receivables. Customer financing interest income received for the years ended December 31, 2021 and 2020 was $ 18 and $ 34 . 
 There were no past due customer financing receivables as of December 31, 2021. 
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 Our financing receivable balances at December 31 by internal credit rating category and year of origination consisted of the following: 
 
 Rating categories Current 2020 2019 2018 2017 Prior Total 
 BBB $ 108 $ 108 
 BB $ 235 $ 120 $ 42 $ 13 126 536 
 B 76 $ 49 142 267 
 CCC 7 26 235 177 445 
 
 
 Total carrying value of financing receivables $ 311 $ 127 $ 68 $ 13 $ 284 $ 553 $ 1,356 

 At December 31, 2021, our allowance for losses related to receivables with ratings of CCC, B, BB and BBB. We applied default rates that averaged 24.2 %, 5.5 %, 2.6 % and 0.2 %, respectively, to the exposure associated with those receivables. 
 Customer Financing Exposure 
 The majority of our customer financing portfolio is concentrated in the following aircraft models at December 31: 
 
 2021 2020 
 717 Aircraft ($ 62 and $ 98 accounted for as operating leases) 
 $ 603 $ 637 
 747-8 Aircraft ($ 0 and $ 121 accounted for as operating leases) 
 435 480 
 737 Aircraft ($ 145 and $ 214 accounted for as operating leases) 
 163 235 
 777 Aircraft ($ 225 and $ 216 accounted for as operating leases) 
 233 225 
 MD-80 Aircraft (Accounted for as sales-type finance leases) 142 167 
 757 Aircraft ($ 0 and $ 4 accounted for as operating leases) 
 126 147 
 747-400 Aircraft ($ 1 and $ 19 accounted for as operating leases) 
 50 71 

 Operating lease equipment primarily includes large commercial jet aircraft. 
 Impairment charges related to customer financing operating lease assets for the years ended December 31 were as follows: 
 
 2021 2020 2019 
 Boeing Capital $ 23 $ 32 $ 53 
 Other Boeing 8 ( 8 ) 217 
 Total $ 31 $ 24 $ 270 

 
 Lease income recorded in Revenue on the Consolidated Statements of Operations for the years ended December 31, 2021 and 2020 included $ 54 and $ 57 from sales-type/finance leases, and $ 68 and $ 118 from operating leases. Profit at the commencement of sales-type leases was recorded in revenue for the years ended December 31, 2021 and 2020 in the amount of $ 78 and $ 26 . 
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 As of December 31, 2021, undiscounted cash flows for notes receivable, sales-type/finance and operating leases over the next five years and thereafter are as follows: 
 
 Notes receivable Sales-type/finance leases Operating leases 
 Year 1 $ 194 $ 201 $ 66 
 Year 2 34 180 55 
 Year 3 18 171 39 
 Year 4 19 141 18 
 Year 5 21 127 15 
 Thereafter 126 279 37 
 Total financing receipts 412 1,099 230 
 Less imputed interest ( 265 ) 
 Estimated unguaranteed residual values 110 
 Total $ 412 $ 944 $ 230 

 At December 31, 2021 and December 31, 2020, unguaranteed residual values were $ 110 and $ 299 . Guaranteed residual values at December 31, 2021 were not significant. 
 
 Note 10 – Property, Plant and Equipment 
 Property, plant and equipment at December 31 consisted of the following: 
 
 2021 2020 
 Land $ 377 $ 512 
 Buildings and land improvements 14,152 14,415 
 Machinery and equipment 15,692 16,060 
 Construction in progress 1,235 1,340 
 Gross property, plant and equipment 31,456 32,327 
 Less accumulated depreciation ( 20,538 ) ( 20,507 ) 
 Total $ 10,918 $ 11,820 

 Depreciation expense was $ 1,488 , $ 1,533 and $ 1,567 for the years ended December 31, 2021, 2020 and 2019, respectively. Interest capitalized during the years ended December 31, 2021, 2020 and 2019 totaled $ 76 , $ 81 and $ 83 , respectively. 
 During 2021 and 2020, we acquired $ 46 and $ 47 of property, plant and equipment through non-cash investing and financing transactions. Accounts payable related to purchases of property, plant and equipment were $ 295 and $ 182 for the years ended December 31, 2021 and 2020. 
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 Note 11 – Investments 
 Our investments, which are recorded in Short-term and other investments or Investments, consisted of the following at December 31: 
 
 2021 2020 
 Equity method investments (1) 
 $ 930 $ 936 
 Time deposits 7,676 17,154 
 Available for sale debt instruments 464 596 
 Equity and other investments 45 85 
 Restricted cash & cash equivalents (2) 
 52 83 
 Total $ 9,167 $ 18,854 

 (1) Dividends received were $ 77 and $ 149 during 2021 and 2020. Retained earnings at December 31, 2021 include undistributed earnings from our equity method investments of $ 136 . During the third quarter of 2021, Boeing and AE Industrial Partners announced a strategic partnership to establish a dedicated aerospace venture fund. This transaction resulted in the deconsolidation of HorizonX and generated a gain of $ 117 which is included in Income from operating investments, net. 
 (2) Reflects amounts restricted in support of our property sales, workers’ compensation programs and insurance premiums. 
 Allowance for losses on available for sale debt instruments are assessed quarterly. All instruments are considered investment grade and, as such, we have not recognized an allowance for credit losses as of December 31, 2021. 
 Equity Method Investments 
 Our equity method investments consisted of the following as of December 31: 
 
 Segment Ownership Percentages Investment Balance 
 2021 2020 
 United Launch Alliance BDS 
 50 % $ 617 $ 735 
 Other BCA, BDS, BGS and Other 313 201 
 Total equity method investments $ 930 $ 936 

 
 Note 12 – Leases 
 Our operating lease assets primarily represent manufacturing and research and development facilities, warehouses and offices. Total operating lease expense was $ 380 and $ 360 for the years ended December 31, 2021 and 2020, of which $ 73 and $ 71 was attributable to variable lease expenses. 
 For the years ended December 31, 2021 and 2020, cash payments against operating lease liabilities totaled $ 301 and $ 299 and non-cash transactions totaled $ 443 and $ 371 to recognize operating assets and liabilities for new leases. 
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 Supplemental Consolidated Statement of Financial Position information related to leases consisted of the following at December 31: 
 
 2021 2020 
 Operating leases: 
 Operating lease right-of-use assets $ 1,437 $ 1,252 
 
 Current portion of lease liabilities 268 268 
 Non-current portion of lease liabilities 1,271 1,084 
 Total operating lease liabilities $ 1,539 $ 1,352 
 
 Weighted average remaining lease term (years) 
 13 9 
 Weighted average discount rate 3.82 % 3.43 % 

 Maturities of operating lease liabilities for the next five years are as follows: 
 
 Operating leases 
 2022 $ 301 
 2023 253 
 2024 190 
 2025 154 
 2026 134 
 Thereafter 1,083 
 Total lease payments 2,115 
 Less imputed interest ( 576 ) 
 Total $ 1,539 

 As of December 31, 2021, we have entered into leases that have not yet commenced of $ 265 , for a maintenance, repair and overhaul hangar and a paint hangar that will support military aircraft programs. These leases will commence between 2022 and 2023 with lease terms of 7 years to 25 years. 
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 Note 13 – Liabilities, Commitments and Contingencies 
 Accrued Liabilities 
 Accrued liabilities at December 31 consisted of the following: 
 
 2021 2020 
 Accrued compensation and employee benefit costs $ 6,573 $ 7,121 
 737 MAX customer concessions and other considerations 2,940 5,537 
 Department of Justice agreement liability 744 
 Environmental 605 565 
 Product warranties 1,900 1,527 
 Forward loss recognition 2,014 1,913 
 
 Income taxes payable 5 43 
 Current portion of lease liabilities 268 268 
 Other 4,150 4,453 
 Total $ 18,455 $ 22,171 

 
 737 MAX Grounding 
 In 2019, following two fatal 737 MAX accidents, the Federal Aviation Administration (FAA) and non-U.S. civil aviation authorities issued orders suspending commercial operations of 737 MAX aircraft. Deliveries of the 737 MAX were suspended following these orders. Deliveries in the U.S. resumed in late 2020 following rescission by the FAA of its grounding order. In addition, several other non-U.S. civil aviation authorities, including the Brazilian National Civil Aviation Agency, Transport Canada, and the European Union Aviation Safety Agency have subsequently approved return of operations, allowing us to resume deliveries in those jurisdictions. The Civil Aviation Administration of China issued an airworthiness directive in the fourth quarter of 2021 outlining actions required for airlines to return to service. We expect 737 MAX deliveries to China to resume in 2022, subject to final regulatory approvals, although risk remains around the timing and rate of those deliveries. Over 185 countries have approved the resumption of 737 MAX operations. The 737 MAX remains grounded in a small number of non-U.S. jurisdictions. 
 We have gradually increased production rates in 2020 and 2021 and continue to expect to increase the production rate to 31 per month by early 2022, as well as implement further gradual production rate increases in subsequent periods based on market demand and supply chain capacity. 
 We produced at abnormally low production rates in 2020 and 2021 and expensed abnormal production costs of $ 1,887 and $ 2,567 during the years ended December 31, 2021 and 2020. We do not expect the remaining abnormal costs related to the 737 MAX to be significant and expect most of the remainder to be incurred in early 2022. 
 In 2021, we delivered 245 aircraft. We have approximately 335 airplanes in inventory as of December 31, 2021 and we anticipate delivering most of these aircraft by the end of 2023. We continue to work with customers who have requested to defer deliveries or to cancel orders for 737 MAX aircraft, and we are remarketing and/or delaying deliveries of certain aircraft included within inventory. In the event that we are unable to resume aircraft deliveries in China and/or ramp up deliveries consistent with our assumptions, our expectation of delivery timing and our expectation regarding future gradual production rate increases could be impacted. 
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 We have also recorded additional expenses of $ 175 , $ 416 , and $ 328 due to the 737 MAX grounding during 2021, 2020, and 2019, respectively. The expenses include costs related to storage, inventory impairment, pilot training, and software updates. 
 The following table summarizes changes in the 737 MAX customer concessions and other considerations liability during 2021 and 2020. 
 
 2021 2020 
 Beginning balance – January 1 $ 5,537 $ 7,389 
 
 Reductions for payments made ( 2,535 ) ( 2,188 ) 
 Reductions for concessions and other in-kind considerations ( 48 ) ( 162 ) 
 Changes in estimates ( 14 ) 498 
 Ending balance – December 31 $ 2,940 $ 5,537 

 The liability balance of $ 2.9 billion at December 31, 2021 includes $ 2.2 billion of contracted customer concessions and other liabilities and $ 0.7 billion that remains subject to negotiation with customers. The contracted amount includes $ 1.0 billion expected to be liquidated by lower customer delivery payments, $ 1.0 billion expected to be paid in cash and $ 0.2 billion in other concessions. Of the cash payments to customers, we expect to pay $ 0.8 billion in 2022. The type of consideration to be provided for the remaining $ 0.7 billion will depend on the outcomes of negotiations with customers. 
 
 Environmental 
 The following table summarizes environmental remediation activity during the years ended December 31, 2021 and 2020. 
 
 2021 2020 
 Beginning balance – January 1 $ 565 $ 570 
 Reductions for payments made ( 59 ) ( 42 ) 
 Changes in estimates 99 37 
 Ending balance – December 31 $ 605 $ 565 

 The liabilities recorded represent our best estimate or the low end of a range of reasonably possible costs expected to be incurred to remediate sites, including operation and maintenance over periods of up to 30 years. It is reasonably possible that we may incur charges that exceed these recorded amounts because of regulatory agency orders and directives, changes in laws and/or regulations, higher than expected costs and/or the discovery of new or additional contamination. As part of our estimating process, we develop a range of reasonably possible alternate scenarios that includes the high end of a range of reasonably possible cost estimates for all remediation sites for which we have sufficient information based on our experience and existing laws and regulations. There are some potential remediation obligations where the costs of remediation cannot be reasonably estimated. At December 31, 2021 and 2020, the high end of the estimated range of reasonably possible remediation costs exceeded our recorded liabilities by $ 1,094 and 1,095 . 
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 Product Warranties 
 The following table summarizes product warranty activity recorded during the years ended December 31, 2021 and 2020. 
 
 2021 2020 
 Beginning balance – January 1 $ 1,527 $ 1,267 
 Additions for current year deliveries 116 65 
 Reductions for payments made ( 241 ) ( 260 ) 
 Changes in estimates 498 455 
 Ending balance – December 31 $ 1,900 $ 1,527 

 The increase in the product warranty reserve during the year ended December 31, 2020 is primarily driven by charges related to “pickle forks” on 737NG aircraft. During 2019, we detected cracks in the "pickle forks", a frame fitting component of the structure connecting the wings to the fuselages of 737NG aircraft. We notified the FAA, which issued a directive requiring that certain 737NG airplanes be inspected. In 2019, we estimated the number of aircraft that would have to be repaired in the future and provisioned for the estimated costs of completing the repairs. During the first quarter of 2020, we recognized charges of $ 336 based on revised engineering and fleet utilization estimates as well as updated repair cost estimates. We cannot estimate a range of reasonably possible losses, if any, in excess of amounts recognized due to the ongoing nature of the inspections and repairs and pending the completion of investigations into the cause of the condition. 
 Commercial Aircraft Commitments 
 In conjunction with signing definitive agreements for the sale of new aircraft (Sale Aircraft), we have entered into trade-in commitments with certain customers that give them the right to trade in used aircraft at a specified price upon the purchase of Sale Aircraft. The probability that trade-in commitments will be exercised is determined by using both quantitative information from valuation sources and qualitative information from other sources. The probability of exercise is assessed quarterly, or as events trigger a change, and takes into consideration the current economic and airline industry environments. Trade-in commitments, which can be terminated by mutual consent with the customer, may be exercised only during the period specified in the agreement and require advance notice by the customer. 
 Trade-in commitment agreements at December 31, 2021 have expiration dates from 2022 through 2028. At December 31, 2021 and 2020, total contractual trade-in commitments were $ 612 and $ 950 . As of December 31, 2021 and 2020, we estimated that it was probable we would be obligated to perform on certain of these commitments with net amounts payable to customers totaling $ 283 and $ 599 , and the fair value of the related trade-in aircraft was $ 283 and $ 580 . 
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 Financing Commitments 
 Financing commitments related to aircraft on order, including options and those proposed in sales campaigns, and refinancing of delivered aircraft, totaled $ 12,905 and $ 11,512 as of December 31, 2021 and 2020. The estimated earliest potential funding dates for these commitments as of December 31, 2021 are as follows: 
 
 Total 
 2022 $ 2,034 
 2023 3,604 
 2024 2,490 
 2025 2,105 
 2026 799 
 Thereafter 1,873 
 $ 12,905 

 
 As of December 31, 2021, all of these financing commitments relate to customers we believe have less than investment-grade credit. We have concluded that no reserve for future potential losses is required for these financing commitments based upon the terms, such as collateralization and interest rates, under which funding would be provided. 
 Funding Commitments 
 We have commitments to make additional capital contributions of $ 248 to joint ventures over the next six years. 
 Standby Letters of Credit and Surety Bonds 
 We have entered into standby letters of credit and surety bonds with financial institutions primarily relating to the guarantee of our future performance on certain contracts. Contingent liabilities on outstanding letters of credit agreements and surety bonds aggregated approximately $ 3,634 and $ 4,238 as of December 31, 2021 and 2020. 
 
 Company Owned Life Insurance 
 McDonnell Douglas Corporation insured its executives with Company Owned Life Insurance (COLI), which are life insurance policies with a cash surrender value. Although we do not use COLI currently, these obligations from the merger with McDonnell Douglas are still a commitment at this time. We have loans in place to cover costs paid or incurred to carry the underlying life insurance policies. As of December 31, 2021 and 2020, the cash surrender value was $ 374 and $ 395 and the total loans were $ 360 and $ 382 . As we have the right to offset the loans against the cash surrender value of the policies, we present the net asset in Other assets on the Consolidated Statements of Financial Position as of December 31, 2021 and 2020. 
 
 BDS Fixed-Price Development Contracts 
 We have recorded earnings charges for losses on a number of fixed-price development contracts. Fixed-price development work is inherently uncertain and subject to significant variability in estimates of the cost and time required to complete the work. The operational and technical complexities of these contracts create financial risk, which could trigger additional earnings charges, termination provisions, order cancellations or other financially significant exposure. 
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 KC-46A Tanker 
 In 2011, we were awarded a contract from the U.S. Air Force (USAF) to design, develop, manufacture and deliver four next generation aerial refueling tankers. This Engineering, Manufacturing and Development (EMD) contract is a fixed-price incentive fee contract and involves highly complex designs and systems integration. Since 2016, the USAF has authorized seven low rate initial production (LRIP) lots for a total of 94 aircraft. The EMD contract and authorized LRIP lots are valued at approximately $ 19 billion as of December 31, 2021. 
 At December 31, 2021, we had approximately $ 243 of capitalized precontract costs and $ 409 of potential termination liabilities to suppliers. 
 Recoverable Costs on Government Contracts 
 Our final incurred costs for each year are subject to audit and review for allowability by the U.S. government, which can result in payment demands related to costs they believe should be disallowed. We work with the U.S. government to assess the merits of claims and where appropriate reserve for amounts disputed. If we are unable to satisfactorily resolve disputed costs, we could be required to record an earnings charge and/or provide refunds to the U.S. government. 
 Severance 
 The following table summarizes changes in the severance liability during 2021 and 2020: 
 
 2021 2020 
 Beginning balance – January 1 $ 283 
 Initial liability recorded in the second quarter of 2020 $ 652 
 Reductions for payments made ( 90 ) ( 658 ) 
 Changes in estimates ( 182 ) 289 
 Ending balance – December 31 $ 11 $ 283 

 During 2020, the Company recorded severance costs for approximately 26,000 employees expected to leave the Company through a combination of voluntary and involuntary terminations. The severance packages are consistent with the Company’s ongoing compensation and benefits plans. During the first quarter of 2021, we reduced the estimated number of employees expected to leave the Company through voluntary and involuntary terminations to approximately 23,000. During the second quarter of 2021, we further reduced the estimated number of employees expected to leave the company through voluntary and involuntary terminations to approximately 19,000. As of December 31, 2021, our severance liability primarily relates to remaining severance payments to terminated employees. 
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 Note 14 – Arrangements with Off-Balance Sheet Risk 
 We enter into arrangements with off-balance sheet risk in the normal course of business, primarily in the form of guarantees. 
 The following table provides quantitative data regarding our third party guarantees. The maximum potential payments represent a “worst-case scenario” and do not necessarily reflect amounts that we expect to pay. Estimated proceeds from collateral and recourse represent the anticipated values of assets we could liquidate or receive from other parties to offset our payments under guarantees. The carrying amount of liabilities represents the amount included in Accrued liabilities. 
 
 Maximum
Potential
Payments Estimated
Proceeds from
Collateral/
Recourse Carrying
Amount of
Liabilities 
 December 31, 2021 2020 2021 2020 2021 2020 
 Contingent repurchase commitments $ 548 $ 1,452 $ 548 $ 1,452 
 
 
 
 
 
 Credit guarantees 90 90 28 28 $ 24 $ 24 
 

 Contingent Repurchase Commitments The commercial aircraft repurchase price specified in contingent repurchase commitments is generally lower than the expected fair value at the specified repurchase date. Estimated proceeds from collateral/recourse in the table above represent the lower of the contracted repurchase price or the expected fair value of each aircraft at the specified repurchase date. 
 Credit Guarantees We have issued credit guarantees where we are obligated to make payments to a guaranteed party in the event that the original lessee or debtor does not make payments or perform certain specified services. Generally, these guarantees have been extended on behalf of guaranteed parties with less than investment-grade credit and are collateralized by certain assets. Current outstanding credit guarantees expire through 2036. 
 Industrial Revenue Bonds Industrial Revenue Bonds (IRB) issued by St. Louis County were used to finance the purchase and/or construction of real and personal property at our St. Louis site. Tax benefits associated with IRBs include a twelve-year property tax abatement and sales tax exemption from St. Louis County. We record these properties on our Consolidated Statements of Financial Position. We have also purchased the IRBs and therefore are the bondholders as well as the borrower/lessee of the properties purchased with the IRB proceeds. The liabilities and IRB assets are equal and are reported net in the Consolidated Statements of Financial Position. As of December 31, 2021 and 2020, the assets and liabilities associated with the IRBs were $ 271 . 
 Other Indemnifications In conjunction with our sales of Electron Dynamic Devices, Inc. and Rocketdyne Propulsion and Power businesses and our BCA facilities in Wichita, Kansas and Tulsa and McAlester, Oklahoma, we agreed to indemnify, for an indefinite period, the buyers for costs relating to pre-closing environmental conditions and certain other items. We are unable to assess the potential number of future claims that may be asserted under these indemnifications, nor the amounts thereof (if any). As a result, we cannot estimate the maximum potential amount of future payments under these indemnities and therefore, no liability has been recorded. To the extent that claims have been made under these indemnities and/or are probable and reasonably estimable, liabilities associated with these indemnities are included in the environmental liability disclosure in Note 13. 
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 Note 15 – Debt 
 In the first quarter of 2021, we issued $ 9,825 of fixed rate senior notes consisting of $ 1,325 due February 4, 2023 that bear an annual interest rate of 1.167 %, $ 3,000 due February 4, 2024 that bear an annual interest rate of 1.433 %, and $ 5,500 due February 4, 2026 that bear an annual interest rate of 2.196 %. The notes are unsecured senior obligations and rank equally in right of payment with our existing and future unsecured and unsubordinated indebtedness. The net proceeds of the issuance totaled $ 9,780 , after deducting underwriting discounts, commissions and offering expenses. We used the net proceeds of these note issuances to repay $ 9,825 outstanding under our two-year delayed draw term loan credit agreement in the first quarter of 2021, and we repaid the remaining $ 4,000 in the fourth quarter of 2021. 
 Interest incurred, including amounts capitalized, was $ 2,790 , $ 2,280 and $ 867 for the years ended December 31, 2021, 2020 and 2019, respectively. Interest expense recorded by BCC is reflected as Boeing Capital interest expense on our Consolidated Statements of Operations. Total Company interest payments were $ 2,583 , $ 1,925 and $ 973 for the years ended December 31, 2021, 2020 and 2019, respectively. 
 In the first quarter of 2021, we entered into a $ 5,280 two-year revolving credit agreement. As of December 31, 2021, we had $ 14,740 currently available under credit line agreements, of which $ 3,060 is a 364-day revolving credit facility expiring in October 2022, $ 3,200 expires in October 2022, $ 5,280 expires in March 2023 and $ 3,200 expires in October 2024. The 364-day credit facility has a one-year term out option which allows us to extend the maturity of any borrowings one year beyond the aforementioned expiration date. We continue to be in full compliance with all covenants contained in our debt or credit facility agreements. 
 Short-term debt and current portion of long-term debt at December 31 consisted of the following: 
 
 2021 2020 
 Unsecured debt $ 1,155 $ 1,448 
 Finance lease obligations 61 65 
 
 Other notes 80 180 
 Total $ 1,296 $ 1,693 

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 Debt at December 31 consisted of the following: 
 
 2021 2020 
 Unsecured debt 
 Variable rate: Eurodollar plus 0.75 % - 1.25 % due 2022 
 $ 13,819 
 1.17 % - 2.50 % due through 2026 
 $ 12,404 3,656 
 2.60 % - 3.20 % due through 2030 
 7,001 6,989 
 3.25 % - 3.90 % due through 2059 
 9,570 9,555 
 3.95 % - 5.15 % due through 2059 
 13,993 13,917 
 5.71 % - 6.63 % due through 2060 
 13,008 13,005 
 6.88 % - 8.75 % due through 2043 
 1,853 2,252 
 
 
 
 Other debt and notes 
 Finance lease obligations due through 2044 
 180 203 
 Other notes 93 187 
 Total debt $ 58,102 $ 63,583 

 Total debt at December 31 is attributable to: 
 
 2021 2020 
 BCC $ 1,525 $ 1,640 
 Other Boeing 56,577 61,943 
 Total debt $ 58,102 $ 63,583 

 Scheduled principal payments for debt and minimum finance lease obligations for the next five years are as follows: 
 
 2022 2023 2024 2025 2026 
 
 
 Debt $ 1,236 $ 5,101 $ 5,066 $ 4,302 $ 7,952 
 Minimum finance lease obligations $ 64 $ 43 $ 25 $ 14 $ 6 

 
 Note 16 – Postretirement Plans 
 Many of our employees have earned benefits under defined benefit pension plans. Nonunion and the majority of union employees that had participated in defined benefit pension plans transitioned to a company-funded defined contribution retirement savings plan in 2016. Additional union employees transitioned to company-funded defined contribution retirement savings plans effective January 1, 2019. 
 We fund our major pension plans through trusts. Pension assets are placed in trust solely for the benefit of the plans’ participants and are structured to maintain liquidity that is sufficient to pay benefit obligations as well as to keep pace over the long-term with the growth of obligations for future benefit payments. 
 We also have other postretirement benefits (OPB) other than pensions which consist principally of health care coverage for eligible retirees and qualifying dependents, and to a lesser extent, life insurance to certain groups of retirees. Retiree health care is provided principally until age 65 for approximately three-fourths of those participants who are eligible for health care coverage. Certain employee groups, including employees covered by most United Auto Workers bargaining agreements, are provided lifetime health care coverage. The funded status of the plans is measured as the 
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 difference between the plan assets at fair value and the projected benefit obligation (PBO). We have recognized the aggregate of all overfunded plans in Other assets and the aggregate of all underfunded plans in either Accrued retiree health care or Accrued pension plan liability, net. The portion of the amount by which the actuarial present value of benefits included in the PBO exceeds the fair value of plan assets, payable in the next 12 months, is reflected in Accrued liabilities. 
 The components of net periodic benefit (income)/cost were as follows: 
 
 Pension Other Postretirement Benefits 
 Years ended December 31, 2021 2020 2019 2021 2020 2019 
 Service cost $ 3 $ 3 $ 2 $ 87 $ 89 $ 77 
 Interest cost 1,988 2,455 2,925 97 130 196 
 Expected return on plan assets ( 3,848 ) ( 3,756 ) ( 3,863 ) ( 7 ) ( 9 ) ( 8 ) 
 Amortization of prior service credits ( 80 ) ( 80 ) ( 79 ) ( 35 ) ( 38 ) ( 35 ) 
 Recognized net actuarial loss/(gain) 1,219 1,032 643 ( 56 ) ( 63 ) ( 46 ) 
 Settlement/curtailment loss/(gain) 193 9 ( 4 ) 
 Net periodic benefit (income)/cost ($ 525 ) ($ 337 ) ($ 372 ) $ 86 $ 105 $ 184 
 
 Net periodic benefit cost included in Loss from operations $ 3 $ 3 $ 313 $ 90 $ 91 $ 88 
 Net periodic benefit (income)/cost included in Other income, net ( 528 ) ( 340 ) ( 374 ) ( 1 ) 16 107 
 Net periodic benefit (income)/cost included in Loss before income taxes 
 ($ 525 ) ($ 337 ) ($ 61 ) $ 89 $ 107 $ 195 

 In 2021, we recorded a $ 193 settlement charge in Other income, net and remeasured assets and benefit obligations related to three of the Company’s pension plans. 
 The following tables show changes in the benefit obligation, plan assets and funded status of both pensions and OPB for the years ended December 31, 2021 and 2020. Benefit obligation balances presented below reflect the PBO for our pension plans and accumulated postretirement benefit obligations (APBO) for our OPB plans. 
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 Pension Other Postretirement Benefits 
 2021 2020 2021 2020 
 Change in benefit obligation 
 Beginning balance $ 82,415 $ 77,645 $ 4,693 $ 5,080 
 Service cost 3 3 87 89 
 Interest cost 1,988 2,455 97 130 
 
 Amendments ( 29 ) 
 Actuarial (gain)/loss ( 3,249 ) 7,759 ( 401 ) ( 218 ) 
 Settlement/other ( 870 ) ( 68 ) 55 
 Gross benefits paid ( 4,653 ) ( 5,386 ) ( 411 ) ( 450 ) 
 Subsidies 26 36 
 Exchange rate adjustment 1 7 1 
 Ending balance $ 75,635 $ 82,415 $ 4,092 $ 4,693 
 Change in plan assets 
 Beginning balance at fair value $ 68,696 $ 61,711 $ 160 $ 149 
 Actual return on plan assets 4,477 9,275 21 21 
 Company contribution 11 3,013 
 Plan participants’ contributions 6 6 
 Settlement payments 
 ( 870 ) ( 68 ) 
 Benefits paid ( 4,502 ) ( 5,241 ) ( 15 ) ( 16 ) 
 Exchange rate adjustment 1 6 
 Ending balance at fair value $ 67,813 $ 68,696 $ 172 $ 160 
 Amounts recognized in statement of financial position at December 31 consist of: 
 
 Other assets $ 1,426 $ 837 
 Accrued liabilities ( 144 ) ( 148 ) ($ 392 ) ($ 396 ) 
 Accrued retiree health care ( 3,528 ) ( 4,137 ) 
 Accrued pension plan liability, net ( 9,104 ) ( 14,408 ) 
 Net amount recognized ($ 7,822 ) ($ 13,719 ) ($ 3,920 ) ($ 4,533 ) 

 
 Amounts recognized in Accumulated other comprehensive loss at December 31 were as follows: 
 
 Pension Other Postretirement Benefits 
 2021 2020 2021 2020 
 Net actuarial loss/(gain) $ 19,031 $ 24,324 ($ 1,092 ) ($ 735 ) 
 Prior service credits ( 1,306 ) ( 1,387 ) ( 76 ) ( 110 ) 
 Total recognized in Accumulated other comprehensive loss $ 17,725 $ 22,937 ($ 1,168 ) ($ 845 ) 

 
 
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 The accumulated benefit obligation (ABO) for all pension plans was $ 74,199 and $ 80,694 at December 31, 2021 and 2020. Key information for our plans with ABO and PBO in excess of plan assets as of December 31 was as follows: 
 
 2021 2020 
 
 Accumulated benefit obligation $ 66,406 $ 74,337 
 Fair value of plan assets 58,593 61,502 

 
 2021 2020 
 Projected benefit obligation $ 67,841 $ 76,057 
 Fair value of plan assets 58,593 61,502 

 Assumptions 
 The following assumptions, which are the weighted average for all plans, are used to calculate the benefit obligation at December 31 of each year and the net periodic benefit cost for the subsequent year. 
 
 December 31, 2021 2020 2019 
 Discount rate: 
 Pension 2.80 % 2.50 % 3.30 % 
 Other postretirement benefits 2.50 % 2.00 % 3.00 % 
 Expected return on plan assets 6.30 % 6.50 % 6.80 % 
 Rate of compensation increase 4.30 % 4.30 % 4.30 % 
 Interest crediting rates for cash balance plans 5.00 % 5.00 % 5.15 % 

 The discount rate for each plan is determined based on the plans’ expected future benefit payments using a yield curve developed from high quality bonds that are rated as Aa or better by at least half of the four rating agencies utilized as of the measurement date. The yield curve is fitted to yields developed from bonds at various maturity points. Bonds with the ten percent highest and the ten percent lowest yields are omitted. The present value of each plan’s benefits is calculated by applying the discount rates to projected benefit cash flows. 
 The pension fund’s expected return on plan assets assumption is derived from a review of actual historical returns achieved by the pension trust and anticipated future long-term performance of individual asset classes. While consideration is given to historical returns, the assumption represents a long-term, prospective return. The expected return on plan assets component of the net periodic benefit cost for the upcoming plan year is determined based on the expected return on plan assets assumption and the market-related value of plan assets (MRVA). Since our adoption of the accounting standard for pensions in 1987, we have determined the MRVA based on a five-year moving average of plan assets. As of December 31, 2021, the MRVA was approximately $ 4,773 less than the fair market value of assets. 
 Assumed health care cost trend rates were as follows: 
 
 December 31, 2021 2020 2019 
 Health care cost trend rate assumed next year 4.50 % 4.50 % 5.00 % 
 Ultimate trend rate 4.50 % 4.50 % 4.50 % 
 Year that trend reached ultimate rate 2021 2021 2021 

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 Plan Assets 
 Investment Strategy The overall objective of our pension assets is to earn a rate of return over time to satisfy the benefit obligations of the pension plans and to maintain sufficient liquidity to pay benefits and address other cash requirements of the pension fund. Specific investment objectives for our long-term investment strategy include reducing the volatility of pension assets relative to pension liabilities, achieving a competitive total investment return, achieving diversification between and within asset classes and managing other risks. Investment objectives for each asset class are determined based on specific risks and investment opportunities identified. 
 We periodically update our long-term, strategic asset allocations. We use various analytics to determine the optimal asset mix and consider plan liability characteristics, liquidity characteristics, funding requirements, expected rates of return and the distribution of returns. A key element of our strategy is to de-risk the plan as the funded status of the plan increases. During 2021, as the funded status of the plans increased, certain assets were reallocated to fixed income. The changes in the asset allocation are reflected in the asset allocation table below. We identify investment benchmarks to evaluate performance for the asset classes in the strategic asset allocation that are market-based and investable where possible. Actual allocations to each asset class vary from target allocations due to periodic investment strategy changes, market value fluctuations, the length of time it takes to fully implement investment allocation positions, and the timing of benefit payments and contributions. Short-term investments and exchange-traded derivatives are used to rebalance the actual asset allocation to the target asset allocation. The asset allocation is monitored and rebalanced frequently. The actual and target allocations by asset class for the pension assets at December 31 were as follows: 
 
 Actual Allocations Target Allocations 
 Asset Class 2021 2020 2021 2020 
 Fixed income 61 % 49 % 63 % 49 % 
 Global equity 16 30 20 29 
 Private equity 8 6 4 5 
 Real estate and real assets 8 7 7 9 
 Hedge funds 7 8 6 8 
 Total 100 % 100 % 100 % 100 % 

 
 Fixed income securities are invested primarily in a diversified portfolio of long duration instruments as well as Emerging Market, Structured, High Yield and Private Debt. Global equity securities are invested in a diversified portfolio of U.S. and non-U.S. companies, across various industries and market capitalizations. 
 Private equity investment vehicles are primarily limited partnerships (LPs) that mainly invest in U.S. and non-U.S. leveraged buyout, venture capital, growth and special situation strategies. Real estate and real assets include global private investments that may be held through investments in a limited partnership (LP) or other fund structures and publicly traded investments (such as Real Estate Investment Trusts (REITs) in the case of real estate). Real estate includes, but is not limited to, investments in office, retail, apartment and industrial properties. Real assets include, but are not limited to, investments in natural resources (such as energy, farmland and timber), commodities and infrastructure. 
 Hedge fund investments seek to capitalize on inefficiencies identified across and within different asset classes or markets. Hedge fund strategy types include, but are not limited to, directional, event driven, relative value and long-short. 
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 Investment managers are retained for explicit investment roles specified by contractual investment guidelines. Certain investment managers are authorized to use derivatives, such as equity or bond futures, swaps, options and currency futures or forwards. Derivatives are used to achieve the desired market exposure of a security or an index, transfer value-added performance between asset classes, achieve the desired currency exposure, adjust portfolio duration or rebalance the total portfolio to the target asset allocation. 
 As a percentage of total pension assets, derivative net notional amounts were 33.4 % and 8.3 % for fixed income, including to-be-announced mortgage-backed securities and treasury forwards, and ( 5.4 %) and 0.4 % for global equity and commodities at December 31, 2021 and 2020. 
 I n November 2020, the Company contributed $ 3,000 of our common stock to the pension fund. An independent fiduciary was retained to manage and liquidate the stock over time at its discretion. Plan assets included $ 1,883 and $ 3,298 of our common stock as of December 31, 2021 and 2020. 
 Risk Management In managing the pension assets, we review and manage risk associated with funded status risk, interest rate risk, market risk, counterparty risk, liquidity risk and operational risk. Liability matching and asset class diversification are central to our risk management approach and are integral to the overall investment strategy. Further, asset classes are constructed to achieve diversification by investment strategy, by investment manager, by industry or sector and by holding. Investment manager guidelines for publicly traded assets are specified and are monitored regularly through the custodian. Credit parameters for counterparties have been established for managers permitted to trade over-the-counter derivatives. Valuation is governed through several types of procedures, including reviews of manager valuation policies, custodian valuation processes, pricing vendor practices, pricing reconciliation and periodic, security-specific valuation testing. 
 Fair Value Measurements The following table presents our plan assets using the fair value hierarchy as of December 31, 2021 and 2020. The fair value hierarchy has three levels based on the reliability of the inputs used to determine fair value. Level 1 refers to fair values determined based on quoted prices in active markets for identical assets. Level 2 refers to fair values estimated using significant other observable inputs and Level 3 includes fair values estimated using significant unobservable inputs. 
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 December 31, 2021 December 31, 2020 
 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 
 Fixed income securities: 
 
 Corporate $ 20,573 $ 20,520 $ 53 $ 20,841 $ 20,801 $ 40 
 U.S. government and agencies 
 11,285 11,285 5,170 5,168 2 
 Mortgage backed and asset backed 
 777 675 102 786 666 120 
 Municipal 1,064 1,035 29 1,176 1,104 72 
 Sovereign 1,135 1,126 9 1,040 1,038 2 
 Other 3 $ 3 19 $ 18 1 
 Derivatives: 
 Assets 62 62 6 6 
 Liabilities ( 48 ) ( 48 ) ( 17 ) ( 17 ) 
 Cash equivalents and other short-term investments 
 448 448 1,081 1,081 
 Equity securities: 
 U.S. common and preferred stock 
 4,463 4,463 5,013 5,013 
 Non-U.S. common and preferred stock 
 3,345 3,340 5 5,577 5,575 2 
 Boeing company stock 1,883 1,883 3,298 3,298 
 Derivatives: 
 Assets 1 1 10 10 
 Liabilities ( 1 ) ( 1 ) ( 9 ) ( 9 ) 
 Private equity 
 
 Real estate and real assets: 
 Real estate 413 413 351 351 
 Real assets 784 749 35 786 723 61 2 
 Derivatives: 
 Assets 8 8 6 6 
 Liabilities ( 2 ) ( 2 ) ( 2 ) ( 2 ) 
 Total $ 46,193 $ 10,851 $ 35,144 $ 198 $ 45,132 $ 14,978 $ 29,914 $ 240 
 
 Fixed income common/collective/pooled funds $ 1,712 $ 2,345 
 Fixed income other 747 604 
 Equity common/collective/ pooled funds 4,561 6,947 
 Private equity 5,100 4,013 
 Real estate and real assets 3,952 3,359 
 Hedge funds 4,717 5,745 
 Total investments measured at NAV as a practical expedient $ 20,789 $ 23,013 
 
 Cash $ 520 $ 267 
 Receivables 454 992 
 Payables ( 143 ) ( 708 ) 
 Total $ 67,813 $ 68,696 

 
 Fixed income securities are primarily valued upon a market approach, using matrix pricing and considering a security’s relationship to other securities for which quoted prices in an active market may be available, or an income approach, converting future cash flows to a single present value amount. 
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 Inputs used in developing fair value estimates include reported trades, broker quotes, benchmark yields and base spreads. 
 Common/collective/pooled funds are typically common or collective trusts valued at their net asset values (NAVs) that are calculated by the investment manager or sponsor of the fund and have daily or monthly liquidity. Derivatives included in the table above are over-the-counter and are primarily valued using an income approach with inputs that include benchmark yields, swap curves, cash flow analysis, rating agency data and interdealer broker rates. Exchange-traded derivative positions are reported in accordance with changes in daily variation margin which is settled daily and therefore reflected in the payables and receivables portion of the table. 
 Cash equivalents and other short-term investments (which are used to pay benefits) are held in a separate account which consists of a commingled fund (with daily liquidity) and separately held short-term securities and cash equivalents. All of the investments in this cash vehicle are valued daily using a market approach with inputs that include quoted market prices for similar instruments. In the event a market price is not available for instruments with an original maturity of one year or less, amortized cost is used as a proxy for fair value. Common and preferred stock equity securities are primarily valued using a market approach based on the quoted market prices of identical instruments. 
 Private equity and private debt NAV valuations are based on the valuation of the underlying investments, which include inputs such as cost, operating results, discounted future cash flows and market based comparable data. For those investments reported on a one-quarter lagged basis (primarily LPs) we use NAVs, adjusted for subsequent cash flows and significant events. 
 Real estate and real asset NAVs are based on the valuation of the underlying investments, which include inputs such as cost, discounted future cash flows, independent appraisals and market based comparable data. For those investments reported on a one-quarter lagged basis (primarily LPs), NAVs are adjusted for subsequent cash flows and significant events. Publicly traded REITs and infrastructure stocks are valued using a market approach based on quoted market prices of identical instruments. Exchange-traded commodities futures positions are reported in accordance with changes in daily variation margin which is settled daily and therefore reflected in the payables and receivables portion of the table. 
 Hedge fund NAVs are generally based on the valuation of the underlying investments. This is primarily done by applying a market or income valuation methodology depending on the specific type of security or instrument held. 
 Investments in private equity, private debt, real estate, real assets and hedge funds are primarily calculated and reported by the General Partner, fund manager or third party administrator. Additionally, some investments in fixed income and equity are made via commingled vehicles and are valued in a similar fashion. Pension assets invested in commingled and limited partnership structures rely on the NAV of these investments as the practical expedient for the valuations. 
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 The following tables present a reconciliation of Level 3 assets held during the years ended December 31, 2021 and 2020. Transfers into and out of Level 3 are reported at the beginning-of-year values. 
 
 January 1
2021 Balance Net Realized and Unrealized Gains/(Losses) Net Purchases, Issuances and Settlements Net Transfers Into/(Out of) Level 3 December 31
2021 Balance 
 Fixed income securities: 
 Corporate 
 $ 40 ($ 1 ) $ 5 $ 9 $ 53 
 U.S. government and 
 agencies 2 ( 2 ) 
 Mortgage backed and 
 asset backed 
 120 ( 17 ) ( 1 ) 102 
 Municipal 72 7 ( 50 ) 29 
 
 Sovereign 2 ( 8 ) 15 9 
 Equity securities: 
 
 Non-U.S. common and 
 preferred stock 2 2 ( 3 ) 4 5 
 
 Real assets 2 ( 2 ) 
 Total $ 240 ($ 7 ) $ 5 ($ 40 ) $ 198 

 
 January 1
2020 Balance Net Realized and Unrealized Gains/(Losses) Net Purchases, Issuances and Settlements Net Transfers Into/(Out of) Level 3 December 31
2020 Balance 
 Fixed income securities: 
 Corporate 
 $ 5 $ 1 $ 18 $ 16 $ 40 
 U.S. government and agencies 
 2 2 
 Mortgage backed and asset backed 
 461 ( 1 ) ( 93 ) ( 247 ) 120 
 Municipal 3 2 67 72 
 Sovereign ( 1 ) 2 1 2 
 
 Equity securities: 
 
 Non-U.S. common and preferred stock 
 2 2 
 
 Real assets 4 ( 2 ) 2 
 Total $ 472 $ 2 ($ 71 ) ($ 163 ) $ 240 

 For the year ended December 31, 2021, the changes in unrealized gains/(losses) for Level 3 assets still held at December 31, 2021 were ($ 1 ) for mortgage backed and asset backed fixed income securities and ($ 8 ) for sovereign. For the year ended December 31, 2020, the changes in unrealized gains/(losses) for Level 3 assets still held at December 31, 2020 were $ 2 for corporate, $ 1 for mortgage backed and asset backed fixed income securities, $ 3 for municipal bonds and ($ 1 ) for sovereign. 
 OPB Plan Assets The majority of OPB plan assets are invested in a balanced index fund which is comprised of approximately 60 % equities and 40 % debt securities. The index fund is valued using a 
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 market approach based on the quoted market price of an identical instrument (Level 1). The expected rate of return on these assets does not have a material effect on the net periodic benefit cost. 
 Cash Flows 
 Contributions Required pension contributions under the Employee Retirement Income Security Act (ERISA), as well as rules governing funding of our non-US pension plans, are not expected to be significant in 2022. During the fourth quarter of 2020, we contributed $ 3,000 in common stock to the pension fund. We do not expect to make discretionary contributions to our pension plans in 2022. 
 Estimated Future Benefit Payments The table below reflects the total pension benefits expected to be paid from the plans or from our assets, including both our share of the benefit cost and the participants’ share of the cost, which is funded by participant contributions. OPB payments reflect our portion only. 
 
 Year(s) 2022 2023 2024 2025 2026 2027-2031 
 Pensions $ 4,839 $ 4,723 $ 4,657 $ 4,578 $ 4,481 $ 20,713 
 Other postretirement benefits: 
 Gross benefits paid 450 425 404 380 356 1,385 
 Subsidies 
 ( 29 ) ( 29 ) ( 29 ) ( 27 ) ( 27 ) ( 124 ) 
 Net other postretirement benefits $ 421 $ 396 $ 375 $ 353 $ 329 $ 1,261 

 
 Termination Provisions 
 Certain of the pension plans provide that, in the event there is a change in control of the Company which is not approved by the Board of Directors and the plans are terminated within five years thereafter, the assets in the plan first will be used to provide the level of retirement benefits required by ERISA, and then any surplus will be used to fund a trust to continue present and future payments under the postretirement medical and life insurance benefits in our group insurance benefit programs. 
 Should we terminate certain pension plans under conditions in which the plan’s assets exceed that plan’s obligations, the U.S. government will be entitled to a fair allocation of any of the plan’s assets based on plan contributions that were reimbursed under U.S. government contracts. 
 Defined Contribution Plans 
 We provide certain defined contribution plans to all eligible employees. The principal plans are the Company-sponsored 401(k) plans. The expense for these defined contribution plans was $ 1,268 , $ 1,351 and $ 1,533 in 2021, 2020 and 2019, respectively. 
 
 Note 17 – Share-Based Compensation and Other Compensation Arrangements 
 Share-Based Compensation 
 Our 2003 Incentive Stock Plan, as amended and restated, permits awards of incentive and non-qualified stock options, stock appreciation rights, restricted stock or units, performance shares, performance restricted stock or units, performance units and other stock and cash-based awards to our employees, officers, directors, consultants, and independent contractors. The aggregate number of shares of our stock authorized for issuance under the plan is 87,000,000 . 
 Shares issued as a result of stock option exercises or conversion of stock unit awards will be funded out of treasury shares, except to the extent there are insufficient treasury shares, in which case new shares will be issued. We believe we currently have adequate treasury shares to satisfy these issuances during 2022. 
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 Share-based plans expense is primarily included in Total costs and expenses and General and administrative expense, as well as a portion allocated to production as inventoried costs. The share-based plans expense and related income tax benefit were as follows: 
 
 Years ended December 31, 2021 2020 2019 
 
 
 
 
 Recognized in Loss from operations $ 667 $ 243 $ 217 
 Recognized in Inventories $ 173 
 Income tax benefit $ 148 $ 53 $ 47 

 
 Stock Options 
 On February 17, 2021, we granted 342,986 premium-priced stock options to our executive officers as part of our long-term incentive program. These stock options have an exercise price equal to 120% of the fair market value of our stock on the date of grant. The stock options are scheduled to vest and become exercisable three years after the grant date and expire ten years after the grant date. If an executive terminates employment because of retirement, layoff, disability or death, the executive (or beneficiary) may receive some or all of their stock options depending on certain age and service conditions. The fair value of the stock options granted was $ 74.63 per unit and was estimated using a Monte-Carlo simulation model using the following assumptions: expected life 6.6 years, expected volatility 37.8 %, risk free interest rate 1.3 % and no expected dividend yield. During 2021, we also granted 148,322 stock options to certain executives to encourage retention or to award various achievements, of which 40,322 had an exercise price equal to 120 % of the fair market value of our stock on the date of grant, and the remaining 108,000 had an exercise price equal to the fair market value on the date of grant. These stock options are scheduled to vest and become exercisable three years after the grant date and expire ten years after the grant date. The grant date fair market value of these awards was not significant. 
 Options granted through January 2014 had an exercise price equal to the fair market value of our stock on the date of grant and expire 10 years after the date of grant. These stock options vested over a period of three years and were fully vested as of December 31, 2017. 
 Stock option activity for the year ended December 31, 2021 is as follows: 
 
 Shares Weighted Average Exercise Price Per Share Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value 
 Number of shares under option: 
 Outstanding at beginning of year 1,860,520 $ 75.71 
 Granted 491,308 250.80 
 Exercised ( 570,862 ) 73.93 
 Expired ( 26,663 ) 75.13 
 Forfeited ( 44,924 ) 258.83 
 Outstanding at end of year 1,709,379 $ 121.83 3.1 $ 158 
 Exercisable at end of year 1,262,995 $ 76.53 0.8 $ 158 

 The total intrinsic value of options exercised during the years ended December 31, 2021, 2020 and 2019 was $ 84 , $ 90 and $ 279 , with a related tax benefit of $ 19 , $ 32 and $ 61 , respectively. At December 31, 2021, there was $ 19 of total unrecognized compensation cost related to options which is expected 
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 to be recognized over a weighted average period of 2.5 years. No options vested during the years ended December 31, 2021, 2020 and 2019. 
 Restricted Stock Units 
 In February 2021, 2020 and 2019, we granted to our executives 980,077 , 325,108 and 233,582 restricted stock units (RSUs) as part of our long-term incentive program with grant date fair values of $ 215.70 , $ 319.04 and $ 428.22 per unit, respectively. During 2021, we also granted 47,430 RSUs as part of this long-term incentive program. The RSUs granted under this program will generally vest and settle in common stock (on a one-for-one basis) on the third anniversary of the grant date. If an executive terminates employment because of retirement, layoff, disability or death, the employee (or beneficiary) may receive a proration of stock units based on active employment during the three-year service period or all of their stock units depending on certain age and service conditions. In all other cases, the RSUs will not vest and all rights to the stock units will terminate. These RSUs are labeled executive long-term incentive program in the table below. 
 In December 2020, we granted to our employees (excluding executives and certain union-represented employees), a one-time grant of 5,163,425 RSUs with a grant date fair value of $ 233.00 per unit. The RSUs granted under this program will vest and settle in common stock (on a one-for-one basis) on the third anniversary of the grant date. If an employee terminates employment because of retirement, layoff, disability or death, the employee (or beneficiary) may receive a proration of stock units based on active employment during the three-year service period. In all other cases, the RSUs will not vest and all rights to the stock units will terminate. These RSUs are labeled employee long-term incentive program in the table below. 
 In addition to RSUs awarded under our long-term incentive programs, we grant RSUs to certain executives and employees to encourage retention or to reward various achievements. These RSUs are labeled other RSUs in the table below. 
 The fair values of all RSUs are estimated using the average of the high and low stock prices on the date of grant. 
 RSU activity for the year ended December 31, 2021 was as follows: 
 
 Executive Long-Term Incentive Program Employee Long-Term Incentive Program Other 
 Number of units: 
 Outstanding at beginning of year 1,423,601 5,163,425 749,319 
 Granted 1,027,507 216,782 
 
 Forfeited ( 205,400 ) ( 378,881 ) ( 33,563 ) 
 Distributed ( 196,013 ) ( 3,820 ) ( 233,672 ) 
 Outstanding at end of year 2,049,695 4,780,724 698,866 
 Undistributed vested units 344,125 985,427 16,212 
 Unrecognized compensation cost $ 258 $ 573 $ 67 
 Weighted average remaining amortization period (years) 
 1.9 1.9 1.9 

 
 
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 Performance-Based Restricted Stock Units 
 Performance-Based Restricted Stock Units (PBRSUs) are stock units that pay out based on the Company’s total shareholder return (TSR) as compared to a group of peer companies over a three-year period. The award payout can range from 0 % to 200 % of the initial PBRSU grant. The PBRSUs granted under this program will vest at the payout amount and settle in common stock (on a one-for-one basis) on the third anniversary of the grant date. If an executive terminates employment because of retirement, layoff, disability or death, the employee (or beneficiary) remains eligible under the award and, if the award is earned, will receive a proration of stock units based on active employment during the three-year service period. In all other cases, the PBRSUs will not vest and all rights to the stock units will terminate. 
 In February 2020 and 2019, we granted to our executives 290,202 and 214,651 PBRSUs as part of our long-term incentive program. Compensation expense for the award is recognized over the three-year performance period based upon the grant date fair value. The grant date fair values were estimated using a Monte-Carlo simulation model with the assumptions presented below. The model includes no expected dividend yield as the units earn dividend equivalents. 
 
 Grant Year Grant Date Performance Period Expected Volatility Risk Free Interest Rate Grant Date Fair Value 
 
 2020 2/24/2020 3 years 27.04 % 1.21 % $ 357.38 
 2019 2/25/2019 3 years 23.88 % 2.46 % 466.04 

 
 PBRSU activity for the year ended December 31, 2021 was as follows: 
 
 Executive Long-Term Incentive Program 
 Number of units: 
 Outstanding at beginning of year 621,559 
 
 Performance based adjustment (1) 
 ( 203,331 ) 
 
 Forfeited ( 34,827 ) 
 
 
 Outstanding at end of year 383,401 
 Unrecognized compensation cost $ 36 
 Weighted average remaining amortization period (years) 
 1.1 

 (1) Represents net number of units adjusted at vesting based on TSR for units granted in 2018. 
 Performance Awards 
 During 2020 and 2019, we granted Performance Awards to our executives, which are cash units that pay out based on the achievement of long-term financial goals at the end of a three-year period. Each unit has an initial value of $ 100 dollars. The amount payable at the end of the three -year performance period may be anywhere from $ 0 to $ 200 dollars per unit for the 2019 Performance Awards and $ 0 to $ 150 dollars for 2020 Performance Awards, depending on the Company’s performance against plan for a three-year period. The Compensation Committee has the discretion to pay these awards in cash, stock or a combination of both after the three-year performance period. Compensation expense, based on the estimated performance payout, is recognized ratably over the performance period. 
 The minimum payout amount is $ 0 , and the maximum amount we could be required to pay out for the 2020 and 2019 Performance Awards is $ 253 and $ 323 . 
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 Deferred Compensation 
 The Company has deferred compensation plans which permit certain employees and executives to defer a portion of their salary, bonus, certain other incentive awards and retirement contributions. Participants can diversify these amounts among 23 investment funds including a Boeing stock unit account. 
 Total expense related to deferred compensation was $ 126 , $ 93 and $ 174 in 2021, 2020 and 2019, respectively. As of December 31, 2021 and 2020, the deferred compensation liability which is being marked to market was $ 1,703 and $ 1,718 . 
 
 Note 18 – Shareholders’ Equity 
 On December 17, 2018, the Board approved a repurchase plan for up to $ 20,000 of common stock. In March 2020, the Board of Directors terminated its prior authorization to repurchase shares under this plan. 
 As of December 31, 2021 and 2020, there were 1,200,000,000 shares of common stock and 20,000,000 shares of preferred stock authorized. No preferred stock has been issued. 
 Changes in Share Balances 
 The following table shows changes in each class of shares: 
 
 Common
Stock Treasury
Stock 
 Balance at January 1, 2019 1,012,261,159 444,619,970 
 Issued ( 2,797,002 ) 
 Acquired 7,529,437 
 Balance at December 31, 2019 1,012,261,159 449,352,405 
 Issued ( 19,986,868 ) 
 Acquired 575,484 
 Balance at December 31, 2020 1,012,261,159 429,941,021 
 Issued ( 6,904,556 ) 
 Acquired 307,242 
 Balance at December 31, 2021 1,012,261,159 423,343,707 

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 Accumulated Other Comprehensive Loss 
 Changes in Accumulated other comprehensive loss (AOCI) by component for the years ended December 31, 2021, 2020 and 2019 were as follows: 
 
 Currency Translation Adjustments Unrealized Gains and Losses on Certain Investments Unrealized Gains and Losses on Derivative Instruments Defined Benefit Pension Plans & Other Postretirement Benefits Total (1) 
 
 Balance at January 1, 2019 ($ 101 ) ($ 62 ) ($ 14,920 ) ($ 15,083 ) 
 Other comprehensive (loss)/income before reclassifications 
 ( 27 ) $ 1 ( 48 ) ( 1,397 ) (2) 
 ( 1,471 ) 
 Amounts reclassified from AOCI 
 26 375 (3) 
 401 
 Net current period Other comprehensive (loss)/income 
 ( 27 ) 1 ( 22 ) ( 1,022 ) ( 1,070 ) 
 Balance at December 31, 2019 ($ 128 ) $ 1 ($ 84 ) ($ 15,942 ) ($ 16,153 ) 
 Other comprehensive income/(loss) before reclassifications 
 98 14 ( 1,929 ) (2) 
 ( 1,817 ) 
 Amounts reclassified from AOCI 27 810 (3) 
 837 
 Net current period Other comprehensive income/(loss) 98 41 ( 1,119 ) ( 980 ) 
 Balance at December 31, 2020 ($ 30 ) $ 1 ($ 43 ) ($ 17,061 ) ($ 17,133 ) 
 Other comprehensive (loss)/income before reclassifications 
 ( 75 ) 55 4,268 (2) 
 4,248 
 Amounts reclassified from AOCI 
 ( 6 ) 1,232 (3) 
 1,226 
 Net current period Other comprehensive (loss)/income 
 ( 75 ) 49 5,500 5,474 
 Balance at December 31, 2021 ($ 105 ) $ 1 $ 6 ($ 11,561 ) ($ 11,659 ) 

 (1) Net of tax. 
 (2) Primarily relates to remeasurement of assets and benefit obligations related to the Company's pension and other postretirement benefit plans resulting in an actuarial gain/(loss) of $ 4,262 , ($ 1,956 ) and ($ 1,413 ) (net of tax of ($ 32 ), $ 111 and $ 405 ) for the years ended December 31, 2021, 2020 and 2019. See Note 16. 
 (3) Primarily relates to amortization of actuarial losses for the years ended December 31, 2021, 2020 and 2019 totaling $ 1,155 , $ 917 and $ 464 (net of tax of ($ 8 ), ($ 52 ) and ($ 133 )), respectively. These are included in the net periodic pension cost. See Note 16. 
 
 Note 19 – Derivative Financial Instruments 
 Cash Flow Hedges 
 Our cash flow hedges include foreign currency forward contracts, commodity swaps and commodity purchase contracts. We use foreign currency forward contracts to manage currency risk associated with certain transactions, specifically forecasted sales and purchases made in foreign currencies. Our foreign currency contracts hedge forecasted transactions through 2031. We use commodity derivatives, such as fixed-price purchase commitments and swaps to hedge against potentially unfavorable price changes for commodities used in production. Our commodity contracts hedge forecasted transactions through 2029. 
 Derivative Instruments Not Receiving Hedge Accounting Treatment 
 We have entered into agreements to purchase and sell aluminum to address long-term strategic sourcing objectives and non-U.S. business requirements. These agreements are derivative instruments 
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 for accounting purposes. The quantities of aluminum in these agreements offset and are priced at prevailing market prices. We also hold certain foreign currency forward contracts and commodity swaps which do not qualify for hedge accounting treatment. 
 Notional Amounts and Fair Values 
 The notional amounts and fair values of derivative instruments in the Consolidated Statements of Financial Position as of December 31 were as follows: 
 
 Notional 
 amounts (1) 
 Other assets Accrued
liabilities 
 2021 2020 2021 2020 2021 2020 
 Derivatives designated as hedging instruments: 
 Foreign exchange contracts $ 2,630 $ 2,594 $ 30 $ 81 ($ 52 ) ($ 24 ) 
 
 Commodity contracts 500 404 88 4 ( 18 ) ( 43 ) 
 Derivatives not receiving hedge accounting treatment: 
 
 Foreign exchange contracts 361 769 2 22 ( 3 ) ( 16 ) 
 Commodity contracts 760 904 8 ( 7 ) ( 17 ) 
 Total derivatives $ 4,251 $ 4,671 128 107 ( 80 ) ( 100 ) 
 Netting arrangements ( 30 ) ( 31 ) 30 31 
 Net recorded balance $ 98 $ 76 ($ 50 ) ($ 69 ) 

 (1) Notional amounts represent the gross contract/notional amount of the derivatives outstanding. 
 Gains/(losses) associated with our hedging transactions and forward points recognized in Other comprehensive income are presented in the following table: 
 
 Years ended December 31, 2021 2020 
 Recognized in Other comprehensive income, net of taxes: 
 
 Foreign exchange contracts ($ 47 ) $ 44 
 Commodity contracts 102 ( 30 ) 

 Gains/(losses) associated with our hedging transactions and forward points reclassified from AOCI to earnings are presented in the following table: 
 
 Years ended December 31, 2021 2020 
 Foreign exchange contracts 
 Revenues ($ 3 ) 
 Costs and expenses $ 13 ( 14 ) 
 General and administrative 8 ( 6 ) 
 Commodity contracts 
 
 Costs and expenses ($ 18 ) ($ 10 ) 
 General and administrative expense 5 ( 1 ) 

 Gains/(losses) related to undesignated derivatives on foreign exchange and commodity cash flow hedging transactions recognized in Other income, net were insignificant for the years ended December 31, 2021 and December 31, 2020. 
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 Based on our portfolio of cash flow hedges, we expect to reclassify gains of $ 22 (pre-tax) out of Accumulated other comprehensive loss into earnings during the next 12 months. 
 We have derivative instruments with credit-risk-related contingent features. For foreign exchange contracts with original maturities of at least five years, our derivative counterparties could require settlement if we default on our five-year credit facility. For certain commodity contracts, our counterparties could require collateral posted in an amount determined by our credit ratings. The fair value of foreign exchange and commodity contracts that have credit-risk-related contingent features that are in a net liability position at December 31, 2021 was $ 7 . At December 31, 2021, there was no collateral posted related to our derivatives. 
 
 Note 20 – Fair Value Measurements 
 The fair value hierarchy has three levels based on the reliability of the inputs used to determine fair value. Level 1 refers to fair values determined based on quoted prices in active markets for identical assets. Level 2 refers to fair values estimated using significant other observable inputs, and Level 3 includes fair values estimated using significant unobservable inputs. The following table presents our assets and liabilities that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy. 
 
 December 31, 2021 December 31, 2020 
 Total Level 1 Level 2 Total Level 1 Level 2 
 Assets 
 Money market funds $ 1,370 $ 1,370 $ 2,230 $ 2,230 
 Available-for-sale debt investments: 
 Commercial paper 225 $ 225 149 $ 149 
 Corporate notes 262 262 333 333 
 U.S. government agencies 1 1 114 114 
 Other equity investments 20 20 54 54 
 Derivatives 98 98 76 76 
 Total assets $ 1,976 $ 1,390 $ 586 $ 2,956 $ 2,284 $ 672 
 
 Liabilities 
 Derivatives ($ 50 ) ($ 50 ) ($ 69 ) ($ 69 ) 
 Total liabilities ($ 50 ) ($ 50 ) ($ 69 ) ($ 69 ) 

 Money market funds, available-for-sale debt investments and equity securities are valued using a market approach based on the quoted market prices or broker/dealer quotes of identical or comparable instruments. 
 Derivatives include foreign currency and commodity contracts. Our foreign currency forward contracts are valued using an income approach based on the present value of the forward rate less the contract rate multiplied by the notional amount. Commodity derivatives are valued using an income approach based on the present value of the commodity index prices less the contract rate multiplied by the notional amount. 
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 Certain assets have been measured at fair value on a nonrecurring basis using significant unobservable inputs (Level 3). The following table presents the nonrecurring losses recognized for the years ended December 31 due to long-lived asset impairment, and the fair value and asset classification of the related assets as of the impairment date: 
 
 2021 2020 
 Fair Value Total Losses Fair Value Total Losses 
 Investments ($ 8 ) $ 22 ($ 81 ) 
 Customer financing assets 
 $ 110 ( 31 ) 105 ( 24 ) 
 Other assets and Acquired intangible assets 
 1 ( 9 ) 298 ( 221 ) 
 Property, plant and equipment 9 ( 50 ) 79 ( 84 ) 
 Total $ 120 ($ 98 ) $ 504 ($ 410 ) 

 
 Investments, Property, plant and equipment, Other assets and Acquired intangible assets were primarily valued using an income approach based on the discounted cash flows associated with the underlying assets. The fair value of the impaired customer financing assets includes operating lease equipment and investments in sales type-leases/finance leases and is derived by calculating a median collateral value from a consistent group of third party aircraft value publications. The values provided by the third party aircraft publications are derived from their knowledge of market trades and other market factors. Management reviews the publications quarterly to assess the continued appropriateness and consistency with market trends. Under certain circumstances, we adjust values based on the attributes and condition of the specific aircraft or equipment, usually when the features or use of the aircraft vary significantly from the more generic aircraft attributes covered by third party publications, or on the expected net sales price for the aircraft. 
 For Level 3 assets that were measured at fair value on a nonrecurring basis during the year ended December 31, 2021, the following table presents the fair value of those assets as of the measurement date, valuation techniques and related unobservable inputs of those assets. 
 
 Fair
Value Valuation
Technique(s) Unobservable Input Range
Median or Average 
 Customer financing assets $ 110 Market approach Aircraft value publications $ 88 - $ 125 (1) 
 Median $ 119 
 
 Aircraft condition adjustments ($ 12 ) - $ 3 (2) 
 Net ($ 9 ) 
 

 (1) The range represents the sum of the highest and lowest values for all aircraft subject to fair value measurement, according to the third party aircraft valuation publications that we use in our valuation process. 
 (2) The negative amount represents the sum, for all aircraft subject to fair value measurement, of all downward adjustments based on consideration of individual aircraft attributes and condition. The positive amount represents the sum of all such upward adjustments. 
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 Fair Value Disclosures 
 The fair values and related carrying values of financial instruments that are not required to be remeasured at fair value on the Consolidated Statements of Financial Position at December 31 were as follows: 
 
 December 31, 2021 
 Carrying Amount Total Fair Value Level 1 Level 2 Level 3 
 Assets 
 
 Notes receivable, net $ 412 $ 485 $ 485 
 Liabilities 
 Debt, excluding finance lease obligations ( 57,921 ) ( 65,724 ) ( 65,724 ) 

 
 December 31, 2020 
 Carrying Amount Total Fair Value Level 1 Level 2 Level 3 
 Assets 
 
 Notes receivable, net $ 420 $ 488 $ 488 
 Liabilities 
 Debt, excluding finance lease obligations ( 63,380 ) ( 72,357 ) ( 72,342 ) ($ 15 ) 

 The fair values of notes receivable are estimated with discounted cash flow analysis using interest rates currently offered on loans with similar terms to borrowers of similar credit quality. The fair value of our debt that is traded in the secondary market is classified as Level 2 and is based on current market yields. For our debt that is not traded in the secondary market, the fair value is classified as Level 2 and is based on our indicative borrowing cost derived from dealer quotes or discounted cash flows. The fair values of our debt classified as Level 3 are based on discounted cash flow models using the implied yield from similar securities. With regard to other financial instruments with off-balance sheet risk, it is not practicable to estimate the fair value of our indemnifications and financing commitments because the amount and timing of those arrangements are uncertain. Items not included in the above disclosures include cash, restricted cash, time deposits and other deposits, commercial paper, money market funds, Accounts receivable, Unbilled receivables, Other current assets, Accounts payable and long-term payables. The carrying values of those items, as reflected in the Consolidated Statements of Financial Position, approximate their fair value at December 31, 2021 and 2020. The fair value of assets and liabilities whose carrying value approximates fair value is determined using Level 2 inputs, with the exception of cash (Level 1). 
 
 Note 21 – Legal Proceedings 
 Various legal proceedings, claims and investigations related to products, contracts, employment and other matters are pending against us. 
 In addition, we are subject to various U.S. government inquiries and investigations from which civil, criminal or administrative proceedings could result or have resulted in the past. Such proceedings involve or could involve claims by the government for fines, penalties, compensatory and treble damages, restitution and/or forfeitures. Under government regulations, a company, or one or more of its operating divisions or subdivisions, can also be suspended or debarred from government contracts, or lose its export privileges, based on the results of investigations. Except as described below, we believe, 
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 based upon current information, that the outcome of any such legal proceeding, claim, or government dispute and investigation will not have a material effect on our financial position, results of operations or cash flows. Where it is reasonably possible that we will incur losses in excess of recorded amounts in connection with any of the matters set forth below, we will disclose either the amount or range of reasonably possible losses in excess of such amounts or, where no such amount or range can be reasonably estimated, the reasons why no such estimate can be made. 
 Multiple legal actions have been filed against us as a result of the October 29, 2018 accident of Lion Air Flight 610 and the March 10, 2019 accident of Ethiopian Airlines Flight 302. During the fourth quarter of 2021, we entered into a proposed settlement with plaintiffs in a shareholder derivative lawsuit. Under the proposed settlement, which is subject to court approval, the Company would receive monetary payments of approximately $ 237 , before attorneys’ fees, and commit to making certain governance changes. Further, we are subject to, and cooperating with, ongoing governmental and regulatory investigations and inquiries relating to the accidents and the 737 MAX. Among these is an ongoing investigation by the Securities and Exchange Commission, the outcome of which may be material. Other than with respect to the agreement described below with the U.S. Department of Justice entered in 2021, we cannot reasonably estimate a range of loss, if any, not covered by available insurance that may result given the current status of the pending lawsuits, investigations and inquiries related to the 737 MAX. 
 On January 6, 2021, we entered into a Deferred Prosecution Agreement with the U.S. Department of Justice that resolves the Department of Justice’s previously disclosed investigation into us regarding the evaluation of the 737 MAX airplane by the Federal Aviation Administration. Under the terms of the Deferred Prosecution Agreement, we agreed to the filing of a criminal information charging the Company with one count of conspiracy to defraud the United States, based on the conduct of two former 737 MAX program technical pilots; the criminal information will be dismissed after three years, provided that we comply with our obligations under the agreement. The Deferred Prosecution Agreement requires that we make payments totaling $ 2,510 , which consist of (a) a $ 244 criminal monetary penalty; (b) $ 500 in additional compensation to the heirs and/or beneficiaries of those who died in the Lion Air Flight 610 and Ethiopian Airlines Flight 302 accidents; and (c) $ 1,770 to the Company’s airline customers for harm incurred as a result of the grounding of the 737 MAX, offset in part by payments already made and the remainder satisfied through payments to be made prior to the termination of the Deferred Prosecution Agreement. The agreement also requires that we review our compliance program and undertake continuous improvement efforts with respect to it, and implement enhanced compliance reporting and internal controls mechanisms. We expensed $ 744 in the fourth quarter of 2020 related to this agreement. During the first quarter, consistent with the terms of the Deferred Prosecution Agreement, the monetary penalty was paid, and the $ 500 compensation amount was transferred to a fund established to benefit the heirs and/or beneficiaries of the victims of the 737 MAX accidents. In addition, the $ 1,770 amount related to the Company’s airline customers was included in amounts reserved in prior quarters for 737 MAX customer considerations. 
 During 2019, we entered into agreements with Embraer S.A. (Embraer) to establish joint ventures that included the commercial aircraft and services operations of Embraer, of which we were expected to acquire an 80 percent ownership stake for $ 4,200 , as well as a joint venture to promote and develop new markets for the C-390 Millennium. In 2020, we exercised our contractual right to terminate these agreements based on Embraer’s failure to meet certain required closing conditions. Embraer has disputed our right to terminate the agreements, and the dispute is currently in arbitration. We cannot reasonably estimate a range of loss, if any, that may result from the arbitration. 
 
 Note 22 – Segment and Revenue Information 
 Our primary profitability measurements to review a segment’s operating results are Earnings/(loss) from operations and operating margins. We operate in four reportable segments: BCA, BDS, BGS and BCC. 
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 All other activities fall within Unallocated items, eliminations and other. See page 63 for the Summary of Business Segment Data, which is an integral part of this note. 
 BCA develops, produces and markets commercial jet aircraft principally to the commercial airline industry worldwide. Revenue on commercial aircraft contracts is recognized at the point in time when an aircraft is completed and accepted by the customer. 
 BDS engages in the research, development, production and modification of the following products and related services: manned and unmanned military aircraft and weapons systems, surveillance and engagement, strategic defense and intelligence systems, satellite systems and space exploration. BDS revenue is generally recognized over the contract term (over time) as costs are incurred. 
 BGS provides parts, maintenance, modifications, logistics support, training, data analytics and information-based services to commercial and government customers worldwide. BGS segment revenue and costs include certain products and services provided to other segments. Revenue on commercial spare parts contracts is recognized at the point in time when a spare part is delivered to the customer. Revenue on other contracts is generally recognized over the contract term (over time) as costs are incurred. 
 BCC facilitates, arranges, structures and provides selective financing solutions for our customers. 
 While our principal operations are in the United States, Canada and Australia, some key suppliers and subcontractors are located in Europe and Japan. Revenues, including foreign military sales, are reported by customer location and consisted of the following: 
 
 Years ended December 31, 2021 2020 2019 
 Europe $ 8,967 $ 7,961 $ 10,366 
 Asia 5,845 5,931 16,346 
 
 Middle East 4,653 5,308 9,272 
 
 Canada 969 1,302 2,019 
 Oceania 1,147 832 2,006 
 Africa 239 114 1,113 
 Latin America, Caribbean and other 1,376 229 1,015 
 Total non-U.S. revenues 23,196 21,677 42,137 
 United States 39,076 36,979 42,681 
 Estimated potential concessions and other considerations to 737 MAX customers, net (1) 
 14 ( 498 ) ( 8,259 ) 
 Total revenues $ 62,286 $ 58,158 $ 76,559 

 
 (1) Net of insurance recoveries 
 Revenues from the U.S. government (including foreign military sales through the U.S. government), primarily recorded at BDS and BGS, represented 49 %, 51 % and 39 % of consolidated revenues for 2021, 2020 and 2019, respectively. Approximately 4 % of operating assets were located outside the United States as of December 31, 2021 and 2020. 
 The following tables present BCA, BDS and BGS revenues from contracts with customers disaggregated in a number of ways, such as geographic location, contract type and the method of revenue recognition. We believe these best depict how the nature, amount, timing and uncertainty of our revenues and cash flows are affected by economic factors. 
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 BCA revenues by customer location consisted of the following: 
 
 Years ended December 31, 
 2021 2020 2019 
 Revenue from contracts with customers: 
 Europe $ 4,334 $ 3,872 $ 5,829 
 Middle East 1,098 1,647 5,761 
 Asia 2,792 2,679 12,446 
 
 
 Other 1,681 513 3,450 
 Total non-U.S. revenues 9,905 8,711 27,486 
 United States 9,472 7,899 12,676 
 Estimated potential concessions and other considerations to 737 MAX customers, net (1) 
 14 ( 498 ) ( 8,259 ) 
 Total revenues from contracts with customers 19,391 16,112 31,903 
 Intersegment revenues, eliminated on consolidation 102 50 352 
 Total segment revenues $ 19,493 $ 16,162 $ 32,255 
 
 Revenue recognized on fixed-price contracts 100 % 100 % 100 % 
 
 Revenue recognized at a point in time 100 % 100 % 100 % 

 (1) Net of insurance recoveries 
 BDS revenues on contracts with customers, based on the customer's location, consisted of the following: 
 
 Years ended December 31, 
 2021 2020 2019 
 Revenue from contracts with customers: 
 U.S. customers $ 19,869 $ 19,662 $ 19,465 
 Non-U.S. customers (1) 
 6,671 6,595 6,630 
 Total segment revenue from contracts with customers $ 26,540 $ 26,257 $ 26,095 
 
 Revenue recognized over time 99 % 98 % 98 % 
 
 Revenue recognized on fixed-price contracts 68 % 69 % 70 % 
 
 Revenue from the U.S. government (1) 
 89 % 89 % 89 % 

 (1) Includes revenues earned from foreign military sales through the U.S. government. 
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 BGS revenues consisted of the following: 
 
 Years ended December 31, 2021 2020 2019 
 Revenue from contracts with customers: 
 Commercial $ 7,527 $ 6,936 $ 10,167 
 Government 8,553 8,368 8,107 
 Total revenues from contracts with customers 16,080 15,304 18,274 
 Intersegment revenues eliminated on consolidation 248 239 194 
 Total segment revenues $ 16,328 $ 15,543 $ 18,468 
 
 Revenue recognized at a point in time 45 % 47 % 55 % 
 
 Revenue recognized on fixed-price contracts 86 % 87 % 90 % 
 
 Revenue from the U.S. government (1) 
 40 % 41 % 34 % 

 (1) Includes revenues earned from foreign military sales through the U.S. government. 
 Earnings in Equity Method Investments 
 Our share of income or loss from equity method investments was $ 40 , $ 86 and $ 90 , primarily in our BDS segment, for the years ended December 31, 2021, 2020 and 2019, respectively. 
 Backlog 
 Our total backlog includes contracts that we and our customers are committed to perform. The value in backlog represents the estimated transaction prices on performance obligations to our customers for which work remains to be performed. Backlog is converted into revenue, primarily based on the cost incurred or at delivery and acceptance of products, depending on the applicable revenue recognition model. 
 Our backlog at December 31, 2021 was $ 377,499 . We expect approximately 17 % to be converted to revenue through 2022 and approximately 74 % through 2025, with the remainder thereafter. There is significant uncertainty regarding the timing of when backlog will convert into revenue due to 787 production issues and associated rework, timing of 737 MAX delivery resumption in China, timing of entry into service of the 777X, 737 MAX 7 and/or 737 MAX 10, and COVID-19 impacts. 
 
 
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 Unallocated Items, Eliminations and other 
 Unallocated items, eliminations and other include common internal services that support Boeing’s global business operations, intercompany guarantees provided to BCC and eliminations of certain sales between segments. Such sales include airplanes accounted for as operating leases and considered transferred to the BCC segment. We generally allocate costs to business segments based on the U.S. federal cost accounting standards. Components of Unallocated items, eliminations and other are shown in the following table. 
 
 Years ended December 31, 2021 2020 2019 
 Share-based plans ($ 174 ) ($ 120 ) ($ 65 ) 
 Deferred compensation ( 126 ) ( 93 ) ( 174 ) 
 Amortization of previously capitalized interest ( 107 ) ( 95 ) ( 89 ) 
 Research and development expense, net ( 184 ) ( 240 ) ( 401 ) 
 Customer financing impairment ( 250 ) 
 Litigation ( 109 ) 
 Eliminations and other unallocated items ( 676 ) ( 1,807 ) ( 985 ) 
 Unallocated items, eliminations and other ($ 1,267 ) ($ 2,355 ) ($ 2,073 ) 
 
 Pension FAS/CAS service cost adjustment $ 882 $ 1,024 $ 1,071 
 Postretirement FAS/CAS service cost adjustment 291 359 344 
 FAS/CAS service cost adjustment $ 1,173 $ 1,383 $ 1,415 

 
 Pension and Other Postretirement Benefit Expense 
 Pension costs, comprising GAAP service and prior service costs, are allocated to BCA and the commercial operations at BGS. Pension costs are allocated to BDS and BGS businesses supporting government customers using U.S. Government Cost Accounting Standards (CAS), which employ different actuarial assumptions and accounting conventions than GAAP. These costs are allocable to government contracts. Other postretirement benefit costs are allocated to business segments based on CAS, which is generally based on benefits paid. FAS/CAS service cost adjustment represents the difference between the Financial Accounting Standards (FAS) pension and postretirement service costs calculated under GAAP and costs allocated to the business segments. Non-operating pension and postretirement expenses represent the components of net periodic benefit costs other than service cost. These expenses are included in Other income, net. 
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 Assets 
 Segment assets are summarized in the table below. 
 
 December 31, 2021 2020 
 Commercial Airplanes $ 75,863 $ 77,973 
 Defense, Space & Security 14,974 14,256 
 Global Services 16,397 17,399 
 Boeing Capital 1,735 1,978 
 Unallocated items, eliminations and other 29,583 40,530 
 Total $ 138,552 $ 152,136 

 Assets included in Unallocated items, eliminations and other primarily consist of Cash and cash equivalents, Short-term and other investments, tax assets, capitalized interest, assets managed centrally on behalf of the four principal business segments and intercompany eliminations. From December 31, 2020 to December 31, 2021, assets in Unallocated items, eliminations and other decreased primarily due to reductions in short-term and other investment balances. 
 Capital Expenditures 
 
 Years ended December 31, 2021 2020 2019 
 Commercial Airplanes $ 177 $ 322 $ 433 
 Defense, Space & Security 199 172 189 
 Global Services 94 127 218 
 Unallocated items, eliminations and other 510 682 994 
 Total $ 980 $ 1,303 $ 1,834 

 Capital expenditures for Unallocated items, eliminations and other relate primarily to assets managed centrally on behalf of the four principal business segments. 
 Depreciation and Amortization 
 
 Years ended December 31, 2021 2020 2019 
 Commercial Airplanes $ 535 $ 559 $ 580 
 Defense, Space & Security
 233 251 256 
 Global Services 414 408 424 
 Boeing Capital Corporation 59 66 64 
 Centrally Managed Assets (1) 
 903 962 947 
 Total $ 2,144 $ 2,246 $ 2,271 

 (1) Amounts shown in the table represent depreciation and amortization expense recorded by the individual business segments. Depreciation and amortization for centrally managed assets are included in segment operating earnings based on usage and occupancy. In 2021, $ 668 was included in the primary business segments, of which $ 386 , $ 222 and $ 60 was included in BCA, BDS and BGS, respectively. In 2020, $ 689 was included in the primary business segments, of which $ 397 , $ 236 and $ 56 was included in BCA, BDS and BGS, respectively. In 2019, $ 717 was included in the primary business segments, of which $ 407 , $ 257 and $ 53 was included in BCA, BDS and BGS, respectively. 
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 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM 
 To the shareholders and the Board of Directors of The Boeing Company 
 Opinion on the Financial Statements 
 We have audited the accompanying consolidated statements of financial position of The Boeing Company and subsidiaries (the "Company") as of December 31, 2021 and 2020, the related consolidated statements of operations, comprehensive income, equity, and cash flows, for each of the three years in the period ended December 31, 2021, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2021 and 2020, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2021, in conformity with accounting principles generally accepted in the United States of America. 
 We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, 2021, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated January 31, 2022, expressed an unqualified opinion on the Company's internal control over financial reporting. 
 Basis for Opinion 
 These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. 
 We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion. 
 Critical Audit Matters 
 The critical audit matters communicated below are matters arising from the current-period audit of the financial statements that were communicated or required to be communicated to the audit committee and that (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate. 
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 Cost Estimates for Fixed-Price Development Contracts – Refer to Notes 1 and 13 to the financial statements 
 Critical Audit Matter Description 
 As more fully described in Notes 1 and 13 to the consolidated financial statements, the Company recognizes revenue over time for long-term contracts as goods are produced or services are rendered. The Company uses costs incurred as the method for determining progress, and revenue is recognized based on costs incurred to date plus an estimate of margin at completion. The process of estimating margin at completion involves estimating the costs to complete production of goods or rendering of services and comparing those costs to the estimated final revenue amount. Fixed-price development contracts are inherently uncertain in that revenue is fixed while the estimates of costs required to complete these contracts are subject to significant variability. Due to the technical performance requirements in many of these contracts, changes to cost and revenue estimates could occur, resulting in lower margins or material reach-forward losses. 
 Given the complexity of certain of the Company’s fixed-price development contracts, including the KC-46A Tanker, Commercial Crew, and United States Air Force VC-25B Presidential Aircraft contracts, the limited amount of historical data available in certain instances and significant judgments necessary to estimate future costs at completion, auditing these estimates involved extensive audit effort and a high degree of auditor judgment and required audit professionals with specialized industry experience. 
 How the Critical Audit Matter Was Addressed in the Audit 
 Our audit procedures related to the cost estimates for the KC-46A Tanker, Commercial Crew, and United States Air Force VC-25B Presidential Aircraft fixed-price development contracts included the following, among others: 
 • We evaluated the appropriateness and consistency of management’s methods used in developing its estimates. 
 • We evaluated the reasonableness of judgments made and significant assumptions used by management relating to key cost and schedule estimates, including the range and probability of reasonable outcomes, and the appropriateness of the timing of changes to key estimates. 
 • We performed inquiries of the Company’s project managers and others directly involved with the contracts to evaluate management’s ability to achieve the key cost and schedule estimates, as well as evaluate project status and project challenges which may affect total estimated costs to complete. We also observed the project work site when key estimates related to tangible or physical progress of the project. 
 • We tested the accuracy and completeness of the key data used in developing estimates. We developed independent expectations of reasonable outcomes using, in part, the program’s data and compared our expectations to management’s estimates. 
 • We tested the effectiveness of controls over the review of judgments made and significant assumptions used to develop key estimates, including controls over the key data used in developing the estimates and the mathematical extrapolation of such data. 
 • We performed retrospective reviews, comparing actual performance to estimated performance and the related financial statement impact, including the appropriateness of the timing of changes to key estimates, when evaluating the thoroughness and precision of management’s estimation process and effectiveness of related internal controls. 
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 Program Accounting Estimates for the 777X Program – Refer to Notes 1 and 7 to the financial statements 
 Critical Audit Matter Description 
 The introduction of new aircraft programs involves increased risk associated with meeting development, certification and production schedules. The Company uses program accounting in order to compute cost of sales and margin for each commercial airplane sold. The use of program accounting requires estimating and demonstrating customer demand for the number of units included in the program (program accounting quantity) and estimating the sales and costs over the expected life of each program. In particular, estimating the initial program accounting quantity and revenue for unsold units within the program accounting quantity involves measurement uncertainty resulting in a range of reasonable outcomes. Additionally, the level of effort to meet regulatory requirements and achieve certification may be challenging to predict, resulting in delays in the timing of entry into service and corresponding increases in estimated costs. Changes to the program accounting quantity or revenue and cost estimates could occur, resulting in lower margins or material reach-forward losses. Auditing the estimated revenues and costs for the 777X program involved extensive audit effort and required audit professionals with specialized industry experience given the high degree of complexity and subjectivity related to management’s estimates. 
 How the Critical Audit Matter Was Addressed in the Audit 
 Our audit procedures over the estimated revenues and costs for the anticipated 777X program accounting quantity included the following, among others: 
 • We inquired of the Company’s management, including individuals responsible for sales and pricing, to evaluate the status of current sales campaigns, short and long-term market demand, and status of negotiations with individual customers. 
 • We compared management’s estimate of market demand to external industry sources of expected demand. 
 • We evaluated the appropriateness and consistency of management’s methods and significant assumptions used in developing its estimates related to the initial program accounting quantity and revenue for unsold units. 
 • We evaluated management’s ability to estimate program revenue by comparison to historical estimates and actual results on similar programs. 
 • We evaluated the appropriateness and consistency of management’s methods used in developing its cost estimates. 
 • We performed inquiries of those directly involved with the certification of the aircraft to evaluate project status and challenges which may affect total estimated costs to achieve certification of the aircraft. 
 • We tested the effectiveness of controls including those over the key data used in developing the estimates, the mathematical extrapolation of such data, and management’s judgment regarding the range of reasonable outcomes relating to the specific estimates. 
 
 
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 Program Accounting Revenue Estimates for the 787 Program — Refer to Notes 1, 7, and 22 to the financial statements 
 
 
 Critical Audit Matter Description 
 
 
 Production quality issues for the 787 Program have resulted in increased risk associated with forecasted revenue estimates primarily due to the difficulty in assessing the timeline for restarting 787 deliveries. The Company uses program accounting in order to compute cost of sales and margin for each commercial airplane sold. The use of program accounting requires estimating the revenue expected to be earned upon delivery of the aircraft included in the program’s accounting quantity. The timing of the Federal Aviation Administration's (“FAA”) approval to resume deliveries, the impact to the delivery schedule from delayed deliveries, and the value of the consideration expected to be provided to customers for delivery delays are key factors that affect estimated revenue. There is increased estimation uncertainty related to the revenue forecasts of aircraft which have reached or are expected to reach a delivery delay period that provides the customer with a contractual termination right. Due to continued uncertainty in the expected FAA approval date to resume 787 aircraft deliveries, there is significant judgment in determining which aircraft will reach these contractual termination rights. Changes to the expected delivery resumption date could have a flowthrough impact and result in additional consideration to customers. This could result in lower margins or further material reach-forward losses. Auditing the estimated revenues for the 787 program involved extensive audit effort and required professionals with specialized industry experience given the high degree of complexity and subjectivity related to management’s estimates. 
 How the Critical Audit Matter Was Addressed in the Audit 
 Our audit procedures over the estimated revenues for the 787 program included the following, among others: 
 • We inquired of the Company’s management, including individuals responsible for engineering and production operations, to assess whether the estimated FAA approval and delivery resumption date represent management’s best estimates based on the status of the rework activity. 
 • We inquired of the Company’s management, including the individuals communicating with the FAA, to assess if there is contradictory information to that assumed by management related to the estimated timeline for rework completion or getting FAA approval to resume deliveries. 
 • We evaluated the appropriateness and consistency of management’s method for developing the deliveries schedule assumptions. 
 • We inquired of the Company’s management, including individuals responsible for sales and pricing, to evaluate the status of current contracts with customers and expected consideration to be provided to customers. 
 • We evaluated the appropriateness and consistency of management’s methods and significant assumptions used in developing its estimates related to forecasted revenue for aircraft which have or are expected to have delivery delays. 
 • We tested the effectiveness of controls including those over the key data used in developing the estimates, the mathematical extrapolation of such data, and management’s judgment regarding the range of reasonable outcomes relating to the specific estimates. 
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 Liabilities related to the 737 MAX Grounding – Refer to Note 13 to the financial statements 
 Critical Audit Matter Description 
 In 2019, following two fatal 737 MAX accidents, the FAA and non-U.S. civil aviation authorities issued orders suspending commercial operations of 737 MAX aircraft (the “737 MAX Grounding”). Deliveries resumed in the U.S. in late 2020 following rescission by the FAA of its grounding order. 
 During 2019, the Company recorded an initial liability in connection with estimated payments, concessions and other in-kind consideration it intends to provide to customers for disruptions related to the 737 MAX Grounding and associated delivery delays. This liability totaled $2.9 billion at December 31, 2021 and is reflected in the financial statements in Accrued liabilities. Of the $2.9 billion, $2.2 billion has been contractually agreed to with customers. The liability represents the Company’s best estimate of future concessions and other consideration to its customers. To the extent not contractually agreed upon, the estimate is based on individual negotiations with customers and the substance of such negotiations. 
 The subjectivity of the estimate of approximately $0.7 billion relating to consideration that has not yet been contractually agreed to with customers involved extensive audit effort and a high degree of auditor judgment and required audit professionals with specialized industry experience. 
 How the Critical Audit Matter Was Addressed in the Audit 
 Our audit procedures associated with liabilities related to the 737 MAX Grounding included the following, among others: 
 • We inquired of management to understand developments with the 737 MAX Grounding, including the status of consideration negotiations with individual customers. 
 • We obtained written representations from management concerning its intent to provide consideration to customers and the extent of that consideration. 
 • We evaluated the significant assumptions used by management to estimate the liability for customer consideration, and, where possible, we corroborated the significant assumptions with management outside of the accounting and finance organizations. 
 • We reviewed the terms of customer contracts and correspondence with customers concerning potential consideration as a result of the 737 MAX Grounding. 
 • We evaluated the terms of settlement agreements with customers for the allocation of value provided between consideration as a result of the 737 MAX Grounding and for consideration related to the impact of current economic conditions resulting from COVID-19. 
 • We evaluated delivery documents for 737 MAX deliveries for incremental value provided at delivery as potential consideration as a result of the 737 MAX Grounding. 
 • We read minutes of meetings of the Board of Directors and its committees for evidence of unrecorded loss contingencies. 
 • We evaluated the Company’s disclosures for consistency with our knowledge of matters related to the 737 MAX Grounding. 
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 /s/ Deloitte & Touche LLP 
 Chicago, Illinois 
 January 31, 2022 
 
 
 We have served as the Company's auditor since at least 1934; however, an earlier year could not be reliably determined. 
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 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM 
 To the shareholders and the Board of Directors of The Boeing Company 
 Opinion on Internal Control over Financial Reporting 
 We have audited the internal control over financial reporting of The Boeing Company and subsidiaries (the “Company”) as of December 31, 2021, based on criteria established in Internal Control — Integrated Framework (2013 ) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2021, based on criteria established in Internal Control — Integrated Framework (2013) issued by COSO. 
 We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated financial statements as of and for the year ended December 31, 2021 of the Company, and our report dated January 31, 2022 expressed an unqualified opinion on those financial statements. 
 Basis for Opinion 
 The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. 
 We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. 
 Definition and Limitations of Internal Control over Financial Reporting 
 A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements. 
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 Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. 
 
 
 /s/ Deloitte & Touche LLP 
 
 
 Chicago, Illinois 
 January 31, 2022 
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 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 
 None.
BOEING CO 10-K

Item 8. Financial Statements and Supplementary Data
