What changed in this filing

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Item 1. Business

2024-01-31 compared with 2023-01-27 · 28 added, 28 removed, 117 unchanged (32% of the section changed)

1 unchanged sentence

We are organized based on the products and services we offer.

We operate in four reportable segments:

We operate in three reportable segments:

• Commercial Airplanes (BCA);

1 unchanged sentence

• Global Services (BGS).

• Boeing Capital (BCC).

Commercial Airplanes Segment

2 unchanged sentences

This family of commercial jet aircraft in production includes the 737 narrow-body model and the 767, 777 and 787 wide-body models.

We ended production of the 747 wide-body model in 2022.

Development continues on the 777X program and the 737-7 and 737-10 derivatives.

7 unchanged sentences

This segment provides services to our commercial and defense customers worldwide.

BGS sustains aerospace platforms and systems with a full spectrum of products and services, including supply chain and logistics management, engineering, maintenance and modifications, upgrades and conversions, spare parts, pilot and maintenance training systems and services, technical and maintenance documents, and data analytics and digital services.

Boeing Capital Segment

BCC seeks to ensure that Boeing customers have the financing they need to buy and take delivery of their Boeing product, while managing overall financing exposure.

BCC’s portfolio consists of equipment under operating leases, sales-type/finance leases, notes and other receivables, assets held for sale or re-lease and investments.

Global Services sustains aerospace platforms and systems with a full spectrum of products and services, including supply chain and logistics management, engineering, maintenance and modifications, upgrades and conversions, spare parts, pilot and maintenance training systems and services, technical and maintenance documents, and data analytics and digital services.

Intellectual Property

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Unpatented research, development and engineering skills, as well as certain trademarks, trade secrets and other intellectual property rights, also make an important contribution to our business.

While our intellectual property rights in the aggregate are important to the operation of each of our businesses, we do not believe that our business would be materially affected by the expiration of any particular intellectual property right or termination of any particular intellectual property patent license agreement.

While our intellectual

property rights in the aggregate are important to the operation of each of our businesses, we do not believe that our business would be materially affected by the expiration of any particular intellectual property right or termination of any particular intellectual property patent license agreement.

Human Capital

2 unchanged sentences

Our principal collective bargaining agreements and their current status are summarized in the following table:

Union Percent of our Employees Represented Status of the Agreements with Major Union

Union Percent of our Employees Represented Status of Major Agreements with Union

The International Association of Machinists and Aerospace Workers (IAM) 21% We have two major agreements;

one expiring in September 2024 and one in July 2025.

The Society of Professional Engineering Employees in Aerospace (SPEEA) 10% We have two major agreements expiring in October 2026.

The United Automobile, Aerospace and Agricultural Implement Workers of America (UAW) 1% We have one major agreement expiring in April 2027.

one with IAM District 751 (Washington) expiring in September 2024 and one with IAM District 837 (Missouri) expiring in July 2025.

The Society of Professional Engineering Employees in Aerospace (SPEEA) 10% We have two major agreements;

one with SPEEA Professional and one with SPEEA Technical, both expiring in October 2026.

The United Automobile, Aerospace and Agricultural Implement Workers of America (UAW) 1% We have one major agreement with UAW District 1069 (Pennsylvania) expiring in April 2027.

Guided by our values, we are committed to creating a company where everyone is included and respected, and where we support each other in reaching our full potential.

We are committed to diverse representation across all levels of our workforce to reflect the vibrant and thriving diversity of the communities in which we live and work.

In June of 2022, we released our second Global Equity, Diversity and Inclusion report with our workforce composition.

As of December 2021, our U.S.

workforce was comprised of approximately 23% women, 33% U.S.

racial and ethnic minorities and 15% U.S.

We also support Business Resource Groups open to all employees with more than 15,000 participants across 170 chapters globally that focus on gender, race & ethnicity, generations, gender identity, sexual orientation, disability or veteran status.

In May 2023, we released our third Global Equity, Diversity and Inclusion report with our workforce composition.

As of December 2022, our global workforce was comprised of approximately 24% women, and our U.S.

workforce was comprised of 35% racial and ethnic minorities and 15% U.S.

We also support Business Resource Groups open to all employees with more than 15,000 participants across 176 chapters globally that focus on gender, race and ethnicity, generations, gender identity, sexual orientation, disability or veteran status.

These groups help foster inclusion among all teammates, build awareness, recruit and retain a diverse workforce and support the company in successfully operating in a global, multicultural business environment.

We are committed to releasing an annual Global Equity, Diversity and Inclusion report in 2023 which will be updated with the latest year’s information.

Our 2022 report can be found on our website.

To attract and retain the best-qualified talent, we offer competitive benefits, including market-competitive compensation, healthcare, paid time off, parental leave, retirement benefits, tuition assistance, employee skills development, leadership development and rotation programs.

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For 2023, Boeing employees completed approximately 6.9 million hours of learning.

We offer the ability for our people to pursue degree programs, professional certificates and individual courses in strategic fields of study from more than 300 accredited colleges and universities, online and across the globe through our tuition assistance program.

Over 9,000 Boeing employees leverage these programs every year.

We offer the ability for our people to pursue degree programs, professional certificates and individual courses in strategic fields of study from approximately 500 accredited colleges and universities, online and across the globe through our tuition assistance program.

Approximately 13,000 Boeing employees leveraged these programs in 2023.

Safety, quality, integrity and sustainability are at the core of how Boeing operates.

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We are focused on improving our products and processes and continuing cost reduction efforts.

We intend to continue to compete with other aircraft manufacturers by providing customers with airplanes and services that deliver superior design, safety, efficiency and value to customers around the world.

We intend to continue to compete with other aircraft manufacturers by providing customers with airplanes and services that deliver superior design, safety, quality, efficiency and value to customers around the world.

BDS faces strong competition primarily from Lockheed Martin Corporation, Northrop Grumman Corporation, Raytheon Technologies Corporation, General Dynamics Corporation and SpaceX.

20 unchanged sentences

If any of our government contracts were to be terminated for default, generally the U.S.

government would pay only for the work that has been accepted and could require us to pay the difference between the original contract price and the cost to re-procure the contract items, net of the work accepted from the original contract.

government would pay only for the work that has been accepted and could require us

to pay the difference between the original contract price and the cost to re-procure the contract items, net of the work accepted from the original contract.

government can also hold us liable for damages resulting from the default.

1 unchanged sentence

In the U.S., our commercial aircraft products are required to comply with FAA regulations governing production and quality systems, airworthiness and installation approvals, repair procedures and continuing operational safety.

On January 10, 2024, the FAA notified us that it has initiated an investigation into our quality control system.

This was followed by the FAA announcing actions to increase its oversight of us, including conducting (1) an audit involving the 737-9 production line and suppliers to evaluate compliance with approved quality procedures, (2) increased monitoring of 737-9 in-service events, and (3) an assessment of safety risks around delegated authority and quality oversight, and examination of options to move these functions under independent third parties.

On January 24, 2024, the FAA stated that it will not approve production rate increases or additional production lines for the 737 MAX until it is satisfied that we are in full compliance with required quality control procedures.

New aircraft models and new derivative aircraft are required to obtain FAA certification prior to entry into service.

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We are highly dependent on the availability of essential materials, parts and subassemblies from our suppliers and subcontractors.

The most important raw materials required for our aerospace products

are aluminum (sheet, plate, forgings and extrusions), titanium (sheet, plate, forgings and extrusions) and composites (including carbon and boron).

The most important raw materials required for our aerospace products are aluminum (sheet, plate, forgings and extrusions), titanium (sheet, plate, forgings and extrusions) and composites (including carbon and boron).

Although alternative sources generally exist for these raw materials, qualification of the sources could take a year or more.

During 2022, as a result of the Russia Ukraine war, we suspended purchasing titanium from Russia.

As a result of the Russia Ukraine war, we ceased purchasing titanium from Russia.

This has not disrupted our operations as we have been able to use inventory on hand and identify alternative sources.

3 unchanged sentences

suppliers and subcontractors to meet performance specifications, quality standards and delivery schedules at our anticipated costs.

While we maintain an extensive qualification and performance surveillance system to control risk associated with such reliance on third parties, failure of suppliers or subcontractors to meet commitments could adversely affect production schedules and program/contract profitability, thereby jeopardizing our ability to fulfill commitments to our customers.

While we maintain an extensive qualification and performance surveillance system to control risk associated with such reliance on third parties, failure of suppliers or subcontractors to meet commitments has and could continue to adversely affect product quality, production schedules and program/contract profitability, thereby jeopardizing our ability to fulfill commitments to our customers.

We are also dependent on the availability of energy sources, such as electricity, at affordable prices.

The current conflict in Israel and the Gaza Strip has the potential to impact certain of our suppliers, and has impacted some operations for our airline and lessor customers.

We are closely monitoring developments, supporting our employees and customers, and will take mitigating actions as appropriate.

No material portion of our business is considered to be seasonal.

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Many factors, including those set forth in the “Risk Factors” section below and other important factors disclosed in this report and from time to time in our other filings with the SEC, could cause actual results to differ materially and adversely from these forward-looking statements.

Any forward-looking statement speaks only as of the date on which it is made, and we assume no obligation to update or revise any forward-looking statement whether as a result of new information, future events or otherwise, except as required by law.

Any forward-looking statement

speaks only as of the date on which it is made, and we assume no obligation to update or revise any forward-looking statement whether as a result of new information, future events or otherwise, except as required by law.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business