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Item 1. Financial Statements

Item 1. Financial Statements 
 
 
 
 The Boeing Company and Subsidiaries 
 Condensed Consolidated Statements of Operations 
 (Unaudited) 
 
 (Dollars in millions, except per share data) Six months ended June 30 Three months ended June 30 
 2024 2023 2024 2023 
 Sales of products $ 26,792 $ 31,601 $ 13,524 $ 16,687 
 Sales of services 6,643 6,071 3,342 3,064 
 Total revenues 33,435 37,672 16,866 19,751 
 
 Cost of products ( 24,971 ) ( 28,676 ) ( 12,907 ) ( 15,123 ) 
 Cost of services ( 5,359 ) ( 5,134 ) ( 2,730 ) ( 2,689 ) 
 Total costs and expenses ( 30,330 ) ( 33,810 ) ( 15,637 ) ( 17,812 ) 
 3,105 3,862 1,229 1,939 
 Income from operating investments, net 74 17 7 44 
 General and administrative expense ( 2,538 ) ( 2,590 ) ( 1,377 ) ( 1,286 ) 
 Research and development expense, net ( 1,822 ) ( 1,538 ) ( 954 ) ( 797 ) 
 Gain on dispositions, net 5 1 5 1 
 
 Loss from operations ( 1,176 ) ( 248 ) ( 1,090 ) ( 99 ) 
 Other income, net 525 622 248 320 
 Interest and debt expense ( 1,242 ) ( 1,270 ) ( 673 ) ( 621 ) 
 Loss before income taxes ( 1,893 ) ( 896 ) ( 1,515 ) ( 400 ) 
 Income tax benefit 99 322 76 251 
 
 
 Net loss ( 1,794 ) ( 574 ) ( 1,439 ) ( 149 ) 
 Less: net loss attributable to noncontrolling interest ( 12 ) ( 11 ) 
 Net loss attributable to Boeing Shareholders ($ 1,782 ) ($ 563 ) ($ 1,439 ) ($ 149 ) 
 
 
 
 Basic loss per share ($ 2.90 ) ($ 0.93 ) ($ 2.33 ) ($ 0.25 ) 
 
 
 
 Diluted loss per share ($ 2.90 ) ($ 0.93 ) ($ 2.33 ) ($ 0.25 ) 
 
 Weighted average diluted shares (millions) 614.8 603.9 616.6 605.5 

 See Notes to the Condensed Consolidated Financial Statements. 
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 The Boeing Company and Subsidiaries 
 Condensed Consolidated Statements of Comprehensive Income 
 (Unaudited) 
 
 (Dollars in millions) Six months ended June 30 Three months ended June 30 
 2024 2023 2024 2023 
 Net loss ($ 1,794 ) ($ 574 ) ($ 1,439 ) ($ 149 ) 
 Other comprehensive (loss)/income, net of tax: 
 
 Currency translation adjustments ( 24 ) 10 11 ( 6 ) 
 
 Derivative instruments: 
 Unrealized losses arising during period, net of tax of $ 22 , $ 7 , $ 3 and $ 12 
 ( 76 ) ( 25 ) ( 11 ) ( 43 ) 
 Reclassification adjustment for losses/(gains) included in net loss, net of tax of ($ 8 ), $ 1 , ($ 6 ) and $ 0 
 26 ( 2 ) 19 3 
 Total unrealized (loss)/gain on derivative instruments, net of tax 
 ( 50 ) ( 27 ) 8 ( 40 ) 
 Defined benefit pension plans and other postretirement benefits: 
 Net actuarial (loss)/gain arising during the period, net of tax of $ 17 , $ 2 , $ 0 and $ 0 
 ( 18 ) ( 6 ) 1 1 
 Amortization of actuarial losses/(gains) included in net periodic benefit cost, net of tax of ($ 20 ), $ 1 , ($ 8 ) and $ 1 
 26 ( 4 ) 15 ( 2 ) 
 
 Amortization of prior service credits included in net periodic benefit cost, net of tax of $ 20 , $ 12 , $ 8 and $ 6 
 ( 26 ) ( 40 ) ( 15 ) ( 20 ) 
 
 Pension and postretirement cost related to our equity method investments, net of tax of ($ 3 ), $ 0 , $ 0 and $ 0 
 5 
 Total defined benefit pension plans and other postretirement benefits, net of tax ( 13 ) ( 50 ) 1 ( 21 ) 
 Other comprehensive (loss)/income, net of tax 
 ( 87 ) ( 67 ) 20 ( 67 ) 
 
 Comprehensive loss, net of tax ( 1,881 ) ( 641 ) ( 1,419 ) ( 216 ) 
 Less: Comprehensive loss related to noncontrolling interest 
 ( 12 ) ( 11 ) 
 Comprehensive loss attributable to Boeing Shareholders, net of tax ($ 1,869 ) ($ 630 ) ($ 1,419 ) ($ 216 ) 

 See Notes to the Condensed Consolidated Financial Statements. 
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 The Boeing Company and Subsidiaries 
 Condensed Consolidated Statements of Financial Position 
 (Unaudited) 
 
 (Dollars in millions, except per share data) June 30
2024 December 31
2023 
 Assets 
 Cash and cash equivalents $ 10,894 $ 12,691 
 Short-term and other investments 1,727 3,274 
 Accounts receivable, net 3,155 2,649 
 Unbilled receivables, net 9,660 8,317 
 Current portion of financing receivables, net 60 99 
 Inventories 85,661 79,741 
 Other current assets, net 3,282 2,504 
 Total current assets 114,439 109,275 
 Financing receivables and operating lease equipment, net 785 860 
 Property, plant and equipment, net of accumulated depreciation of $ 22,640 and $ 22,245 
 10,976 10,661 
 Goodwill 8,108 8,093 
 Acquired intangible assets, net 2,067 2,094 
 Deferred income taxes 59 
 Investments 1,026 1,035 
 Other assets, net of accumulated amortization of $ 1,001 and $ 1,046 
 5,319 4,935 
 Total assets $ 142,720 $ 137,012 
 Liabilities and equity 
 Accounts payable $ 11,864 $ 11,964 
 Accrued liabilities 21,850 22,331 
 Advances and progress billings 58,151 56,328 
 Short-term debt and current portion of long-term debt 4,765 5,204 
 Total current liabilities 96,630 95,827 
 Deferred income taxes 291 229 
 Accrued retiree health care 2,159 2,233 
 Accrued pension plan liability, net 6,248 6,516 
 Other long-term liabilities 2,212 2,332 
 Long-term debt 53,162 47,103 
 Total liabilities 160,702 154,240 
 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 10,727 10,309 
 Treasury stock, at cost — 396,730,470 and 402,746,136 shares 
 ( 48,841 ) ( 49,549 ) 
 Retained earnings 25,469 27,251 
 Accumulated other comprehensive loss ( 10,392 ) ( 10,305 ) 
 Total shareholders’ deficit ( 17,976 ) ( 17,233 ) 
 Noncontrolling interests ( 6 ) 5 
 Total equity ( 17,982 ) ( 17,228 ) 
 Total liabilities and equity $ 142,720 $ 137,012 

 See Notes to the Condensed Consolidated Financial Statements. 
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 The Boeing Company and Subsidiaries 
 Condensed Consolidated Statements of Cash Flows 
 (Unaudited) 
 
 (Dollars in millions) Six months ended June 30 
 2024 2023 
 Cash flows – operating activities: 
 Net loss ($ 1,794 ) ($ 574 ) 
 Adjustments to reconcile net loss to net cash (used)/provided by operating activities: 
 Non-cash items – 
 Share-based plans expense 208 381 
 Treasury shares issued for 401(k) contribution 953 862 
 Depreciation and amortization 883 913 
 Investment/asset impairment charges, net 34 12 
 
 
 Gain on dispositions, net ( 5 ) ( 1 ) 
 Other charges and credits, net ( 34 ) 30 
 
 Changes in assets and liabilities – 
 Accounts receivable ( 522 ) ( 433 ) 
 Unbilled receivables ( 1,345 ) ( 721 ) 
 Advances and progress billings 1,886 2,228 
 Inventories ( 5,937 ) ( 241 ) 
 Other current assets ( 320 ) 313 
 Accounts payable ( 222 ) 852 
 Accrued liabilities ( 443 ) ( 399 ) 
 Income taxes receivable, payable and deferred ( 188 ) ( 424 ) 
 Other long-term liabilities ( 148 ) ( 180 ) 
 Pension and other postretirement plans ( 491 ) ( 520 ) 
 Financing receivables and operating lease equipment, net 149 419 
 Other 51 40 
 Net cash (used)/provided by operating activities ( 7,285 ) 2,557 
 Cash flows – investing activities: 
 Payments to acquire property, plant and equipment ( 971 ) ( 764 ) 
 Proceeds from disposals of property, plant and equipment 30 13 
 Acquisitions, net of cash acquired ( 50 ) 
 Contributions to investments ( 1,617 ) ( 9,496 ) 
 Proceeds from investments 3,173 5,567 
 Supplier notes receivable ( 486 ) ( 162 ) 
 Purchase of distribution rights ( 88 ) 
 Other ( 17 ) 4 
 Net cash used by investing activities ( 26 ) ( 4,838 ) 
 Cash flows – financing activities: 
 New borrowings 10,089 38 
 Debt repayments ( 4,481 ) ( 5,123 ) 
 
 
 
 Stock options exercised 44 
 
 Employee taxes on certain share-based payment arrangements ( 67 ) ( 48 ) 
 
 
 Other ( 3 ) ( 4 ) 
 Net cash provided/(used) by financing activities 5,538 ( 5,093 ) 
 Effect of exchange rate changes on cash and cash equivalents ( 25 ) 2 
 Net decrease in cash & cash equivalents, including restricted ( 1,798 ) ( 7,372 ) 
 Cash & cash equivalents, including restricted, at beginning of year 12,713 14,647 
 Cash & cash equivalents, including restricted, at end of period 10,915 7,275 
 Less restricted cash & cash equivalents, included in Investments 21 21 
 Cash and cash equivalents at end of period $ 10,894 $ 7,254 

 See Notes to the Condensed Consolidated Financial Statements. 
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 The Boeing Company and Subsidiaries 
 Condensed Consolidated Statements of Equity 
 For the six months ended June 30, 2024 and 2023 
 (Unaudited) 
 
 Boeing shareholders 
 (Dollars in millions) Common
Stock Additional
Paid-In
Capital Treasury Stock Retained
Earnings Accumulated Other Comprehensive Loss Non-
controlling
Interests Total 
 Balance at January 1, 2023 $ 5,061 $ 9,947 ($ 50,814 ) $ 29,473 ($ 9,550 ) $ 35 ($ 15,848 ) 
 Net loss ( 563 ) ( 11 ) ( 574 ) 
 Other comprehensive loss, net of tax of $ 23 
 ( 67 ) ( 67 ) 
 Share-based compensation 381 381 
 
 Treasury shares issued for stock options exercised, net 
 ( 28 ) 72 44 
 Treasury shares issued for other share-based plans, net 
 ( 73 ) 49 ( 24 ) 
 Treasury shares issued for 401(k) contribution 350 512 862 
 
 
 
 Subsidiary shares purchased from noncontrolling interests 
 ( 267 ) ( 267 ) 
 
 Balance at June 30, 2023 $ 5,061 $ 10,310 ($ 50,181 ) $ 28,910 ($ 9,617 ) $ 24 ($ 15,493 ) 
 
 Balance at January 1, 2024 $ 5,061 $ 10,309 ($ 49,549 ) $ 27,251 ($ 10,305 ) $ 5 ($ 17,228 ) 
 Net loss ( 1,782 ) ( 12 ) ( 1,794 ) 
 Other comprehensive loss, net of tax of $ 28 
 ( 87 ) ( 87 ) 
 Share-based compensation 208 208 
 
 
 Treasury shares issued for other share-based plans, net 
 ( 122 ) 87 ( 35 ) 
 
 Treasury shares issued for 401(k) contribution 332 621 953 
 
 
 
 Other changes in noncontrolling interests 1 1 
 Balance at June 30, 2024 $ 5,061 $ 10,727 ($ 48,841 ) $ 25,469 ($ 10,392 ) ($ 6 ) ($ 17,982 ) 

 See Notes to the Condensed Consolidated Financial Statements. 
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 The Boeing Company and Subsidiaries 
 Condensed Consolidated Statements of Equity 
 For the three months ended June 30, 2024 and 2023 
 (Unaudited) 
 
 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
Interests Total 
 Balance at April 1, 2023 $ 5,061 $ 10,298 ($ 50,376 ) $ 29,059 ($ 9,550 ) $ 24 ($ 15,484 ) 
 Net loss 
 ( 149 ) ( 149 ) 
 Other comprehensive loss, net of tax of $ 19 
 ( 67 ) ( 67 ) 
 Share-based compensation 159 159 
 
 Treasury shares issued for stock options exercised, net 
 ( 1 ) 1 
 Treasury shares issued for other share-based plans, net 
 ( 6 ) 12 6 
 Treasury shares issued for 401(k) contribution 127 182 309 
 
 
 
 
 Subsidiary shares purchased from noncontrolling interests 
 ( 267 ) ( 267 ) 
 Balance at June 30, 2023 $ 5,061 $ 10,310 ($ 50,181 ) $ 28,910 ($ 9,617 ) $ 24 ($ 15,493 ) 
 
 Balance at April 1, 2024 $ 5,061 $ 10,539 ($ 49,105 ) $ 26,908 ($ 10,412 ) ($ 7 ) ($ 17,016 ) 
 Net loss ( 1,439 ) ( 1,439 ) 
 Other comprehensive income, net of tax of ($ 3 ) 
 20 20 
 Share-based compensation 89 89 
 
 
 Treasury shares issued for other share-based plans, net ( 6 ) 22 16 
 
 Treasury shares issued for 401(k) contribution 105 242 347 
 
 
 
 Other changes in noncontrolling interests 
 1 1 
 Balance at June 30, 2024 $ 5,061 $ 10,727 ($ 48,841 ) $ 25,469 ($ 10,392 ) ($ 6 ) ($ 17,982 ) 

 See Notes to the Condensed Consolidated Financial Statements. 
 
 
 
 
 
 
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 The Boeing Company and Subsidiaries 
 Notes to Condensed Consolidated Financial Statements 
 Summary of Business Segment Data 
 (Unaudited) 
 
 (Dollars in millions) Six months ended June 30 Three months ended June 30 
 2024 2023 2024 2023 
 Revenues: 
 Commercial Airplanes $ 10,656 $ 15,544 $ 6,003 $ 8,840 
 Defense, Space & Security 12,971 12,706 6,021 6,167 
 Global Services 9,934 9,466 4,889 4,746 
 
 Unallocated items, eliminations and other ( 126 ) ( 44 ) ( 47 ) ( 2 ) 
 Total revenues $ 33,435 $ 37,672 $ 16,866 $ 19,751 
 Loss from operations: 
 Commercial Airplanes ($ 1,858 ) ($ 998 ) ($ 715 ) ($ 383 ) 
 Defense, Space & Security ( 762 ) ( 739 ) ( 913 ) ( 527 ) 
 Global Services 1,786 1,703 870 856 
 
 Segment operating loss ( 834 ) ( 34 ) ( 758 ) ( 54 ) 
 Unallocated items, eliminations and other ( 946 ) ( 796 ) ( 634 ) ( 336 ) 
 FAS/CAS service cost adjustment 604 582 302 291 
 Loss from operations ( 1,176 ) ( 248 ) ( 1,090 ) ( 99 ) 
 Other income, net 525 622 248 320 
 Interest and debt expense ( 1,242 ) ( 1,270 ) ( 673 ) ( 621 ) 
 Loss before income taxes ( 1,893 ) ( 896 ) ( 1,515 ) ( 400 ) 
 Income tax benefit 99 322 76 251 
 
 
 Net loss ( 1,794 ) ( 574 ) ( 1,439 ) ( 149 ) 
 Less: net loss attributable to noncontrolling interest ( 12 ) ( 11 ) 
 Net loss attributable to Boeing Shareholders ($ 1,782 ) ($ 563 ) ($ 1,439 ) ($ 149 ) 

 This information is an integral part of the Notes to the Condensed Consolidated Financial Statements. See Note 19 for further segment results. 
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 The Boeing Company and Subsidiaries 
 Notes to the Condensed Consolidated Financial Statements 
 (Dollars in millions, except per share amounts or as otherwise stated) 
 (Unaudited) 
 Note 1 – Basis of Presentation 
 The condensed consolidated interim 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”). In the opinion of management, all adjustments (consisting of normal recurring accruals) necessary for a fair presentation are reflected in the interim financial statements. The results of operations for the period ended June 30, 2024, are not necessarily indicative of the operating results for the full year. The interim financial statements should be read in conjunction with the audited Consolidated Financial Statements, including the notes thereto, included in our 2023 Annual Report on Form 10-K. We added a new financial statement line item to the Condensed Consolidated Statements of Cash Flows for cash invested in Supplier notes receivable and reclassified the corresponding amounts in the prior period financial statements to conform to the current period presentation. 
 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. Actual results could differ from those estimates. 
 Goodwill 
 We performed our annual goodwill impairment test as of April 1, 2024, using a qualitative assessment. We determined the fair value of each of our reporting units substantially exceeded their respective carrying values. 
 Long-term Contracts 
 Substantially all contracts at our Defense, Space & Security (BDS) segment and certain contracts at our Global Services (BGS) segment are long-term contracts with the U.S. government and other customers that generally extend over several years. 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 total revenues and costs at completion for a long-term contract indicate a loss, a provision for the entire reach-forward loss on the long-term contract is recognized. 
 The table below reflects the impact of net cumulative catch-up adjustments for changes in estimated revenues and costs at completion across all long-term contracts, including the impact to Loss from operations from changes in estimated losses on unexercised options. 
 
 (In millions - except per share amounts) Six months ended June 30 Three months ended June 30 
 2024 2023 2024 2023 
 Decrease to Revenue ($ 965 ) ($ 782 ) ($ 747 ) ($ 470 ) 
 Increase to Loss from operations 
 ($ 1,700 ) ($ 1,348 ) ($ 1,334 ) ($ 830 ) 
 Increase to Diluted loss per share 
 ($ 2.62 ) ($ 1.43 ) ($ 2.06 ) ($ 0.51 ) 

 
 Note 2 – Spirit Acquisition 
 On June 30, 2024, we entered into an Agreement and Plan of Merger (the Merger Agreement) pursuant to which we have agreed to acquire Spirit AeroSystems Holdings, Inc. (Spirit) in an all-stock transaction at 
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 an equity value of approximately $ 4,700 , or $ 37.25 per share of Spirit Class A Common Stock. The transaction will include the assumption of Spirit's net debt at closing. 
 Each share of Spirit common stock will be exchanged for a number of shares of Boeing common stock equal to an exchange ratio between 0.18 and 0.25 , calculated as $ 37.25 divided by the volume weighted average share price of Boeing shares over the 15 -trading-day period ending on the second trading day prior to the closing (subject to a floor of $ 149.00 per share and a ceiling of $ 206.94 per share). Spirit stockholders will receive 0.25 Boeing shares for each of their Spirit shares if the volume-weighted average price is at or below $ 149.00 , and 0.18 Boeing shares for each of their Spirit shares if the volume-weighted average price is at or above $ 206.94 per share. 
 Boeing's acquisition of Spirit will include substantially all Boeing-related commercial operations, as well as certain other operations. 
 Spirit has also entered into a binding term sheet with Airbus SE (Airbus) setting forth the terms upon which Airbus will, assuming the parties enter into definitive agreements and receive all required regulatory approvals, acquire certain commercial work packages that Spirit performs for Airbus concurrently with the closing of the Boeing-Spirit merger. In addition, Spirit is proposing to sell certain of its operations, including those in Belfast, Northern Ireland (non-Airbus operations); Prestwick, Scotland; Subang, Malaysia; Biddeford, Maine; and Woonsocket, Rhode Island. 
 The transaction is expected to close mid-2025 and is subject to the sale of the Spirit operations related to certain Airbus commercial work packages and the satisfaction of customary closing conditions, including regulatory and Spirit stockholder approvals. 
 The Merger Agreement contains certain termination rights, including that either Boeing or Spirit may terminate the Merger Agreement if, subject to certain limitations, the transaction has not been consummated by March 31, 2025 (subject to three automatic three-month extensions if on each such date all of the closing conditions except those relating to regulatory approvals have been satisfied or waived) (the Outside Date). Additionally, Spirit may terminate the Merger Agreement under specified circumstances to accept an unsolicited Superior Proposal (as defined in the Merger Agreement) from a third party, and we may terminate the Merger Agreement if, before Spirit stockholder approval has been obtained, the Spirit Board of Directors changes its recommendation that Spirit’s stockholders adopt the Merger Agreement. 
 The Merger Agreement provides that Spirit will be required to pay Boeing a termination fee of $ 150 if the Merger Agreement is terminated under specified circumstances in which the Spirit Board of Directors changes its recommendation that Spirit’s stockholders adopt the Merger Agreement, Spirit terminates the Merger Agreement in order to accept a Superior Proposal as set forth in the Merger Agreement, or Spirit consummates a Qualifying Transaction (as defined in the Merger Agreement) following the termination of the Merger Agreement. 
 The Merger Agreement also provides that we will be required to pay Spirit a termination fee of $ 300 if the Merger Agreement is terminated by Spirit or Boeing under certain specified circumstances as a result of the parties' failure to obtain the required regulatory approvals by the Outside Date or in the event that any law or order related to the required regulatory approvals or any applicable antitrust law or foreign investment law prohibits the consummation of the Merger. 
 
 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 attributable to Boeing Shareholders, less 
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 earnings available to participating securities, divided by the basic weighted average common shares outstanding. 
 Diluted earnings per share is calculated by taking net earnings attributable to Boeing Shareholders, less earnings available to participating securities, divided by the diluted weighted average common shares outstanding. Diluted weighted average common shares outstanding is calculated using the treasury stock method. 
 The elements used in the computation of Basic and Diluted loss per share were as follows: 
 
 (In millions - except per share amounts) Six months ended June 30 Three months ended June 30 
 2024 2023 2024 2023 
 Net loss attributable to Boeing Shareholders ($ 1,782 ) ($ 563 ) ($ 1,439 ) ($ 149 ) 
 Less: earnings available to participating securities 
 Net loss available to common shareholders 
 ($ 1,782 ) ($ 563 ) ($ 1,439 ) ($ 149 ) 
 Basic 
 Basic weighted average shares outstanding 
 614.8 603.9 616.6 605.5 
 Less: participating securities (1) 
 0.3 0.3 0.3 0.3 
 Basic weighted average common shares outstanding 
 614.5 603.6 616.3 605.2 
 Diluted 
 
 
 Diluted weighted average shares outstanding 
 614.8 603.9 616.6 605.5 
 Less: participating securities (1) 
 0.3 0.3 0.3 0.3 
 Diluted weighted average common shares outstanding 
 614.5 603.6 616.3 605.2 
 Net loss per share: 
 
 Basic 
 ($ 2.90 ) ($ 0.93 ) ($ 2.33 ) ($ 0.25 ) 
 Diluted 
 ( 2.90 ) ( 0.93 ) ( 2.33 ) ( 0.25 ) 
 

 (1) Participating securities include certain instruments in our deferred compensation plan. 
 The following table represents potential common shares that were not included in the computation of Diluted loss per share because the effect was antidilutive based on their strike price or the performance condition was not met. 
 
 (Shares in millions) Six months ended June 30 Three months ended June 30 
 2024 2023 2024 2023 
 
 
 Performance restricted stock units 0.6 0.7 
 Restricted stock units 1.0 2.0 
 Stock options 0.8 0.8 0.8 0.8 

 In addition, potential common shares of 2.9 million and 5.4 million for the six months ended June 30, 2024 and 2023 and 2.7 million and 5.5 million for the three months ended June 30, 2024 and 2023 were excluded from the computation of Diluted loss per share, because the effect would have been antidilutive as a result of incurring a net loss in those periods. 
 
 Note 4 – Income Taxes 
 We computed our 2024 interim tax provision using an estimated annual effective tax rate of ( 11.1 %), adjusted for discrete items. Our 2024 estimated annual effective tax rate is primarily driven by taxes on non-U.S. operations. The effective tax rates were 5.2 % and 35.9 % for the six months ended June 30, 2024 and 2023. The effective tax rate for the three months ended June 30, 2024, was 5.0 % and reflects additional tax expense to adjust prior quarter's results to the annual effective tax rate offset by discrete tax 
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 benefits of $ 335 recorded in the second quarter related to the settlement of the 2018-2020 federal tax audit, which is after an associated $ 155 valuation allowance expense. 
 As of December 31, 2023, we had recorded valuation allowances of $ 4,550 primarily for certain domestic deferred tax assets, and certain domestic net operating losses, tax credit and interest 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 results from not having sufficient income from deferred tax liability reversals in the appropriate future periods to support the realization of deferred tax assets. 
 The total amount of unrecognized tax benefits of $ 1,131 as of December 31, 2023, decreased by $ 625 in the second quarter due to the settlement of the 2018-2020 federal tax audit, as discussed above. 
 Federal income tax audits have been settled for all years prior to 2021. The Internal Revenue Service is expected to begin the 2021-2023 federal tax audit in the second quarter of 2025. We are also subject to examination in major state and international jurisdictions for the 2010-2022 tax years. We believe appropriate provisions for all outstanding tax issues have been made for all jurisdictions and all open years. 
 
 Note 5 – Allowances for Losses on Financial Assets 
 The changes in allowances for expected credit losses for the six months ended June 30, 2024 and 2023, consisted of the following: 
 
 Accounts receivable Unbilled receivables Other current assets Financing receivables 
 Other assets Total 
 Balance at January 1, 2023 ($ 116 ) ($ 23 ) ($ 85 ) ($ 55 ) ($ 88 ) ($ 367 ) 
 Changes in estimates ( 5 ) 2 15 2 ( 12 ) 2 
 Write-offs 24 4 28 
 
 Recoveries 2 2 
 Balance at June 30, 2023 
 ($ 95 ) ($ 21 ) ($ 66 ) ($ 53 ) ($ 100 ) ($ 335 ) 
 
 Balance at January 1, 2024 ($ 89 ) ($ 19 ) ($ 50 ) ($ 51 ) ($ 122 ) ($ 331 ) 
 Changes in estimates ( 15 ) ( 1 ) ( 1 ) 35 ( 47 ) ( 29 ) 
 Write-offs 7 10 17 
 
 Recoveries 1 1 
 Balance at June 30, 2024 
 ($ 96 ) ($ 20 ) ($ 41 ) ($ 16 ) ($ 169 ) ($ 342 ) 

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 Note 6 – Inventories 
 Inventories consisted of the following: 
 
 June 30
2024 December 31
2023 
 Commercial aircraft programs $ 74,544 $ 68,683 
 Long-term contracts in progress 370 686 
 Capitalized precontract costs (1) 
 941 946 
 Commercial spare parts, used aircraft, general stock materials and other 
 9,806 9,426 
 Total $ 85,661 $ 79,741 

 (1) Capitalized precontract costs at June 30, 2024 and December 31, 2023, included amounts related to T-7A Red Hawk Production Options, Commercial Crew, and KC-46A Tanker. See Note 10. 
 Commercial Aircraft Programs 
 At June 30, 2024 and December 31, 2023, commercial aircraft programs inventory included the following amounts related to the 737 program: deferred production costs of $ 7,638 and $ 6,011 and unamortized tooling and other non-recurring costs of $ 880 and $ 792 . At June 30, 2024, $ 8,480 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 $ 38 is expected to be recovered from units included in the program accounting quantity that represent expected future orders. 
 At June 30, 2024 and December 31, 2023, commercial aircraft programs inventory included the following amounts related to the 777X program: $ 6,072 and $ 4,638 of work in process (including deferred production costs of $ 2,612 and $ 1,792 ) and $ 4,218 and $ 4,063 of unamortized tooling and other non-recurring costs. We expensed abnormal production costs of $ 262 during the six months ended June 30, 2023. In the fourth quarter of 2023, the 777X program resumed production, and as a result, there were no abnormal production costs during the six months ended June 30, 2024. 
 At June 30, 2024 and December 31, 2023, commercial aircraft programs inventory included the following amounts related to the 787 program: deferred production costs of $ 12,336 and $ 12,384 , $ 1,563 and $ 1,764 of supplier advances, and $ 1,441 and $ 1,480 of unamortized tooling and other non-recurring costs. At June 30, 2024, $ 11,618 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 $ 2,159 is expected to be recovered from units included in the program accounting quantity that represent expected future orders. We expensed abnormal production costs of $ 157 and $ 693 during the six months ended June 30, 2024 and 2023. 
 Commercial aircraft programs inventory included amounts credited in cash or other consideration (early issue sales consideration) to airline customers totaling $ 4,546 and $ 4,126 at June 30, 2024 and December 31, 2023. 
 
 Note 7 – Contracts with Customers 
 Unbilled receivables increased from $ 8,317 at December 31, 2023, to $ 9,660 at June 30, 2024, primarily driven by revenue recognized at BDS in excess of billings. 
 Advances and progress billings increased from $ 56,328 at December 31, 2023, to $ 58,151 at June 30, 2024, primarily driven by advances on orders received at Commercial Airplanes (BCA). 
 Revenues recognized during the six months ended June 30, 2024 and 2023, from amounts recorded as Advances and progress billings at the beginning of each year were $ 7,877 and $ 7,885 . Revenues recognized during the three months ended June 30, 2024 and 2023, from amounts recorded as Advances and progress billings at the beginning of each year were $ 3,696 and $ 4,004 . 
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 Note 8 – Financing Receivables and Operating Lease Equipment 
 Financing receivables and operating lease equipment, net consisted of the following: 
 
 June 30
2024 December 31
2023 
 Financing receivables: 
 Investment in sales-type leases $ 461 $ 556 
 Notes 89 102 
 Total financing receivables 
 550 658 
 Less allowance for losses on receivables 16 51 
 Financing receivables, net 534 607 
 Operating lease equipment, at cost, less accumulated depreciation of $ 70 and $ 70 
 311 352 
 
 Total $ 845 $ 959 

 Financing arrangements typically range in terms from 1 to 12 years and may include options to extend or terminate. Certain leases include provisions to allow the lessee to purchase the underlying aircraft at a specified price. At June 30, 2024 and December 31, 2023, $ 14 and $ 44 were determined to be uncollectible financing receivables and placed on non-accrual status. The allowance for losses on financing receivables decreased primarily due to cash collections during the six months ended June 30, 2024. 
 The components of investment in sales-type leases consisted of the following: 
 
 June 30
2024 December 31
2023 
 Gross lease payments receivable $ 585 $ 697 
 Unearned income ( 130 ) ( 162 ) 
 Net lease payments receivable 455 535 
 Unguaranteed residual assets 6 21 
 Total $ 461 $ 556 

 Financing interest income received for the six months ended June 30, 2024 and 2023, was $ 4 and $ 62 . Financing interest income received for the three months ended June 30, 2024 and 2023, was $ 2 and $ 58 . 
 Our financing receivable balances at June 30, 2024 by internal credit rating category and year of origination consisted of the following: 
 
 Rating categories Current 2023 2022 2021 2020 Prior Total 
 BBB $ 10 $ 70 $ 30 $ 190 $ 97 $ 50 $ 447 
 
 B 89 89 
 CCC 14 14 
 
 
 Total carrying value of financing receivables $ 10 $ 70 $ 30 $ 204 $ 97 $ 139 $ 550 

 At June 30, 2024, our allowance for losses related to receivables with ratings of CCC, B and BBB. We applied default rates that averaged 100.0 %, 0.0 % and 0.4 %, respectively, to the exposure associated with those receivables. 
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 Table of Cont ents 

 Financing Receivables Exposure 
 The majority of our financing receivables and operating lease equipment portfolio is concentrated in the following aircraft models: 
 
 June 30
2024 December 31
2023 
 717 Aircraft (Accounted for as sales type leases) 
 $ 447 $ 478 
 747-8 Aircraft (Accounted for as sales-type leases) 
 104 129 
 737 Aircraft ($ 112 and $ 148 accounted for as operating leases) 
 112 156 
 777 Aircraft (Accounted for as operating leases) 
 188 194 
 
 
 747-400 Aircraft (Accounted for as sales-type leases) 
 43 
 
 

 Operating lease equipment primarily includes large commercial jet aircraft. 
 Lease income recorded in Sales of services on the Condensed Consolidated Statements of Operations for the six months ended June 30, 2024 and 2023, included $ 21 and $ 29 of interest income from sales-type leases and $ 32 and $ 27 from operating lease payments. Lease income recorded in Sales of services on the Condensed Consolidated Statements of Operations for the three months ended June 30, 2024 and 2023, included $ 11 and $ 14 of interest income from sales-type leases and $ 14 and $ 16 from operating lease payments. 
 Variable lease payments for sales-type leases recognized in interest income for the six and three months ended June 30, 2024 and 2023, were insignificant. Variable lease payments on operating leases for the six and three months ended June 30, 2024 and 2023, were insignificant. 
 Profit at the commencement of sales-type leases was recorded in Sales of services for the six months ended June 30, 2024 and 2023, in the amount of $ 4 and $ 20 . Profit at commencement of sales-type leases was recorded in Sales of services for the three months ended June 30, 2024 and 2023, was $ 4 and $ 8 . 
 14 

 
 Table of Cont ents 

 Note 9 – Investments 
 Our investments, which are recorded in Short-term and other investments or Investments, consisted of the following: 
 
 June 30
2024 December 31
2023 
 Time deposits (1) 
 $ 1,208 $ 2,753 
 Equity method investments (2) 
 956 966 
 Available-for-sale debt investments (1) 
 515 499 
 Equity and other investments 53 69 
 
 Restricted cash & cash equivalents (1)(3) 
 21 22 
 Total $ 2,753 $ 4,309 

 (1) Primarily included in Short-term and other investments on our Condensed Consolidated Statements of Financial Position. 
 (2) Dividends received were $ 37 and $ 17 during the six and three months ended June 30, 2024 and $ 5 during the same periods in prior year. 
 (3) Reflects amounts restricted in support of our workers’ compensation programs and insurance premiums. 
 Contributions to investments and Proceeds from investments on our Condensed Consolidated Statements of Cash Flows primarily relate to time deposits and available-for-sale debt investments. Cash used for the purchase of time deposits during the six months ended June 30, 2024 and 2023, was $ 1,298 and $ 9,165 . Cash proceeds from the maturities of time deposits during the six months ended June 30, 2024 and 2023, were $ 2,845 and $ 5,274 . 
 Allowance for losses on available-for-sale debt investments are assessed quarterly. All instruments are considered investment grade, and we have not recognized an allowance for credit losses as of June 30, 2024. 
 
 Note 10 – Liabilities, Commitments and Contingencies 
 737 MAX Customer Concessions and Other Considerations 
 During the first quarter of 2024, we recorded an earnings charge of $ 443 , net of insurance recoveries, in connection with estimated considerations to customers for disruption related to the Alaska Airlines 737-9 accident and 737-9 grounding. This charge is reflected in the financial statements as a reduction to revenue. 
 The following table summarizes changes in the 737 MAX customer concessions and other considerations liability during the six months ended June 30, 2024 and 2023. 
 
 2024 2023 
 Beginning balance – January 1 $ 1,327 $ 1,864 
 
 Reductions for payments made ( 681 ) ( 273 ) 
 Reductions for concessions and other in-kind considerations ( 221 ) ( 51 ) 
 Changes in estimates 510 ( 26 ) 
 Ending balance – June 30 $ 935 $ 1,514 

 At June 30, 2024, $ 92 of the liability balance remains subject to negotiations with customers. The contracted amount includes $ 208 expected to be paid in cash in 2024, while the remaining amounts are primarily expected to be liquidated by lower customer delivery payments. 
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 Table of Cont ents 

 Environmental 
 The following table summarizes changes in environmental remediation liabilities during the six months ended June 30, 2024 and 2023. 
 
 2024 2023 
 Beginning balance – January 1 $ 844 $ 752 
 Reductions for payments made, net of recoveries ( 40 ) ( 24 ) 
 Changes in estimates 27 72 
 Ending balance – June 30 $ 831 $ 800 

 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 costs 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 June 30, 2024 and December 31, 2023, the high end of the estimated range of reasonably possible remediation costs exceeded our recorded liabilities by $ 964 and $ 1,030 . 
 Product Warranties 
 The following table summarizes changes in product warranty liabilities recorded during the six months ended June 30, 2024 and 2023. 
 
 2024 2023 
 Beginning balance – January 1 $ 2,448 $ 2,275 
 Additions for current year deliveries 42 92 
 Reductions for payments made ( 227 ) ( 179 ) 
 Changes in estimates ( 8 ) 338 
 Ending balance – June 30 $ 2,255 $ 2,526 

 Commercial Aircraft Trade-In Commitments 
 In conjunction with signing definitive agreements for the sale of new 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. 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 June 30, 2024, have expiration dates from 2024 through 2030. At June 30, 2024 and December 31, 2023, total contractual trade-in commitments were $ 1,375 and $ 1,415 . As of June 30, 2024 and December 31, 2023, we estimated it was probable we would be obligated to perform on certain of these commitments with net amounts payable to customers totaling $ 434 and $ 407 and the fair value of the related trade-in aircraft was $ 434 and $ 407 . 
 Financing Commitments 
 Financing commitments related to aircraft on order, including options and those proposed in sales campaigns, and refinancing of delivered aircraft, totaled $ 17,356 and $ 17,003 as of June 30, 2024 and 
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 Table of Cont ents 

 December 31, 2023. The estimated earliest potential funding dates for these commitments as of June 30, 2024 are as follows: 
 
 
 
 Total 
 July through December 2024 
 $ 1,508 
 2025 3,529 
 2026 4,027 
 2027 2,891 
 2028 1,643 
 Thereafter 3,758 
 Total 
 $ 17,356 

 As of June 30, 2024, $ 14,030 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. 
 Other Financial Commitments 
 We have financial commitments to make additional capital contributions totaling $ 262 to certain joint ventures over the next nine 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 and security agreements. Contingent liabilities on outstanding letters of credit agreements and surety bonds aggregated approximately $ 3,184 and $ 4,548 as of June 30, 2024 and December 31, 2023. 
 Supply Chain Financing Programs 
 The Company has supply chain financing programs in place under which participating suppliers may elect to obtain payment from an intermediary. The Company confirms the validity of invoices from participating suppliers and agrees to pay the intermediary an amount based on invoice totals. The majority of amounts payable under these programs are due within 30 to 90 days but may extend up to 12 months. At June 30, 2024 and December 31, 2023, Accounts payable included $ 2.7 billion and $ 2.9 billion payable to suppliers who have elected to participate in these programs. We do not believe that future changes in the availability of supply chain financing would have a significant impact on our liquidity. 
 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. 
 Fixed-Price Contracts 
 Long-term contracts that are contracted on a fixed-price basis could result in losses in future periods. Certain of the fixed-price contracts are for the development of new products, services and related technologies. This development work scope is inherently uncertain and subject to significant variability in estimates of the cost and time required to complete the work by us and our suppliers. The operational and technical complexities of fixed-price development contracts create financial risk, which could trigger 
 17 

 Table of Cont ents 

 additional earnings charges, termination provisions, order cancellations, or other financially significant exposure. 
 VC-25B Presidential Aircraft 
 The Company’s firm fixed-price contract for the Engineering and Manufacturing Development (EMD) effort on the U.S. Air Force’s (USAF) VC-25B Presidential Aircraft, commonly known as Air Force One, is a $ 4 billion program to develop and modify two 747-8 commercial aircraft. During 2023, we increased the reach-forward loss on the contract by $ 482 driven by engineering changes to support the build and installation process; the resolution of supplier negotiations; and factory performance related to labor instability. During the three months ended June 30, 2024, we increased the reach-forward loss on the contract by $ 250 primarily driven by higher than anticipated costs due to engineering design changes related to wiring and other structural requirements. Risk remains that we may record additional losses in future periods. 
 KC-46A Tanker 
 In 2011, we were awarded a contract from the USAF to design, develop, manufacture, and deliver four next generation aerial refueling tankers as well as priced options for 13 annual production lots totaling 179 aircraft. Since 2016, the USAF has authorized ten low rate initial production (LRIP) lots for a total of 139 aircraft. The EMD contract and authorized LRIP lots total approximately $ 27 billion as of June 30, 2024. The KC-46A Tanker is a derivative of the 767 commercial airplane program with the majority of the manufacturing costs being incurred in the 767 factory and the remaining costs being incurred in the military finishing and delivery centers. 
 During 2023, we increased the reach-forward loss on the KC-46A Tanker program by $ 309 primarily resulting from factory disruption and additional rework due to a supplier quality issue. During the first quarter of 2024, we increased the reach-forward loss by $ 128 , primarily due to factory disruption associated with supply chain constraints. During the three months ended June 30, 2024, we increased the reach-forward loss on the contract by $ 391 primarily reflecting higher than anticipated factory disruption, including supply chain constraints and parts shortages. As of June 30, 2024, we had approximately $ 139 of capitalized precontract costs and $ 205 of potential termination liabilities to suppliers related to future production lots. Risk remains that we may record additional losses in future periods. 
 MQ-25 
 In the third quarter of 2018, we were awarded the MQ-25 EMD contract by the U.S. Navy. The contract is a fixed-price contract that now includes development and delivery of seven aircraft and test articles at a contract price of $ 890 . In connection with winning the competition, we recognized a reach-forward loss of $ 291 in the third quarter of 2018. During 2023, we increased the reach-forward loss by $ 231 primarily driven by production and flight testing delays as well as higher than anticipated production costs to complete EMD aircraft attributable to factory performance. During the first quarter of 2024, we were awarded a cost-type contract modification totaling $ 657 for two additional test aircraft plus other scope increases. Risk remains that we may record additional losses in future periods. 
 T-7A Red Hawk EMD Contract & Production Options 
 In 2018, we were awarded the T-7A Red Hawk program. The EMD portion of the contract is a $ 860 fixed-price contract and includes five aircraft and seven simulators. The production portion of the contract includes 11 production lots for aircraft and related services for 346 T-7A Red Hawk aircraft that we believe are probable of being exercised. We expect the first production and support contract option to be exercised in 2025. 
 During 2023, we increased the reach-forward loss on the T-7A Red Hawk program by $ 275 primarily reflecting higher estimated production costs. During the first quarter of 2024, we increased the reach-forward loss on the T-7A Red Hawk program by $ 94 primarily reflecting further increases in estimated production costs. During the three months ended June 30, 2024, we increased the reach-forward loss on 
 18 

 Table of Cont ents 

 the program by $ 278 primarily driven by higher than anticipated costs to meet certain technical and support requirements, and flight test program inefficiencies and delays. At June 30, 2024, we had approximately $ 258 of capitalized precontract costs and $ 451 of potential termination liabilities to suppliers related to future production lots. Risk remains that we may record additional losses in future periods. 
 Commercial Crew 
 National Aeronautics and Space Administration (NASA) has contracted us to design and build the CST-100 Starliner spacecraft to transport crews to the International Space Station (ISS). In the second quarter of 2022, we successfully completed the uncrewed Orbital Flight Test. During 2023, we increased the reach-forward loss by $ 288 primarily as a result of delaying the Crewed Flight Test (CFT) following notification by a parachute supplier of an issue identified through testing. The CFT launched on June 5, 2024, and docked with the ISS. The Starliner spacecraft had a minimum mission duration of 8 days. Its return to Earth was delayed to allow time to perform further testing of propulsion system anomalies. As a result of the CFT delays, during the three months ended June 30, 2024, we increased the reach-forward loss on the program by $ 125 . At June 30, 2024, we had approximately $ 238 of capitalized precontract costs and $ 148 of potential termination liabilities to suppliers related to fixed-price unauthorized future missions. Risk remains that we may record additional losses in future periods. 
 
 Note 11 – 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. The carrying amount of liabilities represents the amount included in Accrued liabilities. 
 
 Maximum
Potential Payments Estimated Proceeds from
Collateral/Recourse Carrying Amount of
 Liabilities 
 June 30
2024 December 31
2023 June 30
2024 December 31
2023 June 30
2024 December 31
2023 
 Contingent repurchase commitments 
 $ 388 $ 404 $ 388 $ 404 
 
 
 
 
 
 Credit guarantees 
 15 15 $ 14 $ 14 
 

 Contingent Repurchase Commitments In conjunction with signing a definitive agreement for the sale of commercial aircraft, we have entered into contingent repurchase commitments with certain customers wherein we agree to repurchase the sold aircraft at a specified price, generally 10 to 15 years after delivery. Our repurchase of the aircraft is contingent upon entering into a mutually acceptable agreement for the sale of additional new aircraft in the future. 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. 
 If a future sale agreement is reached and a customer elects to exercise its right under a contingent repurchase commitment, the contingent repurchase commitment becomes a trade-in commitment. Our historical experience is that contingent repurchase commitments infrequently become trade-in commitments. 
 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. Current outstanding credit guarantees expire through 2036. 
 19 

 Table of Cont ents 

 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. 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 10. 
 
 Note 12 – Debt 
 On May 1, 2024, we issued $ 10,000 of fixed-rate senior notes consisting of $ 1,000 due May 1, 2027 that bear an annual interest rate of 6.259 %, $ 1,500 due May 1, 2029 that bear an annual interest rate of 6.298 %, $ 1,000 due May 1, 2031 that bear an annual interest rate of 6.388 %, $ 2,500 due May 1, 2034 that bear an annual interest rate of 6.528 %, $ 2,500 due May 1, 2054 that bear an annual interest rate of 6.858 %, and $ 1,500 due May 1, 2064 that bear an annual interest rate of 7.008 %. The notes are unsecured senior obligations and rank equally in right of payment with our existing and future unsecured and unsubordinated indebtedness. 
 On May 15, 2024, we entered into a $ 4,000 five-year revolving credit agreement expiring in May 2029. Effective May 15, 2024, we terminated the $ 800 364 -day revolving credit agreement expiring in August 2024, and the $ 3,200 five-year revolving credit agreement, as amended, expiring in October 2024. Our $ 3,000 three-year revolving credit agreement expiring in August 2025 and $ 3,000 five-year revolving credit agreement expiring in August 2028 each remain in effect. As of June 30, 2024, we had $ 10,000 available under credit line agreements. We continue to be in full compliance with all covenants contained in our debt and credit facility agreements. 
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 Table of Cont ents 

 Note 13 – Postretirement Plans 
 The components of net periodic benefit (income)/cost were as follows: 
 
 Six months ended June 30 Three months ended June 30 
 Pension Plans 2024 2023 2024 2023 
 Service cost $ 3 $ 2 $ 1 $ 1 
 Interest cost 1,318 1,410 659 $ 705 
 Expected return on plan assets ( 1,656 ) ( 1,720 ) ( 827 ) ( 859 ) 
 Amortization of prior service credits ( 41 ) ( 41 ) ( 21 ) ( 21 ) 
 Recognized net actuarial loss 134 83 67 41 
 
 Net periodic benefit income ($ 242 ) ($ 266 ) ($ 121 ) ($ 133 ) 
 
 Net periodic benefit cost included in Loss from operations $ 3 $ 2 $ 1 $ 1 
 Net periodic benefit income included in Other income, net ( 245 ) ( 268 ) ( 122 ) ($ 134 ) 
 Net periodic benefit income included in Loss before income taxes 
 ($ 242 ) ($ 266 ) ($ 121 ) ($ 133 ) 

 
 Six months ended June 30 Three months ended June 30 
 Other Postretirement Plans 2024 2023 2024 2023 
 Service cost 25 $ 24 $ 13 $ 12 
 Interest cost 62 74 31 37 
 Expected return on plan assets ( 6 ) ( 4 ) ( 4 ) ( 2 ) 
 Amortization of prior service credits ( 5 ) ( 11 ) ( 2 ) ( 5 ) 
 Recognized net actuarial gain ( 88 ) ( 88 ) ( 44 ) ( 44 ) 
 
 Net periodic benefit income ($ 12 ) ($ 5 ) ($ 6 ) ($ 2 ) 
 
 Net periodic benefit cost included in Loss from operations 23 $ 31 $ 12 $ 16 
 Net periodic benefit income included in Other income, net ( 37 ) ( 29 ) ( 19 ) ( 14 ) 
 Net periodic benefit (income)/cost included in Loss before income taxes 
 ($ 14 ) $ 2 ($ 7 ) $ 2 

 
 Note 14 – Share-Based Compensation and Other Compensation Arrangements 
 Restricted Stock Units 
 On February 20 and March 11, 2024, we granted 2,008,499 restricted stock units (RSU) to our executives and 125,432 RSUs to our executive officers as part of our long-term incentive program. The RSUs granted under this program have a grant date fair value of $ 204.15 and $ 192.94 per unit. 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 executive (or beneficiary) may receive some 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. 
 21 

 Table of Cont ents 

 Performance Restricted Stock Units 
 On March 11, 2024, we granted 153,306 performance restricted stock units (PRSU) to our executive officers as part of our long-term incentive program that will result in that number of PRSUs being paid out if the target performance metric is achieved. The PRSUs granted under this program have a grant date fair value of $ 192.94 per unit. The award payout can range from 0 % to 200 % of the initial PRSU grant based on cumulative free cash flow achievement over the period January 1, 2024 through December 31, 2026 as compared to the target set at the start of the performance period, as well as the achievement of certain safety goals. The PRSUs granted under this program will vest at the payout amount determined on the third anniversary of the grant date and settle in common stock (on a one-for-one basis). If an executive terminates employment because of retirement, layoff, disability, or death, the executive (or beneficiary) remains eligible under the award and, if the award is earned, may receive some or all of their stock units depending on certain age and service conditions. In all other cases, the PRSUs will not vest and all rights to the stock units will terminate. 
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 Table of Cont ents 

 Note 15 – Shareholders' Equity 
 Accumulated Other Comprehensive Loss 
 Changes in Accumulated other comprehensive loss (AOCI) by component for the six and three months ended June 30, 2024 and 2023, 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, 2023 ($ 167 ) ($ 24 ) ($ 9,359 ) ($ 9,550 ) 
 Other comprehensive income/(loss) before reclassifications 
 10 ( 25 ) ( 6 ) ( 21 ) 
 Amounts reclassified from AOCI 
 ( 2 ) ( 44 ) (2) 
 ( 46 ) 
 Net current period Other comprehensive income/(loss) 
 10 ( 27 ) ( 50 ) ( 67 ) 
 Balance at June 30, 2023 ($ 157 ) ($ 51 ) ($ 9,409 ) ($ 9,617 ) 
 
 Balance at January 1, 2024 ($ 134 ) $ 2 $ 12 ($ 10,185 ) ($ 10,305 ) 
 Other comprehensive loss before reclassifications 
 ( 24 ) ( 76 ) ( 13 ) ( 113 ) 
 Amounts reclassified from AOCI 
 26 (2) 
 26 
 Net current period Other comprehensive loss 
 ( 24 ) ( 50 ) ( 13 ) ( 87 ) 
 Balance at June 30, 2024 ($ 158 ) $ 2 ($ 38 ) ($ 10,198 ) ($ 10,392 ) 
 
 Balance at March 31, 2023 ($ 151 ) ($ 11 ) ($ 9,388 ) ($ 9,550 ) 
 Other comprehensive (loss)/income before reclassifications 
 ( 6 ) ( 43 ) 1 ( 48 ) 
 Amounts reclassified from AOCI 
 3 ( 22 ) (2) 
 ( 19 ) 
 Net current period Other comprehensive loss 
 ( 6 ) ( 40 ) ( 21 ) ( 67 ) 
 Balance at June 30, 2023 ($ 157 ) ($ 51 ) ($ 9,409 ) ($ 9,617 ) 
 
 Balance at March 31, 2024 ($ 169 ) $ 2 ($ 46 ) ($ 10,199 ) ($ 10,412 ) 
 Other comprehensive income/(loss) before reclassifications 
 11 ( 11 ) 1 1 
 Amounts reclassified from AOCI 
 19 (2) 
 19 
 Net current period Other comprehensive income 
 11 8 1 20 
 Balance at June 30, 2024 ($ 158 ) $ 2 ($ 38 ) ($ 10,198 ) ($ 10,392 ) 

 (1) Net of tax. 
 (2) Primarily relates to the amortization of prior service credits and actuarial losses/(gains) included in net periodic benefit cost for the six and three months ended June 30, 2024 totaling $ 0 and $ 0 (net of tax of $ 0 and $ 0 ), and ($ 44 ) and ($ 22 ) (net of tax of $ 13 and $ 7 ) for the same periods in prior year. 
 
 Note 16 – 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 expected sales and purchases 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 2028. 
 23 

 Table of Cont ents 

 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 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 Condensed Consolidated Statements of Financial Position were as follows: 
 
 Notional amounts (1) 
 Other assets Accrued liabilities 
 June 30
2024 December 31
2023 June 30
2024 December 31
2023 June 30
2024 December 31
2023 
 Derivatives designated as hedging instruments: 
 
 Foreign exchange contracts $ 4,524 $ 4,120 $ 48 $ 85 ($ 89 ) ($ 63 ) 
 
 Commodity contracts 449 514 74 83 ( 5 ) ( 8 ) 
 Derivatives not receiving hedge accounting treatment: 
 
 Foreign exchange contracts 253 254 3 1 ( 20 ) ( 32 ) 
 Commodity contracts 63 115 ( 2 ) 
 Total derivatives $ 5,289 $ 5,003 $ 125 $ 169 ($ 114 ) ($ 105 ) 
 Netting arrangements ( 47 ) ( 47 ) 47 47 
 Net recorded balance $ 78 $ 122 ($ 67 ) ($ 58 ) 

 (1) Notional amounts represent the gross contract/notional amount of the derivatives outstanding. 
 (Losses)/gains associated with our hedging transactions and forward points recognized in Other comprehensive (loss)/income are presented in the following table: 
 
 Six months ended June 30 Three months ended June 30 
 
 
 2024 2023 2024 2023 
 Recognized in Other comprehensive (loss)/income, net of taxes: 
 
 Foreign exchange contracts ($ 75 ) $ 11 ($ 18 ) $ 1 
 Commodity contracts ( 1 ) ( 36 ) 7 ( 44 ) 

 (Losses)/gains associated with our hedging transactions and forward points reclassified from AOCI to earnings are presented in the following table: 
 
 Six months ended June 30 Three months ended June 30 
 2024 2023 2024 2023 
 Foreign exchange contracts 
 
 Costs and expenses ($ 12 ) ( 6 ) ($ 5 ) ($ 4 ) 
 General and administrative expense ( 13 ) ( 23 ) ( 9 ) ( 12 ) 
 Commodity contracts 
 
 Costs and expenses ( 12 ) 27 ( 12 ) $ 10 
 General and administrative expense 3 5 $ 1 3 

 Gains/(losses) related to undesignated derivatives on foreign exchange and commodity cash flow hedging transactions recognized in Other income, net were insignificant for the six and three months ended June 30, 2024 and 2023. 
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 Table of Cont ents 

 Based on our portfolio of cash flow hedges, we expect to reclassify losses of $ 37 (pre-tax) out of AOCI into earnings during the next 12 months. 
 We have derivative instruments with credit-risk-related contingent features. If we default on our five-year credit facilities, our derivative counterparties could require settlement for foreign exchange and certain commodity contracts with original maturities of at least five years . The fair value of those contracts in a net liability position at June 30, 2024 was $ 11 . For other particular commodity contracts, our counterparties could require collateral posted in an amount determined by our credit ratings. At June 30, 2024, there was no collateral posted related to our derivatives. 
 
 Note 17 – 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. 
 
 
 
 June 30, 2024 December 31, 2023 
 Total Level 1 Level 2 Total Level 1 Level 2 
 Assets 
 Money market funds $ 2,101 $ 2,101 $ 1,514 $ 1,514 
 Available-for-sale debt investments: 
 
 Commercial paper 251 $ 251 291 $ 291 
 Corporate notes 247 247 183 183 
 U.S. and local government agencies 17 17 25 25 
 Other equity investments 57 57 44 44 
 Derivatives 78 78 122 122 
 Total assets $ 2,751 $ 2,158 $ 593 $ 2,179 $ 1,558 $ 621 
 Liabilities 
 Derivatives ($ 67 ) ($ 67 ) ($ 58 ) ($ 58 ) 
 Other ( 17 ) ( 17 ) 
 Total liabilities ($ 84 ) ($ 84 ) ($ 58 ) ($ 58 ) 

 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. 
 25 

 Table of Cont ents 

 Certain assets have been measured at fair value on a nonrecurring basis. The following table presents the nonrecurring losses recognized for the six months ended June 30 due to long-lived asset impairment and the fair value of the related assets as of the impairment date: 
 
 
 
 2024 2023 
 Fair Value Total
Losses Fair Value Total
Losses 
 Investments ($ 17 ) ($ 11 ) 
 Operating lease equipment 
 $ 15 ( 5 ) 
 Property, plant and equipment ( 9 ) 
 Other assets 
 ( 3 ) ( 1 ) 
 Total $ 15 ($ 34 ) ($ 12 ) 

 Level 3 Investments and Other assets were primarily valued using an income approach based on the discounted cash flows associated with the underlying assets. Level 2 Property, plant and equipment were valued based on a third-party valuation using a combination of income and market approaches and adjusted for as-is condition. These approaches considered estimates of net operating income, capitalization rates, and/or comparable property sales. Level 3 operating lease equipment is valued 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 period ended June 30, 2024, 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 
 Unobservable Input Range
Median or Average 
 Operating lease equipment 
 $ 15 Market approach Aircraft value publications $ 21 - $ 27 (1) 
 Median $ 23 
 
 Aircraft condition adjustments ($ 8 ) - $ 0 (2) 
 Net ($ 8 ) 
 

 (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 Condensed Consolidated Statements of Financial Position were as follows: 
 
 
 
 June 30, 2024 
 Carrying
Amount Total Fair
Value Level 1 Level 2 Level 3 
 Assets 
 Notes receivable, net $ 760 $ 778 $ 766 $ 12 
 Liabilities 
 Debt, excluding finance lease obligations ( 57,669 ) ( 53,642 ) ( 53,642 ) 

 
 December 31, 2023 
 Carrying
Amount Total Fair
Value Level 1 Level 2 Level 3 
 Assets 
 Notes receivable, net $ 257 $ 270 $ 270 
 Liabilities 
 Debt, excluding finance lease obligations ( 52,055 ) ( 51,039 ) ( 51,039 ) 

 The fair value of notes receivables classified as Level 2 is 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 notes receivables classified as Level 3 is based on our best estimate using available counterparty financial data. 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. 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 Condensed Consolidated Statements of Financial Position, approximate their fair value at June 30, 2024 and December 31, 2023. 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). 
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 Note 18 – 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 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 U.S. government regulations, a company, or one or more of its operating divisions or subdivisions, can also be suspended or debarred from government contracts, have certain of its production certificates suspended or revoked, or lose its export privileges, based on the results of investigations. We believe, based upon current information, that the outcome of any currently pending legal proceeding, claim, or government dispute, inquiry or investigation will not have a material effect on our financial position, results of operations or cash flows. With respect to the matters set forth below, we cannot reasonably estimate a range of loss in excess of recorded amounts, if any. 
 Multiple legal actions and inquiries were initiated 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. On January 7, 2021, we entered into a Deferred Prosecution Agreement (DPA) with the U.S. Department of Justice (the Department) relating to the Department’s investigation into us regarding the evaluation of the 737 MAX by the Federal Aviation Administration (the Investigation). Among other obligations, the DPA includes a three-year reporting period, which ended earlier this year. On May 14, 2024, the Department notified us of its determination that we did not fulfill our obligations under the DPA and that the Department would not move to dismiss the information. On July 24, 2024, we and the Department filed a plea agreement with the U.S. District Court for the Northern District of Texas (the Court) to resolve the Investigation. If approved by the Court, under the terms of the agreement, Boeing would agree to plead guilty to the charge that was the basis for the DPA; would pay an additional fine of $ 244 ; would commit to invest at least $ 455 in compliance, quality and safety programs over a three-year period; and would agree to the appointment of an independent compliance monitor for three years. We are actively engaging with the U.S. Department of Defense regarding potential impacts on our business with the U.S. government and are assessing other related risks. 
 Multiple legal actions were initiated as a result of the January 5, 2024 Alaska Airlines Flight 1282 accident. We are also subject to multiple governmental and regulatory investigations and inquiries relating to the Alaska Airlines Flight 1282 accident and our commercial airplanes business. We cannot reasonably estimate a range of loss, if any, not covered by available insurance that may result given the current status of pending lawsuits, investigations and inquiries related to the 737 program . 
 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, which we currently expect to be resolved in the third quarter of 2024. 
 
 Note 19 – Segment and Revenue Information 
 Our primary profitability measurement to review segment operating results is Loss from operations. We operate in three reportable segments: BCA, BDS, and BGS. All other activities fall within Unallocated items, eliminations and other. See page 7 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. 
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 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. 
 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. 
 BCA revenues by customer location consisted of the following: 
 
 (Dollars in millions) Six months ended June 30 Three months ended June 30 
 2024 2023 2024 2023 
 Revenue from contracts with customers: 
 Europe $ 1,547 $ 3,393 $ 777 $ 2,038 
 
 
 
 Asia 4,393 2,355 2,280 1,549 
 Middle East 1,174 1,466 406 750 
 Other non-U.S. 754 1,082 344 729 
 Total non-U.S. revenues 7,868 8,296 3,807 5,066 
 United States 3,158 7,175 2,173 3,740 
 Estimated potential concessions and other considerations to 737 MAX customers, net of insurance recoveries 
 ( 443 ) 26 26 
 Total revenues from contracts with customers 10,583 15,497 5,980 8,832 
 Intersegment revenues eliminated on consolidation 73 47 23 8 
 Total segment revenues $ 10,656 $ 15,544 $ 6,003 $ 8,840 
 
 Revenue recognized on fixed-price contracts 100 % 100 % 100 % 100 % 
 
 Revenue recognized at a point in time 99 % 99 % 99 % 99 % 

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 BDS revenues on contracts with customers, based on the customer's location, consisted of the following: 
 
 (Dollars in millions) Six months ended June 30 Three months ended June 30 
 2024 2023 2024 2023 
 Revenue from contracts with customers: 
 U.S. customers $ 9,963 $ 10,338 $ 4,519 $ 5,028 
 Non-U.S. customers (1) 
 3,008 2,368 1,502 1,139 
 Total segment revenue from contracts with customers $ 12,971 $ 12,706 $ 6,021 $ 6,167 
 
 Revenue recognized over time 99 % 99 % 99 % 99 % 
 
 Revenue recognized on fixed-price contracts 55 % 59 % 52 % 57 % 
 
 Revenue from the U.S. government (1) 
 90 % 90 % 89 % 90 % 

 (1) Includes revenues earned from foreign military sales through the U.S. government. 
 BGS revenues consisted of the following: 
 
 (Dollars in millions) Six months ended June 30 Three months ended June 30 
 2024 2023 2024 2023 
 Revenue from contracts with customers: 
 Commercial $ 5,900 $ 5,419 $ 2,900 $ 2,703 
 Government 3,829 3,874 1,895 1,948 
 Total revenues from contracts with customers 9,729 9,293 4,795 4,651 
 Intersegment revenues eliminated on consolidation 205 173 94 95 
 Total segment revenues $ 9,934 $ 9,466 $ 4,889 $ 4,746 
 
 Revenue recognized at a point in time 53 % 51 % 53 % 51 % 
 
 Revenue recognized on fixed-price contracts 87 % 87 % 87 % 87 % 
 
 Revenue from the U.S. government (1) 
 28 % 31 % 27 % 31 % 

 (1) Includes revenues earned from foreign military sales through the U.S. government. 
 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 June 30, 2024 was $ 515,874 . We expect approximately 24 % to be converted to revenue through 2025 and approximately 69 % through 2028, with the remainder thereafter. There is significant uncertainty regarding the timing of when backlog will convert into revenue. We may experience reductions to backlog and/or significant order cancellations due to production disruptions, and/or further delays to entry into service of the 777X, 737-7 and/or 737-10. 
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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 and eliminations of certain sales between segments. We generally allocate costs to business segments based on the U.S. Government Cost Accounting Standards (CAS). Components of Unallocated items, eliminations and other (expense)/income are shown in the following table. 
 
 Six months ended June 30 Three months ended June 30 
 2024 2023 2024 2023 
 Share-based plans $ 53 ($ 38 ) $ 43 $ 14 
 Deferred compensation ( 49 ) ( 96 ) ( 19 ) ( 42 ) 
 Amortization of previously capitalized interest ( 46 ) ( 47 ) ( 23 ) ( 24 ) 
 Research and development expense, net ( 188 ) ( 149 ) ( 99 ) ( 73 ) 
 
 
 Eliminations and other unallocated items ( 716 ) ( 466 ) ( 536 ) ( 211 ) 
 Unallocated items, eliminations and other 
 ($ 946 ) ($ 796 ) ($ 634 ) ($ 336 ) 
 

 Eliminations and other unallocated items for the six and three months ended June 30, 2024 includes an earnings charge of $ 244 that reflects a fine that would be paid if an agreement with the U.S. Department of Justice is approved by the federal district court. For additional discussion, see Note 18 to our Condensed Consolidated Financial Statements. 
 Pension and Other Postretirement Benefit Expense 
 Pension costs are allocated to BDS and BGS businesses supporting government customers using 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. Components of FAS/CAS service cost adjustment are shown in the following table: 
 
 Six months ended June 30 Three months ended June 30 
 2024 2023 2024 2023 
 Pension FAS/CAS service cost adjustment $ 460 $ 445 $ 230 $ 222 
 Postretirement FAS/CAS service cost adjustment 144 137 72 69 
 FAS/CAS service cost adjustment $ 604 $ 582 $ 302 $ 291 

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 Assets 
 Segment assets are summarized in the table below: 
 
 June 30
2024 December 31
2023 
 Commercial Airplanes $ 83,478 $ 77,047 
 Defense, Space & Security 16,239 14,921 
 Global Services 16,473 16,193 
 
 Unallocated items, eliminations and other 26,530 28,851 
 Total $ 142,720 $ 137,012 

 Assets included in Unallocated items, eliminations and other primarily consist of Cash and cash equivalents, Short-term and other investments, tax assets, capitalized interest and assets managed centrally on behalf of the three principal business segments and intercompany eliminations. 
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 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM 
 To the Board of Directors and Shareholders of 
 The Boeing Company 
 Arlington, Virginia 
 Results of Review of Interim Financial Information 
 We have reviewed the accompanying condensed consolidated statement of financial position of The Boeing Company and subsidiaries (the “Company”) as of June 30, 2024, the related condensed consolidated statements of operations, comprehensive income, and equity for the three-month and six-month periods ended June 30, 2024 and 2023, and of cash flows for the six-month periods ended June 30, 2024 and 2023, and the related notes (collectively referred to as the "condensed consolidated interim financial information"). Based on our reviews, we are not aware of any material modifications that should be made to the accompanying condensed consolidated interim financial information for it to be in conformity with accounting principles generally accepted in the United States of America. 
 We have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated statement of financial position of the Company as of December 31, 2023, and the related consolidated statements of operations, comprehensive income, equity, and cash flows for the year then ended (not presented herein); and in our report dated January 31, 2024, we expressed an unqualified opinion on those consolidated financial statements. In our opinion, the information set forth in the accompanying condensed consolidated statement of financial position as of December 31, 2023, is fairly stated, in all material respects, in relation to the consolidated statement of financial position from which it has been derived. 
 Basis for Review Results 
 This condensed consolidated interim financial information is the responsibility of the Company's management. 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 reviews in accordance with standards of the PCAOB. A review of interim financial information consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards of the PCAOB, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion. 
 
 
 
 
 /s/ Deloitte & Touche LLP 
 
 
 Chicago, Illinois 
 July 31, 2024 
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 FORWARD-LOOKING STATEMENTS 
 This report contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “may,” “should,” “expects,” “intends,” “projects,” “plans,” “believes,” “estimates,” “targets,” “anticipates” and other similar words or expressions, or the negative thereof, generally can be used to help identify these forward-looking statements. Examples of forward-looking statements include statements relating to our future financial condition and operating results, as well as any other statement that does not directly relate to any historical or current fact. 
 
 
 Forward-looking statements are based on expectations and assumptions that we believe to be reasonable when made, but that may not prove to be accurate. These statements are not guarantees and are subject to risks, uncertainties, and changes in circumstances that are difficult to predict. Many factors could cause actual results to differ materially and adversely from these forward-looking statements. Among these factors are risks related to: 
 
 
 (1) general conditions in the economy and our industry, including those due to regulatory changes; 
 
 (2) our reliance on our commercial airline customers; 
 
 (3) the overall health of our aircraft production system, production quality issues, commercial airplane production rates, our ability to successfully develop and certify new aircraft or new derivative aircraft, and the ability of our aircraft to meet stringent performance and reliability standards; 
 
 
 (4) our pending acquisition of Spirit AeroSystems Holdings, Inc. (Spirit), including the satisfaction of closing conditions in the expected timeframe or at all; 
 
 
 (5) changing budget and appropriation levels and acquisition priorities of the U.S. government, as well as significant delays in U.S. government appropriations; 
 
 
 (6) our dependence on our subcontractors and suppliers, as well as the availability of highly skilled labor and raw materials; 
 
 (7) work stoppages or other labor disruptions; 
 
 
 (8) competition within our markets; 
 
 (9) our non-U.S. operations and sales to non-U.S. customers; 
 
 (10) changes in accounting estimates; 
 
 (11) realizing the anticipated benefits of mergers, acquisitions, joint ventures/strategic alliances or divestitures, including anticipated synergies and quality improvements related to our pending acquisition of Spirit; 
 
 
 (12) our dependence on U.S. government contracts; 
 
 (13) our reliance on fixed-price contracts; 
 
 (14) our reliance on cost-type contracts; 
 
 (15) contracts that include in-orbit incentive payments; 
 
 (16) unauthorized access to our, our customers’ and/or our suppliers' information and systems; 
 
 
 

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 (17) potential business disruptions, including threats to physical security or our information technology systems, extreme weather (including effects of climate change) or other acts of nature, and pandemics or other public health crises; 
 
 (18) potential adverse developments in new or pending litigation and/or government inquiries or investigations; 
 
 (19) potential environmental liabilities; 
 
 (20) effects of climate change and legal, regulatory or market responses to such change; 
 
 
 (21) credit rating agency actions and changes in our ability to obtain debt financing on commercially reasonable terms, at competitive rates and in sufficient amounts; 
 
 
 (22) substantial pension and other postretirement benefit obligations; 
 
 (23) the adequacy of our insurance coverage; and 
 
 
 (24) customer and aircraft concentration in our customer financing portfolio. 
 
 
 Additional information concerning these and other factors can be found in our filings with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. 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. 
 
 

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Text extracted from the filing as submitted to EDGAR. Formatting, tables and exhibits are simplified for reading; the original document is authoritative for anything you rely on.
BOEING CO 10-Q

Item 1. Financial Statements
