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Item 8. Financial Statements and Supplementary Data

2025-02-03 compared with 2024-01-31 · 474 added, 321 removed, 1517 unchanged (34% of the section changed)

8 unchanged sentences

Note 1 - Summary of Significant Accounting Policies

Note 2 - Spirit Acquisition

Note 3 - Goodwill and Acquired Intangibles

19 unchanged sentences

Note 23 - Segment and Revenue Information

N ote 23 - Su bsequent Events

Reports of Independent Registered Public Accounting Firm

18 unchanged sentences

Loss before income taxes ( 12,210 ) ( 2,005 ) ( 5,022 )

Income tax (expense)/benefit ( 237 ) ( 31 ) 743

Income tax benefit/(expense) 381 ( 237 ) ( 31 )

Net loss ( 11,829 ) ( 2,242 ) ( 5,053 )

1 unchanged sentence

Net loss attributable to Boeing shareholders ( 11,817 ) ( 2,222 ) ( 4,935 )

Mandatory convertible preferred stock dividends accumulated during the period 58

Net loss attributable to Boeing common shareholders ($ 11,875 ) ($ 2,222 ) ($ 4,935 )

Basic loss per share ($ 18.36 ) ($ 3.67 ) ($ 8.30 )

10 unchanged sentences

Derivative instruments:

Unrealized gain/(loss) arising during period, net of tax of ($ 11 ), $ 12 and ($ 16 )

Reclassification adjustment for (gain)/loss included in net loss, net of tax of $ 1 , ($ 3 ) and $ 2

Unrealized (loss)/gain arising during period, net of tax of $ 0 , ($ 11 ) and $ 12

( 258 ) 41 ( 40 )

Total unrealized gain/(loss) on derivative instruments, net of tax

Reclassification adjustment for loss/(gain) included in net loss, net of tax of $ 0 , $ 1 and ($ 3 )

Total unrealized (loss)/gain on derivative instruments, net of tax

( 223 ) 36 ( 30 )

Defined benefit pension plans & other postretirement benefits:

1 unchanged sentence

( 225 ) ( 722 ) 1,533

Amortization of actuarial (gain)/loss included in net periodic pension cost, net of tax of $ 0 , ($ 11 ) and ($ 8 )

Amortization of actuarial loss/(gain) included in net periodic pension cost, net of tax of $ 0 , $ 0 and ($ 11 )

105 ( 2 ) 791

Settlement (gain)/loss included in net periodic cost, net of tax of $ 0 , $ 0 and ($ 2 )

Settlement gain included in net periodic cost, net of tax of $ 0 , $ 0 and $ 0

Amortization of prior service credits included in net periodic pension cost, net of tax of $ 0 , $ 1 and $ 2

( 92 ) ( 102 ) ( 114 )

Prior service credit arising during the period, net of tax of $ 0 , $ 0 and $ 0

Pension and postretirement (cost)/benefit related to our equity method investments, net of tax of $ 0 , $ 0 and ($ 2 )

Prior service credits arising during the period, net of tax of $ 0 , $ 0 and $ 0

( 140 ) ( 1 )

Pension and postretirement benefit/(cost) related to our equity method investments, net of tax of $ 0 , $ 0 and $ 0

Total defined benefit pension plans & other postretirement benefits, net of tax ( 343 ) ( 826 ) 2,202

1 unchanged sentence

( 610 ) ( 755 ) 2,109

Comprehensive (loss)/income, net of tax ( 2,997 ) ( 2,944 ) 1,184

Comprehensive loss related to noncontrolling interest ( 20 ) ( 118 ) ( 88 )

Comprehensive (loss)/income attributable to Boeing Shareholders, net of tax ($ 2,977 ) ($ 2,826 ) $ 1,272

Comprehensive loss

( 12,439 ) ( 2,997 ) ( 2,944 )

Comprehensive loss attributable to noncontrolling interest

( 12 ) ( 20 ) ( 118 )

Comprehensive loss attributable to Boeing Shareholders

($ 12,427 ) ($ 2,977 ) ($ 2,826 )

See Notes to the Consolidated Financial Statements on pages 60 - 119.

32 unchanged sentences

Shareholders’ equity:

Mandatory convertible preferred stock, 6.00 % Series A, par value $ 1.00 – 20,000,000 shares authorized;

5,750,000 shares issued;

aggregate liquidation preference $ 5,750

Common stock, par value $ 5.00 – 1,200,000,000 shares authorized;

15 unchanged sentences

Net loss ($ 11,829 ) ($ 2,242 ) ($ 5,053 )

Adjustments to reconcile net loss to net cash provided/(used) by operating activities:

Adjustments to reconcile net loss to net cash (used)/provided by operating activities:

Non-cash items –

4 unchanged sentences

Gain on dispositions, net ( 46 ) ( 2 ) ( 6 )

787 reach-forward loss 3,460

777X and 767 reach-forward losses 4,079

Other charges and credits, net 528 3 401

12 unchanged sentences

Other 202 119 307

Net cash provided/(used) by operating activities 5,960 3,512 ( 3,416 )

Net cash (used)/provided by operating activities ( 12,080 ) 5,960 3,512

Cash flows – investing activities:

2 unchanged sentences

Acquisitions, net of cash acquired ( 50 ) ( 70 )

Proceeds from dispositions 124

Contributions to investments ( 13,856 ) ( 16,448 ) ( 5,051 )

Proceeds from investments 4,743 15,739 10,619

Supplier notes receivable

( 694 ) ( 162 )

Repayments on supplier notes receivable

Purchase of distribution rights ( 88 )

Other ( 11 ) 4 ( 11 )

3 unchanged sentences

Debt repayments ( 8,673 ) ( 5,216 ) ( 1,310 )

Common stock issuance, net of issuance costs 18,200

Mandatory convertible preferred stock issuance, net of issuance costs 5,657

Stock options exercised 45 50

Employee taxes on certain share-based payment arrangements ( 83 ) ( 408 ) ( 40 )

Net cash used by financing activities ( 5,487 ) ( 1,266 ) ( 5,600 )

Other ( 53 ) 17

Net cash provided/(used) by financing activities 25,209 ( 5,487 ) ( 1,266 )

Effect of exchange rate changes on cash and cash equivalents ( 47 ) 30 ( 73 )

Net (decrease)/increase in cash & cash equivalents, including restricted ( 1,934 ) 6,543 269

Net increase/(decrease) in cash & cash equivalents, including restricted 1,109 ( 1,934 ) 6,543

Cash & cash equivalents, including restricted, at beginning of year 12,713 14,647 8,104

6 unchanged sentences

Boeing shareholders

(Dollars in millions, except per share data) Common

Stock Additional

Capital Treasury

Stock Retained

Earnings Accumulated

(Dollars in millions, except per share data) Mandatory convertible preferred stock

comprehensive

Interests Total

Balance at January 1, 2022 $ 5,061 $ 9,052 ($ 51,861 ) $ 34,408 ($ 11,659 ) $ 153 ($ 14,846 )

8 unchanged sentences

( 2,222 ) ( 20 ) ( 2,242 )

Other comprehensive income, net of tax of ($ 22 )

Other comprehensive loss, net of tax of $ 4

( 755 ) ( 755 )

Share-based compensation 690 690

3 unchanged sentences

Treasury shares issued for 401(k) contribution 627 888 1,515

Subsidiary shares purchased from noncontrolling interests ( 267 ) ( 267 )

Other changes in noncontrolling interests ( 10 ) ( 10 )

Balance at December 31, 2023 $ 5,061 $ 10,309 ($ 49,549 ) $ 27,251 ($ 10,305 ) $ 5 ($ 17,228 )

3 unchanged sentences

Share-based compensation 407 407

Treasury shares issued for stock options exercised, net

Mandatory convertible preferred stock issued, net of issuance costs 6 5,645 5,651

Common stock issued, net of issuance costs 2,253 15,928 18,181

Treasury shares issued for other share-based plans, net

1 unchanged sentence

Treasury shares issued for 401(k) contribution 495 1,106 1,601

Subsidiary shares purchased from noncontrolling interests

Cash dividends declared on Mandatory convertible preferred stock

( 72 ) ( 72 )

24 unchanged sentences

Loss before income taxes ( 12,210 ) ( 2,005 ) ( 5,022 )

Income tax (expense)/benefit ( 237 ) ( 31 ) 743

Income tax benefit/(expense) 381 ( 237 ) ( 31 )

Net loss ( 11,829 ) ( 2,242 ) ( 5,053 )

1 unchanged sentence

Net loss attributable to Boeing shareholders ( 11,817 ) ( 2,222 ) ( 4,935 )

Mandatory convertible preferred stock dividends accumulated during the period 58

Net loss attributable to Boeing common shareholders ($ 11,875 ) ($ 2,222 ) ($ 4,935 )

This information is an integral part of the Notes to the Consolidated Financial Statements.

9 unchanged sentences

All significant intercompany accounts and transactions have been eliminated.

As described in Note 22, we now operate in three reportable segments:

As described in Note 23, we operate in three reportable segments:

Commercial Airplanes (BCA), Defense, Space & Security (BDS), and Global Services (BGS).

As a result, prior period amounts have been reclassified to conform to current period presentation.

We added a new financial statement line item to the 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

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Products sales under long-term contracts primarily include fighter jets, rotorcraft, cybersecurity products, surveillance suites, advanced weapons, missile defense, military derivative aircraft, satellite systems and modification of commercial passenger aircraft to cargo freighters.

Sales of services under long-term contracts primarily include support and maintenance agreements associated with our commercial and defense products and space travel on Commercial Crew.

Sales of services under

long-term contracts primarily include support and maintenance agreements associated with our commercial and defense products and space travel on Commercial Crew.

For each long-term contract, we determine the transaction price based on the consideration expected to be received.

24 unchanged sentences

($ 9.83 ) ($ 5.43 ) ($ 8.88 )

Significant adjustments during the three years ended December 31, 2023 included losses on VC-25B, KC-46A Tanker, MQ-25, Commercial Crew and T-7A Red Hawk programs in addition to lower earnings on F-15 and satellites.

Due to the significance of judgment in the estimation process, changes in underlying assumptions/estimates, internal and supplier performance, inflationary trends, or other circumstances may adversely or positively affect financial performance in future periods.

Significant adjustments during the three years ended December 31, 2024 included losses on KC-46A Tanker, T-7A Red Hawk, Commercial Crew, VC-25B and MQ-25 programs.

Due to the significance of judgment in the estimation process, changes in underlying operational assumptions, inability to implement planned risk mitigation plans, failure to achieve productivity targets, supplier shortages, quality issues and/or pricing issues, inflationary trends, or other circumstances may adversely or positively affect financial performance in future periods.

Payments under long-term contracts may be received before or after revenue is recognized.

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Income is recognized over the life of the lease to approximate a level rate of return on the net investment.

For notes receivable, we record financing receivables net of any unamortized discounts and deferred incremental direct costs.

notes receivable, we record financing receivables net of any unamortized discounts and deferred incremental direct costs.

Interest income and amortization of any discounts are recorded ratably over the related term of the note.

15 unchanged sentences

When we determine that impairment is indicated for an asset, the amount of impairment expense recorded is the excess of the carrying value over the fair value of the asset.

Reinsurance revenue Our wholly-owned insurance subsidiary, Astro Ltd., participates in a reinsurance pool for workers’ compensation.

Reinsurance Our wholly-owned insurance subsidiary, Astro Ltd., participates in a reinsurance pool for workers’ compensation.

The member agreements and practices of the reinsurance pool minimize any participating members’ individual risk.

1 unchanged sentence

Reinsurance costs related to premiums and claims paid to the reinsurance pool were $ 123 , $ 181 and $ 134 during 2024, 2023 and 2022, respectively.

Revenues and costs are presented net in Cost of sales in the Consolidated Statements of Operations.

Revenues and costs are presented net in Cost of products and Cost of services in the Consolidated Statements of Operations.

Research and Development

1 unchanged sentence

Costs that are incurred pursuant to such contractual arrangements are recorded over the period that revenue is recognized, consistent with our long-term contract accounting policy.

We have certain research and development arrangements that meet the requirement for best efforts research and development accounting.

We have certain research and development arrangements with customers that meet the conditions for best efforts research and development accounting.

Accordingly, the amounts funded by the customer are recognized as an offset to our research and development expense rather than as contract revenues.

2 unchanged sentences

We provide various forms of share-based compensation to our employees.

For awards settled in shares, we measure compensation expense based on the grant-date fair value net of estimated

For awards settled in shares, we measure compensation expense based on the grant-date fair value net of estimated forfeitures.

For awards settled in cash, or that may be settled in cash, we measure compensation expense based on the fair value at each reporting date net of estimated forfeitures.

8 unchanged sentences

To the extent that our assessment of such tax positions changes, the change in estimate is recorded in the period in which the determination is made.

Tax-related interest and penalties are classified as a component of Income tax (expense)/benefit.

Tax-related interest and penalties are classified as a component of Income tax benefit/(expense).

We also assess the likelihood that we will be able to recover our deferred tax assets against future sources of taxable income and reduce the carrying amounts of deferred tax assets by recording a valuation allowance if, based on the available evidence, it is more likely than not that all or a portion of such assets will not be realized.

10 unchanged sentences

Postemployment Plans

We record a liability for postemployment benefits, such as severance or job training, when payment is probable, the amount is reasonably estimable, and the obligation relates to rights that have vested or accumulated.

We record a liability for postemployment benefits, such as severance or job training, when payment is probable and the amount is reasonably estimable.

Environmental Remediation

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If an airline customer does not perform and take delivery of the contracted aircraft, we believe that we would have the ability to recover amounts paid.

However, to the extent early issue sales consideration exceeds advances and is not considered to be otherwise recoverable, it would be written off in the current period.

However, to the extent early issue sales consideration exceeds advances and is not considered to be otherwise recoverable, it would be written off against revenue of the current period.

Precontract Costs

7 unchanged sentences

and new machinery and equipment, from 4 to 20 years.

The principal methods of depreciation are as follows:

buildings and land improvements, 150% declining balance;

and machinery and equipment, sum-of-the-years’ digits.

The principal method of depreciation for buildings and land improvements is 150% declining balance and for machinery and equipment is sum-of-the-years’ digits.

Capitalized internal use software is included in Other assets, net and amortized using the straight line method over 5 years.

4 unchanged sentences

If the carrying value is no longer recoverable based upon the undiscounted future cash flows of the asset, the amount of the impairment is the difference between the carrying amount and the fair value of the asset.

Leases We determine if an arrangement is, or contains, a lease under which we are the lessee at the inception date.

We determine if an arrangement is, or contains, a lease under which we are the lessee at the inception date.

Operating lease assets are included in Other assets, net, with the related liabilities included in Accrued liabilities and Other long-term liabilities.

1 unchanged sentence

Operating lease assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease.

Operating lease assets and liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term.

We use our estimated incremental borrowing rate in

determining the present value of lease payments.

Operating lease

assets and liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term.

We use our estimated incremental borrowing rate in determining the present value of lease payments.

Variable components of the lease payments such as fair market value adjustments, utilities and maintenance costs are expensed as incurred and not included in determining the present value.

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If the fair value is determined to be less than carrying value, the shortfall up to the carrying value of the goodwill represents the amount of goodwill impairment.

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.

Our Military Aircraft reporting unit within our BDS segment had goodwill of $ 1,295 and a negative carrying value at December 31, 2024.

Indefinite-lived intangibles consist of a brand and trade name and in-process research and development (IPR&D) acquired in business combinations.

10 unchanged sentences

We evaluate the potential impairment of finite-lived acquired intangible assets whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.

If the carrying

value is no longer recoverable based upon the undiscounted future cash flows of the asset, the amount of the impairment is the difference between the carrying amount and the fair value of the asset.

Time deposits are held-to-maturity investments that are carried at cost.

Available-for-sale debt investments include commercial paper, U.S.

government agency securities and corporate debt securities.

Available-for-sale debt investments include commercial paper, corporate notes and U.S.

government agency securities.

Available-for-sale debt investments are recorded at fair value, and unrealized gains and losses are recorded, net of tax, as a component of accumulated other comprehensive income.

13 unchanged sentences

All derivative instruments are recognized in the financial statements and measured at fair value regardless of the purpose or intent of holding them.

We use derivative instruments to principally manage a variety of market risks.

We principally use derivative instruments to manage a variety of market risks.

For our cash flow hedges, the derivative’s gain or loss is initially reported in comprehensive income and is subsequently reclassified into earnings in the same period(s) during which the hedged forecasted transaction affects earnings.

6 unchanged sentences

We establish allowances for credit losses on accounts receivable, unbilled receivables, financing receivables and certain other financial assets.

The adequacy of these allowances is assessed quarterly through consideration of factors such as customer credit ratings, bankruptcy filings, published or

estimated credit default rates, age of the receivable, expected loss rates and collateral exposures.

The adequacy of these allowances is assessed quarterly through consideration of factors such as customer credit ratings, bankruptcy filings, published or estimated credit default rates, age of the receivable, expected loss rates and collateral exposures.

Collateral exposure is the excess of the carrying value of a financial asset over the fair value of the related collateral.

4 unchanged sentences

Under certain circumstances, we apply judgment based on the attributes of the specific aircraft or equipment, usually when the features or use of the aircraft vary significantly from the more generic aircraft attributes covered by outside publications.

We have entered into agreements with certain customers that would entitle us to look beyond the specific collateral underlying the receivable for purposes of determining the collateral exposure.

Should the proceeds from the sale of the underlying collateral asset resulting from a default condition be insufficient to cover the carrying value of our receivable (creating a shortfall condition), these agreements would, for example, permit us to take the actions necessary to sell or retain certain other assets in which the customer has an equity interest and use the proceeds to cover the shortfall.

We have entered into agreements with certain customers and suppliers to whom we have provided financing that would entitle us to look beyond the specific collateral underlying the receivable for purposes of determining the collateral exposure.

Should the proceeds from the sale of the underlying collateral asset resulting from a default condition be insufficient to cover the carrying value of our receivable (creating a shortfall condition), these agreements would, for example, permit us to take the actions necessary to sell or retain certain other assets in which the customer or supplier has an equity interest and use the proceeds to cover the shortfall.

Commercial Aircraft Trade-in Commitments

14 unchanged sentences

The majority of our warranties are issued by our BCA segment.

Generally, aircraft sales are accompanied by a 3 to 4 -year standard

warranty for systems, accessories, equipment, parts, and software manufactured by us or manufactured to certain standards under our authorization.

These warranties are included in the programs’ estimate at completion.

Generally, aircraft sales are accompanied by a 3 to 4 -year standard warranty for systems, accessories, equipment, parts, and software manufactured by us or manufactured to certain standards under our authorization.

These warranties are included in the estimates to complete the related programs.

On occasion we have made commitments beyond the standard warranty obligation to correct fleet-wide major issues of a particular model, resulting in additional accrued warranty expense.

18 unchanged sentences

We also recognize a liability for the expected contingent loss at inception and adjust it each quarter.

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 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 selling certain of its other operations.

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 certain regulatory approvals.

On January 31, 2025, Spirit’s stockholders approved the Merger Agreement and the related transactions.

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).

If either party breaches or fails to perform any of its representations, warranties or covenants under the Merger Agreement such that the related conditions to the other party's obligation to consummate the Merger would not be satisfied, and such breach or failure is not curable by the Outside Date or, if curable by the Outside Date, has not been cured within 30 days following notice thereof, such other party may terminate 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.

During 2023 and 2024, Boeing reached agreements to provide Spirit up to $ 1,067 to support its liquidity, rate readiness, and 787 tooling and capital expenditures, of which $ 166 has yet to be drawn.

At December 31, 2024 and 2023, Other current assets included $ 539 and $ 0 and Other assets included $ 299 and $ 143 .

At December 31, 2024 and 2023, advance payments to Spirit of $ 165 and $ 223 were included in Inventories and are scheduled to be recovered as the related shipsets are received by Boeing from Spirit.

On January 22, 2025, Boeing and Spirit reached an agreement to reschedule repayment dates for $ 515 to 2026.

This includes changing repayment of $ 425 originally due in 2024 to 2026.

In the event that the

Merger Agreement is terminated in accordance with its terms, the then outstanding balances will become due and payable in full on April 1, 2026.

Note 3 – Goodwill and Acquired Intangibles

2 unchanged sentences

Balance at December 31, 2022 $ 1,316 $ 3,224 $ 3,432 $ 85 $ 8,057

Acquisitions 3 11 16 30

Goodwill adjustments 6 6

1 unchanged sentence

Acquisitions 9 9 18

Dispositions ( 17 ) ( 17 )

Goodwill adjustments ( 10 ) ( 10 )

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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 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 earnings per share were as follows:

Basic earnings per share is calculated by taking net earnings attributable to Boeing shareholders, less Mandatory convertible preferred stock dividends accumulated during the period and 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 Mandatory convertible preferred stock dividends accumulated during the period and 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 for share-based compensation awards and the if-converted method for mandatory convertible preferred shares.

The elements used in the computation of Basic and Diluted loss per share were as follows:

(In millions - except per share amounts)

1 unchanged sentence

Net loss attributable to Boeing shareholders ($ 11,817 ) ($ 2,222 ) ($ 4,935 )

Mandatory convertible preferred stock dividends accumulated during the period

earnings available to participating securities

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Years ended December 31, 2024 2023 2022

Performance awards 2.9

Performance-based restricted stock units 0.4

Performance restricted stock units

Restricted stock units 0.5 1.0

6 unchanged sentences

Total ($ 12,210 ) ($ 2,005 ) ($ 5,022 )

Income tax (expense)/benefit consisted of the following:

Income tax (benefit)/expense consisted of the following:

Years ended December 31, 2024 2023 2022

5 unchanged sentences

federal ( 71 ) 6 ( 62 )

5 ( 3 ) ( 12 )

state ( 234 ) 19 54

Total deferred ( 302 ) 30 ( 11 )

Total income tax expense/(benefit) $ 237 $ 31 ($ 743 )

Total income tax (benefit)/expense

($ 381 ) $ 237 $ 31

Net income tax payments/(refunds) were $ 187 , $ 204 and ($ 1,317 ) in 2024, 2023 and 2022, respectively.

5 unchanged sentences

Valuation allowance 3,145 ( 25.8 ) 1,150 ( 57.3 ) 1,199 ( 23.9 )

Federal audit settlement (1)

Research and development credits ( 409 ) 3.3 ( 472 ) 23.6 ( 204 ) 4.1

5 unchanged sentences

Other provision adjustments 47 ( 0.3 ) 49 ( 2.5 ) 116 ( 2.3 )

Income tax expense/(benefit) $ 237 ( 11.8 ) % $ 31 ( 0.6 ) % ($ 743 ) 14.7 %

Income tax (benefit)/expense

($ 381 ) 3.1 % $ 237 ( 11.8 ) % $ 31 ( 0.6 ) %

(1) In the second quarter of 2024, we recorded a tax benefit of $ 490 related to the settlement of the 2018-2020 federal tax audit, which excludes an associated $ 155 valuation expense that is recorded in the Valuation allowance line.

Significant components of our deferred tax assets/(liabilities) at December 31 were as follows:

Inventory and long-term contract methods of income recognition ($ 4,765 ) ($ 5,115 )

Research expenditures 2,873 1,464

Federal net operating loss, credit, interest and other carryovers (1)

Research expenditures 3,936 2,873

Fixed assets, intangibles and goodwill ( 1,526 ) ( 1,566 )

Pension benefits 1,178 1,146

Other employee benefits 1,162 1,095

State net operating loss, credit, interest and other carryovers (2)

Other employee benefits 1,049 1,162

Pension benefits 1,045 1,178

Accrued expenses and reserves 1,029 956

Other postretirement benefit obligations 587 590

737 MAX customer concessions and other considerations 310 425

Other 473 614

15 unchanged sentences

federal and state tax jurisdictions.

federal tax perspective, the Company generated tax net operating losses in 2021 and interest carryovers in 2021, 2022, and 2023 that can be carried forward indefinitely and federal research and development credits that can be carried forward 20 years.

federal tax perspective, the Company generated tax net operating losses in 2021 and 2024 and interest carryovers in 2021, 2022, 2023, and 2024 that can be carried forward indefinitely and federal research and development credits that can be carried forward 20 years.

Throughout 2023 and 2024, the Company was in a three-year cumulative pre-tax loss position.

For purposes of assessing the recoverability of deferred tax assets, the Company determined that it could not include future projected earnings in the analysis due to recent history of losses.

As of December 31, 2023 and 2022, the Company has recorded valuation allowances of $ 4,550 and $ 3,162 primarily for certain domestic deferred tax assets, and certain domestic net operating losses, tax

credit and interest carryforwards.

As of December 31, 2024 and 2023, the Company has recorded valuation allowances of $ 7,837 and $ 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.

During 2024, the Company increased the valuation allowance by $ 3,287 , primarily due to tax credits and other carryforwards generated in 2024 that cannot be realized in 2024.

This reflects a tax expense of $ 1,150 recorded in continuing operations, an increase of $ 31 related to the associated federal benefit of state impacts, a tax expense of $ 173 included in Other comprehensive income (OCI) primarily due to the net actuarial losses that resulted from the annual remeasurement of pension assets and liabilities, and an increase of $ 34 included in additional paid-in capital.

Until the Company generates sustained levels of profitability, additional valuation allowances may have to be recorded with corresponding adverse impacts on earnings and/or OCI.

The Tax Cuts and Jobs Act one-time repatriation tax and Global Intangible Low Tax Income liabilities effectively taxed the undistributed earnings previously deferred from U.S.

income taxes.

We have not provided for deferred income taxes on the undistributed earnings from certain non-U.S.

subsidiaries because such earnings are considered to be indefinitely reinvested.

If such earnings were to be distributed, any deferred income taxes would not be significant.

In 2024, we determined that earnings from our non-U.S.

subsidiaries are no longer considered to be indefinitely reinvested.

As of December 31, 2024 and 2023, the amounts accrued for the payment of income tax-related interest and penalties included in the Consolidated Statements of Financial Position were not significant.

9 unchanged sentences

As of December 31, 2024, 2023 and 2022, the total amount of unrecognized tax benefits include $ 651 , $ 1,088 and $ 878 , respectively, that would affect the effective tax rate, if recognized.

As of December 31, 2023, these amounts were primarily associated with the amount of research tax credits claimed and various other matters.

As of December 31, 2024, these amounts were primarily associated with the amount of research tax credits claimed.

Federal income tax audits have been settled for all years prior to 2021.

The Internal Revenue Service is currently auditing the 2018-2020 tax years.

The Internal Revenue Service is expected to begin the 2021-2023 federal tax audit in the third quarter of 2025.

We are also subject to examination in major state and international jurisdictions for the 2010-2023 tax years.

We believe appropriate provisions for all outstanding tax issues have been made for all jurisdictions and all open years.

Audit outcomes and the timing of audit settlements are subject to significant uncertainty.

It is reasonably possible that within the next 12 months, unrecognized tax benefits related to federal tax matters under audit may decrease by up to $ 620 based on current estimates.

The Organization for Economic Co-operation and Development has issued Pillar Two model rules introducing a new global minimum tax of 15% intended to be effective on January 1, 2024.

While the US has not yet adopted the Pillar Two rules, various other governments around the world are enacting legislation.

As currently designed, Pillar Two will ultimately apply to our worldwide operations.

Considering we do not have material operations in jurisdictions with tax rates lower than the Pillar Two minimum, these rules are not expected to materially increase our global tax costs.

There remains uncertainty as to the final Pillar Two model rules.

We will continue to monitor US and global legislative action related to Pillar Two for potential impacts.

The Organization for Economic Co-operation and Development has introduced Pillar Two model rules, which establish a new global minimum tax of 15%.

While it is unlikely that the United States will adopt these rules, certain other countries in which we operate have enacted Pillar Two legislation commencing in 2024.

Since we do not have significant operations in jurisdictions with tax rates below the 15% minimum, Pillar Two has not materially increased our global tax costs in 2024 and is not expected to be material in future periods.

We will continue to monitor both US and international legislative developments related to Pillar Two to assess for any potential impacts.

Note 6 – Accounts Receivable, net

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Total $ 87,550 $ 79,741

(1) Capitalized precontract costs at December 31, 2023 and 2022 includes amounts related to KC-46A Tanker, Commercial Crew, and T-7A Red Hawk Production Options.

(1) Capitalized precontract costs at December 31, 2024 and 2023, includes amounts related to Commercial Crew, T-7A Red Hawk Production Options, and KC-46A Tanker.

Commercial Aircraft Programs

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deferred production costs of $ 9,679 and $ 6,011 and unamortized tooling and other non-recurring costs of $ 909 and $ 792 .

At December 31, 2023, $ 6,767 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 $ 36 is expected to be recovered from units included in the program accounting quantity that represent expected future orders.

At December 31, 2024, $ 10,542 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 $ 46 are expected to be recovered from units included in the program accounting quantity that represent expected future orders.

At December 31, 2024 and 2023, commercial aircraft programs inventory included the following amounts related to the 777X program:

$ 4,638 and $ 4,059 of work in process, $ 1,792 and $ 1,330 of deferred production costs, and $ 4,063 and $ 3,774 of unamortized tooling and other non-recurring costs.

$ 3,476 and $ 4,638 of work in process (including deferred production costs of $ 0 and $ 1,792 ) and $ 4,122 and $ 4,063 of unamortized tooling and other non-recurring costs.

In April 2022, we decided to pause production of the 777X-9 during 2022 and 2023, which resulted in abnormal production costs of $ 513 and $ 325 during the years ended December 31, 2023 and 2022.

In the fourth quarter of 2023, the 777X program resumed production.

In the fourth quarter of 2023, the 777X program resumed production and, as a result,

there were no abnormal production costs during the year ended December 31, 2024.

During the year ended December 31, 2024, we determined that estimated costs to complete the 777X program plus the costs already included in 777X inventory exceed estimated revenues from the program.

The resulting reach-forward loss of $ 3,499 was recorded as a reduction of deferred production costs and other non-recurring costs.

The level of profitability on the 777X program will be subject to several factors.

These factors include aircraft certification requirements and timing, change incorporation on completed aircraft, production disruption due to labor instability and supply chain disruption, customer considerations, delivery timing and negotiations, further production rate adjustments for the 777X or other commercial aircraft programs, and contraction of the accounting quantity.

One or more of these factors could result in additional reach-forward losses in future periods.

At December 31, 2024 and 2023, commercial aircraft programs inventory included the following amounts related to the 787 program:

deferred production costs of $ 12,384 and $ 12,689 , $ 1,764 and $ 1,831 of supplier advances, and $ 1,480 and $ 1,722 of unamortized tooling and other non-recurring costs.

At December 31, 2023, $ 12,384 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 $ 1,480 is expected to be recovered from units included in the program accounting quantity that represent expected future orders.

We produced at abnormally low production rates resulting in abnormal production costs that were expensed as incurred from the third quarter of 2021 through the third quarter of 2023.

deferred production costs of $ 13,178 and $ 12,384 , supplier advances of $ 1,379 and $ 1,764 , and unamortized tooling and other non-recurring costs of $ 1,370 and $ 1,480 .

At December 31, 2024, $ 11,224 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 $ 3,324 are expected to be recovered from units included in the program accounting quantity that represent expected future orders.

We expensed abnormal production costs of $ 256 , $ 1,014 , and $ 1,240 during the years ended December 31, 2024, 2023 and 2022.

The remaining abnormal costs associated with rework are not expected to be significant.

Commercial aircraft programs inventory included amounts credited in cash or other consideration (early issue sales consideration) to airline customers totaling $ 5,837 and $ 4,126 at December 31, 2024 and 2023.

Note 9 – Contracts with Customers

Unbilled receivables decreased from $ 8,634 at December 31, 2022 to $ 8,317 at December 31, 2023, primarily driven by an increase in billings at BDS and BGS.

Unbilled receivables increased from $ 8,317 at December 31, 2023, to $ 8,363 at December 31, 2024, primarily driven by revenue recognized in excess of billings at BDS, partially offset by an increase in billings at BGS.

The following table summarizes our contract assets under long-term contracts that were unbillable or related to outstanding claims as of December 31:

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Unbilled receivables related to claims are items that we believe are earned, but are subject to uncertainty concerning their determination or ultimate realization.

Advances and progress billings increased from $ 53,081 at December 31, 2022 to $ 56,328 at December 31, 2023, primarily driven by advances on orders received at BCA, partially offset by revenue recognized at BDS.

Advances and progress billings increased from $ 56,328 at December 31, 2023, to $ 60,333 at December 31, 2024, primarily driven by progress billings at BDS and advances on orders received at BCA.

Revenues recognized for the years ended December 31, 2024 and 2023, from amounts recorded as Advances and progress billings at the beginning of each year were $ 14,516 and $ 15,298 .

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Investment in sales-type leases $ 203 $ 556

Notes 102 385

Total financing receivables 288 658

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Total $ 521 $ 959

Financing arrangements typically range in terms from 1 to 12 years and may include options to extend or terminate.

Our financing arrangements range in terms from 1 to 8 years, and include $ 196 of investment in sales-type leases, net of allowances, that will be repaid in one year or less.

Financing arrangements 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 December 31, 2024 and 2023, $ 7 and $ 44 were determined to be uncollectible financing receivables and placed on non-accrual status.

The allowance for losses on receivables remained largely unchanged during the year ended December 31, 2023.

The allowance for losses on financing receivables decreased primarily due to cash collections during the year ended December 31, 2024.

The components of investment in sales-type leases at December 31 were as follows:

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Total $ 203 $ 556

Financing interest income received for the years ended December 31, 2023 and 2022 was $ 108 and $ 13 .

Financing receivables that were past due as of December 31, 2023 totaled $ 9 .

Financing interest income recorded for the years ended December 31, 2024 and 2023, was $ 7 and $ 108 .

Financing receivables that were past due as of December 31, 2024 and 2023, totaled $ 0 and $ 9 .

Our financing receivable balances at December 31, 2024, by internal credit rating category and year of origination, consisted of the following:

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BBB $ 32 $ 28 $ 122 $ 5 $ 9 $ 196

BB $ 73 $ 32 $ 198 $ 103 $ 36 53 495

Total carrying value of financing receivables $ 32 $ 28 $ 129 $ 5 $ 94 $ 288

At December 31, 2023, our allowance for losses related to receivables with ratings of CCC, B, BB and BBB.

At December 31, 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 0.1 %, respectively, to the exposure associated with those receivables.

Financing Receivables Exposure

The majority of our financing receivables and operating lease equipment portfolio is concentrated in the following aircraft models at December 31:

717 Aircraft ($ 0 and $ 45 accounted for as operating leases)

717 Aircraft (Accounted for as sales-type leases)

737 Aircraft ($ 148 and $ 174 accounted for as operating leases)

777 Aircraft ($ 194 and $ 209 accounted for as operating leases)

MD-80 Aircraft (Accounted for as sales-type leases)

757 Aircraft (Accounted for as sales-type leases)

777 Aircraft (Accounted for as operating leases)

747-8 Aircraft (Primarily accounted for as notes)

737 Aircraft (Primarily accounted for as operating leases)

747-400 Aircraft (Accounted for as sales-type leases)

Operating lease equipment primarily includes large commercial jet aircraft.

Impairment charges related to operating lease assets were $ 0 , $ 7 , and $ 31 for the years ended December 31, 2023, 2022 and 2021.

Lease income recorded in Sales of services on the Consolidated Statements of Operations for the years ended December 31, 2023, 2022 and 2021 included $ 55 , $ 69 , and $ 54 of interest income from

sales-type leases, and $ 60 , $ 65 , and $ 68 from operating lease payments.

Profit at the commencement of sales-type leases was recorded in Sales of services for the years ended December 31, 2023, 2022 and 2021 in the amount of $ 32 , $ 28 , and $ 78 .

Impairment charges related to operating lease assets were $ 5 , $ 0 , and $ 7 for the years ended December 31, 2024, 2023 and 2022, respectively.

Lease income recorded in Sales of services on the Consolidated Statements of Operations for the years ended December 31, 2024, 2023 and 2022, included $ 45 , $ 55 , and $ 69 of interest income from sales-type leases and $ 56 , $ 60 , and $ 65 from operating lease payments, respectively.

Variable lease payments for sales-type leases recognized in interest income for the years ended December 31, 2024, 2023 and 2022, were insignificant.

Profit at the commencement of sales-type leases was recorded in Sales of services for the years ended December 31, 2024, 2023 and 2022 in the amount of $ 9 , $ 32 , and $ 28 , respectively.

As of December 31, 2024, undiscounted cash flows for notes receivable, sales-type and operating leases over the next five years and thereafter are as follows:

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Year 4 12 14 32

Year 5 12 137 45

Thereafter 30

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Less imputed interest ( 26 )

Estimated unguaranteed residual values 21

Total $ 85 $ 203 $ 165

At December 31, 2023 and December 31, 2022, unguaranteed residual values were $ 21 and $ 86 .

At December 31, 2024 and 2023, unguaranteed residual values were $ 0 and $ 21 .

Note 11 – Property, Plant and Equipment

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Depreciation expense was $ 1,349 , $ 1,328 and $ 1,396 for 2024, 2023 and 2022, respectively.

Interest capitalized in 2023, 2022 and 2021 totaled $ 101 , $ 89 and $ 76 , respectively.

During 2024 and 2023, we acquired $ 76 and $ 124 of property, plant and equipment through non-cash investing and financing transactions.

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Total $ 13,480 $ 4,309

(1) Included in Short-term and other investments on our Consolidated Statements of Financial Position.

(1) Primarily included in Short-term and other investments on our Consolidated Statements of Financial Position.

(2) Dividends received were $ 55 and $ 31 during 2024 and 2023.

Retained earnings at December 31, 2023 include undistributed earnings from our equity method investments of $ 110 .

(3) Reflects amounts restricted in support of our property sales, workers’ compensation programs and insurance premiums.

Retained earnings at December 31, 2024 and 2023 include undistributed earnings from our equity method investments of $ 141 and $ 110 .

(3) Reflects amounts restricted in support of our workers’ compensation programs and insurance premiums.

Contributions to investments and Proceeds from investments on our Consolidated Statements of Cash Flows primarily relate to time deposits and available-for-sale debt investments.

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All instruments are considered investment grade, and we have not recognized an allowance for credit losses as of December 31, 2024.

Fair value of available-for-sale debt securities approximates amortized cost.

Equity Method Investments

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Our operating lease assets primarily represent manufacturing and research and development facilities, warehouses and offices.

Total operating lease expense was $ 457 and $ 421 for the years ended December 31, 2023 and 2022, of which $ 76 and $ 75 was attributable to variable lease expenses.

For the years ended December 31, 2023 and 2022, cash payments against operating lease liabilities totaled $ 323 and $ 294 and non-cash transactions totaled $ 488 and $ 245 to recognize operating assets and liabilities for new leases.

Supplemental Consolidated Statement of Financial Position information related to leases consisted of the following at December 31:

Total operating lease expense was $ 530 , $ 457 and $ 421 for the years ended December 31, 2024, 2023 and 2022, of which $ 75 , $ 76 and $ 75 was attributable to variable lease expenses, respectively.

For the years ended December 31, 2024, 2023 and 2022, cash payments against operating lease liabilities totaled $ 408 , $ 323 and $ 294 , and non-cash transactions totaled $ 490 , $ 488 and $ 245 to recognize operating assets and liabilities for new leases and modifications.

Supplemental information related to leases included in the Consolidated Statements of Financial Position at December 31 is as follows:

Operating leases:

Operating lease right-of-use assets $ 1,984 $ 1,690

Operating lease liabilities:

Current portion of lease liabilities 324 296

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Operating lease assets are included in Other assets, net, with the related liabilities included in Accrued liabilities and Other long-term liabilities.

Maturities of operating lease liabilities for the next five years are as follows:

Scheduled payments for operating lease liabilities are as follows:

Operating leases

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Total $ 2,094

As of December 31, 2023, we have entered into leases that have not yet commenced of $ 430 , primarily for a maintenance, repair and overhaul hangar that will support military aircraft programs.

As of December 31, 2024, we have entered into leases that have not yet commenced of $ 15 for offices.

These leases will commence in 2025 with lease terms of 3 years to 10 years.

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Accrued liabilities at December 31 consisted of the following:

Forward loss recognition $ 7,634 $ 4,699

Accrued compensation and employee benefit costs 6,110 6,721

737 MAX customer concessions and other considerations

Other customer concessions and considerations 1,300 1,102

Environmental 844 752

Product warranties 2,133 2,448

Forward loss recognition 4,699 4,060

Environmental 834 844

Accrued interest payable 796 652

Current portion of lease liabilities 296 276

737 MAX customer concessions and other considerations

Other customer concessions and considerations 1,552 1,300

Current portion of retiree healthcare and pension liabilities 452 473

Current portion of lease liabilities 324 296

Other 3,627 3,571

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737 MAX Customer Concessions and Other Considerations

During 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 Sales of products.

The following table summarizes changes in the 737 MAX customer concessions and other considerations liability during 2024 and 2023.

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Ending balance – December 31 $ 641 $ 1,327

At December 31, 2023, $ 0.1 billion of the liability balance remains subject to negotiations with customers.

We expect to pay $ 0.6 billion in 2024 while the remaining amounts are expected to be liquidated by lower customer delivery payments.

At December 31, 2024, $ 92 of the liability balance remains subject to negotiations with customers.

The contracted amount includes $ 124 expected to be paid in cash primarily in 2025, while the remaining amounts are primarily expected to be liquidated by lower customer delivery payments.

Environmental

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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.

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.

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Thereafter 1,956

As of December 31, 2023, all of these financing commitments relate to customers we believe have less than investment-grade credit.

As of December 31, 2024, $ 13,798 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 $ 264 related to certain joint ventures over the next nine years .

We have financial commitments to make additional capital contributions totaling $ 261 related to certain joint ventures over the next eight years .

Standby Letters of Credit and Surety Bonds

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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 December 31, 2023 and 2022, Accounts payable included $ 2.9 billion and $ 2.5 billion payable to suppliers who have elected to participate in these programs.

The majority of amounts payable under these programs are due within 30 to 90 days but may extend up to

The following table summarizes changes in Accounts payable to suppliers participating in supply chain financing programs:

Beginning balance – January 1 $ 2,871

Additions 12,476

Reductions for payments made ( 12,644 )

Ending balance – December 31 $ 2,703

We do not believe that future changes in the availability of supply chain financing would have a significant impact on our liquidity.

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We are eligible to claim tax refunds from the State of Missouri and City of Irving, Texas primarily related to job creation and retention through 2031.

During 2023 and 2022, we received $ 22 and $ 30 in cash and recorded a benefit of $ 28 and $ 21 in cost of sales.

During 2024, 2023, and 2022, we received $ 26 , $ 22 , and $ 30 in cash and recorded a benefit of $ 30 , $ 28 , and $ 21 in cost of sales, respectively.

At December 31, 2024 and 2023, Other current assets includes receivables of $ 30 and $ 26 .

As of December 31, 2024, $ 63 of refunds, plus interest, is subject to clawback if we fail to meet certain conditions, including employment levels.

We are eligible to claim cash grants through 2032 of up to $ 62 , related to operations in Queensland, Australia.

During 2023 and 2022, $ 5 and $ 7 cash was received and recorded as a benefit in cost of sales.

At December 31, 2023, $ 4 is subject to clawback if we fail to meet certain conditions, including employment levels.

We are eligible to claim cash grants through 2032 related to operations in Queensland, Australia.

During 2023 and 2022, we received cash of $ 5 and $ 7 , which was recorded as a benefit in cost of sales.

During 2024, we received cash of $ 40 to apply against future eligible expenses, which was recorded in Other long-term liabilities and is subject to clawback if we fail to meet certain conditions, including employment levels.

Industrial Revenue Bonds (IRB) issued by St.

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Charles sites.

Tax benefits associated with IRBs include twelve-year property tax abatements and sales tax exemptions from St.

Louis County and a 22 year property tax abatement and sales tax exemption from the city of St.

Tax benefits associated with IRBs include Missouri sales tax exemptions as well as 12-year property tax abatements from St.

Louis County and a 22-year property tax abatement from the city of St.

We record these properties on our Consolidated Statements of Financial Position.

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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.

In addition, we are making

certain capital expenditures in anticipation of future contract awards that have risk for impairment if we are not selected.

Total capital investment was approximately $ 500 at December 31, 2024.

Fixed-Price Contracts

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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 additional earnings charges, termination provisions, order cancellations, or other financially significant exposure.

Estimating the cost and time for us and our suppliers to complete these contracts is inherently uncertain due to operational and technical complexities.

This uncertainty requires us to make significant judgments and assumptions about future operational and technical performance, and the outcome of customer and/or supplier contractual negotiations.

The risk that actual performance, technical or contractual outcomes could be different than those previously assumed creates financial risk that could trigger additional material earnings charges, termination provisions, order cancellations, or other financially significant exposure.

VC-25B Presidential Aircraft

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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 2022, we increased

the reach-forward loss on the contract by $ 1,452 .

This year we made progress completing engineering and production requirements.

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.

While we have provisioned for all of our anticipated costs to complete the contract, risk remains that we may record additional losses in future periods.

During 2024 and 2023, we increased the reach-forward loss on the contract by $ 379 and $ 482 .

During the second quarter of 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.

During the fourth quarter of 2024, we increased the reach-forward loss by $ 129 reflecting higher estimated costs due to engineering design changes and schedule delays.

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, including lots 9 and 10 that were authorized in 2023.

Since 2016, the USAF has authorized 11 low rate initial production (LRIP) lots for a total of 154 aircraft.

The EMD contract and authorized LRIP lots total approximately $ 29 billion as of December 31, 2024.

During 2022, we increased the reach-forward loss on the KC-46A Tanker program by $ 1,374 .

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.

As of December 31, 2023, we had approximately $ 125 of capitalized precontract costs and $ 48 of potential termination liabilities to suppliers related to unexercised future lots.

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 2024 and 2023, we increased the reach-forward loss on the KC-46A Tanker program by $ 2,002 and $ 309 .

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 second quarter of 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.

During the third quarter of 2024, we increased the reach-forward loss on the contract by $ 661 to reflect higher than anticipated factory disruption, higher estimated supplier costs, the projected impacts of the International Association of Machinists and Aerospace Workers District 751 (IAM 751) contract negotiations and the ongoing work stoppage, and increased cost allocations primarily resulting from lower commercial airplane production rates.

During the fourth quarter of 2024, we recorded an earnings charge of $ 822 , primarily due to factory performance, higher estimated future production costs, and higher costs resulting from the IAM 751 work stoppage and new agreement.

The fourth quarter charge also includes increased cost allocations from the decision to end production of the 767 freighter program and higher supplier costs.

As of December 31, 2024, we had approximately $ 85 of capitalized precontract costs and $ 132

of potential termination liabilities to suppliers related to future production lots.

Risk remains that we may record additional losses in future periods.

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In connection with winning the competition, we recognized a reach-forward loss of $ 291 in the third quarter of 2018.

During 2022, we increased the MQ-25 reach-forward loss by $ 579 .

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 recent factory performance.

During 2023, we increased the reach-forward loss by $ 231 .

In the first quarter of 2024, we were awarded a cost-type contract modification totaling $ 657 for two additional test aircraft plus other scope increases.

During 2024, we increased the reach-forward loss by $ 339 .

During the third quarter of 2024, we increased the reach-forward loss by $ 217 primarily reflecting higher than anticipated production costs to complete EMD aircraft.

During the fourth quarter of 2024, we increased the reach-forward loss by $ 122 , primarily reflecting costs associated with ongoing design and software development challenges.

The initial EMD units are currently progressing through the factory and the increase reflects recent and projected factory performance as well as the higher than anticipated complexity of the production build.

We expect the initial units to complete production in 2025 and begin flight testing.

We will be initiating final assembly operations at our new facility at Mid-America St.

Louis Airport in Mascoutah, Illinois, in 2025.

Risk remains that we may record additional losses in future periods.

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The EMD portion of the contract is a $ 860 fixed-price contract and includes five aircraft and seven simulators.

During the year ended December 31, 2022, we recorded earnings charges of $ 203 related to the T-7A Red Hawk fixed-price EMD contract, which had a reach-forward loss at December 31, 2022.

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 2022, we increased the reach-forward loss by $ 552 .

During 2023, we increased the reach-forward loss by $ 275 primarily reflecting higher estimated production costs.

At December 31, 2023, we had approximately $ 185 of capitalized precontract costs and $ 249 of potential termination liabilities to suppliers related to future production lots.

The production portion of the contract includes production lots for 346 T-7A Red Hawk aircraft and related services that we believe are probable of being exercised.

The five EMD aircraft have been delivered as of December 31, 2024, and the flight testing is ongoing.

During 2024 and 2023, we increased the reach-forward loss on the T-7A Red Hawk program by $ 1,770 and $ 275 .

The increase in 2024 primarily reflects higher estimated supplier costs related to future production lots.

During the first quarter of 2024, we increased the reach-forward loss by $ 94 primarily reflecting increases in production costs.

During the second quarter of 2024, we increased the reach-forward loss on the program by $ 278 primarily driven by higher than anticipated costs to meet certain technical and support requirements.

During the third quarter of 2024, we increased the loss on the program by $ 908 primarily to reflect higher estimated supplier costs related to future production lots.

The higher estimated supplier costs were based on our updated assessment that previously assumed cost estimates are not projected to be realized in the current environment based on ongoing contracting activity and discussions with suppliers.

The revised estimates include priced options or not-to-exceed pricing for contractually committed suppliers and escalated current prices for uncontracted work.

We also provisioned for a supplier not fulfilling their contractual requirements, and for certain equipment no longer assumed to be customer-furnished for certain production lots.

During the fourth quarter of 2024, we further increased the reach-forward loss by $ 490 primarily reflecting increased supplier pricing based on new pricing proposals and supplier negotiations.

The fourth quarter charge also includes higher costs to complete the flight test program to achieve final certification.

At December 31, 2024, we had approximately $ 315 of capitalized precontract costs and $ 632 of potential termination liabilities to suppliers related to certain long-lead items for the first 4 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 and in the second quarter of 2022 we successfully completed the uncrewed Orbital Flight Test.

During 2022, we increased the reach-forward loss by $ 288 .

During 2023, we also increased the reach-forward loss by $ 288 primarily as a result of delaying the crewed flight test previously scheduled for July 2023 following

notification by a parachute supplier of an issue identified through testing.

A crewed flight test is now planned for April 2024.

The National Aeronautics and Space Administration has contracted us to design and build the CST-100 Starliner spacecraft to transport crews to the International Space Station (ISS) and 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 and returned to Earth uncrewed in September 2024.

During 2024, we increased the reach-forward loss by $ 523 primarily to reflect schedule delays and higher testing and certification costs as well as higher costs for post certification missions.

At December 31, 2024, we had approximately $ 398 of capitalized precontract costs and $ 150 of potential termination liabilities to suppliers related to unauthorized future missions.

Risk remains that we may record additional losses in future periods.

During the fourth quarter of 2024, we announced plans to reduce our overall workforce.

As a result, we recorded $ 295 of severance benefits payable to employees expected to leave the Company through involuntary terminations by the first half of 2025.

The severance packages are consistent with our ongoing compensation and benefits plans.

The remaining liability at December 31, 2024, was $ 287 .

Note 15 – Arrangements with Off-Balance Sheet Risk

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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.

Generally, these guarantees have been extended on behalf of guaranteed

parties with less than investment-grade credit.

Current outstanding credit guarantees expire through 2036.

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Note 16 – Debt

In the third quarter of 2023, we entered into a $ 3,000 five-year revolving credit agreement expiring in August 2028 and a $ 800 364 -day revolving credit agreement expiring in August 2024.

The 364 -day credit facility has a one-year term out option which allows us to extend the maturity of any borrowings until August 2025.

The legacy three-year revolving credit agreement expiring in August 2025, which consists of $ 3,000 of total commitments, and the legacy five-year revolving credit agreement expiring in October 2024, as amended, which consists of $ 3,200 of total commitments, each remain in effect.

As of December 31, 2023, we had $ 10,000 currently available under credit line agreements.

We continue to be in full compliance with all covenants contained in our debt or credit facility agreements.

In the second quarter of 2024, we issued $ 10.0 billion of fixed-rate senior notes consisting of $ 1.0 billion due May 2027 that bear an annual interest rate of 6.259 %, $ 1.5 billion due May 2029 that bear an annual interest rate of 6.298 %, $ 1.0 billion due May 2031 that bear an annual interest rate of 6.388 %, $ 2.5 billion due May 2034 that bear an annual interest rate of 6.528 %, $ 2.5 billion due May 2054 that bear an annual interest rate of 6.858 %, and $ 1.5 billion due May 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.

The net proceeds of the issuance totaled $ 9.9 billion, after deducting underwriting discounts, commissions, and offering expenses.

In the second quarter of 2024, we entered into a $ 4.0 billion five-year revolving credit agreement expiring in May 2029.

Effective as of the second quarter of 2024, we terminated the $ 0.8 billion 364 -day revolving credit agreement expiring in August 2024, and the $ 3.2 billion five-year revolving credit agreement, as amended, expiring in October 2024.

Our $ 3.0 billion three-year revolving credit agreement expiring in August 2025 and $ 3.0 billion five-year revolving credit agreement expiring in August 2028 each remain in effect.

As of December 31, 2024, we had $ 10.0 billion available under credit line agreements.

We continue to be in full compliance with all covenants contained in our debt and credit facility agreements.

Interest incurred, including amounts capitalized, was $ 2,874 , $ 2,560 and $ 2,650 for the years ended December 31, 2024, 2023 and 2022, respectively.

Total Company interest payments, net of amounts capitalized, were $ 2,440 , $ 2,408 and $ 2,572 for the years ended December 31, 2024, 2023 and 2022, respectively.

Interest capitalized was $ 149 , $ 101 , and $ 89 for the years ended December 31, 2024, 2023 and 2022, respectively.

Short-term debt and current portion of long-term debt at December 31 consisted of the following:

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3.95 % - 5.15 % due through 2059

11,024 14,035

5.71 % - 6.63 % due through 2060

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Total debt $ 53,864 $ 52,307

Scheduled principal payments for debt and minimum finance lease obligations for the next five years are as follows:

Scheduled principal payments for debt for the next five years are as follows:

2025 2026 2027 2028 2029

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$ 1,173 $ 8,022 $ 4,364 $ 1,800 $ 2,500

Minimum finance lease obligations $ 84 $ 76 $ 55 $ 24 $ 3

Scheduled payments for finance lease obligations are as follows:

Finance lease obligations

Total finance lease payments

Less imputed interest

Note 17 – Postretirement Plans

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Recognized net actuarial loss/(gain) 281 173 913 ( 176 ) ( 175 ) ( 111 )

Settlement/curtailment (gain)/loss ( 4 ) 193

Settlement/curtailment gain ( 4 )

Net periodic benefit (income)/cost ($ 471 ) ($ 527 ) ($ 878 ) ($ 22 ) ($ 9 ) $ 14

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Interest cost 2,635 2,820 124 148

Actuarial loss/(gain) 1,217 ( 17,605 ) ( 152 ) ( 914 )

Amendments 140

Actuarial (gain)/loss ( 2,493 ) 1,217 156 ( 152 )

Gross benefits paid ( 4,173 ) ( 4,837 ) ( 336 ) ( 375 )

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Actual return on plan assets 738 3,756 22 23

Company contribution 2

Plan participants’ contributions 1 4

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Ending balance at fair value $ 45,574 $ 48,891 $ 183 $ 163

Amounts recognized in statement of financial position at December 31 consist of:

Amounts recognized in Consolidated Statements of Financial Position at December 31 consist of:

Other assets $ 1,289 $ 1,219 $ 21 $ 81

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A key element of our strategy is to de-risk the plan as the funded status of the plan increases.

During 2023, we completed a strategy review including an asset/liability study and, as a result, target allocations were updated with a modest increase to risk assets.

The changes in the asset allocation are reflected in the table below.

We identify investment benchmarks to evaluate performance for the asset classes in the strategic asset allocation that are market-based and investable where possible.

Actual allocations to each asset class vary from target allocations due to periodic investment strategy changes, market value fluctuations, the length of time it takes to fully implement investment allocation positions, and the timing of benefit payments and contributions.

Actual allocations to each asset class vary from target allocations due to periodic investment strategy changes, market value fluctuations, the duration to fully implement investment allocation positions, and the timing of benefit payments and contributions.

Short-term investments and exchange-traded derivatives are used to rebalance the actual asset allocation to the target asset allocation.

The asset allocation is monitored and rebalanced frequently.

The asset allocation is monitored and adjusted in accordance with our rebalancing policy.

The actual and target allocations by asset class for the pension assets at December 31 were as follows:

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Investment managers are retained for explicit investment roles specified by contractual investment guidelines.

Certain investment managers are authorized to use derivatives, such as equity or bond

futures, swaps, options and currency futures or forwards.

Derivatives are used to achieve the desired market exposure of a security or an index, transfer value-added performance between asset classes, achieve the desired currency exposure, adjust portfolio duration or rebalance the total portfolio to the target asset allocation.

Certain investment managers are authorized to use derivatives, such as equity or bond futures, swaps, options and currency futures or forwards.

Derivatives are used to achieve the desired market exposure of a security or an index, transfer value-added performance between asset classes,

achieve the desired currency exposure, adjust portfolio duration or rebalance the total portfolio to the target asset allocation.

As a percentage of total pension assets, derivative net notional amounts were 42.0 % and 38.3 % for fixed income, including to-be-announced mortgage-backed securities and treasury forwards, and 0.8 % and 2.1 % for global equity and commodities at December 31, 2024 and 2023.

In November 2020, the Company elected to contribute $ 3,000 of our common stock to the pension fund.

An independent fiduciary was retained to manage and liquidate the stock over time at its discretion.

At December 31, 2022, plan assets included $ 1,782 of our common stock, which was liquidated during 2023.

Risk Management In managing the pension assets, we review and manage risk associated with funded status risk, interest rate risk, market risk, counterparty risk, liquidity risk and operational risk.

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Other 5 $ 2 3 9 $ 6 3

Assets 69 69 36 36

Liabilities ( 194 ) ( 194 )

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Boeing company stock

Liabilities ( 1 ) ( 1 )

Private equity

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Real assets 389 348 39 2 385 349 33 3

Liabilities ( 8 ) ( 7 ) ( 1 )

Total $ 30,850 $ 6,525 $ 24,112 $ 213 $ 33,056 $ 5,950 $ 26,880 $ 226

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Common/collective/pooled funds are typically common or collective trusts valued at their net asset values (NAVs) that are calculated by the investment manager or sponsor of the fund and have daily or monthly liquidity.

Derivatives included in the table above are over-the-counter and are primarily valued using an income approach with inputs that include benchmark yields, swap curves, cash flow analysis, rating agency data and interdealer broker rates.

Exchange-traded derivative positions are reported in accordance with changes in daily variation margin which is settled daily and therefore reflected in the payables and receivables portion of the table.

Cash equivalents and other short-term investments (which are used to pay benefits) are held in a separate account which consists of a commingled fund (with daily liquidity) and separately held short-term securities and cash equivalents.

All of the investments in this cash vehicle are valued daily using a market approach with inputs that include quoted market prices for similar instruments.

All investments in this cash vehicle are valued daily using a market approach with inputs that include quoted market prices for similar instruments.

In the event a market price is not available for instruments with an original maturity of one year or less, amortized cost is used as a proxy for fair value.

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Transfers into and out of Level 3 are reported at the beginning-of-year values.

2023 Balance Net Realized and Unrealized Gains/(Losses) Net Purchases, Issuances and Settlements Net Transfers Into/(Out of) Level 3 December 31

2024 Balance Net Realized and Unrealized (Losses)/Gains

Net Purchases, Issuances and Settlements Net Transfers Into/(Out of) Level 3 December 31

Fixed income securities:

$ 59 ($ 3 ) ($ 22 ) $ 34

government and

agencies ( 1 ) $ 1

Mortgage backed and

161 2 5 $ 4 172

Municipal 32 ( 5 ) ( 27 )

Other 3 ( 3 )

Sovereign 1 1

Cash equivalents and other short-term investments 4 4

Equity securities:

preferred stock 1 ( 1 )

Real assets 3 ( 2 ) 1 2

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$ 70 $ 5 ($ 16 ) $ 59

government and agencies

Mortgage backed and asset backed

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Municipal 32 ( 5 ) ( 27 )

Sovereign 9 ( 9 )

Equity securities:

common and preferred stock

5 ( 45 ) ( 2 ) 42

Real assets 4 ( 1 ) 3

Total $ 268 $ 14 ($ 12 ) ($ 44 ) $ 226

For the year ended December 31, 2023, the changes in unrealized gains/(losses) for Level 3 assets still held at December 31, 2023 were $ 2 for corporate fixed income securities, $ 6 for mortgage backed and asset backed fixed income securities, and $ 3 for other fixed income securities.

For the year ended December 31, 2022, the changes in unrealized gains/(losses) for Level 3 assets still held at December 31, 2022 were ($ 16 ) for corporate fixed income securities, ($ 11 ) for mortgage backed and asset backed fixed income securities, ($ 14 ) for municipal fixed income securities, and ($ 1 ) for real asset securities.

OPB Plan Assets The majority of OPB plan assets are invested in a balanced index fund which is comprised of approximately 60 % equities and 40 % debt securities.

The index fund is valued using a market approach based on the quoted market price of an identical instrument (Level 1).

For the year ended December 31, 2024, the changes in unrealized (losses)/gains for Level 3 assets still held at December 31, 2024 were ($ 7 ) for corporate fixed income securities, and $ 1 for mortgage backed and asset backed fixed income securities.

For the year ended December 31, 2023, the changes in unrealized gains for Level 3 assets still held at December 31, 2023 were $ 2 for corporate fixed income securities, $ 6 for mortgage backed and asset backed fixed income securities, and $ 3 for other fixed income securities.

OPB Plan Assets The majority of OPB plan assets are invested in two commingled index funds (with daily liquidity) which are held at a target allocation of approximately 60 % in the equity fund and 40 % in the debt fund.

The commingled funds are valued daily at their NAVs which are calculated by the

investment manager.

The expected rate of return on these assets does not have a material effect on the net periodic benefit cost.

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Our 2023 Incentive Stock Plan, permits awards of incentive and non-qualified stock options, stock appreciation rights, restricted stock or units, performance restricted stock or units, and other stock and cash-based awards to our employees, officers, directors, consultants, and independent contractors.

The aggregate number of shares of our stock authorized for issuance under the plan is 12,900,000 , plus shares that remain available, undelivered, or retained under our 2003 Incentive Stock Plan, as amended and restated.

The aggregate number of shares of our common stock authorized for issuance under the plan is 12,900,000 , plus shares that remained or became available under our 2003 Incentive Stock Plan, as amended and restated.

Following approval of our 2023 Incentive Stock Plan in 2023, no further awards have been or may be granted under our 2003 Incentive Stock Plan.

Shares issued as a result of stock option exercises or conversion of stock unit awards will be funded out of treasury shares, except to the extent there are insufficient treasury shares, in which case new shares will be issued.

Shares issued under the 2023 Incentive Stock Plan will be funded out of treasury shares, except to the extent there are insufficient treasury shares, in which case new shares will be issued.

We believe we currently have adequate treasury shares to satisfy these issuances during 2025.

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Stock Options

Options have been granted to our executive officers that are scheduled to vest and become exercisable three years after the grant date and expire ten years after the grant date.

If an executive terminates employment because of retirement, layoff, disability, or death, the executive (or beneficiary) may receive some or all of their stock options depending on certain age and service conditions.

Options have been granted to our executive officers that are generally scheduled to vest and become exercisable three years after the grant date and expire ten years after the grant date.

If an executive terminates employment because of retirement, layoff, disability, or death, the executive (or beneficiary) may remain eligible to exercise some or all of their stock options depending on certain age and service conditions.

The fair values of the stock options granted were estimated using a Monte-Carlo simulation model using the assumptions presented below.

The model includes no expected dividend yield.

Stock options granted during 2023 were not material.

On February 16, 2022, we granted 348,769 premium-priced stock options to our executive officers as part of our long-term incentive program.

Stock options granted during 2024 and 2023 were not material.

In February 2022, we granted 348,769 premium-priced stock options to our executive officers as part of our long-term incentive program.

These stock options have an exercise price equal to 120 % of the fair market value of our stock on the date of grant.

If certain performance measures are met, the exercise price is reduced to 110 % of the grant date fair market value of our stock.

On February 17, 2021, we granted 342,986 premium-priced stock options to our executive officers as part of our long-term incentive program.

These stock options have an exercise price equal to 120 % of the fair market value of our stock on the date of grant.

During 2021, we also granted 148,322 stock options to certain executives, of which 40,322 had an exercise price equal to 120 % of the fair market value of our stock on the date of grant, and the remaining 108,000 had an exercise price equal to the fair market value of our stock on the date of grant.

The grant date fair market values of these awards were not significant.

Grant Year Grant Date Expected Life Expected Volatility Risk Free Interest Rate Grant Date Fair Value Per Option

2022 2/16/2022 6.8 years 36.6 % 2.0 % $ 83.04

2021 2/17/2021 6.6 years 37.8 % 1.3 % $ 74.63

Options granted through January 2014 had an exercise price equal to the fair market value of our stock on the date of grant and expire 10 years after the date of grant.

These stock options vested over a period of three years and were fully vested as of December 31, 2017.

Stock option activity for the year ended December 31, 2024 was as follows:

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At December 31, 2024, there was $ 9 of total unrecognized compensation cost related to options which is expected to be recognized over a weighted average period of 3.1 years.

The fair value of options vested during the year ended December 31, 2024, was $ 32 .

No options vested during the years ended December 31, 2023 and 2022.

Restricted Stock Units

In February 2024, 2023 and 2022, we granted to our executives 2,008,499 , 327,523 and 1,804,541 restricted stock units (RSUs) as part of our long-term incentive program with grant date fair values of $ 204.15 , $ 214.35 and $ 217.48 per unit, respectively.

On July 29, 2022, we also granted 2,568,112 RSUs with a grant date fair value of $ 157.69 per unit as part of our long-term incentive program, accelerating awards planned for 2023 to retain executives.

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.

In March 2024, we granted to our executive officers 125,432 RSUs with a grant date fair value of $ 192.94 per unit as part of our long-term incentive program.

In July 2022, we granted 2,568,112 RSUs with a grant date fair value of $ 157.69 per unit as part of our long-term incentive program, accelerating awards planned for 2023 to retain executives.

The RSUs granted under this program are generally scheduled to 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.

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RSU activity for the year ended December 31, 2024 was as follows:

Executive Long-Term Incentive Program Employee Long-Term Incentive Program Other

Long-Term Incentive Program

Number of units:

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Performance Restricted Stock Units

On February 16, 2023, we granted 199,899 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 $ 214.35 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, 2023 through December 31, 2025 as compared to the target set at the start of the performance period.

In March 2024 and February 2023, we granted 153,306 and 199,899 performance restricted stock units (PRSUs) 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 grant date fair values of $ 192.94 and $ 214.35 per unit.

The award payout can range from 0 % to 200 % of the initial PRSU grant based on cumulative free cash flow achievement over a three-year period from January 1 of the grant year as compared to the target set at the start of the performance period.

The PRSUs granted in 2024 also include a product safety downward modifier pursuant to which the payout following the end of the three-year performance period may be reduced by 25 % or down to 0 % if two specified product safety operational goals are not timely completed.

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).

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In all other cases, the PRSUs will not vest and all rights to the stock units will terminate.

During the year ended December 31, 2023, there were no forfeitures or distributions.

At December 31, 2023, unrecognized compensation cost was $ 31 , and the weighted average remaining amortization period was 2.1 years.

During the year ended December 31, 2024, there were 40,042 forfeitures and no distributions.

At December 31, 2024, there was no unrecognized compensation cost.

Performance-Based Restricted Stock Units

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During 2023, these performance awards expired with a payout of 0 %.

No units were outstanding during 2024.

Employee Stock Purchase Plan

The Company has an employee stock purchase plan which permits eligible employees to purchase Boeing stock at 95 % of the fair market value on the last trading day of each three-month period using payroll deduction.

The aggregate number of shares of our stock authorized for issuance under the plan is 12,000,000 .

During the year ended December 31, 2023, approximately 216,719 shares were purchased at an average price of $ 193.52 per share.

The Company has an employee stock purchase plan which permits eligible employees to purchase Boeing common stock at 95 % of the fair market value on the last trading day of each three-month period using payroll deduction.

The aggregate number of shares of our common stock authorized for issuance under the plan is 12,000,000 .

During 2024, approximately 377,712 shares were purchased at an average price of $ 179.03 per share.

Deferred Compensation

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As of December 31, 2024 and 2023, there were 1,200,000,000 shares of common stock and 20,000,000 shares of preferred stock authorized.

No preferred stock has been issued.

Changes in Share Balances

The following table shows changes in each class of shares:

Stock Treasury

Mandatory convertible preferred stock

Balance at January 1, 2022 1,012,261,159 423,343,707

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Balance at December 31, 2024 1,012,261,159 263,044,840 5,750,000

Treasury Stock

On October 30, 2024, we issued 129,375,000 shares of common stock, $ 5.00 par value per share, from shares held in Treasury Stock.

As a result of the transaction, we received cash proceeds of $ 18,181 , net of underwriting fees and other issuance costs.

Mandatory Convertible Preferred Stock

On October 31, 2024, we issued 115,000,000 depositary shares, representing 5,750,000 shares of our 6.00 % Series A Mandatory Convertible Preferred Stock (Mandatory convertible preferred stock).

The Mandatory convertible preferred stock has a $ 1,000.00 per share liquidation preference and $ 1.00 per share par value.

As a result of the transaction, we received cash proceeds of $ 5,651 , net of underwriting fees and other issuance costs.

Dividends are cumulative at an annual rate of 6.00 % on the liquidation preference of $ 1,000.00 per share of Mandatory convertible preferred stock and may be paid in cash, shares of our common stock or a combination of cash and shares of our common stock.

Dividends that are declared will be payable on January 15, April 15, July 15 and October 15 to holders of record on the January 1, April 1, July 1, and October 1 immediately preceding the relevant dividend payment date.

In December 2024, dividends of $ 72 were declared to holders of record as of January 1, 2025, representing $ 12.50 per share, and were paid in cash on January 15, 2025.

The following table illustrates the conversion rate per share of Mandatory convertible preferred stock, subject to certain anti-dilution adjustments, based on the applicable market value of the common stock:

Applicable Market Value of Common Stock Conversion Rate per Share of Mandatory Convertible Preferred Stock

Greater than $ 171.5854

5.8280 shares of common stock

Equal to or less than $ 171.5854 but greater than or equal to $ 142.9797

Between 5.8280 and 6.9940 shares of common stock, determined by dividing $ 1,000 by the applicable market value

Less than $ 142.9797

6.9940 shares of common stock

Unless earlier converted, each share of Mandatory convertible preferred stock will automatically convert on October 15, 2027, into between 5.8280 shares and 6.9940 shares of our common stock, depending on the applicable market value of the common stock and subject to certain anti-dilution adjustments described in the certificate of designations related to our Mandatory convertible preferred stock (Certificate of Designations).

The applicable market value of our common stock will be determined based on the average volume-weighted average price per share of the common stock over the 20 consecutive trading day period beginning on, and including, the 21 st scheduled trading day immediately prior to October 15, 2027.

If a fundamental change, as defined in the Certificate of Designations, occurs on or prior to October 15, 2027, then holders of Mandatory convertible preferred stock will be entitled to convert all or any portion of their shares into shares of our common stock at the fundamental change conversion rate, as defined in the Certificate of Designations, for a specified period of time and also to receive an amount to compensate such holders for unpaid accumulated dividends and any remaining future scheduled dividend payments.

Other than during a fundamental change conversion period, at any time prior to October 15, 2027, holders of Mandatory convertible preferred stock may elect to convert all or any portion of their shares at a conversion rate of 5.8280 shares of common stock per share of Mandatory convertible preferred stock, subject to certain anti-dilution and other adjustments as described in the Certificate of Designations.

Additional Paid-in Capital

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Changes in AOCI by component for the years ended December 31, 2024, 2023 and 2022 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)

Currency Translation Adjustments Unrealized Gains and Losses on Certain Investments Unrealized Gains and Losses on Derivative Instruments

Defined Benefit Pension Plans & Other Postretirement Benefits

Balance at January 1, 2022 ($ 105 ) $ 1 $ 6 ($ 11,561 ) ($ 11,659 )

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Amounts reclassified from AOCI

( 6 ) 1,232 (3)

Net current period Other comprehensive (loss)/income

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Balance at December 31, 2022 ($ 167 ) ($ 24 ) ($ 9,359 ) ($ 9,550 )

Other comprehensive (loss)/income before reclassifications ( 62 ) ( 1 ) ( 40 ) 1,529 (2)

Amounts reclassified from AOCI 10 (4)

Net current period Other comprehensive (loss)/income ( 62 ) ( 1 ) ( 30 ) 2,202 2,109

Balance at December 31, 2022 ($ 167 ) ($ 24 ) ($ 9,359 ) ($ 9,550 )

Other comprehensive income/(loss) before reclassifications

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Amounts reclassified from AOCI ( 5 ) ( 104 ) (3)

( 5 ) ( 104 ) (3)

Net current period Other comprehensive income/(loss)

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Balance at December 31, 2023 ($ 134 ) $ 2 $ 12 ($ 10,185 ) ($ 10,305 )

Other comprehensive loss before reclassifications

( 44 ) ( 258 ) ( 356 ) (5)

Amounts reclassified from AOCI

Net current period Other comprehensive loss

( 44 ) ( 223 ) ( 343 ) ( 610 )

Balance at December 31, 2024 ($ 178 ) $ 2 ($ 211 ) ($ 10,528 ) ($ 10,915 )

(1) Net of tax.

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(3) Amounts reclassified from AOCI for the year ended December 31, 2023, primarily related to amortization of prior service credits totaling ($ 102 ) (net of tax of $ 1 ).

Amounts reclassified from AOCI for the years ended December 31, 2022 and 2021, primarily related to amortization of actuarial losses totaling $ 791 and $ 1,155 (net of tax of ($ 11 ) and ($ 8 )).

Amounts reclassified from AOCI for the year ended December 31, 2022, primarily related to amortization of actuarial losses totaling $ 791 (net of tax of ($ 11 )).

These are included in net periodic pension cost.

(4) Included losses of $ 39 (net of tax of ($ 11 )) from cash flow hedges reclassified to Other income, net because the forecasted transactions are not probable of occurring.

(4) Includes losses of $ 39 (net of tax of ($ 11 )) from cash flow hedges reclassified to Other income, net because the forecasted transactions are not probable of occurring.

(5) Primarily related to remeasurement of assets and benefit obligations related to the Company's pension and other postretirement benefit plans resulting in an actuarial loss of ($ 225 ) (net of tax of ($ 1 )) and prior service credits of ($ 140 ) (net of tax of $ 0 ) for the year ended December 31, 2024.

Note 20 – Derivative Financial Instruments

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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 purchased 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.

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.

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(1) Notional amounts represent the gross contract/notional amount of the derivatives outstanding.

Gains/(losses) associated with our hedging transactions and forward points recognized in Other comprehensive income are presented in the following table:

(Losses)/gains associated with our hedging transactions and forward points recognized in Other comprehensive income are presented in the following table:

Years ended December 31, 2024 2023 2022

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Commodity contracts ( 10 ) ( 20 ) 78

Gains/(losses) associated with our hedging transactions and forward points reclassified from AOCI to earnings are presented in the following table:

(Losses)/gains associated with our hedging transactions and forward points reclassified from AOCI to earnings are presented in the following table:

Years ended December 31, 2024 2023 2022

Foreign exchange contracts

Revenues ($ 1 ) $ 1

Costs and expenses ( 25 ) ($ 15 ) 7

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General and administrative expense 6 7 10

During the twelve months ended December 31, 2022, we reclassified losses associated with certain cash flow hedges of $ 50 from AOCI to Other income, net because it became probable the forecasted transactions would not occur.

During the year ended December 31, 2022, we reclassified losses associated with certain cash flow hedges of $ 50 from AOCI to Other income, net because it became probable the forecasted transactions would not occur.

Gains/(losses) related to undesignated derivatives on foreign exchange and commodity cash flow hedging transactions recognized in Other income, net were insignificant for the years ended December 31, 2024, 2023 and 2022.

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Total liabilities ($ 218 ) ($ 218 ) ($ 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.

Money market funds, available-for-sale debt investments and equity investments 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.

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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.

Certain assets have been measured at fair value on a nonrecurring basis, using significant unobservable inputs (Level 3).

The following table presents the nonrecurring losses recognized for the years ended December 31 due to long-lived asset impairment, and the fair value and asset classification of the related assets as of the impairment date:

Certain assets have been measured at fair value on a nonrecurring basis.

The following table presents the nonrecurring losses recognized for the years ended December 31 due to long-lived asset impairment and the fair value of the related assets as of the impairment date:

Total Losses Fair Value

Investments ($ 18 ) ($ 31 )

Operating lease equipment

Property, plant and equipment $ 32 ($ 54 ) $ 14 ($ 26 )

Investments ( 32 ) ( 18 )

6 ( 21 ) ( 2 )

Operating lease equipment

Total $ 53 ($ 112 ) $ 14 ($ 46 )

Investments, Property, plant and equipment, and Other assets were primarily valued using an income approach based on the discounted cash flows associated with the underlying assets.

The fair value of the impaired operating lease equipment is derived by calculating a median collateral value from a consistent group of third party aircraft value publications.

Level 2 and Level 3 Property, plant and equipment were valued based on third-party valuations using a combination of income and market approaches and adjusted for as-is condition.

Level 3 Investments and Other assets were primarily valued using an income approach based on the discounted cash flows associated with the underlying assets.

These approaches are considered estimates of net operating income, capitalization rates, and/or comparable property sales.

Level 3 operating lease equipment is derived by calculating a median collateral value from a consistent group of third-party aircraft value publications.

The values provided by the third-party aircraft publications are derived from their knowledge of market trades and other market factors.

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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 operating lease equipment that were measured at fair value on a nonrecurring basis during the period ended December 31, 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.

Value Valuation

Unobservable Input Range

Median or Average

Operating lease equipment

$ 15 Market approach Aircraft value publications $ 21 - $ 27 (1)

Aircraft condition adjustments ($ 8 ) - $ 0 (2)

(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.

Fair Value Disclosures

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Debt, excluding finance lease obligations ( 52,055 ) ( 51,039 ) ( 51,039 )

The fair values of notes receivable are estimated with discounted cash flow analysis using interest rates currently offered on loans with similar terms to borrowers of similar credit quality.

The fair value of Notes receivable 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 receivable 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.

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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.

Items not included in the above disclosures include cash, restricted cash, time deposits and other deposits, Accounts receivable, Unbilled receivables, Other current assets, Accounts payable and long-term payables.

The carrying values of those items, as reflected in the Consolidated Statements of Financial Position, approximate their fair value at December 31, 2024 and 2023.

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Note 22 – Legal Proceedings

Various legal proceedings, claims and investigations related to products, contracts, employment and other matters are pending against us.

Various legal proceedings, claims and investigations related to products, contracts, employment, securities 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.

government regulations, a company, or one or more of its operating divisions or subdivisions, can also be suspended or debarred from government contracts, or lose its export privileges, based on the results of investigations.

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 that resolved the Department of Justice’s investigation into us regarding the evaluation of the 737 MAX by the Federal Aviation Administration (FAA).

Among other obligations, the DPA includes a three-year reporting period, which ended earlier this month.

The Department is currently considering whether we fulfilled our obligations under the DPA and whether to move to dismiss the information, which motion will require court approval.

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 2024.

Multiple legal actions, investigations and inquiries were initiated concerning the October 29, 2018, accident of Lion Air Flight 610 and the March 10, 2019 accident of Ethiopian Airlines Flight 302.

While many of these legal actions and investigations have been resolved, others are still pending, including a federal securities class action filed in federal district court in the Northern District of Illinois, and a number of civil lawsuits and claims brought by family members of those lost in the accidents.

Furthermore, 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 included a three-year reporting period, which ended in January 2024.

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 case.

On July 24, 2024, we and the Department filed a proposed plea agreement with the U.S.

District Court for the Northern District of Texas (the

Court) to resolve the Investigation.

Under the terms of the proposed agreement, Boeing agreed that it would plead guilty to the charge that was the basis for the DPA;

pay an additional fine of $ 244 ;

commit to invest at least $ 455 in compliance, quality and safety programs over a three-year period;

and agree to the appointment of an independent compliance monitor for three years .

On December 5, 2024, the Court rejected the proposed plea agreement, citing the proposed agreement’s provisions governing the monitor’s selection and supervision.

In light of the Court’s ruling, Boeing and the Department are currently engaged in discussions regarding potential resolution of this matter.

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 and in excess of any accrued amounts that may result given the current status of pending lawsuits, investigations and inquiries arising from the 2018 and 2019 737 MAX accidents and the Alaska Airlines Flight 1282 accident .

Note 23 – Segment and Revenue Information

Segment results reflect the realignment of the Boeing Customer Financing team and portfolio into the BCA segment during the first quarter of 2023.

Interest and debt expense now includes interest and debt expense previously attributable to Boeing Capital and classified as a component of Total Costs and Expenses ("Cost of Sales").

Prior period amounts have been reclassified to conform to current period presentation.

Our primary profitability measurement to review segment operating results is Loss from operations.

We operate in three reportable segments:

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Revenue on other contracts is generally recognized over the contract term (over time) as costs are incurred.

Our chief operating decision maker is currently our President and Chief Executive Officer (CEO).

The primary profitability measurement used by the CEO to review segment operating results is Segment operating (loss)/earnings.

The CEO uses Segment operating (loss)/earnings to allocate resources (including employees, financial and capital resources) for each segment predominantly in the annual planning process.

Segment operating (loss)/earnings is used to monitor segment results compared to prior period, forecasted results, and the annual plan.

The following table reconciles segment Revenues to Segment operating (loss)/earnings:

For the year ended December 31, 2022

Revenues $ 26,026 $ 23,162 $ 17,611

Research and development expense, net 1,510 945 119

Other segment items (1)

26,857 25,761 14,765

Segment operating (loss)/earnings ($ 2,341 ) ($ 3,544 ) $ 2,727

For the year ended December 31, 2023

Revenues $ 33,901 $ 24,933 $ 19,127

Research and development expense, net 2,036 919 107

Other segment items (1)

33,500 25,778 15,691

Segment operating (loss)/earnings ($ 1,635 ) ($ 1,764 ) $ 3,329

For the year ended December 31, 2024

Revenues $ 22,861 $ 23,918 $ 19,954

Research and development expense, net 2,386 917 132

Other segment items (1)

28,444 28,414 16,204

Segment operating (loss)/earnings ($ 7,969 ) ($ 5,413 ) $ 3,618

(1) Primarily includes costs of products and services and general and administrative expenses.

While our principal operations are in the United States, Canada and Australia, some key suppliers and subcontractors are located in Europe and Japan.

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Years ended December 31, 2024 2023 2022

Europe $ 10,520 $ 7,916 $ 8,967

Asia $ 11,994 $ 10,013 $ 8,393

Europe 8,734 10,520 7,916

Middle East 4,635 6,594 5,047

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United States 36,171 45,380 39,218

Estimated potential concessions and other considerations to 737 MAX customers 27 16 14

Estimated potential concessions and other considerations to 737 MAX customers, net of insurance recoveries

( 443 ) 27 16

Total revenues $ 66,517 $ 77,794 $ 66,608

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government), primarily recorded at BDS and BGS, represented 42 %, 37 % and 40 % of consolidated revenues for 2024, 2023 and 2022, respectively.

Approximately 4 % of operating assets were located outside the United States as of December 31, 2023 and 2022.

Approximately 3 % and 4 % of operating assets were located outside the United States as of December 31, 2024 and 2023.

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.

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United States 7,326 14,501 12,275

Estimated potential concessions and other considerations to 737 MAX customers 27 16 14

Estimated potential concessions and other considerations to 737 MAX customers, net of insurance recoveries

( 443 ) 27 16

Total revenues from contracts with customers 22,726 33,770 25,909

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We expect approximately 14 % to be converted to revenue through 2025 and approximately 59 % through 2028, with the remainder thereafter.

There is significant uncertainty regarding the timing of when backlog will convert into revenue due to timing of 737 and 787 deliveries from inventory and timing of entry into service of the 777X, 737-7 and/or 737-10.

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 various factors including delivery delays, production disruptions and delays to entry into service of the 777X, 737-7 and/or 737-10.

Unallocated Items, Eliminations and other

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Government Cost Accounting Standards (CAS).

Components of Unallocated items, eliminations and other (expense)/income are shown in the following table.

Components of Unallocated items, eliminations and other income/(expense) are shown in the following table.

Years ended December 31, 2024 2023 2022

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Unallocated items, eliminations and other ($ 2,047 ) ($ 1,759 ) ($ 1,504 )

During the year ended December 31, 2024, Eliminations and other unallocated items included 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 22 to our Consolidated Financial Statements.

Pension and Other Postretirement Benefit Expense

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(1) Amounts shown in the table represent depreciation and amortization expense recorded by the individual business segments.

Depreciation and amortization for centrally managed assets are included in segment operating earnings based on usage and occupancy.

In 2023, $ 650 was included in the primary business segments, of which $ 311 , $ 264 and $ 75 was included in BCA, BDS and BGS, respectively.

In 2022, $ 644 was included in the primary business segments, of which $ 361 , $ 230 and $ 53 was included in BCA, BDS and BGS, respectively.

In 2021, $ 669 was included in the primary business segments, of which $ 387 , $ 222 and $ 60 was included in BCA, BDS and BGS, respectively.

Note 23 – Subsequent Events

On January 5, 2024, an Alaska Airlines 737-9 flight made an emergency landing after a mid-exit door plug detached in flight.

Following the accident, the Federal Aviation Administration (FAA) grounded and required inspections of all 737-9 aircraft with a mid-exit door plug, which constitute the large majority of the approximately 220 737-9 aircraft in the in-service fleet .

On January 24, 2024, the FAA approved an

enhanced maintenance and inspection process that must be performed on each of the grounded 737-9 aircraft.

Our 737-9 operators have begun returning their fleets to service, and many 737-9s have completed inspections and resumed revenue flights.

All 737-9 aircraft in production will undergo this same enhanced inspection process prior to delivery.

On January 10, 2024, the FAA notified Boeing that the FAA has initiated an investigation into Boeing’s quality control system.

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 Boeing is in full compliance with required quality control procedures.

We are currently unable to reasonably estimate what impact the accident and the related FAA actions will have on our financial position, results of operations and cash flows.

Depreciation and amortization for centrally managed assets are allocated to business segments based on usage and occupancy.

In 2024, $ 705 was allocated to the primary business segments, of which $ 339 , $ 289 and $ 77 was allocated to BCA, BDS and BGS, respectively.

In 2023, $ 650 was allocated the primary business segments, of which $ 311 , $ 264 and $ 75 was allocated to BCA, BDS and BGS, respectively.

In 2022, $ 644 was allocated to the primary business segments, of which $ 361 , $ 230 and $ 53 was allocated to BCA, BDS and BGS, respectively.

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

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In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2024 and 2023, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2024, in conformity with accounting principles generally accepted in the United States of America.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, 2023, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated January 31, 2024, expressed an unqualified opinion on the Company's internal control over financial reporting.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, 2024, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated February 3, 2025, expressed an unqualified opinion on the Company's internal control over financial reporting.

Basis for Opinion

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The operational and technical complexities of fixed-price development contracts create financial risk, which could increase the estimates of costs and result in lower margins or material reach-forward losses.

The ongoing effects of supply chain and labor disruption compound these complexities and related financial risks.

The ongoing effects of supply chain and operational inefficiencies compound these complexities and related financial risks.

Given the operational and technical complexities of certain of the Company’s fixed-price development contracts, including the KC-46A Tanker, Commercial Crew, VC-25B Presidential Aircraft, T-7A Redhawk, and MQ-25 contracts and the limited amount of historical data available in certain instances and significant judgments necessary to estimate future costs at completion, auditing these estimates involved extensive audit effort, a high degree of auditor judgment, and required audit professionals with specialized industry experience.

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Our audit procedures related to the cost estimates for the KC-46A Tanker, Commercial Crew, VC-25B Presidential Aircraft, T-7A Redhawk, and MQ-25 fixed-price development contracts included the following, among others:

• We evaluated the appropriateness and consistency of management’s methods used in developing its estimates.

• We evaluated the appropriateness and consistency of management’s methods used in developing its cost estimates.

• We evaluated the reasonableness of judgments made and significant assumptions used by management relating to key cost and schedule estimates, including the effects of supply chain and labor disruptions.

We also evaluated the range and probabilities of reasonably possible outcomes, and where management set its point estimate within the range.

• We evaluated the appropriateness of the timing of the incorporation of changes to key estimates, including evaluating the timeline of key events and knowledge points that led to management’s determination that a change in estimate was necessary.

• We evaluated the appropriateness of the timing of the incorporation of changes to key cost estimates, including evaluating the timeline of key events and knowledge points that led to management’s determination that a change in estimate was necessary.

• We inquired of project management, engineers, supply chain leadership, and others directly involved with the execution of contracts to evaluate management’s ability to achieve the key

cost and schedule estimates, as well as evaluate project status and challenges which may affect total estimated costs to complete.

• We observed the project work site when key estimates related to tangible or physical progress of the project.

• We observed the project work site to evaluate tangible or physical progress of the project against assumptions used by management in developing its cost and schedule estimates.

• We tested the accuracy and completeness of the key data used in developing estimates.

We developed independent expectations of reasonable outcomes using, in part, the program’s data and compared our expectations to management’s estimates.

We developed independent expectations of reasonable outcomes using the program’s data and compared our expectations to management’s estimates.

• We performed retrospective reviews when evaluating the thoroughness and precision of management’s estimation process and effectiveness of the related internal controls by comparing actual outcomes to previous estimates and the related financial statement impact, and evaluating key judgements made by management when determining the timing of changes to key estimates.

• We tested the effectiveness of internal controls including, those over the review of significant judgments made and assumptions used to develop key estimates, key data used in developing the estimates and the mathematical extrapolation of such data.

• We tested the effectiveness of internal controls including, those over significant judgments made and assumptions used to develop key cost estimates, key data used in developing the cost estimates and the mathematical extrapolation of such data.

Program Accounting Estimates for the 777X Program — Refer to Notes 1 and 8 to the financial statements

Critical Audit Matter Description

The Company uses program accounting to compute the cost of sales and margin for each commercial airplane program.

However, as the 777X is a developmental program that has not yet delivered any aircraft, there is no cost of sales recorded unless the program has determined that estimated program costs exceed estimated program revenue, resulting in a reach-forward loss.

The Company has recognized approximately $3.5 billion in reach-forward losses in 2024.

The introduction of new aircraft programs involves increased risk associated with meeting development, certification, and production schedules.

The Company uses program accounting to compute cost of sales and margin for each commercial airplane sold.

The use of program accounting requires estimating the costs over the expected life of each program.

In particular, the level of effort to meet regulatory requirements and achieve certification may be challenging to predict, including potential delays in the timing of achieving certification that would delay entry into service and corresponding increases in estimated costs.

Changes to the cost estimates related to regulatory requirements to achieve certification could occur, resulting in lower margins or material reach-forward losses.

Auditing these estimated costs for the 777X program involved extensive audit effort, a high degree of auditor judgment, and required audit professionals with specialized industry experience.

The level of effort required to meet regulatory requirements and achieve certification may be challenging to predict, potentially leading to delays in the timing of entry into service and corresponding changes to forecasted costs and revenues.

Production disruptions and delays to entry into service for the 777X program have increased the risk associated with forecasted revenue estimates used in determining the program margin, primarily due to the difficulty in assessing the value of consideration expected to be provided to retain customers.

Changes to cost estimates related to regulatory requirements for certification and production challenges, as well as changes in estimates for customer consideration could result in material reach-forward losses.

Auditing the estimated costs and estimated customer consideration for the 777X program involved extensive audit effort, a high degree of auditor judgment, and required audit professionals with specialized industry experience.

How the Critical Audit Matter Was Addressed in the Audit

Our audit procedures related to the estimated costs for the 777X program included the following, among others:

Our audit procedures related to the estimated costs and customer consideration for the 777X program included the following, among others:

• We evaluated the appropriateness and consistency of management’s methods used in developing its cost estimates related to regulatory requirements to achieve certification.

• We performed procedures to evaluate new changes in estimated costs driven by changes in regulatory requirements to achieve certification.

• We evaluated the timeline of key events and knowledge points that informs management’s determination to change the cost estimate related to regulatory requirements to achieve certification.

• We evaluated the timeline of key events and knowledge points that led to management’s determination that a change in the cost estimate related to regulatory requirements to achieve certification was necessary.

• We inquired of those directly involved with the certification of the aircraft to evaluate project status and challenges which may affect total estimated costs to certify the aircraft.

• We obtained and evaluated communications with regulatory bodies for consistency between management’s certification timeline assumptions and cost estimates related to regulatory requirements.

• We tested the effectiveness of internal controls, including those over the data used in developing the cost estimates, the mathematical extrapolation of such data, and management’s judgment regarding the range of possible outcomes relating to the specific cost estimates in the current regulatory environment.

• We obtained and evaluated communications with regulatory bodies for consistency between management’s certification timeline assumptions and cost and revenue estimates related to regulatory requirements.

• We evaluated management’s ability to estimate customer consideration by comparing actual re-contracted values to prior estimates.

• We inquired of management, including individuals responsible for sales and pricing, to evaluate the estimated customer consideration and status of negotiations with individual customers.

• We obtained and evaluated communications with customers for consistency with management’s estimated customer consideration.

• We performed internet searches to identify reports related to the regulatory environment and customer statements and evaluated any contradictory evidence.

• We tested the effectiveness of internal controls, including those over significant judgments made and assumptions used to develop key estimates, key data used in developing the cost estimates, the mathematical extrapolation of such data, and management’s judgment regarding the range of possible outcomes relating to the specific cost and estimated customer consideration in the current regulatory environment.

Program Accounting Estimates for the 737 Program — Refer to Notes 1 and 8 to the financial statements

Critical Audit Matter Description

The Company uses program accounting to compute the cost of sales and gross margin for each commercial airplane program.

The process of determining a commercial airplane program’s gross margin involves estimating the future revenue and costs of the program to complete the accounting quantity.

The 737 program is experiencing a production environment with increased dependency on external factors, which results in increased complexities and related financial risks.

Specifically, the 737 program is experiencing increased oversight from the Federal Aviation Administration (FAA) in approving future production rate increases.

The 737 program is also experiencing constraints from the Company’s key suppliers and is currently working with suppliers to ensure they can meet future production rate increases.

There is inherent uncertainty in the program’s production rate schedule as the estimate is subject to significant variability in these external factors.

Changes to the production schedule due to regulatory requirements or supplier constraints could impact forecasted cost and revenue, with a corresponding impact to the program’s gross margin.

This uncertainty in the production environment enhances the difficulty and complexity of determining the production rate schedule, leading to greater subjectivity in management’s determination of the related cost estimates.

Therefore, given the inherent uncertainty of these external factors and significant judgments necessary to estimate the 737 program’s future production rate schedule, auditing these estimates involved extensive audit effort, a high degree of auditor judgment, and required audit professionals with specialized industry experience.

How the Critical Audit Matter Was Addressed in the Audit

Our audit procedures related to the production rate schedule used in program accounting estimates for the 737 program included the following, among others:

• We inquired of those directly involved with the production line to evaluate project status and challenges which may affect the program’s ability to increase production rate.

• We evaluated the Company’s comprehensive product safety and quality plan, including related program metrics, in response to the findings from the FAA Expert Panel Report and Special Audit Item.

• We assessed the ongoing communications between the FAA and Boeing on the continued implementation of increased product quality and safety measures.

• We assessed the implementation status of the comprehensive product safety and quality plan to evaluate if there was contradictory evidence that the program would not meet its production rate schedule.

• We assessed communication between key suppliers and Boeing related to key supplier delivery constraints or quality issues.

• We performed inquiries with multiple members of Management (both inside and outside of accounting) to understand the program and Company’s current status and events that could impact key suppliers or the production rate schedule.

• We performed internet searches to identify potential reports of regulatory requirements, remedies or business considerations, certification timeline, key suppliers delays and other indicators of further delays for the 737 production rate schedule.

We evaluated whether any contradictory evidence existed that would indicate that the program would not meet its planned production rate schedule and if any other media information was inconsistent with our knowledge of the Company and 737 program.

• We performed a sensitivity analysis of the impact of further production delays on the program's estimated gross margin and resulting income statement impacts.

• We assessed the reasonableness of the program’s production rate schedule, including performing a lookback analysis on management’s ability to estimate monthly production output.

• We tested the effectiveness of internal controls, including those over the production rate assumption and significant judgments made to develop the forecasted cost and revenue estimates for the 737 program.

/s/ Deloitte & Touche LLP

Chicago, Illinois

January 31, 2024

February 3, 2025

We have served as the Company's auditor since at least 1934;

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In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2024, based on criteria established in Internal Control — Integrated Framework (2013) issued by COSO.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated financial statements as of and for the year ended December 31, 2023 of the Company, and our report dated January 31, 2024 expressed an unqualified opinion on those financial statements.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated financial statements as of and for the year ended December 31, 2024 of the Company, and our report dated February 3, 2025 expressed an unqualified opinion on those financial statements.

Basis for Opinion

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Chicago, Illinois

January 31, 2024

February 3, 2025

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

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 8. Financial Statements and Supplementary Data