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Item 8. Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 
 
 Index to the Consolidated Financial Statements 
 
 Page 
 Consolidated Statements of Operations 
 54 
 
 Consolidated Statements of Comprehensive Income 
 55 
 
 Consolidated Statements of Financial Position 
 56 
 
 Consolidated Statements of Cash Flows 
 57 
 
 Consolidated Statements of Equity 
 58 
 
 Summary of Business Segment Data 
 59 
 
 Note 1 - Summary of Significant Accounting Policies 
 60 
 
 Note 2 - Spirit Acquisition 
 70 
 
 Note 3 - D igital Aviation Solutions Divestiture 
 72 
 
 Note 4 - Goodwill and Acquired Intangibles 
 73 
 
 Note 5 - Earnings Per Share 
 74 
 
 Note 6 - Income Taxes 
 76 
 
 Note 7 - Accounts Receivable 
 81 
 
 Note 8 - Allowance for Losses on Financial Assets 
 81 
 
 Note 9 - Inventories 
 82 
 
 Note 10 - Contracts with Customers 
 83 
 
 Note 11 - Financing Receivables and Operating Lease Equipment 
 83 
 
 Note 12 - Property, Plant and Equipment 
 85 
 
 Note 13 - Investments 
 85 
 
 Note 14 - Leases 
 86 
 
 Note 15 - Liabilities, Commitments and Contingencies 
 87 
 
 Note 16 - Arrangements with Off-Balance Sheet Risk 
 93 
 
 Note 17 - Debt 
 94 
 
 Note 18 - Postretirement Plans 
 95 
 
 Note 19 - Share-Based Compensation and Other Compensation Arrangements 
 104 
 
 Note 20 - Shareholders’ Equity 
 108 
 
 Note 21 - Derivative Financial Instruments 
 110 
 
 Note 22 - Fair Value Measurements 
 112 
 
 Note 23 - Legal Proceedings 
 114 
 
 Note 24 - Segment and Revenue Information 
 115 
 
 
 
 Reports of Independent Registered Public Accounting Firm 
 121 
 

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 The Boeing Company and Subsidiaries 
 Consolidated Statements of Operations 
 
 (Dollars in millions, except per share data) 
 Years ended December 31, 2025 2024 2023 
 Sales of products $ 75,356 $ 53,227 $ 65,581 
 Sales of services 14,107 13,290 12,213 
 Total revenues 89,463 66,517 77,794 
 
 Cost of products ( 73,761 ) ( 57,394 ) ( 59,864 ) 
 Cost of services ( 11,413 ) ( 11,114 ) ( 10,206 ) 
 Total costs and expenses ( 85,174 ) ( 68,508 ) ( 70,070 ) 
 4,289 ( 1,991 ) 7,724 
 Income from operating investments, net 25 71 46 
 General and administrative expense ( 6,090 ) ( 5,021 ) ( 5,168 ) 
 Research and development expense, net ( 3,615 ) ( 3,812 ) ( 3,377 ) 
 Gain on dispositions, net 9,672 46 2 
 Earnings/(loss) from operations 4,281 ( 10,707 ) ( 773 ) 
 Other income, net 1,125 1,222 1,227 
 Interest and debt expense ( 2,771 ) ( 2,725 ) ( 2,459 ) 
 Earnings/(loss) before income taxes 2,635 ( 12,210 ) ( 2,005 ) 
 Income tax (expense)/benefit ( 397 ) 381 ( 237 ) 
 
 
 Net earnings/(loss) 2,238 ( 11,829 ) ( 2,242 ) 
 Less: Net earnings/(loss) attributable to noncontrolling interest 3 ( 12 ) ( 20 ) 
 Net earnings/(loss) attributable to Boeing shareholders 2,235 ( 11,817 ) ( 2,222 ) 
 Less: Mandatory convertible preferred stock dividends accumulated during the period 345 58 
 Net earnings/(loss) attributable to Boeing common shareholders $ 1,890 ($ 11,875 ) ($ 2,222 ) 
 
 
 
 Basic earnings/(loss) per share $ 2.49 ($ 18.36 ) ($ 3.67 ) 
 
 
 
 Diluted earnings/(loss) per share $ 2.48 ($ 18.36 ) ($ 3.67 ) 

 See Notes to the Consolidated Financial Statements on pages 59 - 120. 
 
 
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 The Boeing Company and Subsidiaries 
 Consolidated Statements of Comprehensive Income 
 
 (Dollars in millions) 
 Years ended December 31, 2025 2024 2023 
 Net earnings/(loss) $ 2,238 ($ 11,829 ) ($ 2,242 ) 
 Other comprehensive income/(loss), net of tax: 
 
 Currency translation adjustments 225 ( 44 ) 33 
 Reclassification of realized loss on foreign currency translation to Gain on dispositions, net 
 17 
 Unrealized gain on certain investments, net of tax of $ 0 , $ 0 and $ 0 
 2 
 Derivative instruments: 
 Unrealized gain/(loss) arising during period, net of tax of ($ 10 ), $ 0 and ($ 11 ) 
 262 ( 258 ) 41 
 Reclassification adjustment for loss/(gain) included in net loss, net of tax of ($ 1 ), $ 0 and $ 1 
 37 35 ( 5 ) 
 Total unrealized gain/(loss) on derivative instruments, net of tax 
 299 ( 223 ) 36 
 Defined benefit pension plans & other postretirement benefits: 
 Net actuarial gain/(loss) arising during the period, net of tax of ($ 1 ), ($ 1 ) and $ 13 
 25 ( 225 ) ( 722 ) 
 Amortization of actuarial loss/(gain) included in net periodic benefit cost, net of tax of ($ 9 ), $ 0 and $ 0 
 149 105 ( 2 ) 
 
 Amortization of prior service credits included in net periodic benefit cost, net of tax of $ 4 , $ 0 and $ 1 
 ( 71 ) ( 92 ) ( 102 ) 
 Prior service credits arising during the period, net of tax of $ 0 , $ 0 and $ 0 
 ( 6 ) ( 140 ) 
 Pension and postretirement benefit related to our equity method investments, net of tax of $ 0 , $ 0 and $ 0 
 9 
 Total defined benefit pension plans & other postretirement benefits, net of tax 97 ( 343 ) ( 826 ) 
 Other comprehensive income/(loss), net of tax 
 638 ( 610 ) ( 755 ) 
 
 Comprehensive income/(loss) 
 2,876 ( 12,439 ) ( 2,997 ) 
 Less: Comprehensive income/(loss) attributable to noncontrolling interest 
 3 ( 12 ) ( 20 ) 
 Comprehensive income/(loss) attributable to Boeing Shareholders 
 $ 2,873 ($ 12,427 ) ($ 2,977 ) 

 See Notes to the Consolidated Financial Statements on pages 59 - 120. 
 
 
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 The Boeing Company and Subsidiaries 
 Consolidated Statements of Financial Position 
 
 (Dollars in millions, except per share data) 
 December 31, 2025 2024 
 Assets 
 Cash and cash equivalents $ 10,921 $ 13,801 
 Short-term and other investments 18,479 12,481 
 Accounts receivable, net 2,921 2,631 
 Unbilled receivables, net 9,158 8,363 
 Current portion of financing receivables, net 207 
 Inventories 84,679 87,550 
 Other current assets, net 2,301 2,965 
 Total current assets 128,459 127,998 
 Financing receivables and operating lease equipment, net 241 314 
 Property, plant and equipment, net 15,361 11,412 
 Goodwill 17,275 8,084 
 Acquired intangible assets, net 1,567 1,957 
 Deferred income taxes 107 185 
 Investments 1,048 999 
 Other assets, net of accumulated amortization of $ 1,014 and $ 1,085 
 4,177 5,414 
 Total assets $ 168,235 $ 156,363 
 Liabilities and equity 
 Accounts payable $ 13,109 $ 11,364 
 Accrued liabilities 27,141 24,103 
 Advances and progress billings 59,404 60,333 
 Short-term debt and current portion of long-term debt 8,461 1,278 
 Total current liabilities 108,115 97,078 
 Deferred income taxes 216 122 
 Accrued retiree health care 2,091 2,176 
 Accrued pension plan liability, net 4,287 5,997 
 Other long-term liabilities 2,432 2,318 
 Long-term debt 45,637 52,586 
 Total liabilities 162,778 160,277 
 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 
 6 6 
 Common stock, par value $ 5.00 – 1,200,000,000 shares authorized; 1,012,261,159 shares issued 
 5,061 5,061 
 Additional paid-in capital 21,441 18,964 
 Treasury stock, at cost ( 28,029 ) ( 32,386 ) 
 Retained earnings 17,252 15,362 
 Accumulated other comprehensive loss ( 10,277 ) ( 10,915 ) 
 Total shareholders' equity/(deficit) 5,454 ( 3,908 ) 
 Noncontrolling interests 3 ( 6 ) 
 Total equity 5,457 ( 3,914 ) 
 Total liabilities and equity $ 168,235 $ 156,363 

 See Notes to the Consolidated Financial Statements on pages 59 - 120. 
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 The Boeing Company and Subsidiaries 
 Consolidated Statements of Cash Flows 
 (Dollars in millions) 
 Years ended December 31, 2025 2024 2023 
 Cash flows – operating activities: 
 Net earnings/(loss) $ 2,238 ($ 11,829 ) ($ 2,242 ) 
 Adjustments to reconcile net earnings/(loss) to net cash provided/(used) by operating activities: 
 Non-cash items – 
 Share-based plans expense 426 407 690 
 Treasury shares issued for 401(k) contribution 1,530 1,601 1,515 
 Depreciation and amortization 1,953 1,836 1,861 
 Investment/asset impairment charges, net 45 112 46 
 
 
 Gain on dispositions, net ( 9,672 ) ( 46 ) ( 2 ) 
 777X and 767 reach-forward losses 5,283 4,079 
 Other charges and credits, net 264 528 3 
 
 Changes in assets and liabilities – 
 Accounts receivable ( 95 ) ( 37 ) ( 128 ) 
 Unbilled receivables ( 677 ) ( 60 ) 321 
 Advances and progress billings ( 723 ) 4,069 3,365 
 Inventories ( 1,501 ) ( 12,353 ) ( 1,681 ) 
 Other current assets 155 ( 16 ) 389 
 Accounts payable 724 ( 793 ) 1,672 
 Accrued liabilities 1,341 1,563 779 
 Income taxes receivable, payable and deferred 115 ( 567 ) 44 
 Other long-term liabilities ( 346 ) ( 329 ) ( 313 ) 
 Pension and other postretirement plans ( 593 ) ( 959 ) ( 1,049 ) 
 Financing receivables and operating lease equipment, net 
 274 512 571 
 Other 324 202 119 
 Net cash provided/(used) by operating activities 1,065 ( 12,080 ) 5,960 
 Cash flows – investing activities: 
 Payments to acquire property, plant and equipment ( 2,942 ) ( 2,230 ) ( 1,527 ) 
 Proceeds from disposals of property, plant and equipment 82 49 27 
 Acquisitions, net of cash acquired ( 1,248 ) ( 50 ) ( 70 ) 
 Proceeds from dispositions 10,585 124 
 Contributions to investments ( 51,938 ) ( 13,856 ) ( 16,448 ) 
 Proceeds from investments 46,628 4,743 15,739 
 Supplier notes receivable 
 ( 662 ) ( 694 ) ( 162 ) 
 Repayments on supplier notes receivable 
 2 40 
 Purchase of distribution rights ( 9 ) ( 88 ) 
 Other 1 ( 11 ) 4 
 Net cash provided/(used) by investing activities 499 ( 11,973 ) ( 2,437 ) 
 Cash flows – financing activities: 
 New borrowings 165 10,161 75 
 Debt repayments ( 3,621 ) ( 8,673 ) ( 5,216 ) 
 
 
 
 Common stock issuance, net of issuance costs 18,200 
 Mandatory convertible preferred stock issuance, net of issuance costs 5,657 
 Stock options exercised 45 
 
 Employee taxes on certain share-based payment arrangements ( 34 ) ( 83 ) ( 408 ) 
 
 Dividends paid on Mandatory convertible preferred stock 
 ( 331 ) 
 Other 58 ( 53 ) 17 
 Net cash (used)/provided by financing activities ( 3,763 ) 25,209 ( 5,487 ) 
 Effect of exchange rate changes on cash and cash equivalents 40 ( 47 ) 30 
 Net (decrease)/increase in cash & cash equivalents, including restricted ( 2,159 ) 1,109 ( 1,934 ) 
 Cash & cash equivalents, including restricted, at beginning of year 13,822 12,713 14,647 
 Cash & cash equivalents, including restricted, at end of year 11,663 13,822 12,713 
 Less restricted cash & cash equivalents, included in Investments 742 21 22 
 Cash and cash equivalents at end of year $ 10,921 $ 13,801 $ 12,691 

 See Notes to the Consolidated Financial Statements on pages 59 - 120. 
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 The Boeing Company and Subsidiaries 
 Consolidated Statements of Equity 
 
 Boeing shareholders 
 (Dollars in millions) 
 Mandatory convertible preferred stock Common
stock Additional
paid-in
capital Treasury 
stock Retained
earnings Accumulated
other 
comprehensive 
loss Non-
controlling
interests Total 
 Balance at January 1, 2023 $ 5,061 $ 9,947 ($ 50,814 ) $ 29,473 ($ 9,550 ) $ 35 ($ 15,848 ) 
 Net loss ( 2,222 ) ( 20 ) ( 2,242 ) 
 Other comprehensive loss, net of tax of $ 4 
 ( 755 ) ( 755 ) 
 Share-based compensation 690 690 
 
 Treasury shares issued for stock options exercised, net 
 ( 28 ) 73 45 
 Treasury shares issued for other share-based plans, net 
 ( 660 ) 304 ( 356 ) 
 
 Treasury shares issued for 401(k) contributions 627 888 1,515 
 
 
 Subsidiary shares purchased from non-controlling 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 ) 
 Net loss ( 11,817 ) ( 12 ) ( 11,829 ) 
 Other comprehensive loss, net of tax of ($ 1 ) 
 ( 610 ) ( 610 ) 
 Share-based compensation 407 407 
 
 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 
 ( 145 ) 129 ( 16 ) 
 
 
 
 Treasury shares issued for 401(k) contributions 495 1,106 1,601 
 
 Cash dividends declared on Mandatory convertible preferred stock ( 72 ) ( 72 ) 
 Other changes in noncontrolling interests 1 1 
 
 Balance at December 31, 2024 $ 6 $ 5,061 $ 18,964 ($ 32,386 ) $ 15,362 ($ 10,915 ) ($ 6 ) ($ 3,914 ) 
 Net earnings 
 2,235 3 2,238 
 Other comprehensive income, net of tax of ($ 17 ) 
 638 638 
 Share-based compensation 426 426 
 
 
 
 
 Treasury shares issued for other share-based plans, net 
 ( 489 ) 556 67 
 
 
 
 Treasury shares issued for 401(k) contributions 559 971 1,530 
 Treasury shares issued in exchange for shares of Spirit 1,874 2,830 4,704 
 Premium on Exchangeable Notes assumed from acquisition of Spirit 109 109 
 
 Cash dividends declared on Mandatory convertible preferred stock ( 345 ) ( 345 ) 
 Other changes in noncontrolling interests ( 2 ) 6 4 
 
 Balance at December 31, 2025 $ 6 $ 5,061 $ 21,441 ($ 28,029 ) $ 17,252 ($ 10,277 ) $ 3 $ 5,457 

 See Notes to the Consolidated Financial Statements on pages 59 - 120. 
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 The Boeing Company and Subsidiaries 
 Notes to the Consolidated Financial Statements 
 Summary of Business Segment Data 
 
 (Dollars in millions) 
 Years ended December 31, 
 2025 2024 2023 
 Revenues: 
 Commercial Airplanes $ 41,494 $ 22,861 $ 33,901 
 Defense, Space & Security 27,234 23,918 24,933 
 Global Services 20,923 19,954 19,127 
 
 Unallocated items, eliminations and other ( 188 ) ( 216 ) ( 167 ) 
 Total revenues $ 89,463 $ 66,517 $ 77,794 
 Earnings/(loss) from operations: 
 Commercial Airplanes ($ 7,079 ) ($ 7,969 ) ($ 1,635 ) 
 Defense, Space & Security ( 128 ) ( 5,413 ) ( 1,764 ) 
 Global Services 13,474 3,618 3,329 
 
 Segment operating earnings/(loss) 6,267 ( 9,764 ) ( 70 ) 
 Unallocated items, eliminations and other ( 3,031 ) ( 2,047 ) ( 1,759 ) 
 FAS/CAS service cost adjustment 1,045 1,104 1,056 
 Earnings/(loss) from operations 4,281 ( 10,707 ) ( 773 ) 
 Other income, net 1,125 1,222 1,227 
 Interest and debt expense ( 2,771 ) ( 2,725 ) ( 2,459 ) 
 Earnings/(loss) before income taxes 2,635 ( 12,210 ) ( 2,005 ) 
 Income tax (expense)/benefit ( 397 ) 381 ( 237 ) 
 
 
 Net earnings/(loss) 2,238 ( 11,829 ) ( 2,242 ) 
 Less: Net earnings/(loss) attributable to noncontrolling interest 3 ( 12 ) ( 20 ) 
 Net earnings/(loss) attributable to Boeing shareholders 2,235 ( 11,817 ) ( 2,222 ) 
 Less: Mandatory convertible preferred stock dividends accumulated during the period 345 58 
 Net earnings/(loss) attributable to Boeing common shareholders $ 1,890 ($ 11,875 ) ($ 2,222 ) 

 This information is an integral part of the Notes to the Consolidated Financial Statements. See Note 24 for further segment results. 
 
 
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 The Boeing Company and Subsidiaries 
 Notes to the Consolidated Financial Statements 
 Years ended December 31, 2025, 2024 and 2023 
 (Dollars in millions, except otherwise stated) 
 
 Note 1 – Summary of Significant Accounting Policies 
 Principles of Consolidation and Basis of Presentation 
 The Consolidated Financial Statements included in this report have been prepared by management of The Boeing Company (herein referred to as “Boeing,” the “Company,” “we,” “us” or “our”). These statements include the accounts of all majority-owned subsidiaries and variable interest entities that are required to be consolidated. All significant intercompany accounts and transactions have been eliminated. As described in Note 24, we operate in three reportable segments: Commercial Airplanes (BCA), Defense, Space & Security (BDS), and Global Services (BGS). 
 Use of Estimates 
 The preparation of financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. 
 Operating Cycle 
 For classification of certain current assets and liabilities, we use the duration of the related contract or program as our operating cycle, which is generally longer than one year. 
 Revenue and Related Cost Recognition 
 Commercial aircraft contracts The majority of our BCA segment revenue is derived from commercial aircraft contracts. For each contract, we determine the transaction price based on the consideration expected to be received. We allocate the transaction price to each commercial aircraft performance obligation based on relative standalone selling prices adjusted by an escalation formula as specified in the customer agreement. Revenue is recognized for each commercial aircraft performance obligation at the point in time when the aircraft is completed and accepted by the customer. We use program accounting to determine the amount reported as cost of sales. 
 Payments for commercial aircraft sales are received in accordance with the customer agreement, which generally includes a deposit upon order and additional payments in accordance with a payment schedule, with the balance being due immediately prior to or at aircraft delivery. Advances and progress billings (contract liabilities) are normal and customary for commercial aircraft contracts and not considered a significant financing component as they are intended to protect us from the other party failing to adequately complete some or all of its obligations under the contract. 
 Long-term contracts Substantially all contracts at BDS and certain contracts at BGS are long-term contracts with the U.S. government and other customers that generally extend over several years. Products sales under long-term contracts primarily include fighter jets, rotorcraft, cybersecurity products, surveillance suites, advanced weapons, missile defense, military derivative aircraft, satellite systems and modification of commercial passenger aircraft to cargo freighters. 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. 
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 For each long-term contract, we determine the transaction price based on the consideration expected to be received. We allocate the transaction price to each distinct performance obligation to deliver a good or service, or a collection of goods and/or services, based on the relative standalone selling prices. A long-term contract will typically represent a single distinct performance obligation due to the highly interdependent and interrelated nature of the underlying goods and/or services and the significant service of integration that we provide. While the scope and price on certain long-term contracts may be modified over their life, the transaction price is based on current rights and obligations under the contract and does not include potential modifications until they are agreed upon with the customer. When applicable, a cumulative adjustment or separate recognition for the additional scope and price may result. Long-term contracts can be negotiated with a fixed price or a price in which we are reimbursed for costs incurred plus an agreed upon profit. The Federal Acquisition Regulations provide guidance on the types of cost that will be reimbursed in establishing the price for contracts with the U.S. government. Certain long-term contracts include in the transaction price variable consideration, such as incentive and award fees, if specified targets are achieved. The amount included in the transaction price represents the expected value, based on a weighted probability, or the most likely amount. 
 Long-term contract revenue is recognized over the contract term (over time) as the work progresses, either as products are produced or as services are rendered. We generally recognize revenue over time as we perform on long-term contracts because of continuous transfer of control to the customer. For U.S. government contracts, this continuous transfer of control to the customer is supported by clauses in the contract that allow the customer to unilaterally terminate the contract for convenience, pay us for costs incurred plus a reasonable profit and take control of any work in process. Similarly, for non-U.S. government contracts, the customer typically controls the work in process as evidenced either by contractual termination clauses or by our rights to payment of the transaction price associated with work performed to date on products or services that do not have an alternative use to the Company. 
 The accounting for long-term contracts involves a judgmental process of estimating total revenues, costs and profit for each performance obligation. Cost of sales is recognized as incurred. The amount reported as revenues is determined by adding a proportionate amount of the estimated profit to the amount reported as cost of sales. Recognizing revenue as costs are incurred provides an objective measure of progress on the long-term contract and thereby best depicts the extent of transfer of control to the customer. 
 For long-term contracts for which revenue is recognized over time, changes in estimated revenues, cost of sales and the related effect on operating income are recognized using a cumulative catch-up adjustment which recognizes in the current period the cumulative effect of the changes on current and prior periods based on a long-term contract’s percentage-of-completion. When the current estimates of total revenues and costs at completion for a long-term contract indicate a loss, a provision for the entire reach-forward loss on the long-term contract is recognized. 
 The table below reflects the impact of net cumulative catch-up adjustments for changes in estimated revenues and costs at completion across all long-term contracts including the impact to Earnings/(loss) from operations from changes in estimated losses on unexercised options for the years ended December 31: 
 
 2025 2024 2023 
 Decrease to Revenue ($ 916 ) ($ 2,794 ) ($ 1,706 ) 
 Decrease/increase to Earnings/(loss) from operations 
 ($ 1,377 ) ($ 6,562 ) ($ 2,943 ) 
 Decrease/increase to Diluted earnings/(loss) per share 
 ($ 1.53 ) ($ 9.83 ) ($ 5.43 ) 

 Significant adjustments during the three years ended December 31, 2025, 2024 and 2023, included losses on KC-46A Tanker, VC-25B, T-7A Red Hawk, MQ-25, and Commercial Crew programs. 
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 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. The U.S. government customer typically withholds payment of a small portion of the contract price until contract completion. Therefore, long-term contracts typically generate Unbilled receivables (contract assets) but may generate Advances and progress billings (contract liabilities). Long-term contract Unbilled receivables and Advances and progress billings are not considered a significant financing component because they are intended to protect either the customer or the Company in the event that some or all of the obligations under the contract are not completed. 
 Commercial spare parts contracts Certain contracts at our BGS segment include sales of commercial spare parts. For each contract, we determine the transaction price based on the consideration expected to be received. The spare parts have discrete unit prices that represent fair value. We generally consider each spare part to be a separate performance obligation. Revenue is recognized for each commercial spare part performance obligation at the point in time of delivery to the customer. We may provide our customers with a right to return a commercial spare part where a customer may receive a full or partial refund, a credit applied to amounts owed, a different product in exchange, or any combination of these items. We consider the potential for customer returns in the estimated transaction price. The amount reported as cost of sales is recorded at average cost. Payments for commercial spare parts sales are typically received shortly after delivery. 
 Other service revenue contracts Certain contracts at our BGS segment are for sales of services to commercial customers including maintenance, training, and digital solutions and analytics. We recognize revenue for these service performance obligations over time as the services are rendered. The method of measuring progress (such as straight-line or billable amount) varies depending upon which method best depicts the transfer of control to the customer based on the type of service performed. Cost of sales is recorded as incurred. 
 Concession sharing arrangements We account for sales concessions to our customers in consideration of their purchase of products and services as a reduction of the transaction price and the revenue that is recognized for the related performance obligations. The sales concessions incurred may be partially reimbursed by certain suppliers in accordance with concession sharing arrangements. We record these reimbursements, which are presumed to represent reductions in the price of the vendor’s products or services, as a reduction in Cost of products. 
 Unbilled receivables and advances and progress billings Unbilled receivables (contract assets) arise when the Company recognizes revenue for amounts which cannot yet be billed under terms of the contract with the customer. Advances and progress billings (contract liabilities) arise when the Company receives payments from customers in advance of recognizing revenue. The amount of Unbilled receivables or Advances and progress billings is determined for each contract. 
 Financial services revenue We record financial services revenue associated with sales-type leases, operating leases and loans in Sales of services on the Consolidated Statements of Operations. For sales-type leases, we recognize selling profit or loss at lease inception if collection of the lease payments is probable. For sales-type leases, we record financing receivables at lease inception. A financing receivable is recorded at the aggregate of future lease payments, estimated residual value of the leased equipment, and any deferred incremental direct costs less unearned income. Income is recognized over the life of the lease to approximate a level rate of return on the net investment. For notes receivable, we record financing receivables net of any unamortized discounts and deferred 
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 incremental direct costs. Interest income and amortization of any discounts are recorded ratably over the related term of the note. 
 Income recognition is generally suspended for financing receivables that are uncollectible. We determine that a financing receivable is uncollectible when, based on current information and events, it is probable that we will be unable to collect amounts due according to the original contractual terms. We determine a financing receivable is past due when cash has not been received upon the due date specified in the contract. 
 We evaluate the collectability of financing receivables at commencement and on a recurring basis. If a financing receivable is determined to be uncollectible, the customer is categorized as non-accrual status. When a customer is in non-accrual status at commencement, sales-type lease revenue is deferred until substantially all cash has been received or the customer is removed from non-accrual status. If we have a note receivable with a customer that is in non-accrual status, or a sales-type lease with a customer that changes to non-accrual status after commencement, we recognize contractual interest income as payments are received to the extent there is sufficient collateral and payments exceed past due principal payments. 
 Residual values, which are reviewed periodically, represent the estimated amount we expect to receive at lease termination from the disposition of the leased equipment. Actual residual values realized could differ from these estimates. Declines in estimated residual value that are deemed other-than-temporary are recognized in the period in which the declines occur. 
 For operating leases, revenue on leased aircraft and equipment is recorded on a straight-line basis over the term of the lease. Operating lease assets, included in Financing receivables and operating lease equipment, net, are recorded at cost and depreciated to an estimated residual value using the straight-line method over the period that we project we will hold the asset. We periodically review our estimates of residual value and recognize forecasted changes by prospectively adjusting depreciation expense. We record assets held for sale at the lower of carrying value or fair value less costs to sell. We evaluate for impairment assets under operating leases when events or changes in circumstances indicate that the expected undiscounted cash flow from the asset may be less than the carrying value. 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 Our wholly-owned insurance subsidiary, Astro Ltd., participates in a reinsurance pool for workers’ compensation. The member agreements and practices of the reinsurance pool minimize any participating members’ individual risk. Reinsurance revenues were $ 99 , $ 110 and $ 163 during 2025, 2024 and 2023, respectively. Reinsurance costs related to premiums and claims paid to the reinsurance pool were $ 123 , $ 123 and $ 181 during 2025, 2024 and 2023, respectively. Revenues and costs are presented net in Cost of products and Cost of services in the Consolidated Statements of Operations. 
 Research and Development 
 Research and development includes costs incurred for experimentation, design and testing, as well as bid and proposal efforts related to government products and services, which are expensed as incurred unless the costs are related to certain contractual arrangements with customers. Costs that are incurred pursuant to such contractual arrangements are recorded over the period that revenue is recognized, consistent with our long-term contract accounting policy. We have certain research and development arrangements 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. Research and development expense, net included bid and proposal costs of $ 161 , $ 179 and $ 188 in 2025, 2024 and 2023, respectively. 
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 Share-Based Compensation 
 We provide various forms of share-based compensation to our employees. For awards settled in shares, we measure compensation expense based on the grant-date fair value net of estimated forfeitures. For awards settled in cash, or that may be settled in cash, we measure compensation expense based on the fair value at each reporting date net of estimated forfeitures. The expense is recognized over the requisite service period, which is generally the vesting period of the award. 
 Income Taxes 
 Provisions for U.S. federal, state and local, and non-U.S. income taxes are calculated on reported Earnings/(loss) before income taxes based on current tax law and also include, in the current period, the cumulative effect of any changes in tax rates from those used previously in determining deferred tax assets and liabilities. Such provisions differ from the amounts currently receivable or payable because certain items of income and expense are recognized in different time periods for financial reporting purposes than for income tax purposes. Significant judgment is required in determining income tax provisions and evaluating tax positions. 
 The accounting for uncertainty in income taxes requires a more-likely-than-not threshold for financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. We record a liability for the difference between the benefit recognized and measured for financial statement purposes and the tax position taken or expected to be taken on our tax return. To the extent that our assessment of such tax positions changes, the change in estimate is recorded in the period in which the determination is made. Tax-related interest and penalties are classified as a component of Income tax (expense)/benefit. 
 We also assess the likelihood that we will be able to recover our deferred tax assets against future sources of taxable income and reduce the carrying amounts of deferred tax assets by recording a valuation allowance if, based on the available evidence, it is more likely than not that all or a portion of such assets will not be realized. Changes in our estimates and judgments regarding realization of deferred tax assets may result in an increase or decrease to our tax expense and/or other comprehensive income, which would be recorded in the period in which the change occurs. 
 Postretirement Plans 
 Many of our employees have earned benefits under defined benefit pension plans. The majority of employees that had participated in defined benefit pension plans have transitioned to a company-funded defined contribution retirement savings plan. We also provide postretirement benefit plans other than pensions, consisting principally of health care coverage to eligible retirees and qualifying dependents. Benefits under the pension and other postretirement benefit plans are generally based on age at retirement and years of service and, for some pension plans, benefits are also based on the employee’s annual earnings. The net periodic cost of our pension and other postretirement plans is determined using the projected unit credit method and several actuarial assumptions, the most significant of which are the discount rate, the long-term rate of asset return and medical trend (rate of growth for medical costs). Actuarial gains and losses, which occur when actual experience differs from actuarial assumptions, are reflected in Shareholders’ equity (net of taxes). If actuarial gains and losses exceed 10 percent of the greater of plan assets or plan liabilities, we amortize them over the average expected future lifetime of participants. The funded status of our pension and postretirement plans is reflected on the Consolidated Statements of Financial Position. 
 Postemployment Plans 
 We record a liability for postemployment benefits, such as severance or job training, when payment is probable and the amount is reasonably estimable. 
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 Environmental Remediation 
 We are subject to federal and state requirements for protection of the environment, including those for discharge of hazardous materials and remediation of contaminated sites. We routinely assess, based on in-depth studies, expert analyses and legal reviews, our contingencies, obligations and commitments for remediation of contaminated sites, including assessments of ranges and probabilities of recoveries from other responsible parties and/or insurance carriers. Our policy is to accrue and charge to current expense identified exposures related to environmental remediation sites when it is probable that a liability has been incurred and the amount can be reasonably estimated. The amount of the liability is based on our best estimate or the low end of a range of reasonably possible exposure for investigation, cleanup and monitoring costs to be incurred. Estimated remediation costs are not discounted to present value as the timing of payments cannot be reasonably estimated. We may be able to recover a portion of the remediation costs from insurers or other third parties. Such recoveries are recorded when realization of the claim for recovery is deemed probable. 
 Cash and Cash Equivalents 
 Cash and cash equivalents consist of highly liquid instruments, such as commercial paper, time deposits and other money market instruments, which have original maturities of three months or less. We aggregate our cash balances by bank where conditions for right of set-off are met, and reclassify any negative balances, consisting mainly of uncleared checks, to Accounts payable. Negative balances reclassified to Accounts payable were $ 127 and $ 110 at December 31, 2025 and 2024. 
 Inventories 
 Inventoried costs on commercial aircraft programs and long-term contracts include direct engineering, production and tooling and other non-recurring costs, and applicable overhead, which includes fringe benefits, production related indirect and plant management salaries and plant services, not in excess of estimated net realizable value. To the extent a material amount of such costs are related to an abnormal event or are fixed costs not appropriately attributable to our programs or contracts, they are expensed in the current period rather than inventoried. Inventoried costs include amounts relating to programs and contracts with long-term production cycles, a portion of which is not expected to be realized within one year. Included in inventory for federal government contracts is an allocation of allowable costs related to manufacturing process reengineering. 
 Commercial aircraft programs inventory includes deferred production costs and supplier advances. Deferred production costs represent actual costs incurred for production of early units that exceed the estimated average cost of all units in the program accounting quantity. Higher production costs are experienced at the beginning of a new or derivative aircraft program. Units produced early in a program require substantially more effort (labor and other resources) than units produced later in a program because of volume efficiencies and the effects of learning. We expect that these deferred costs will be fully recovered when all units included in the accounting quantity are delivered as the expected unit cost for later deliveries is below the estimated average cost of all units in the program. Supplier advances represent payments for parts we have contracted to receive from suppliers in the future. As parts are received, supplier advances are amortized to work in process. 
 The determination of net realizable value of long-term contract costs is based upon quarterly reviews that estimate costs to be incurred to complete all contract requirements. When actual contract costs and the estimate to complete exceed total estimated contract revenues, a loss provision is recorded. The determination of net realizable value of commercial aircraft program costs is based upon quarterly program reviews that estimate revenue and cost to be incurred to complete the program accounting quantity. When estimated costs to complete exceed estimated program revenues to go, a program loss provision is recorded in the current period for the estimated loss on all undelivered units in the accounting quantity. 
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 Used aircraft purchased by our BCA segment and general stock materials are stated at cost not in excess of net realizable value. Spare parts inventory is stated at lower of average unit cost or net realizable value. We review our commercial spare parts and general stock materials quarterly to identify impaired inventory, including excess or obsolete inventory, based on historical sales trends, expected production usage, and the size and age of the aircraft fleet using the part. Impaired inventories are charged to Cost of products in the period the impairment occurs. 
 Included in inventory for commercial aircraft programs are amounts paid or credited in cash, or other consideration to certain airline customers, that are referred to as early issue sales consideration. Early issue sales consideration is recognized as a reduction to revenue when the delivery of the aircraft under contract occurs. If an airline customer does not perform and take delivery of the contracted aircraft, we believe that we would have the ability to recover amounts paid. However, to the extent early issue sales consideration exceeds advances and is not considered to be otherwise recoverable, it would be written off against revenue of the current period. 
 Precontract Costs 
 We may, from time to time, incur costs in excess of the amounts required for existing contracts. If we determine the costs are probable of recovery from future orders, then we capitalize the precontract costs we incur, excluding start-up costs which are expensed as incurred. Capitalized precontract costs are included in Inventories in the accompanying Consolidated Statements of Financial Position. Should future orders not materialize or we determine the costs are no longer probable of recovery, the capitalized costs would be written off. 
 Property, Plant and Equipment 
 Property, plant and equipment are recorded at cost, including applicable construction-period interest, less accumulated depreciation and are depreciated principally over the following estimated useful lives: new buildings and land improvements, from 10 to 40 years; and new machinery and equipment, from four to 20 years. 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 five years . Capitalized costs of software purchased as a service are included in Other assets, net and amortized using the straight line method over the term of the hosting arrangement, which is typically no greater than 10 years. We periodically evaluate the appropriateness of remaining depreciable lives assigned to long-lived assets, including assets that may be subject to a management plan for disposition. 
 Long-lived assets held for sale are stated at the lower of cost or fair value less cost to sell. Long-lived assets held for use are subject to an impairment assessment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If the carrying value is no longer recoverable based upon the undiscounted future cash flows of the asset, the amount of the impairment is the difference between the carrying amount and the fair value of the asset. 
 Leases 
 We determine if an arrangement is, or contains, a lease 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. Assets under finance leases, which primarily represent computer equipment, are included in Property, plant and equipment, net, with the related liabilities included in Short-term debt and current portion of long-term debt and Long-term debt on the Consolidated Statements of Financial Position. 
 Operating lease assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease 
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 assets and liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term. We use our estimated incremental borrowing rate in determining the present value of lease payments. Variable components of the lease payments such as fair market value adjustments, utilities and maintenance costs are expensed as incurred and not included in determining the present value. Our lease terms include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for operating leases is recognized on a straight-line basis over the lease term. 
 We have real property lease agreements with lease and non-lease components which are accounted for as a single lease component. 
 Asset Retirement Obligations 
 We record all known asset retirement obligations for which the liability’s fair value can be reasonably estimated, including certain asbestos removal, asset decommissioning and contractual lease restoration obligations. Recorded amounts are not material. 
 We also have known conditional asset retirement obligations, such as certain asbestos remediation and asset decommissioning activities to be performed in the future, that are not reasonably estimable due to insufficient information about the timing and method of settlement of the obligation. Accordingly, these obligations have not been recorded in the Consolidated Financial Statements. A liability for these obligations will be recorded in the period when sufficient information regarding timing and method of settlement becomes available to make a reasonable estimate of the liability’s fair value. In addition, there may be conditional asset retirement obligations that we have not yet discovered (e.g. asbestos may exist in certain buildings but we have not become aware of it through the normal course of business), and therefore, these obligations also have not been included in the Consolidated Financial Statements. 
 Goodwill and Other Acquired Intangibles 
 Goodwill and other acquired intangible assets with indefinite lives are not amortized, but are tested for impairment annually and when an event occurs or circumstances change such that it is more likely than not that an impairment may exist. Our annual testing date is April 1. 
 We test goodwill for impairment by performing a qualitative assessment or using a quantitative test. If we choose to perform a qualitative assessment and determine it is more likely than not that the carrying value of the net assets is more than the fair value of the related operations, the quantitative test is then performed; otherwise, no further testing is required. For operations where the quantitative test is used, we compare the carrying value of net assets to the estimated fair value of the related operations. If the fair value is determined to be less than carrying value, the shortfall up to the carrying value of the goodwill represents the amount of goodwill impairment. 
 We performed our annual goodwill impairment test as of April 1, 2025, 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, 2025. 
 Indefinite-lived intangibles consist of in-process research and development (IPR&D) acquired in a business combination. IPR&D is initially capitalized at fair value as an intangible asset with an indefinite life and assessed for impairment thereafter. IPR&D is reclassified to finite-lived acquired intangible assets when a project is completed and then amortized on a straight-line basis over the asset’s estimated useful life. We test IPR&D for impairment by comparing the carrying value to current projections of related discounted cash flows. Any excess carrying value over the amount of discounted cash flows represents the amount of the impairment. 
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 Our finite-lived acquired intangible assets are amortized on a straight-line basis over their estimated useful lives as follows: developed technology, from three to 10 years; product know-how, from nine to 13 years; customer base, from seven to 17 years; distribution rights, from eight to 24 years; and other, from three to 32 years. We evaluate the potential impairment of finite-lived acquired intangible assets whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If the carrying value is no longer recoverable based upon the undiscounted future cash flows of the asset, the amount of the impairment is the difference between the carrying amount and the fair value of the asset. 
 Investments 
 Time deposits are held-to-maturity investments that are carried at cost. 
 Available-for-sale debt 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. Realized gains and losses on available-for-sale debt investments are recognized based on the specific identification method. Available-for-sale debt investments are assessed for impairment quarterly. 
 The equity method of accounting is used to account for investments for which we have the ability to exercise significant influence, but not control, over an investee. Significant influence is generally deemed to exist if we have an ownership interest in the voting stock of an investee of between 20% and 50%. The cumulative earnings approach is used for cash flow classification of distributions received from equity method investments. 
 Other Equity investments are recorded at fair value, with gains and losses recorded through net earnings. Equity investments without readily determinable fair value are measured at cost, less impairments, plus or minus observable price changes. Equity investments without readily determinable fair value are assessed for impairment quarterly. 
 We classify investment income and loss on our Consolidated Statements of Operations based on whether the investment is operating or non-operating in nature. Operating investments align strategically and are integrated with our operations. Earnings from operating investments, including our share of income or loss from equity method investments, dividend income from other equity investments, and any impairments or gain/loss on the disposition of these investments, are recorded in Income from operating investments, net. Non-operating investments are those we hold for non-strategic purposes. Earnings from non-operating investments, including interest and dividends on marketable securities, and any impairments or gain/loss on the disposition of these investments are recorded in Other income, net. 
 Derivatives 
 All derivative instruments are recognized in the financial statements and measured at fair value regardless of the purpose or intent of holding them. We 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. 
 We hold certain other derivative instruments for economic purposes. These derivative instruments are derivatives for accounting purposes but are not designated as hedges for accounting purposes. For derivative instruments not designated for hedge accounting treatment, the changes in their fair value are recorded in earnings immediately. 
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 Allowances for Losses on Certain Financial Assets 
 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. Collateral exposure is the excess of the carrying value of a financial asset over the fair value of the related collateral. We determine the creditworthiness of our customers by assigning internal credit ratings based upon publicly available information and information obtained directly from the customers. Our rating categories are comparable to those used by major credit rating agencies. 
 Financing receivables are collateralized by security in the related asset. We use a median calculated from published collateral values from multiple third-party aircraft value publications based on the type and age of the aircraft to determine the fair value of aircraft collateral. 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 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 
 In conjunction with signing a definitive agreement for the sale of new commercial aircraft (Sale Aircraft), we have entered into trade-in commitments with certain customers that give them the right to trade in used aircraft at a specified price. 
 Exposure related to trade-in commitments may take the form of: 
 (1) adjustments to revenue for the difference between the contractual trade-in price in the definitive agreement and our best estimate of the fair value of the trade-in aircraft as of the date of such agreement, which would be recognized upon delivery of the Sale Aircraft, and/or 
 (2) charges to cost of products for adverse changes in the fair value of trade-in aircraft that occur subsequent to signing of a definitive agreement for Sale Aircraft but prior to the purchase of the used trade-in aircraft. Estimates based on current aircraft values would be included in Accrued liabilities. 
 The fair value of trade-in aircraft is determined using aircraft-specific data such as model, age and condition, market conditions for specific aircraft and similar models, and multiple valuation sources. This process uses our assessment of the market for each trade-in aircraft, which in most instances begins years before the return of the aircraft. There are several possible markets in which we continually pursue opportunities to place used aircraft. These markets include, but are not limited to, the resale market, which could potentially include the cost of long-term storage; the leasing market, with the potential for refurbishment costs to meet the leasing customer’s requirements; or the scrap market. Trade-in aircraft valuation varies significantly depending on which market we determine is most likely for each aircraft. On a quarterly basis, we update our valuation analysis based on the actual activities associated with placing each aircraft into a market or using current published third-party aircraft valuations based on the type and age of the aircraft, adjusted for individual attributes and known conditions. 
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 Warranties 
 In conjunction with certain product sales, we provide warranties that cover factors such as non-conformance to specifications and defects in material and design. The majority of our warranties are issued by our BCA segment. Generally, aircraft sales are accompanied by a three to four -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. Warranties issued by our BDS segment principally relate to sales of military aircraft and weapons systems. These sales are generally accompanied by a six month to two-year warranty period and cover systems, accessories, equipment, parts and software manufactured by us to certain contractual specifications. Estimated costs related to standard warranties are recorded in the period in which the related product delivery occurs. The warranty liability recorded at each balance sheet date reflects the estimated number of months of warranty coverage outstanding for products delivered times the average of historical monthly warranty payments, as well as additional amounts for certain major warranty issues that exceed a normal claims level. Estimated costs of these additional warranty issues are considered changes to the initial liability estimate. 
 We provide guarantees to certain commercial aircraft customers which include compensation provisions for failure to meet specified aircraft performance targets. We account for these performance guarantees as warranties. The estimated liability for these warranties is based on known and anticipated operational characteristics and forecasted customer operation of the aircraft relative to contractually specified performance targets, and anticipated settlements when contractual remedies are not specified. Estimated payments are recorded as a reduction of revenue at delivery of the related aircraft. We have agreements that require certain suppliers to compensate us for amounts paid to customers for failure of supplied equipment to meet specified performance targets. Claims against suppliers under these agreements are included in Inventories and recorded as a reduction in Cost of products at delivery of the related aircraft. These performance warranties and claims against suppliers are included in estimates to complete the related programs. 
 Supplier Penalties 
 We may incur penalties to suppliers under certain circumstances such as a contract termination. We record an accrual for supplier penalties when an event occurs that makes it probable we will incur a supplier penalty and the amount is reasonably estimable. 
 Guarantees 
 At the inception of a guarantee, we record a liability in Accrued liabilities for the fair value of the guarantee. For credit guarantees, the liability is equal to the present value of the expected loss. We determine the expected loss by multiplying the creditor’s default rate by the guarantee amount reduced by the expected recovery, if applicable. We also recognize a liability for the expected contingent loss at inception and adjust it each quarter. 
 
 Note 2 – Spirit Acquisition 
 On December 8, 2025, we completed our acquisition of Spirit AeroSystems Holdings, Inc. (Spirit) pursuant to the Agreement and Plan of Merger dated June 30, 2024 (Merger Agreement). In connection with the closing of the transactions contemplated by the Merger Agreement (Spirit Acquisition), Boeing became the ultimate parent company of Spirit and its respective subsidiaries, including Spirit AeroSystems, Inc. (Spirit Sub). The Spirit Acquisition enables Boeing and Spirit to align our commercial production systems, including our Safety and Quality Management Systems, and our workforces to the 
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 same priorities, incentives and outcomes. 
 Total consideration for the Spirit Acquisition was $ 8,371 comprised of the following: 
 
 Boeing common stock exchanged for Spirit common stock (1) 
 $ 4,704 
 Settlement of loans, advances and other payments to Spirit 
 2,571 
 Debt repaid on Spirit’s behalf 948 
 Premium on assumed Spirit Exchangeable Notes 
 109 
 Exchange of Spirit share-based awards (1) 
 39 
 Fair value of total consideration 
 $ 8,371 

 (1) Fair value of consideration reflects the price per share of Boeing common stock on the acquisition date. 
 In accordance with the Merger Agreement, 117.5 million shares of Spirit common stock were exchanged for 22.98 million shares of Boeing common stock at an exchange ratio of 0.1955 . The exchange ratio was calculated as $ 37.25 divided by the $ 190.493 volume weighted average price per share of Boeing common stock on the New York Stock Exchange for the 15 -trading-day period ended on December 4, 2025. 
 Since 2023, Boeing has provided funding in the form of loans and advance payments to Spirit to support its liquidity, rate readiness, and 787 tooling and capital expenditures. Pursuant to the terms of the Merger Agreement, Boeing also provided funding to Spirit for the portion of the payment to Airbus SE (Airbus) that Spirit was unable to satisfy with cash on hand as of the closing of the transactions contemplated by the Stock and Asset Purchase Agreement, dated April 27, 2025, between Spirit and Airbus, which closing occurred concurrently with the Spirit Acquisition. Such amounts totaling $ 2,571 were deemed to be consideration. 
 We expensed $ 53 of acquisition related costs in the Consolidated Statements of Operations as General and administrative expense during the year ended December 31, 2025. The results of Spirit’s operations between the acquisition date and December 31, 2025, were not material. We have determined disclosure of 2025 and 2024 proforma revenue and earnings of Boeing combined with the acquired Spirit business is impracticable. Historical financial results of the acquired portion of the Spirit business are not readily available. To prepare proforma revenue and earnings would require revising historical estimates used in our long-term contract and program accounting as if the Spirit Acquisition had occurred at January 1, 2024 which is impracticable. 
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 The preliminary allocation of the purchase price was as follows: 
 
 Cash and cash equivalents 
 $ 281 
 Accounts receivable 
 339 
 Unbilled receivables 
 126 
 Inventories 1,438 
 Property, plant and equipment 
 2,419 
 Goodwill 9,997 
 Acquired intangible assets 
 109 
 Other assets 
 116 
 Accounts payable ( 953 ) 
 Accrued liabilities 
 ( 1,784 ) 
 Advances and progress billings 
 ( 97 ) 
 Short-term debt and current portion of long-term debt ( 329 ) 
 Other long-term liabilities 
 ( 178 ) 
 Long-term debt ( 3,279 ) 
 Other 166 
 Total net assets acquired $ 8,371 

 The amounts recorded for acquired assets and assumed liabilities are preliminary and are based on the information available as of the reporting date. The primary areas that remain preliminary relate to the fair values of inventories, property, plant and equipment, goodwill, intangible assets, and off-market contracts. The Company will continue to adjust the provisional estimates as additional information becomes available and final valuation and analyses are completed. Provisional goodwill of $ 9,997 associated with the Spirit Acquisition was provisionally assigned to our BCA segment as we expect the majority of synergies from the Spirit Acquisition to relate to the commercial airplane segment. The acquired intangible assets primarily relate to customer relationships and have a weighted-average useful life of five years . Accrued liabilities includes $ 1,065 for the fair value of off-market customer contracts measured as the present value of the amount by which the terms of the contract deviated from the terms that a market participant could have achieved. Future estimated revenues from the amortization of off-market contract liabilities is as follows: 
 
 2026 
 2027 
 2028 
 2029 
 2030 
 
 Estimated revenue 
 $ 113 $ 133 $ 129 $ 102 $ 97 

 We expect to finalize the purchase price allocation as soon as practicable, but no later than one year from the acquisition date. Approximately $ 30 of the acquired goodwill and intangible assets is deductible for tax purposes. 
 
 Note 3 – Digital Aviation Solutions Divestiture 
 On October 31, 2025, we closed on the sale of portions of our BGS segment’s Digital Aviation Solutions business (Digital Aviation Solutions Divestiture) to Thoma Bravo for proceeds of $ 10,550 . The sale included Jeppesen, ForeFlight, AerData and OzRunways assets and liabilities and resulted in a gain of $ 9,566 recorded in Gain on dispositions, net in the Consolidated Statements of Operations. 
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 Note 4 – Goodwill and Acquired Intangibles 
 Changes in the carrying amount of goodwill for the years ended December 31, 2025 and 2024 were as follows: 
 
 Commercial
Airplanes Defense, Space & Security Global Services Other Total 
 Balance at December 31, 2023 $ 1,319 $ 3,235 $ 3,454 $ 85 $ 8,093 
 Acquisitions 9 9 18 
 Dispositions ( 17 ) ( 17 ) 
 Goodwill adjustments ( 10 ) ( 10 ) 
 Balance at December 31, 2024 $ 1,328 $ 3,218 $ 3,444 $ 94 $ 8,084 
 Spirit Acquisition 9,997 9,997 
 Digital Aviation Solutions Divestiture ( 810 ) ( 810 ) 
 Other dispositions 
 ( 6 ) ( 6 ) 
 Goodwill adjustments 10 10 
 Balance at December 31, 2025 $ 11,325 $ 3,218 $ 2,638 $ 94 $ 17,275 

 As of December 31, 2025 and 2024, we had indefinite-lived intangible assets with carrying amounts of $ 0 and $ 197 relating to trade names. As of December 31, 2025 and 2024, we had an indefinite-lived intangible asset with a carrying amount of $ 202 related to in process research and development for a next-generation air vehicle. 
 The gross carrying amounts and accumulated amortization of our acquired finite-lived intangible assets were as follows at December 31: 
 
 2025 2024 
 Gross
Carrying
Amount Accumulated
Amortization Gross
Carrying
Amount Accumulated
Amortization 
 Distribution rights $ 2,509 $ 1,670 $ 2,501 $ 1,554 
 Product know-how 222 213 546 475 
 Customer base 1,217 748 1,315 851 
 Developed technology 533 509 573 528 
 Other 219 195 278 247 
 Total $ 4,700 $ 3,335 $ 5,213 $ 3,655 

 Amortization expense for acquired finite-lived intangible assets for the years ended December 31, 2025 and 2024 was $ 204 and $ 223 . Estimated amortization expense for the five succeeding years is as follows: 
 
 2026 2027 2028 2029 2030 
 Estimated amortization expense $ 197 $ 182 $ 155 $ 150 $ 144 

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 Note 5 – Earnings Per Share 
 Basic and diluted earnings per share are computed using the two-class method, which is an earnings allocation method that determines earnings per share for common shares and participating securities. The undistributed earnings are allocated between common shares and participating securities as if all earnings had been distributed during the period. Participating securities and common shares have equal rights to undistributed earnings. 
 Basic earnings per share is calculated by taking net earnings attributable to Boeing shareholders, less 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 stock and Exchangeable Notes. Under the if-converted method, if the potential conversion of our Mandatory convertible preferred stock and/or Exchangeable Notes is dilutive, net earnings attributable to Boeing shareholders is adjusted to add back the Mandatory convertible preferred stock dividends accumulated during the period and/or the periodic interest expense on the Exchangeable Notes, net of tax. 
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 The elements used in the computation of Basic and Diluted earnings/(loss) per share were as follows: 
 
 (In millions - except per share amounts) 
 
 Years ended December 31, 2025 2024 2023 
 Basic 
 Net earnings/(loss) attributable to Boeing shareholders $ 2,235 ($ 11,817 ) ($ 2,222 ) 
 Less: Mandatory convertible preferred stock dividends accumulated during the period 345 58 
 Less: earnings available to participating securities 1 
 Net earnings/(loss) available to common shareholders $ 1,889 ($ 11,875 ) ($ 2,222 ) 
 Diluted 
 Basic Net earnings/(loss) available to common shareholders 
 $ 1,889 ($ 11,875 ) ($ 2,222 ) 
 Add: Mandatory convertible preferred stock dividends accumulated during the period 
 
 Add: interest expense on Exchangeable Notes, net of tax 
 
 Net earnings/(loss) available to common shareholders $ 1,889 ($ 11,875 ) ($ 2,222 ) 
 Basic 
 Basic weighted average shares outstanding 
 760.0 647.2 606.1 
 Less: participating securities (1) 
 0.2 0.3 0.3 
 Basic weighted average common shares outstanding 
 759.8 646.9 605.8 
 Diluted 
 Basic weighted average shares outstanding 
 760.0 647.2 606.1 
 Dilutive potential common shares (2) 
 2.5 
 Diluted weighted average shares outstanding 
 762.5 647.2 606.1 
 Less: participating securities (1) 
 0.2 0.3 0.3 
 Diluted weighted average common shares outstanding 
 762.3 646.9 605.8 
 Net earnings/(loss) per share: 
 
 Basic 
 $ 2.49 ($ 18.36 ) ($ 3.67 ) 
 Diluted 
 2.48 ( 18.36 ) ( 3.67 ) 

 (1) Participating securities include certain instruments in our deferred compensation plan. 
 (2) Diluted earnings per share includes any dilutive impact of stock options, restricted stock units, performance restricted stock units, Mandatory convertible preferred stock and Exchangeable Notes. 
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 The following table represents potential common shares that were not included in the computation of Diluted earnings/(loss) per share. Potential common shares from performance restricted stock units, restricted stock units and stock options were not included because their effect was antidilutive based on their strike price or the performance condition was not met. Potential common shares from Mandatory convertible preferred stock and Exchangeable Notes were not included because their effect was antidilutive based on the application of the if-converted method. 
 
 (Shares in millions) 
 Years ended December 31, 2025 2024 2023 
 
 
 Performance restricted stock units 
 0.5 0.7 
 Restricted stock units 0.1 0.5 
 Stock options 0.8 0.8 0.8 
 Mandatory convertible preferred stock 
 33.8 
 Exchangeable Notes 
 0.1 

 In addition, potential common shares of 11.6 million and 5.7 million for the years ended December 31, 2024 and 2023, were excluded from the computation of Diluted earnings/(loss) per share, because the effect would have been antidilutive as a result of incurring a net loss in those periods. 
 
 Note 6 – Income Taxes 
 The components of Earnings/(loss) before income taxes were: 
 
 Years ended December 31, 2025 2024 2023 
 U.S. ($ 3,492 ) ($ 12,813 ) ($ 2,512 ) 
 Non-U.S. 6,127 603 507 
 Total $ 2,635 ($ 12,210 ) ($ 2,005 ) 

 Income tax (benefit)/expense consisted of the following: 
 
 Years ended December 31, 2025 2024 2023 
 Current tax expense/(benefit) 
 
 U.S. federal $ 2 ($ 277 ) $ 9 
 Non-U.S. 287 184 179 
 U.S. state 9 14 19 
 Total current 298 ( 79 ) 207 
 Deferred tax expense/(benefit) 
 
 U.S. federal 40 ( 71 ) 6 
 Non-U.S. ( 25 ) 3 5 
 U.S. state 84 ( 234 ) 19 
 Total deferred 99 ( 302 ) 30 
 Total income tax expense/(benefit) 
 $ 397 ($ 381 ) $ 237 

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 Net income tax payments in 2025 were as follows: 
 
 Year ended December 31, 2025 
 U.S. federal $ 37 
 U.S. state ( 5 ) 
 Non-U.S. 
 Germany 83 
 Other 160 
 Total Non-U.S. 243 
 Total net income tax payments $ 275 

 Net income tax payments were $ 187 and $ 204 in 2024 and 2023. 
 The following is a reconciliation of the U.S. federal statutory tax to actual income tax expense: 
 
 Year ended December 31, 2025 
 Amount Rate 
 U.S. federal statutory tax $ 553 21.0 % 
 State and local income tax, net of federal income tax effect (1) 
 73 2.8 
 Foreign tax effects 
 Germany - Digital Aviation Solutions Divestiture (2) 
 ( 751 ) ( 28.5 ) 
 Sweden - Digital Aviation Solutions Divestiture (2) 
 ( 393 ) ( 14.9 ) 
 Other foreign 121 4.6 
 Effect of cross-border tax laws - Global Intangible Low-Taxed Income - Digital Aviation Solutions Divestiture (3) 
 1,242 47.1 
 Tax Credits - Research and development credits ( 559 ) ( 21.2 ) 
 
 Changes in valuation allowances (4) 
 ( 50 ) ( 1.9 ) 
 Nontaxable or nondeductible items 
 Non-prosecution agreement liability 93 3.5 
 Digital Aviation Solutions Divestiture ( 61 ) ( 2.3 ) 
 Changes in prior year worldwide unrecognized tax benefits 69 2.6 
 Other provision adjustments 60 2.3 
 Income tax expense $ 397 15.1 % 

 (1) During the year ended December 31, 2025, the tax effect in this category was primarily driven by state taxes in California (greater than 50 percent). 
 (2) We recorded a tax expense of $ 59 in the foreign jurisdictions related to the Digital Aviation Solutions Divestiture. The German Digital Aviation Solutions Divestiture rate benefit was due to the statutory rate difference of ($ 203 ) ( 7.7 )% and a participation exemption of ($ 548 ) ( 20.8 )%. The Swedish rate benefit was entirely due to a participation exemption. 
 (3) Related to the Digital Aviation Solutions Divestiture, in the U.S., we recorded a Global Intangible Low-Taxed Income inclusion, which is offset by a decrease in the federal valuation allowance, resulting in no federal tax expense. 
 (4) The worldwide valuation allowance recorded in tax expense was $ 120 with $ 50 federal tax benefit shown on this line, $ 161 state tax expense included in State and Local Tax line item, and $ 9 foreign tax expense included in Foreign Tax Effects. 
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 Table of Co ntents 

 
 Years ended December 31, 2024 2023 
 Amount Rate Amount Rate 
 U.S. federal statutory tax ($ 2,564 ) 21.0 % ($ 421 ) 21.0 % 
 Valuation allowance 
 3,145 ( 25.8 ) 1,150 ( 57.3 ) 
 Federal audit settlement (1) 
 ( 490 ) 4.0 
 Research and development credits ( 409 ) 3.3 ( 472 ) 23.6 
 State income tax provision, net of effects on U.S. federal tax 
 ( 223 ) 1.8 ( 75 ) 3.7 
 Tax on non-U.S. activities 113 ( 0.9 ) 35 ( 1.8 ) 
 Impact of subsidiary shares purchased from noncontrolling interests 
 ( 29 ) 1.5 
 Other provision adjustments 47 ( 0.3 ) 49 ( 2.5 ) 
 
 
 
 Income tax (benefit)/expense 
 ($ 381 ) 3.1 % $ 237 ( 11.8 ) % 

 (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: 
 
 2025 2024 
 Federal net operating loss, credit, interest and other carryovers (1) 
 $ 9,569 $ 4,719 
 Inventory and long-term contract methods of income recognition 
 ( 5,584 ) ( 4,765 ) 
 State net operating loss, credit, interest and other carryovers (2) 
 2,035 1,353 
 Fixed assets, intangibles and goodwill ( 1,847 ) ( 1,526 ) 
 Accrued expenses and reserves 
 1,512 1,029 
 Other employee benefits 
 1,313 1,049 
 Pension benefits 880 1,045 
 International net operating loss, credit and capital loss carryovers 
 598 70 
 Other postretirement benefit obligations 562 587 
 Research Expenditures 
 278 3,936 
 Other 329 403 
 Gross deferred tax assets before valuation allowance 
 9,645 7,900 
 Valuation allowance ( 9,754 ) ( 7,837 ) 
 Net deferred tax (liabilities)/assets after valuation allowance 
 ($ 109 ) $ 63 

 (1) Of the deferred tax asset for federal net operating loss, credit, interest and other carryovers, $ 2,332 expires on or before December 31, 2045 and $ 7,237 may be carried over indefinitely. 
 (2) Of the deferred tax asset for state net operating loss, credit, interest and other carryovers, $ 1,035 expires on or before December 31, 2045 and $ 1,000 may be carried over indefinitely. 
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 Net deferred tax (liabilities)/assets at December 31 were as follows: 
 
 2025 2024 
 Deferred tax assets $ 21,065 $ 17,991 
 Deferred tax liabilities ( 11,420 ) ( 10,091 ) 
 Valuation allowance ( 9,754 ) ( 7,837 ) 
 Net deferred tax (liabilities)/assets 
 ($ 109 ) $ 63 

 The Company’s deferred income tax assets of $ 21,065 can be used in future years to offset taxable income and reduce income taxes payable. The Company’s deferred income tax liabilities of $ 11,420 will partially offset deferred income tax assets and result in higher taxable income in future years and increase income taxes payable. Tax law determines whether future reversals of temporary differences will result in taxable and deductible amounts that offset each other in future years. The particular years in which temporary differences result in taxable or deductible amounts generally are determined by the timing of the recovery of the related asset or settlement of the related liability. The deferred income tax assets and liabilities relate primarily to U.S. federal and state tax jurisdictions. From a U.S. federal tax perspective, the Company generated tax net operating losses in 2021, 2024 and 2025 and interest carryovers in 2021 through 2025 that can be carried forward indefinitely and federal research and development credits that can be carried forward 20 years. 
 Throughout 2024 and 2025, 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, 2025 and 2024, the Company has recorded valuation allowances of $ 9,754 and $ 7,837 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. 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. 
 In 2025, the Company’s valuation allowance increased by $ 1,917 , primarily reflecting $ 1,833 recorded as part of acquisition accounting against acquired Spirit deferred tax assets, as well as tax credits and other carryforwards generated in 2025 that cannot be realized in 2025. 
 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. 
 Beginning in 2024, we determined that earnings from our non-U.S. subsidiaries are no longer considered to be indefinitely reinvested. 
 As of December 31, 2025 and 2024, the amounts accrued for the payment of income tax-related interest and penalties included in the Consolidated Statements of Financial Position were not significant. The amounts of interest included in the Consolidated Statements of Operations were not significant for 2025, 2024 and 2023. 
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 A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: 
 
 2025 2024 2023 
 Unrecognized tax benefits – January 1 $ 688 $ 1,131 $ 915 
 Gross increases – tax positions in prior periods 84 38 
 Gross decreases – tax positions in prior periods ( 4 ) ( 453 ) ( 3 ) 
 Gross increases – current period tax positions 253 216 181 
 Gross decreases – current period tax positions 
 Settlements 
 ( 206 ) 
 
 
 Unrecognized tax benefits – December 31 $ 1,021 $ 688 $ 1,131 

 As of December 31, 2025, 2024 and 2023, the total amount of unrecognized tax benefits include $ 975 $ 651 and $ 1,088 , respectively, that would affect the effective tax rate, if recognized. As of December 31, 2025, 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. We expect the next cycle to cover the 2021-2023 tax years; however, the Internal Revenue Service has not confirmed a start date. We are also subject to examination in major state and international jurisdictions for the 2010-2024 tax years. We believe appropriate provisions for all outstanding tax issues have been made for all jurisdictions and all open years. 
 The Organization for Economic Co-operation and Development (OECD) has issued Pillar Two model rules, introducing a new global minimum tax of 15%. While the United States has not adopted Pillar Two, other countries have enacted such legislation or are considering implementation. Given our limited operations in low-tax jurisdictions, Pillar Two has not materially increased our global tax costs. On January 5, 2026, the OECD released a comprehensive package for a “side-by-side arrangement” with respect to Pillar Two. Notably, once adopted, this new guidance will prevent other countries from imposing tax on the U.S. profits of American companies. We will continue to monitor U.S. and international legislative developments, including further announcements on the Side-by-Side package, to assess any potential impacts on our operations. 
 On July 4, 2025, the President signed into law the One Big Beautiful Bill Act (OBBBA). The OBBBA maintains the 21 percent corporate tax rate and makes permanent many of the beneficial expired and expiring tax provisions originally enacted in the Tax Cuts and Jobs Act of 2017, including the immediate expensing of domestic research and development expenditures, more favorable interest deductibility and 100 percent bonus depreciation with effective dates in 2025. Revisions to the international tax framework are effective in 2026. In the third quarter of 2025, we recorded impacts of the OBBBA, which were not material. In the fourth quarter of 2025, we elected to accelerate into 2025 the deduction of domestic research and development expenditures capitalized and unamortized as of December 31, 2024. 
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 Table of Co ntents 

 Note 7 – Accounts Receivable, net 
 Accounts receivable, net at December 31 consisted of the following: 
 
 2025 2024 
 U.S. government contracts (1) 
 $ 1,083 $ 923 
 Commercial Airplanes 129 48 
 Global Services (2) 
 1,436 1,581 
 Defense, Space, & Security (2) 
 125 165 
 Other 224 6 
 Less allowances for expected credit losses ( 76 ) ( 92 ) 
 Total $ 2,921 $ 2,631 

 (1) Includes Foreign Military Sales through the U.S. government (FMS) 
 (2) Excludes U.S. government contracts 
 
 Note 8 – Allowances for Losses on Financial Assets 
 The change in allowances for expected credit losses for the years ended December 31, 2025 and 2024 consisted of the following: 
 
 Accounts receivable Unbilled receivables Other Current Assets Financing receivables Other Assets Total 
 Balance at January 1, 2024 ($ 89 ) ($ 19 ) ($ 50 ) ($ 51 ) ($ 122 ) ($ 331 ) 
 Changes in estimates ( 45 ) ( 19 ) ( 8 ) 44 ( 85 ) ( 113 ) 
 Write-offs 41 11 8 60 
 
 Recoveries 1 1 
 Balance at December 31, 2024 ($ 92 ) ($ 38 ) ($ 47 ) ($ 7 ) ($ 199 ) ($ 383 ) 
 
 Balance at January 1, 2025 ($ 92 ) ($ 38 ) ($ 47 ) ($ 7 ) ($ 199 ) ($ 383 ) 
 Changes in estimates ( 4 ) ( 4 ) ( 14 ) 7 ( 39 ) ( 54 ) 
 Write-offs 18 18 110 146 
 
 Recoveries 2 17 19 
 Balance at December 31, 2025 ($ 76 ) ($ 42 ) ($ 43 ) $ 0 ($ 111 ) ($ 272 ) 

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 Table of Co ntents 

 Note 9 – Inventories 
 Inventories at December 31 consisted of the following: 
 
 2025 2024 
 Commercial aircraft programs $ 70,785 $ 75,192 
 Long-term contracts in progress 720 752 
 Capitalized precontract costs (1) 
 1,411 1,176 
 Commercial spare parts, used aircraft, general stock materials and other 11,763 10,430 
 Total $ 84,679 $ 87,550 

 (1) Capitalized precontract costs at December 31, 2025 and 2024, includes amounts related to Commercial Crew, T-7A Red Hawk Production Options, and KC-46A Tanker. See Note 15. 
 Commercial Aircraft Programs 
 At December 31, 2025 and 2024, commercial aircraft programs inventory included the following amounts related to the 737 program: deferred production costs of $ 11,777 and $ 9,679 and unamortized tooling and other non-recurring costs of $ 750 and $ 909 . At December 31, 2025, $ 12,490 of 737 deferred production costs, unamortized tooling and other non-recurring costs is expected to be recovered from units included in the program accounting quantity that have firm orders, and $ 37 are expected to be recovered from units included in the program accounting quantity that represent expected future orders. 
 At December 31, 2025 and 2024, commercial aircraft programs inventory included the following amounts related to the 777X program: $ 4,313 and $ 3,476 of work in process (including deferred production costs of $ 651 and $ 0 ) and $ 1,816 and $ 4,122 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 during the year ended December 31, 2023. In the fourth quarter of 2023, the 777X program resumed production and, as a result, there were no abnormal production costs during the years ended December 31, 2025 and 2024. During the years ended December 31, 2025 and 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 $ 4,899 in 2025 was recorded as a reduction of deferred production costs, unamortized tooling and other non-recurring costs. The reach-forward loss of $ 3,499 in 2024 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, flight test discoveries, design changes, 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 any change in the accounting quantity. One or more of these factors could result in additional reach-forward losses in future periods. 
 At December 31, 2025 and 2024, commercial aircraft programs inventory included the following amounts related to the 787 program: deferred production costs of $ 13,859 and $ 13,178 , supplier advances of $ 932 and $ 1,379 , and unamortized tooling and other non-recurring costs of $ 1,366 and $ 1,370 . At December 31, 2025, $ 13,027 of 787 deferred production costs, unamortized tooling and other non-recurring costs are expected to be recovered from units included in the program accounting quantity that have firm orders, and $ 2,198 are expected to be recovered from units included in the program accounting quantity that represent expected future orders. We expensed abnormal production costs of $ 30 , $ 256 , and $ 1,014 during the years ended December 31, 2025, 2024 and 2023. 
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 Table of Co ntents 

 Commercial aircraft programs inventory included amounts credited in cash or other consideration (early issue sales consideration) to airline customers totaling $ 6,412 and $ 5,837 at December 31, 2025 and 2024. 
 
 Note 10 – Contracts with Customers 
 Unbilled receivables increased from $ 8,363 at December 31, 2024, to $ 9,158 at December 31, 2025, primarily driven by revenue recognized in excess of billings at BDS and BGS. 
 The following table summarizes our contract assets under long-term contracts that were unbillable or related to outstanding claims as of December 31: 
 
 Unbilled Claims 
 2025 2024 2025 2024 
 Current $ 6,556 $ 6,348 $ 9 
 Expected to be collected after one year 2,644 2,053 $ 89 51 
 Less allowances for expected credit losses 
 ( 42 ) ( 38 ) 
 Total $ 9,158 $ 8,363 $ 89 $ 60 

 Unbilled receivables related to commercial customer incentives expected to be collected after one year were $ 89 and $ 63 at December 31, 2025 and 2024. 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 decreased from $ 60,333 at December 31, 2024, to $ 59,404 at December 31, 2025, primarily driven by revenue recognized at BDS and BCA. 
 Revenues recognized for the years ended December 31, 2025 and 2024, from amounts recorded as Advances and progress billings at the beginning of each year were $ 20,570 and $ 14,516 . 
 
 Note 11 – Financing Receivables and Operating Lease Equipment 
 Financing receivables and operating lease equipment, net consisted of the following at December 31: 
 
 2025 2024 
 Financing receivables: 
 Investment in sales-type leases $ 203 
 Notes 85 
 Total financing receivables 288 
 Less allowances for expected credit losses 7 
 Financing receivables, net 281 
 Operating lease equipment, at cost, less accumulated depreciation of $ 60 and $ 46 
 $ 241 240 
 
 Total $ 241 $ 521 

 During the year ended December 31, 2025, our financing receivables were fully collected. Our financing arrangements at December 31, 2025, consist solely of operating leases that range in terms from one to four years , and may include options to extend or terminate. Certain operating leases include provisions to allow the lessee to purchase the underlying aircraft at a specified price. 
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 Table of Co ntents 

 At December 31, 2024, the components of investment in sales-type leases consisted of gross lease payments receivable of $ 229 and unearned income of $ 26 . There were no unguaranteed residual assets at December 31, 2025 and 2024. 
 The majority of our financing receivables and operating lease equipment portfolio is concentrated in the following aircraft models at December 31: 
 
 2025 2024 
 777 Aircraft (Accounted for as operating leases) 
 $ 170 $ 183 
 737 Aircraft (Primarily accounted for as operating leases) 
 45 47 
 747-8 Aircraft (Primarily accounted for as notes) 
 92 
 717 Aircraft (Accounted for as sales-type leases) 
 196 
 
 
 

 I mpairment charges related to operating lease assets were $ 0 , $ 5 , and $ 0 for the years ended December 31, 2025, 2024 and 2023, respectively. 
 Lease income recorded in Sales of services on the Consolidated Statements of Operations for the years ended December 31, 2025, 2024 and 2023, included $ 6 , $ 45 , and $ 55 of interest income from sales-type leases and $ 47 , $ 56 , and $ 60 from operating lease payments, respectively. 
 Variable lease payments for sales-type leases and operating leases recognized in Sales of services for the years ended December 31, 2025, 2024 and 2023, were insignificant. 
 Profit at the commencement of sales-type leases recorded in Sales of services was $ 0 , $ 9 , and $ 32 for the years ended December 31, 2025, 2024 and 2023, respectively. 
 As of December 31, 2025, undiscounted cash flows for operating leases over the next five years and thereafter are as follows: 
 
 
 Year 1 $ 40 
 Year 2 34 
 Year 3 32 
 Year 4 13 
 Year 5 
 Thereafter 
 Total financing receipts 119 
 Less imputed interest 
 
 Total $ 119 

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 Table of Co ntents 

 Note 12 – Property, Plant and Equipment 
 Property, plant and equipment at December 31 consisted of the following: 
 
 2025 2024 
 Land $ 443 $ 353 
 Buildings and land improvements 16,565 14,985 
 Machinery and equipment 18,335 16,660 
 Construction in progress 3,631 2,339 
 Gross property, plant and equipment 38,974 34,337 
 Less accumulated depreciation ( 23,613 ) ( 22,925 ) 
 Total $ 15,361 $ 11,412 

 A t December 31, 2025 and 2024, Property, plant and equipment included $ 519 and $ 370 of gross right-of-use assets and $ 196 and $ 154 of accumulated depreciation on finance leases. 
 Depreciation expense was $ 1,413 , $ 1,349 and $ 1,328 for 2025, 2024 and 2023, respectively. 
 During 2025 and 2024, we acquired $ 64 and $ 76 of property, plant and equipment through non-cash investing and financing transactions. Accounts payable related to purchases of property, plant and equipment were $ 847 and $ 591 for the years ended December 31, 2025 and 2024. 
 
 Note 13 – Investments 
 Our investments, which are recorded in Short-term and other investments or Investments, consisted of the following at December 31: 
 
 2025 2024 
 Time deposits (1) 
 $ 17,230 $ 11,960 
 Equity method investments (2) 
 997 948 
 Restricted cash & cash equivalents (1)(3) 
 742 21 
 Available-for-sale debt investments (1) 
 524 517 
 Equity and other investments 34 34 
 Total $ 19,527 $ 13,480 

 (1) Primarily included in Short-term and other investments on our Consolidated Statements of Financial Position. 
 (2) Dividends received were $ 14 and $ 55 during 2025 and 2024. Retained earnings at December 31, 2025 and 2024, included undistributed earnings from our equity method investments of $ 213 and $ 141 . 
 (3) At December 31, 2025, Restricted cash & cash equivalents includes $ 689 placed in escrow pursuant to the May 2025 non-prosecution agreement with the U.S. Department of Justice. See Note 23 for additional discussion. 
 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. Cash used for the purchase of time deposits during 2025, 2024 and 2023, was $ 51,295 , $ 13,258 and $ 15,794 , respectively. Cash proceeds from the maturities of time deposits during 2025, 2024 and 2023, were $ 46,025 , $ 4,053 and $ 15,140 , respectively. 
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 Table of Co ntents 

 Allowance for losses on available-for-sale debt investments is assessed quarterly. All instruments are considered investment grade, and we have not recognized an allowance for expected credit losses as of December 31, 2025. The fair value of available-for-sale debt investments approximates amortized cost. 
 Equity Method Investments 
 Our equity method investments consisted of the following at December 31: 
 
 Segment Ownership Percentages Investment Balance 
 2025 2024 
 United Launch Alliance BDS 
 50 % $ 556 $ 557 
 Other BCA, BDS, BGS and Other 441 391 
 Total equity method investments $ 997 $ 948 

 
 Note 14 – Leases 
 Our operating lease assets primarily represent manufacturing and research and development facilities, warehouses and offices. Total operating lease expense was $ 601 , $ 530 and $ 457 for the years ended December 31, 2025, 2024 and 2023, of which $ 83 , $ 75 and $ 76 was attributable to variable lease expenses, respectively. 
 For the years ended December 31, 2025, 2024 and 2023, cash payments against operating lease liabilities totaled $ 467 , $ 408 and $ 323 , and non-cash transactions totaled $ 414 , $ 490 and $ 488 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: 
 
 2025 2024 
 Operating leases: 
 Operating lease right-of-use assets $ 2,123 $ 1,984 
 Operating lease liabilities: 
 
 Current portion of lease liabilities 335 324 
 Non-current portion of lease liabilities 1,932 1,770 
 Total operating lease liabilities $ 2,267 $ 2,094 
 
 Weighted average remaining lease term (years) 
 13 12 
 Weighted average discount rate 3.97 % 3.43 % 

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

 Scheduled payments for operating lease liabilities are as follows: 
 
 Operating leases 
 2026 $ 433 
 2027 571 
 2028 330 
 2029 250 
 2030 203 
 Thereafter 1,233 
 Total lease payments 3,020 
 Less imputed interest ( 753 ) 
 Total $ 2,267 

 As of December 31, 2025, we have entered into leases that have not yet commenced of $ 65 for offices. These leases will commence in 2026 with lease terms of 1 years to 20 years. 
 
 Note 15 – Liabilities, Commitments and Contingencies 
 Accrued Liabilities 
 Accrued liabilities at December 31 consisted of the following: 
 
 2025 2024 
 Accrued compensation and employee benefit costs $ 7,464 $ 6,110 
 Forward loss recognition 6,711 7,634 
 Product warranties 2,797 2,133 
 Other customer concessions and considerations 1,696 1,552 
 Off-market contracts 1,065 
 Environmental 877 834 
 Accrued interest payable 877 796 
 Current portion of retiree healthcare and pension liabilities 442 452 
 737 MAX customer concessions and other considerations 383 641 
 
 
 
 
 Current portion of lease liabilities 335 324 
 Other 4,494 3,627 
 Total $ 27,141 $ 24,103 

 
 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 January 2024 737-9 door plug accident and grounding. This charge is reflected in the financial statements as a reduction to Sales of products. 
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 Table of Co ntents 

 The following table summarizes changes in the 737 MAX customer concessions and other considerations liability during 2025 and 2024. 
 
 2025 2024 
 Beginning balance – January 1 $ 641 $ 1,327 
 
 Reductions for payments made ( 192 ) ( 929 ) 
 Reductions for concessions and other in-kind considerations ( 66 ) ( 267 ) 
 Changes in estimates 510 
 Ending balance – December 31 $ 383 $ 641 

 At December 31, 2025, $ 89 of the liability balance remains subject to negotiations with customers. The remaining contracted amount is primarily expected to be liquidated by lower customer delivery payments. 
 
 Environmental 
 The following table summarizes changes in environmental remediation liabilities during the years ended December 31, 2025 and 2024. 
 
 2025 2024 
 Beginning balance – January 1 $ 834 $ 844 
 Reductions for payments made, net of recoveries ( 95 ) ( 120 ) 
 Changes in estimates 138 110 
 Ending balance – December 31 $ 877 $ 834 

 The liabilities recorded represent our best estimate or the low end of a range of reasonably possible costs expected to be incurred to remediate sites, including operation and maintenance over periods of up to 30 years. It is reasonably possible that we may incur costs that exceed these recorded amounts because of regulatory agency orders and directives, changes in laws and/or regulations, higher than expected costs and/or the discovery of new or additional contamination. As part of our estimating process, we develop a range of reasonably possible alternate scenarios that includes the high end of a range of reasonably possible cost estimates for all remediation sites for which we have sufficient information based on our experience and existing laws and regulations. There are some potential remediation obligations where the costs of remediation cannot be reasonably estimated. At December 31, 2025 and 2024, the high end of the estimated range of reasonably possible remediation costs exceeded our recorded liabilities by $ 1,171 and $ 1,002 . 
 Product Warranties 
 The following table summarizes changes in product warranty liabilities recorded during the years ended December 31, 2025 and 2024. 
 
 2025 2024 
 Beginning balance – January 1 $ 2,133 $ 2,448 
 Additions for current year deliveries 184 81 
 Reductions for payments made ( 388 ) ( 392 ) 
 Changes in estimates 737 ( 4 ) 
 Spirit Acquisition 131 
 Ending balance – December 31 $ 2,797 $ 2,133 

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 Table of Co ntents 

 Commercial Aircraft Trade-In Commitments 
 In conjunction with signing definitive agreements for the sale of new aircraft, we have entered into trade-in commitments with certain customers that give them the right to trade in used aircraft at a specified price. The probability that trade-in commitments will be exercised is determined by using both quantitative information from valuation sources and qualitative information from other sources. The probability of exercise is assessed quarterly, or as events trigger a change, and takes into consideration the current economic and airline industry environments. Trade-in commitments, which can be terminated by mutual consent with the customer, may be exercised only during the period specified in the agreement and require advance notice by the customer. 
 Trade-in commitment agreements at December 31, 2025, have expiration dates from 2026 through 2033. At December 31, 2025 and 2024, total contractual trade-in commitments were $ 1,267 and $ 1,393 . As of December 31, 2025 and 2024, we estimated that it was probable we would be obligated to perform on certain of these commitments with net amounts payable to customers totaling $ 67 and $ 275 and the fair value of the related trade-in aircraft was $ 61 and $ 270 . 
 Financing Commitments 
 Financing commitments related to aircraft on order, including options and those proposed in sales campaigns, and refinancing of delivered aircraft, totaled $ 15,229 and $ 17,124 as of December 31, 2025 and 2024. The estimated earliest potential funding dates for these commitments as of December 31, 2025 are as follows: 
 
 Total 
 2026 $ 2,362 
 2027 4,228 
 2028 3,715 
 2029 2,392 
 2030 1,257 
 Thereafter 1,275 
 Total 
 $ 15,229 

 A s of December 31, 2025, $ 11,904 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 $ 283 related to certain joint ventures over the next 12 years. 
 Standby Letters of Credit and Surety Bonds 
 We have entered into standby letters of credit and surety bonds with financial institutions primarily relating to the guarantee of our future performance on certain contracts and security agreements. Contingent liabilities on outstanding letters of credit agreements and surety bonds aggregated approximately $ 3,295 and $ 2,991 as of December 31, 2025 and 2024. 
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 Table of Co ntents 

 Company Owned Life Insurance 
 McDonnell Douglas Corporation insured its executives with Company Owned Life Insurance (COLI), which are life insurance policies with a cash surrender value. Although we do not use COLI currently, these obligations from the merger with McDonnell Douglas are still a commitment at this time. We have loans in place to cover costs paid or incurred to carry the underlying life insurance policies. As of December 31, 2025 and 2024, the cash surrender value was $ 331 and $ 342 and the total loans were $ 303 and $ 314 . As we have the right to offset the loans against the cash surrender value of the policies, we present the net asset in Other assets on the Consolidated Statements of Financial Position as of December 31, 2025 and 2024. 
 
 Supply Chain Financing Programs 
 The Company has supply chain financing programs in place under which participating suppliers may elect to obtain payment from an intermediary. The Company confirms the validity of invoices from participating suppliers and agrees to pay the intermediary an amount based on invoice totals. The majority of amounts payable under these programs are due within 30 to 90 days. The following table summarizes changes in Accounts payable to suppliers participating in supply chain financing programs: 
 
 2025 2024 
 Beginning balance – January 1 $ 2,703 $ 2,871 
 Additions 10,948 12,476 
 Reductions for payments made ( 11,657 ) ( 12,644 ) 
 Ending balance – December 31 $ 1,994 $ 2,703 

 We do not believe that future changes in the availability of supply chain financing would have a significant impact on our liquidity. 
 
 Government Assistance 
 Certain states and localities in which we operate offer or have offered various business incentives related to investment and/or job creation. Between 2010 and 2016, we received cash grants totaling $ 346 related to our investment in operations in South Carolina. The grants were recorded in Accrued liabilities and are being amortized, primarily to inventory, over the useful life of the Property, plant and equipment extending through 2052. During 2025 and 2024, we amortized $ 8 and $ 9 to Inventories, and recorded a benefit of $ 10 and $ 7 in cost of sales. At December 31, 2025 and 2024, Inventories included a benefit of $ 62 and $ 64 and Accrued liabilities included a balance of $ 80 and $ 87 . 
 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 2025, 2024 and 2023, we received $ 32 , $ 26 , and $ 22 in cash and recorded a benefit primarily in cost of sales of $ 27 , $ 30 , and $ 28 , respectively. At December 31, 2025 and 2024, Other current assets includes receivables of $ 26 and $ 30 . As of December 31, 2025, $ 59 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 related to operations in Queensland, Australia. During 2023, we received cash of $ 5 , 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. At December 31, 2025, our remaining liability is $ 23 . 
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 Table of Co ntents 

 Industrial Revenue Bonds (IRB) issued by St. Louis County, the city of St. Charles, Missouri, and the city of Wichita, Kansas, were used to finance the purchase and/or construction of real and personal property at our St. Louis, St. Charles and Wichita sites. Tax benefits associated with IRBs primarily include sales tax exemptions and five to 22-year property tax abatements. We record these properties on our Consolidated Statements of Financial Position. We have also purchased the IRBs, and therefore, are the bondholders as well as the borrower/lessee of the properties purchased with the IRB proceeds. The liabilities and IRB assets are equal and are reported net in the Consolidated Statements of Financial Position. As of December 31, 2025 and 2024, the assets and liabilities associated with the IRBs were $ 1,054 and $ 355 . 
 
 Recoverable Costs on Government Contracts 
 Our final incurred costs for each year are subject to audit and review for allowability by the U.S. government, which can result in payment demands related to costs they believe should be disallowed. We work with the U.S. government to assess the merits of claims and where appropriate reserve for amounts disputed. If we are unable to satisfactorily resolve disputed costs, we could be required to record an earnings charge and/or provide refunds to the U.S. government. 
 Fixed-Price Contracts 
 Long-term contracts that are contracted on a fixed-price basis or have fixed-price options could result in losses in future periods. Certain of the fixed-price contracts are for the development of new products, services and related technologies. 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 
 The Company’s firm fixed-price contract for the Engineering and Manufacturing Development (EMD) effort on the U.S. Air Force’s (USAF) VC-25B Presidential Aircraft, commonly known as Air Force One, is a $ 4 billion program to develop and modify two 747-8 commercial aircraft. During 2025 and 2024, we increased the reach-forward loss on the contract by $ 60 and $ 379 . The increased reach-forward loss in 2024 was primarily driven by higher than anticipated costs due to engineering design changes related to wiring and other structural requirements. The increased reach-forward loss in 2025 was due to increases in supplier costs. We expect finalization of the contract terms to reset the schedule and adjust the requirements in early 2026. 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 12 low rate initial production (LRIP) lots for a total of 169 aircraft. The EMD contract and authorized LRIP lots total approximately $ 32 billion as of December 31, 2025. 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 2025 and 2024, we increased the reach-forward loss on the KC-46A Tanker program by $ 714 and $ 2,002 . The additional reach-forward loss during 2025 was primarily driven by higher estimated manufacturing and engineering costs for production support. As of December 31, 2025, we had approximately $ 64 of capitalized precontract 
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 costs and $ 72 of potential termination liabilities to suppliers related to future production lots. Risk remains that we may record additional losses in future periods. 
 MQ-25 
 In the third quarter of 2018, we were awarded the MQ-25 EMD contract by the U.S. Navy. The contract is a fixed-price contract that now includes development and delivery of seven aircraft and test articles at a contract price of $ 890 . In connection with winning the competition, we recognized a reach-forward loss of $ 291 in the third quarter of 2018. 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 reflecting higher than anticipated production costs and higher costs associated with ongoing design and software development challenges. We recorded an immaterial reach-forward loss in 2025. During the first half of 2025, we initiated final assembly operations at our new facility at Mid-America St. Louis Airport in Mascoutah, Illinois, and began ground-based flight testing. Flight test and assembly of the remaining EMD units will continue in 2026. Risk remains that we may record additional losses in future periods. 
 T-7A Red Hawk EMD Contract & Production Options 
 In 2018, we were awarded the T-7A Red Hawk program. The EMD portion of the contract was a $ 860 fixed-price contract and included five aircraft and seven simulators. The five EMD aircraft have been delivered as of December 31, 2024, and the flight testing is ongoing. In January 2025, the USAF announced an updated acquisition approach for the T-7A Red Hawk that allows the Company to provide a production-ready configuration to the customer prior to low-rate initial production, which better supports the operational needs of the customer and reduces future production risk. In June 2025, the customer ordered four production representative test vehicles. The production portion of the contract now includes production lots for 342 T-7A Red Hawk aircraft and related services that we believe are probable of being exercised. During 2024, we increased the reach-forward loss on the T-7A Red Hawk program by $ 1,770 primarily reflecting higher estimated supplier costs related to future production lots. We recorded an immaterial reach-forward loss in 2025. At December 31, 2025, we had approximately $ 377 of capitalized precontract costs and $ 869 of potential termination liabilities to suppliers related to certain long-lead items for future production lots. Risk remains that we may record additional losses in future periods. 
 Commercial Crew 
 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. The Crewed Flight Test launched on June 5, 2024, and docked with the ISS. 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. We recorded an immaterial reach-forward loss in 2025. We and the customer are planning to launch an uncrewed mission during the first half of 2026 and a crewed mission later in 2026. We are continuing to work toward crew certification and resolve the propulsion system anomalies. At December 31, 2025, we had approximately $ 544 of capitalized precontract costs and $ 4 of potential termination liabilities to suppliers related to unauthorized future missions. Risk remains that we may record additional losses in future periods. 
 
 Severance 
 During the fourth quarter of 2024, we announced plans to reduce our overall workforce. As a result, in 2024, we recorded $ 295 of severance benefits payable to employees expected to leave the Company 
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 through involuntary terminations by the first half of 2025. The severance packages were consistent with our ongoing compensation and benefits plans. The remaining liability at December 31, 2025 and 2024, was $ 0 and $ 287 . 
 
 Note 16 – Arrangements with Off-Balance Sheet Risk 
 We enter into arrangements with off-balance sheet risk in the normal course of business, primarily in the form of guarantees. 
 The following table provides quantitative data regarding our third-party guarantees. The maximum potential payments represent a “worst-case scenario” and do not necessarily reflect amounts that we expect to pay. The carrying amount of liabilities represents the amount included in Accrued liabilities. 
 
 Maximum
Potential
Payments Estimated
Proceeds from
Collateral/
Recourse Carrying
Amount of
Liabilities 
 December 31, 2025 2024 2025 2024 2025 2024 
 Contingent repurchase commitments $ 186 $ 295 $ 186 $ 295 
 
 
 
 
 
 Credit guarantees 15 15 $ 14 $ 14 
 

 C ontingent Repurchase Commitments In conjunction with signing a definitive agreement for the sale of commercial aircraft, we have entered into contingent repurchase commitments with certain customers wherein we agree to repurchase the sold aircraft at a specified price, generally 10 to 15 years after delivery. Our repurchase of the aircraft is contingent upon entering into a mutually acceptable agreement for the sale of additional new aircraft in the future. The commercial aircraft repurchase price specified in contingent repurchase commitments is generally lower than the expected fair value at the specified repurchase date. Estimated proceeds from collateral/recourse in the table above represent the lower of the contracted repurchase price or the expected fair value of each aircraft at the specified repurchase date. 
 If a future sale agreement is reached and a customer elects to exercise its right under a contingent repurchase commitment, the contingent repurchase commitment becomes a trade-in commitment. Our historical experience is that contingent repurchase commitments infrequently become trade-in commitments. 
 Credit Guarantees We have issued credit guarantees where we are obligated to make payments to a guaranteed party in the event that the original lessee or debtor does not make payments or perform certain specified services. Generally, these guarantees have been extended on behalf of guaranteed parties with less than investment-grade credit. Current outstanding credit guarantees expire through 2036. 
 Other Indemnifications In conjunction with our sales of Electron Dynamic Devices, Inc. and Rocketdyne Propulsion and Power businesses, we agreed to indemnify, for an indefinite period, the buyers for costs relating to pre-closing environmental conditions and certain other items. We are unable to assess the potential number of future claims that may be asserted under these indemnifications, nor the amounts thereof (if any). As a result, we cannot estimate the maximum potential amount of future payments under these indemnities. To the extent that claims have been made under these indemnities and/or are probable and reasonably estimable, liabilities associated with these indemnities are included in the environmental liability disclosure in Note 15. 
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 Note 17 – Debt 
 In August 2025 , we entered into a $ 3,000 , 364 -day revolving credit agreement expiring in August 2026 . This facility replaced the $ 3,000 , three-year revolving credit agreement which was scheduled to terminate in August 2025 . The 364 -day credit facility has a one-year term out option which allows us to extend the maturity of any borrowings until August 2027. Our legacy $ 3,000 , five-year revolving credit agreement expiring in August 2028 and $ 4,000 , five-year revolving credit agreement expiring in May 2029 each remain in effect. As of December 31, 2025 , we had $ 10,000 available under credit line agreements. 
 We continue to be in compliance with all covenants contained in our debt and credit facility agreements. 
 In December 2025, as a result of the Spirit Acquisition, we assumed $ 3,608 of debt, $ 2,260 of which we immediately repaid. The remaining debt assumed primarily includes the following notes issued by Spirit Sub: $ 300 of 3.850 % Senior Notes due 2026 (the Spirit 2026 Notes), $ 700 of 4.600 % Senior Notes due 2028 (the Spirit 2028 Notes, and together with the Spirit 2026 Notes, the Spirit Senior Notes) and $ 230 of 3.250 % Exchangeable Notes due 2028 (the Spirit Exchangeable Notes). 
 The Spirit Exchangeable Notes mature on November 1, 2028, unless earlier exchanged, redeemed or repurchased, and are exchangeable at an initial rate of 6.7067 shares of Boeing common stock per $ 1,000 principal amount, in whole dollars, of the Spirit Exchangeable Notes. Prior to August 1, 2028, if certain conditions are met, holders of the Spirit Exchangeable Notes may elect to exchange the Spirit Exchangeable Notes. On or after August 1, 2028, the holders of the Spirit Exchangeable Notes may elect to exchange the Spirit Exchangeable Notes without restriction. Upon exchange, we will pay cash and/or deliver shares of Boeing common stock, at our election, to the holders of the Spirit Exchangeable Notes. 
 In connection with closing of the Spirit Acquisition, The Boeing Company guaranteed the obligations of Spirit Sub with respect to the Spirit Senior Notes, and as a result, each of The Boeing Company and Spirit fully and unconditionally guarantee the Spirit Senior Notes on a senior unsecured basis. The guarantees rank equally in right of payment with all of Boeing’s existing and future senior unsecured indebtedness. 
 Interest incurred, including amounts capitalized, was $ 2,956 , $ 2,874 and $ 2,560 for the years ended December 31, 2025, 2024 and 2023, respectively. Total Company interest payments, net of amounts capitalized, were $ 2,630 , $ 2,440 and $ 2,408 for the years ended December 31, 2025, 2024 and 2023, respectively. Interest capitalized was $ 185 , $ 149 , and $ 101 for the years ended December 31, 2025, 2024 and 2023, respectively. 
 Short-term debt and current portion of long-term debt at December 31 consisted of the following: 
 
 
 
 2025 2024 
 Unsecured debt $ 8,249 $ 850 
 
 Finance lease obligations 111 86 
 
 Other notes 101 342 
 Total $ 8,461 $ 1,278 

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 Debt at December 31 consisted of the following: 
 
 
 
 2025 2024 
 Unsecured debt 
 
 2.20 % - 2.50 % due through 2026 
 $ 5,899 $ 6,159 
 2.60 % - 3.20 % due through 2030 
 5,088 5,389 
 3.25 % - 3.90 % due through 2059 (1) 
 10,136 9,637 
 3.95 % - 5.15 % due through 2059 
 8,166 7,462 
 5.71 % - 6.63 % due through 2060 
 18,996 18,987 
 6.86 % - 8.75 % due through 2064 
 5,265 5,577 
 
 
 
 Other debt and notes 
 
 Finance lease obligations due through 2044 
 250 239 
 Other notes 298 414 
 Total debt $ 54,098 $ 53,864 

 (1) Includes $ 230 of Spirit Exchangeable Notes assumed as a result of the Spirit Acquisition, which will become exchangeable for shares of Boeing common stock and/or cash, at our election. 
 Scheduled principal payments for debt for the next five years are as follows: 
 
 2026 2027 2028 2029 2030 
 
 
 Debt and other notes 
 $ 8,351 $ 4,403 $ 2,739 $ 2,508 $ 5,274 
 

 Scheduled payments for finance lease obligations are as follows: 
 
 
 2026 $ 124 
 2027 72 
 2028 35 
 2029 17 
 2030 7 
 Thereafter 
 23 
 Total finance lease payments 
 278 
 Less imputed interest 
 ( 28 ) 
 Total 
 $ 250 

 
 Note 18 – Postretirement Plans 
 Many of our employees have earned benefits under defined benefit pension plans. The majority of employees that had participated in defined benefit pension plans have transitioned to a company-funded defined contribution retirement savings plan. 
 We fund our major pension plans through trusts. Pension assets are placed in trust solely for the benefit of the plans’ participants and are structured to maintain liquidity that is sufficient to pay benefit obligations as well as to keep pace over the long-term with the growth of obligations for future benefit payments. 
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 We also have other postretirement benefits (OPB) other than pensions which consist principally of health care coverage for eligible retirees and qualifying dependents, and to a lesser extent, life insurance to certain groups of retirees. Retiree health care is provided principally until age 65 for approximately three-fourths of those participants who are eligible for post-retirement health care coverage. Certain employee groups, including employees covered by most United Auto Workers bargaining agreements, are provided lifetime health care coverage. 
 The funded status of the plans is measured as the difference between the plan assets at fair value and the projected benefit obligation (PBO). On December 31, 2025, we merged seven of our pension plans to make use of overfunding in certain plans, reducing future required pension plan contributions. We have recognized the aggregate of all overfunded plans in Other assets and the aggregate of all underfunded plans in either Accrued retiree health care or Accrued pension plan liability, net. The portion of the amount by which the actuarial present value of benefits included in the PBO exceeds the fair value of plan assets, payable in the next 12 months, is reflected in Accrued liabilities. 
 The components of net periodic benefit (income)/cost were as follows: 
 
 Pension Other Postretirement Benefits 
 Years ended December 31, 2025 2024 2023 2025 2024 2023 
 Service cost $ 9 $ 5 $ 2 $ 51 $ 51 $ 49 
 Interest cost 2,676 2,635 2,820 135 124 148 
 Expected return on plan assets ( 3,078 ) ( 3,311 ) ( 3,441 ) ( 11 ) ( 10 ) ( 9 ) 
 Amortization of prior service credits ( 73 ) ( 81 ) ( 81 ) ( 2 ) ( 11 ) ( 22 ) 
 Recognized net actuarial loss/(gain) 299 281 173 ( 141 ) ( 176 ) ( 175 ) 
 
 Net periodic benefit (income)/cost ($ 167 ) ($ 471 ) ($ 527 ) $ 32 ($ 22 ) ($ 9 ) 
 
 Net periodic benefit cost included in Earnings/(loss) from operations $ 9 $ 5 $ 2 $ 49 $ 47 $ 62 
 Net periodic benefit income included in Other income, net ( 176 ) ( 476 ) ( 529 ) ( 19 ) ( 73 ) ( 58 ) 
 Net periodic benefit (income)/cost included in Earnings/(loss) before income taxes 
 ($ 167 ) ($ 471 ) ($ 527 ) $ 30 ($ 26 ) $ 4 

 On December 8, 2025, as part of the Spirit Acquisition, we acquired three defined benefit plans and two post-retirement medical plans. Eligibility for these plans is closed and the defined benefit plans’ accruals are frozen for existing participants. 
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 The following tables show changes in the benefit obligation, plan assets and funded status of both pensions and OPB for the years ended December 31, 2025 and 2024. Benefit obligation balances presented below reflect the PBO for our pension plans and accumulated postretirement benefit obligations (APBO) for our OPB plans. 
 
 Pension Other Postretirement Benefits 
 2025 2024 2025 2024 
 Change in benefit obligation 
 Beginning balance $ 50,421 $ 54,325 $ 2,651 $ 2,651 
 Service cost 9 5 51 51 
 Interest cost 2,676 2,635 135 124 
 
 Amendments 6 140 
 Actuarial loss/(gain) 1,501 ( 2,493 ) ( 26 ) 156 
 
 Gross benefits paid ( 4,507 ) ( 4,173 ) ( 331 ) ( 336 ) 
 Subsidies 15 8 
 Spirit Acquisition 1,309 30 
 Exchange rate adjustment 10 ( 18 ) 2 ( 3 ) 
 Ending balance $ 51,425 $ 50,421 $ 2,527 $ 2,651 
 Change in plan assets 
 Beginning balance at fair value $ 45,574 $ 48,891 $ 183 $ 163 
 Actual return on plan assets 4,562 738 24 22 
 
 Plan participants’ contributions 1 1 
 Spirit Acquisition 
 1,362 
 Benefits paid ( 4,367 ) ( 4,034 ) ( 2 ) ( 3 ) 
 Exchange rate adjustment 16 ( 21 ) 
 Ending balance at fair value $ 47,147 $ 45,574 $ 206 $ 183 
 Amounts recognized in Consolidated Statements of Financial Position at December 31 consist of: 
 
 Other assets $ 145 $ 1,289 $ 76 $ 21 
 Accrued liabilities ( 136 ) ( 139 ) ( 306 ) ( 313 ) 
 Accrued retiree health care ( 2,091 ) ( 2,176 ) 
 Accrued pension plan liability, net ( 4,287 ) ( 5,997 ) 
 Net amount recognized ($ 4,278 ) ($ 4,847 ) ($ 2,321 ) ($ 2,468 ) 

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 Actuarial gains and losses result from changes in actuarial assumptions (such as changes in the discount rate and revised mortality rates). Actuarial losses in 2025 and gains in 2024 related to projected benefit obligations were primarily the result of changes in discount rates. 
 Amounts recognized in Accumulated other comprehensive loss (AOCI) at December 31 were as follows: 
 
 Pension Other Postretirement Benefits 
 2025 2024 2025 2024 
 Net actuarial loss/(gain) $ 17,689 $ 17,976 ($ 1,430 ) ($ 1,534 ) 
 Prior service credits ( 843 ) ( 922 ) ( 7 ) ( 8 ) 
 Total recognized in AOCI 
 $ 16,846 $ 17,054 ($ 1,437 ) ($ 1,542 ) 

 The accumulated benefit obligation (ABO) for all pension plans was $ 50,792 and $ 49,889 at December 31, 2025 and 2024. Key information for our plans with ABO and PBO in excess of plan assets as of December 31 was as follows: 
 
 2025 2024 
 
 Accumulated benefit obligation $ 49,188 $ 44,470 
 Fair value of plan assets 45,397 38,866 

 
 2025 2024 
 Projected benefit obligation $ 49,820 $ 45,002 
 Fair value of plan assets 45,397 38,866 

 Assumptions 
 The following assumptions, which are the weighted average for all plans, are used to calculate the benefit obligation at December 31 of each year and the net periodic benefit cost for the subsequent year. 
 
 December 31, 2025 2024 2023 
 Discount rate: 
 Pension 5.30 % 5.60 % 5.10 % 
 Other postretirement benefits 5.00 % 5.40 % 5.00 % 
 Expected return on plan assets 6.00 % 6.00 % 6.00 % 
 Rate of compensation increase 4.80 % 4.30 % 4.30 % 
 Interest crediting rates for cash balance plans 5.00 % 5.00 % 5.00 % 

 The discount rate for each plan is determined based on the plans’ expected future benefit payments using a yield curve developed from high quality bonds that are rated as Aa or better by at least half of the four rating agencies utilized as of the measurement date. The yield curve is fitted to yields developed from bonds at various maturity points. Bonds with the 10 percent highest and the 10 percent lowest yields are omitted. The present value of each plan’s benefits is calculated by applying the discount rates to projected benefit cash flows. 
 The pension fund’s expected return on plan assets assumption is derived from a review of actual historical returns achieved by the pension trust and anticipated future long-term performance of 
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 individual asset classes. While consideration is given to historical returns, the assumption represents a long-term, prospective return. The expected return on plan assets component of the net periodic benefit cost for the upcoming plan year is determined based on the expected return on plan assets assumption and the market-related value of plan assets (MRVA). Since our adoption of the accounting standard for pensions in 1987, we have determined the MRVA based on a five-year moving average of plan assets. As of December 31, 2025, the MRVA was approximately $ 1,398 more than the fair market value of assets. 
 Assumed health care cost trend rates were as follows: 
 
 December 31, 2025 2024 2023 
 Health care cost trend rate assumed next year 6.00 % 6.00 % 5.50 % 
 Ultimate trend rate 4.00 % 4.50 % 4.50 % 
 Year that trend reaches ultimate rate 2034 2031 2028 

 Plan Assets 
 Investment Strategy The overall objective of our pension assets is to earn a rate of return over time to satisfy the benefit obligations of the pension plans and to maintain sufficient liquidity to pay benefits and address other cash requirements of the pension fund. Specific investment objectives for our long-term investment strategy include reducing the volatility of pension assets relative to pension liabilities, achieving a competitive total investment return, achieving diversification between and within asset classes and managing other risks. Investment objectives for each asset class are determined based on specific risks and investment opportunities identified. 
 We periodically update our long-term, strategic asset allocations. We use various analytics to determine the optimal asset mix and consider plan liability characteristics, liquidity characteristics, funding requirements, expected rates of return and the distribution of returns. A key element of our strategy is to de-risk the plan as the funded status of the plan increases. 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 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 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: 
 
 Actual Allocations Target Allocations 
 Asset Class 2025 2024 2025 2024 
 Fixed income 59 % 59 % 59 % 59 % 
 Global equity 20 19 20 20 
 Private equity 9 9 7 7 
 Real estate and real assets 7 7 7 7 
 Hedge funds 5 6 7 7 
 Total 100 % 100 % 100 % 100 % 

 Fixed income securities are invested primarily in a diversified portfolio of long duration instruments as well as Emerging Market, Structured, High Yield and Private Debt. Global equity securities are invested in a diversified portfolio of U.S. and non-U.S. companies, across various industries and market capitalizations. 
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 Private equity investment vehicles are primarily limited partnerships (LPs) that mainly invest in U.S. and non-U.S. leveraged buyout, venture capital, growth and special situation strategies. Real estate and real assets include global private investments that may be held through investments in LPs or other fund structures. Real estate includes, but is not limited to, investments in office, retail, apartment and industrial properties. Real assets include, but are not limited to, investments in natural resources (such as energy, farmland and timber) and infrastructure. 
 Hedge fund investments seek to capitalize on inefficiencies identified across and within different asset classes or markets. Hedge fund strategy types include, but are not limited to, directional, event driven, relative value and long-short. 
 Investment managers are retained for explicit investment roles specified by contractual investment guidelines. Certain investment managers are authorized to use derivatives, such as equity or bond futures, swaps, options and currency futures or forwards. Derivatives are used to achieve the desired market exposure of a security or an index, transfer value-added performance between asset classes, achieve the desired currency exposure, adjust portfolio duration or rebalance the total portfolio to the target asset allocation. 
 As a percentage of total pension assets, derivative net notional amounts were 41.6 % and 42.0 % for fixed income, including to-be-announced mortgage-backed securities and treasury forwards, and ( 0.6 )% and 0.8 % for global equity and commodities at December 31, 2025 and 2024. 
 Risk Management In managing the pension assets, we review and manage risk associated with funded status risk, interest rate risk, market risk, counterparty risk, liquidity risk and operational risk. Liability matching and asset class diversification are central to our risk management approach and are integral to the overall investment strategy. Further, asset classes are constructed to achieve diversification by investment strategy, by investment manager, by industry or sector and by holding. Investment manager guidelines for publicly traded assets are specified and are monitored regularly through the custodian. Credit parameters for counterparties have been established for managers permitted to trade over-the-counter derivatives. Valuation is governed through several types of procedures, including reviews of manager valuation policies, custodian valuation processes, pricing vendor practices, pricing reconciliation and periodic, security-specific valuation testing. 
 Fair Value Measurements The following table presents our plan assets using the fair value hierarchy as of December 31, 2025 and 2024. The fair value hierarchy has three levels based on the reliability of the inputs used to determine fair value. Level 1 refers to fair values determined based on quoted prices 
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 in active markets for identical assets. Level 2 refers to fair values estimated using significant other observable inputs, and Level 3 includes fair values estimated using significant unobservable inputs. 
 
 December 31, 2025 December 31, 2024 
 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 
 Fixed income securities: 
 
 Corporate $ 15,774 $ 15,521 $ 253 $ 16,322 $ 16,288 $ 34 
 U.S. government and agencies 
 5,908 5,908 5,182 5,182 
 Mortgage backed and asset backed 
 646 460 186 783 611 172 
 Municipal 524 524 613 613 
 Sovereign 2,055 2,053 2 924 923 1 
 Mutual funds/ETFs 
 128 $ 128 
 Other 5 $ 2 3 
 Asset backed private loans 
 54 54 
 Derivatives: 
 Assets 1,858 1,858 
 Liabilities ( 1,827 ) ( 1 ) ( 1,826 ) ( 194 ) ( 194 ) 
 Cash equivalents and other short-term investments 
 151 151 650 646 4 
 Equity securities: 
 U.S. common and preferred stock 
 3,875 3,875 3,645 3,645 
 Non-U.S. common and preferred stock 
 2,464 2,464 2,530 2,530 
 Mutual funds/ETFs 
 55 55 
 
 Derivatives: 
 Assets 13 13 
 Liabilities ( 13 ) ( 13 ) 
 
 Real estate and real assets: 
 Real estate 
 Real assets 374 374 389 348 39 2 
 Derivatives: 
 Assets 1 1 
 Liabilities 
 Total $ 32,039 $ 6,895 $ 24,649 $ 495 $ 30,850 $ 6,525 $ 24,112 $ 213 
 
 Fixed income common/collective/pooled funds $ 1,550 $ 1,309 
 Fixed income other 1,301 1,364 
 Equity common/collective/ pooled funds 3,004 2,385 
 Private equity 3,959 3,919 
 Real estate and real assets 2,740 2,925 
 Hedge funds 2,670 2,608 
 Total investments measured at NAV as a practical expedient $ 15,224 $ 14,510 
 
 Cash $ 89 $ 265 
 Receivables 374 382 
 Payables ( 579 ) ( 433 ) 
 Total $ 47,147 $ 45,574 

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 Fixed income securities are primarily valued upon a market approach, using matrix pricing and considering a security’s relationship to other securities for which quoted prices in an active market may be available, or an income approach, converting future cash flows to a single present value amount. Inputs used in developing fair value estimates include reported trades, broker quotes, benchmark yields and base spreads. 
 Common/collective/pooled funds are typically common or collective trusts valued at their net asset values (NAVs) that are calculated by the investment manager or sponsor of the fund and have daily or monthly liquidity. 
 Derivatives included in the table above are over-the-counter and are primarily valued using an income approach with inputs that include benchmark yields, swap curves, cash flow analysis, rating agency data and inter-dealer 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 investments in this cash vehicle are valued daily using a market approach with inputs that include quoted market prices for similar instruments. In the event a market price is not available for instruments with an original maturity of one year or less, amortized cost is used as a proxy for fair value. Common and preferred stock equity securities are primarily valued using a market approach based on the quoted market prices of identical instruments. 
 Private equity and private debt NAV valuations are based on the valuation of the underlying investments, which include inputs such as cost, operating results, discounted future cash flows and market based comparable data. For those investments reported on a one-quarter lagged basis (primarily LPs), we use NAVs adjusted for subsequent cash flows and significant events. 
 Real estate and real asset NAVs are based on the valuation of the underlying investments, which include inputs such as cost, discounted future cash flows, independent appraisals and market based comparable data. For those investments reported on a one-quarter lagged basis (primarily LPs), NAVs are adjusted for subsequent cash flows and significant events. Publicly traded infrastructure stocks are valued using a market approach based on quoted market prices of identical instruments. 
 Hedge fund NAVs are generally based on the valuation of the underlying investments. This is primarily done by applying a market or income valuation methodology depending on the specific type of security or instrument held. 
 Investments in private equity, private debt, real estate, real assets and hedge funds are primarily calculated and reported by the General Partner, fund manager or third-party administrator. Additionally, some investments in fixed income and equity are made via commingled vehicles and are valued in a similar fashion. Pension assets invested in commingled and LP structures rely on the NAV of these investments as the practical expedient for the valuations. 
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 The following tables summarizes the changes of Level 3 assets, reconciled by asset class, held during the years ended December 31, 2025 and 2024. Transfers into and out of Level 3 are reported at the beginning-of-year values. 
 
 January 1
2025 Balance Net Realized and Unrealized Gains/(Losses) 
 Net Purchases, Issuances and Settlements Net Transfers Into/(Out of) Level 3 December 31
2025 Balance 
 Fixed income securities: 
 Corporate 
 $ 34 $ 3 $ 246 ($ 30 ) $ 253 
 
 Mortgage backed and 
 asset backed 
 172 3 11 186 
 
 
 Sovereign 1 1 2 
 
 Asset backed private loans 54 54 
 Cash equivalents and other short-term investments 4 ( 4 ) 
 
 
 
 
 Real assets 2 ( 2 ) 
 Total $ 213 $ 6 $ 306 ($ 30 ) $ 495 

 
 January 1
2024 Balance Net Realized and Unrealized (Losses)/Gains 
 Net Purchases, Issuances and Settlements Net Transfers Into/(Out of) Level 3 December 31
2024 Balance 
 Fixed income securities: 
 Corporate 
 $ 59 ($ 3 ) ($ 22 ) $ 34 
 
 Mortgage backed and asset backed 
 161 2 5 $ 4 172 
 
 Sovereign 1 1 
 Other 3 ( 3 ) 
 Cash equivalents and other short-term investments 4 4 
 Equity securities: 
 
 Non-U.S. common and preferred stock 
 1 ( 1 ) 
 
 Real assets 3 ( 2 ) 1 2 
 Total $ 226 ($ 3 ) ($ 15 ) $ 5 $ 213 

 For the year ended December 31, 2025, the changes in unrealized gains/(losses) for Level 3 assets still held at December 31, 2025 were $ 7 for corporate fixed income securities, $ 1 for mortgage backed and asset backed fixed income securities, and $ 46 for asset backed private loans fixed income securities. 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. 
 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 
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 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. 
 Cash Flows 
 Contributions Required pension contributions under the Employee Retirement Income Security Act (ERISA), as well as rules governing funding of our non-U.S. pension plans, are not expected to be significant in 2026. We do not expect to make discretionary contributions to our pension plans in 2026. 
 Estimated Future Benefit Payments The table below reflects the total pension benefits expected to be paid from the plans or from our assets, including both our share of the benefit cost and the participants’ share of the cost, which is funded by participant contributions. OPB payments reflect our portion only. 
 
 Year(s) 2026 2027 2028 2029 2030 2031-2035 
 Pensions $ 4,507 $ 4,415 $ 4,323 $ 4,219 $ 4,094 $ 18,650 
 Other postretirement benefits: 
 Gross benefits paid 323 316 290 264 238 917 
 Subsidies 
 ( 9 ) ( 9 ) ( 8 ) ( 8 ) ( 8 ) ( 37 ) 
 Net other postretirement benefits $ 314 $ 307 $ 282 $ 256 $ 230 $ 880 

 Termination Provisions 
 Certain of the pension plans provide that, in the event there is a change in control of the Company which is not approved by the Board of Directors and the plans are terminated within five years thereafter, the assets in the plan first will be used to provide the level of retirement benefits required by ERISA, and then any surplus will be used to fund a trust to continue present and future payments under the postretirement medical and life insurance benefits in our group insurance benefit programs. 
 Should we terminate certain pension plans under conditions in which the plan’s assets exceed that plan’s obligations, the U.S. government will be entitled to a fair allocation of any of the plan’s assets based on plan contributions that were reimbursed under U.S. government contracts. 
 Defined Contribution Plans 
 We provide certain defined contribution plans to all eligible employees. The principal plans are the Company-sponsored 401(k) plans. The expense for these defined contribution plans was $ 1,602 , $ 1,670 and $ 1,564 in 2025, 2024 and 2023, respectively. 
 
 Note 19 – Share-Based Compensation and Other Compensation Arrangements 
 Share-Based Compensation 
 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 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. 
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 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 2026. 
 Share-based plans expense is primarily included in Total costs and expenses and General and administrative expense, as well as a portion allocated to production as inventoried costs. The share-based plans expense and related income tax benefit were as follows: 
 
 Years ended December 31, 2025 2024 2023 
 Restricted stock units and other awards $ 427 $ 409 $ 697 
 Income tax benefit (before consideration of valuation allowance) $ 92 $ 107 $ 157 

 Stock Options 
 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. 
 In 2025, we granted 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. 
 
 Grant Date Options Granted 
 Expected Life Expected Volatility Risk Free Interest Rate Grant Date Fair Value Per Option 
 2/19/2025 366,869 7.0 years 39.0 % 4.5 % $ 79.53 
 2/24/2025 17,785 7.0 years 39.0 % 4.4 % $ 77.31 
 8/15/2025 44,321 7.0 years 39.3 % 4.3 % $ 101.53 
 

 Stock options granted during 2024 and 2023 were not material. 
 Stock option activity for the year ended December 31, 2025 was as follows: 
 
 Shares Weighted Average Exercise Price Per Option Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value 
 Number of shares under option: 
 Outstanding at beginning of year 903,999 $ 245.76 
 Granted 428,975 227.33 
 
 Expired ( 18,729 ) 246.56 
 Forfeited ( 15,150 ) 260.98 
 Outstanding at end of year 1,299,095 $ 239.49 7.0 $ 2 
 Exercisable at end of year 721,844 $ 254.33 5.4 $ 0 

 Options exercised during 2025 and 2024 were not material. The total intrinsic value of options exercised during the year ended December 31, 2023 was $ 80 , with a related tax benefit of $ 18 . At 
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 December 31, 2025, there was $ 22 of total unrecognized compensation cost related to options which is expected to be recognized over a weighted average period of 2.3 years. The fair value of options vested during the years ended December 31, 2025 and 2024 was $ 26 and $ 32 . No options vested during the year ended December 31, 2023. 
 Restricted Stock Units 
 In February 2025, 2024 and 2023, we granted to our executives 2,244,444 , 2,008,499 and 327,523 restricted stock units (RSUs) as part of our long-term incentive program with grant date fair values of $ 184.53 , $ 204.15 and $ 214.35 per unit, respectively. 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. If an executive terminates employment because of retirement, layoff, disability, or death, the executive (or beneficiary) may receive some or all of their stock units depending on certain age and service conditions. In all other cases, the RSUs will not vest and all rights to the stock units will terminate. These RSUs are included in Long-Term Incentive Program in the table below. 
 In addition to RSUs awarded under our long-term incentive programs, we granted RSUs to certain executives and employees. As a result of the Spirit Acquisition in December 2025, we exchanged Spirit share-based compensation awards for 164,806 Boeing RSUs, of which 2,682 units are payable in cash. The fair value of these RSUs is $ 204.71 per unit, of which $ 16 will be recognized as compensation expense over the remaining service period. These RSUs are included in Other in the table below. 
 The fair values of all RSUs, except RSUs exchanged for Spirit share-based compensation awards, are estimated using the average of the high and low stock prices on the date of grant. 
 RSU activity for the year ended December 31, 2025 was as follows: 
 
 Long-Term Incentive Program Other 
 Shares 
 Weighted Average Fair Value per Unit 
 Shares 
 Weighted Average Fair Value per Unit 
 
 Number of units: 
 Outstanding at beginning of year 6,340,571 $ 190.23 565,430 $ 177.20 
 Granted (1) 
 2,319,823 184.79 380,049 196.76 
 
 
 Forfeited ( 368,748 ) 191.71 ( 58,327 ) 191.53 
 Distributed ( 3,843,304 ) 181.19 ( 338,633 ) 170.78 
 Outstanding at end of year 4,448,342 $ 195.14 548,519 $ 192.97 
 Undistributed vested units 523,670 69,191 
 Unrecognized compensation cost $ 361 $ 45 
 Weighted average remaining amortization period (years) 
 1.8 1.8 

 (1) Includes 164,806 awards issued in exchange for Spirit share-based compensation awards as a result of the Spirit Acquisition. 
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 Performance Restricted Stock Units 
 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). If an executive terminates employment because of retirement, layoff, disability, or death, the executive (or beneficiary) remains eligible under the award and, if the award is earned, may receive some or all of their stock units depending on certain age and service conditions. In all other cases, the PRSUs will not vest and all rights to the stock units will terminate. During the year ended December 31, 2025, there were 20,571 forfeitures and no distributions. At December 31, 2025, there was no unrecognized compensation cost. 
 Performance-Based Restricted Stock Units 
 Performance-Based Restricted Stock Units (PBRSUs) are stock units that pay out based on the Company’s total shareholder return (TSR) as compared to a group of peer companies over a three-year period. The award payout can range from 0 % to 200 % of the initial PBRSU grant. During 2023, these performance awards expired with a payout of 0 %. No units were outstanding during 2025. 
 Employee Stock Purchase Plan 
 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 2025, approximately 336,831 shares were purchased at an average price of $ 182.28 per share. 
 Deferred Compensation 
 The Company has deferred compensation plans which permit certain employees and executives to defer a portion of their salary, bonus, certain other incentive awards and retirement contributions. Participants can diversify these amounts among 23 investment funds including a Boeing stock unit account. 
 Total expense/(income) related to deferred compensation was $ 182 , $ 114 and $ 188 in 2025, 2024 and 2023, respectively. As of December 31, 2025 and 2024, the deferred compensation liability which is being marked to market was $ 1,685 and $ 1,675 . 
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 Note 20 – Shareholders' Equity 
 As of December 31, 2025 and 2024, there were 1,200,000,000 shares of common stock and 20,000,000 shares of preferred stock authorized. 
 Changes in Share Balances 
 The following table shows changes in each class of shares: 
 
 Common 
 stock 
 Treasury 
 stock 
 Mandatory convertible preferred stock 
 
 Balance at January 1, 2023 1,012,261,159 414,671,383 
 Issued ( 13,651,201 ) 
 Acquired 1,725,954 
 Balance at December 31, 2023 1,012,261,159 402,746,136 
 Issued ( 140,120,845 ) 5,750,000 
 Acquired 419,549 
 Balance at December 31, 2024 1,012,261,159 263,044,840 5,750,000 
 Issued ( 35,657,515 ) 
 Acquired 175,562 
 Balance at December 31, 2025 1,012,261,159 227,562,887 5,750,000 

 On December 8, 2025, we issued 22,977,008 shares of common stock, $ 5.00 par value per share, from shares held in Treasury Stock in exchange for Spirit common stock as a result of the Spirit Acquisition. For additional discussion, see Note 2 to our Consolidated Financial Statements. 
 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. Dividends paid on Mandatory convertible preferred stock in 2025 and 2024 were $ 331 and $ 0 . In December 2025, dividends of $ 86 were declared to holders of record as of January 1, 2026, representing $ 15.00 per share, and were paid in cash on January 15, 2026. 
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 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 
 During the year ended December 31, 2025, Additional paid-in capital included an increase of $ 109 related to the assumption of Exchangeable Notes as a result of the Spirit Acquisition. 
 During the year ended December 31, 2023, Additional paid-in capital included a decrease of $ 267 related to a non-cash transaction to purchase shares in a consolidated subsidiary from the noncontrolling interests. 
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 Accumulated Other Comprehensive Loss 
 Changes in AOCI by component for the years ended December 31, 2025, 2024 and 2023 were as follows: 
 
 Currency Translation Adjustments Unrealized Gains and Losses on Certain Investments Unrealized Gains and Losses on Derivative Instruments 
 Defined Benefit Pension Plans & Other Postretirement Benefits 
 Total (1) 
 
 Balance at January 1, 2023 ($ 167 ) ($ 24 ) ($ 9,359 ) ($ 9,550 ) 
 Other comprehensive income/(loss) before reclassifications 
 33 $ 2 41 ( 722 ) (2) 
 ( 646 ) 
 Amounts reclassified from AOCI 
 ( 5 ) ( 104 ) (3) 
 ( 109 ) 
 Net current period Other comprehensive income/(loss) 
 33 2 36 ( 826 ) ( 755 ) 
 Balance at December 31, 2023 ($ 134 ) $ 2 $ 12 ($ 10,185 ) ($ 10,305 ) 
 Other comprehensive loss before reclassifications 
 ( 44 ) ( 258 ) ( 356 ) (4) 
 ( 658 ) 
 Amounts reclassified from AOCI 35 13 
 
 48 
 Net current period Other comprehensive loss 
 ( 44 ) ( 223 ) ( 343 ) ( 610 ) 
 Balance at December 31, 2024 ($ 178 ) $ 2 ($ 211 ) ($ 10,528 ) ($ 10,915 ) 
 Other comprehensive income before reclassifications 
 225 262 19 506 
 Amounts reclassified from AOCI 
 $ 17 37 78 132 
 Net current period Other comprehensive income 
 242 299 97 638 
 Balance at December 31, 2025 $ 64 $ 2 $ 88 ($ 10,431 ) ($ 10,277 ) 

 (1) Net of tax. 
 (2) 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 ($ 722 ) (net of tax of $ 13 ) for the year ended December 31, 2023. See Note 18. 
 (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 ). 
 (4) 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. See Note 18. 
 
 Note 21 – Derivative Financial Instruments 
 Cash Flow Hedges 
 Our cash flow hedges include foreign currency forward contracts, commodity swaps and commodity purchase contracts. We use foreign currency forward contracts to manage currency risk associated with certain expected sales and purchases through 2032. We use commodity derivatives, such as fixed-price purchase commitments and swaps to hedge against potentially unfavorable price changes for commodities used in production. Our commodity contracts hedge forecasted transactions through 2029. 
 Derivative Instruments Not Receiving Hedge Accounting Treatment 
 We hold certain foreign currency forward contracts which do not qualify for hedge accounting treatment. At December 31, 2024, we had agreements to purchase and sell aluminum to address long-term 
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 strategic sourcing objectives and non-U.S. business requirements. These agreements were derivative instruments for accounting purposes. The quantities of aluminum in these agreements offset and were priced at prevailing market prices. At December 31, 2025, these agreements have expired and no notional amounts remain. 
 Notional Amounts and Fair Values 
 The notional amounts and fair values of derivative instruments in the Consolidated Statements of Financial Position as of December 31 were as follows: 
 
 Notional 
 amounts (1) 
 Other assets Accrued
liabilities 
 2025 2024 2025 2024 2025 2024 
 Derivatives designated as hedging instruments: 
 Foreign exchange contracts $ 5,736 $ 5,139 $ 143 $ 23 ($ 77 ) ($ 213 ) 
 
 Commodity contracts 435 388 92 65 ( 1 ) ( 12 ) 
 Derivatives not receiving hedge accounting treatment: 
 
 Foreign exchange contracts 320 103 3 1 ( 10 ) ( 17 ) 
 Commodity contracts 129 
 Total derivatives $ 6,491 $ 5,759 238 89 ( 88 ) ( 242 ) 
 Netting arrangements ( 45 ) ( 24 ) 45 24 
 Net recorded balance $ 193 $ 65 ($ 43 ) ($ 218 ) 

 (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/(loss) are presented in the following table: 
 
 Years ended December 31, 2025 2024 2023 
 Recognized in Other comprehensive income/(loss), net of taxes: 
 
 Foreign exchange contracts $ 210 ($ 248 ) $ 61 
 Commodity contracts 52 ( 10 ) ( 20 ) 

 Gains/(losses) associated with our hedging transactions and forward points reclassified from AOCI to earnings are presented in the following table: 
 
 Years ended December 31, 2025 2024 2023 
 Foreign exchange contracts 
 Revenues $ 1 ($ 1 ) 
 Costs and expenses ( 29 ) ( 25 ) ($ 15 ) 
 General and administrative 2 ( 8 ) ( 17 ) 
 Commodity contracts 
 
 Costs and expenses ($ 18 ) ($ 7 ) $ 31 
 General and administrative expense 6 6 7 

 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, 2025, 2024 and 2023. 
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 Based on our portfolio of cash flow hedges, we expect to reclassify gains of $ 16 (pre-tax) out of AOCI into earnings during the next 12 months. 
 We have derivative instruments with credit-risk-related contingent features. If we default on our five-year credit facility, our derivative counterparties could require settlement for foreign exchange and certain commodity contracts with original maturities of at least five years . The fair value of those contracts in a net liability position at December 31, 2025 was $ 3 . For other particular commodity contracts, our counterparties could require collateral posted in an amount determined by our credit ratings. At December 31, 2025, there was no collateral posted related to our derivatives. 
 
 Note 22 – Fair Value Measurements 
 The fair value hierarchy has three levels based on the reliability of the inputs used to determine fair value. Level 1 refers to fair values determined based on quoted prices in active markets for identical assets. Level 2 refers to fair values estimated using significant other observable inputs, and Level 3 includes fair values estimated using significant unobservable inputs. The following table presents our assets and liabilities that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy. 
 
 December 31, 2025 December 31, 2024 
 Total Level 1 Level 2 Total Level 1 Level 2 
 Assets 
 Money market funds $ 3,793 $ 3,793 $ 6,475 $ 6,475 
 Available-for-sale debt investments: 
 Commercial paper 163 $ 163 165 $ 165 
 Corporate notes 344 344 335 335 
 U.S. government agencies 27 27 17 17 
 Other equity investments 9 9 9 9 
 Derivatives 193 193 65 65 
 Total assets $ 4,529 $ 3,802 $ 727 $ 7,066 $ 6,484 $ 582 
 
 Liabilities 
 Derivatives ($ 43 ) ($ 43 ) ($ 218 ) ($ 218 ) 
 
 Total liabilities ($ 43 ) ($ 43 ) ($ 218 ) ($ 218 ) 

 Money market funds, available-for-sale debt investments and equity securities are valued using a market approach based on the quoted market prices or broker/dealer quotes of identical or comparable instruments. 
 Derivatives include foreign currency and commodity contracts. Our foreign currency forward contracts are valued using an income approach based on the present value of the forward rate less the contract rate multiplied by the notional amount. Commodity derivatives are valued using an income approach based on the present value of the commodity index price less the contract rate multiplied by the notional amount. 
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 Certain assets have been measured at fair value on a nonrecurring basis. 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: 
 
 2025 2024 
 Fair Value 
 Total Losses Fair Value 
 Total Losses 
 Property, plant and equipment $ 32 ($ 54 ) 
 Investments ($ 41 ) ( 32 ) 
 Other assets 
 $ 2 ( 4 ) 6 ( 21 ) 
 Operating lease equipment 
 15 ( 5 ) 
 Total $ 2 ($ 45 ) $ 53 ($ 112 ) 

 Level 3 Investments and Other assets were primarily valued using an income approach based on the discounted cash flows associated with the underlying assets. Level 2 and Level 3 Property, plant and equipment were valued based on a third-party valuation using a combination of income and market approaches and adjusted for as-is condition. These approaches are considered estimates of net operating income, capitalization rates, and/or comparable property sales. Level 3 operating lease equipment was valued by calculating a median collateral value from a consistent group of third-party aircraft value publications. The values provided by the third-party aircraft publications are derived from their knowledge of market trades and other market factors. Management reviews the publications quarterly to assess the continued appropriateness and consistency with market trends. Under certain circumstances, we adjust values based on the attributes and condition of the specific aircraft or equipment, usually when the features or use of the aircraft vary significantly from the more generic aircraft attributes covered by third-party publications, or on the expected net sales price for the aircraft. 
 Fair Value Disclosures 
 The fair values and related carrying values of financial instruments that are not required to be remeasured at fair value on the Consolidated Statements of Financial Position at December 31 were as follows: 
 
 December 31, 2025 
 Carrying Amount Total Fair Value Level 1 Level 2 Level 3 
 Assets 
 
 Notes receivable, net $ 21 $ 21 $ 13 $ 8 
 Liabilities 
 Debt, excluding finance lease obligations ( 53,848 ) ( 53,769 ) ( 53,769 ) 

 
 December 31, 2024 
 Carrying Amount Total Fair Value Level 1 Level 2 Level 3 
 Assets 
 
 Notes receivable, net $ 940 $ 953 $ 941 $ 12 
 Liabilities 
 Debt, excluding finance lease obligations ( 53,625 ) ( 51,089 ) ( 51,089 ) 

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 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. For our debt that is not traded in the secondary market, the fair value is classified as Level 2 and is based on our indicative borrowing cost derived from dealer quotes or discounted cash flows. With regard to other financial instruments with off-balance sheet risk, it is not practicable to estimate the fair value of our indemnifications and financing commitments because the amount and timing of those arrangements are uncertain. Items not included in the above disclosures include cash, restricted cash, time deposits and other deposits, 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, 2025 and 2024. The fair value of assets and liabilities whose carrying value approximates fair value is determined using Level 2 inputs, with the exception of cash (Level 1). 
 
 Note 23 – Legal Proceedings 
 We are subject, from time to time, to various legal proceedings and claims related to our business that cover a wide range of matters, including those related to products, contracts, labor and employment, securities, antitrust and trade regulations, intellectual property, and other matters. 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 U.S. or foreign governments for fines, penalties, compensatory and treble damages, restitution and/or forfeitures. Under U.S. government regulations, a company, or one or more of its operating divisions or subdivisions, can 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. 
 On May 29, 2025, Boeing and the Department of Justice (the Department) entered into a non-prosecution agreement (the Agreement) to resolve the Department’s determination that Boeing did not fulfill its obligations under the January 2021 deferred prosecution agreement relating to the October 2018 Lion Air flight 610 accident and the March 2019 Ethiopian Airlines flight 302 accident (the MAX accidents). The Agreement requires, among other things, Boeing to pay a fine of $ 244 and provide $ 445 of additional compensation for the family members of those who died in the MAX accidents. The $ 244 fine, which was accrued for and expensed in 2024, and the $ 445 compensation fund for family members, which was accrued for and expensed in the second quarter of 2025, are held in escrow accounts pending final court approval of the Department’s motion to dismiss the criminal information against Boeing (the Motion). On November 6, 2025, the U.S. District Court for the Northern District of Texas (the Court) approved the Motion; however, representatives of family members appealed the Court’s decision, which appeal is pending before the U.S. Court of Appeals for the Fifth Circuit. 
 Certain legal actions and investigations arising out of the MAX accidents and subsequent grounding of the 737 MAX are still pending, including fewer than five civil lawsuits by family members of those who died in the MAX accidents. In addition, securities lawsuits are pending, including a motion for class certification on a federal securities class action before the U.S. District Court for the Northern District of Illinois. Multiple investigations and legal actions, including securities lawsuits, were also initiated as a result of the January 2024 737-9 door plug accident. 
 Given the status of these legal actions and investigations, 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 from these matters. 
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 Note 24 – Segment and Revenue Information 
 We operate in three reportable segments: BCA, BDS, and BGS. All other activities fall within Unallocated items, eliminations and other. See page 59 for the Summary of Business Segment Data, which is an integral part of this note. 
 BCA develops, produces and markets commercial jet aircraft principally to the commercial airline industry worldwide. Revenue on commercial aircraft contracts is recognized at the point in time when an aircraft is completed and accepted by the customer. 
 BDS engages in the research, development, production and modification of the following products and related services: manned and unmanned military aircraft and weapons systems, surveillance and engagement, strategic defense and intelligence systems, satellite systems and space exploration. BDS revenue is generally recognized over the contract term (over time) as costs are incurred. 
 BGS provides parts, maintenance, modifications, logistics support, training, data analytics and information-based services to commercial and government customers worldwide. BGS segment revenue and costs include certain products and services provided to other segments. Revenue on commercial spare parts contracts is recognized at the point in time when a spare part is delivered to the customer. Revenue on other contracts is generally recognized over the contract term (over time) as costs are incurred. 
 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. 
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 The following table reconciles segment Revenues to Segment operating (loss)/earnings: 
 
 BCA BDS BGS 
 For the year ended December 31, 2023 
 
 Revenues $ 33,901 $ 24,933 $ 19,127 
 Less: 
 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 
 Less: 
 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 
 For the year ended December 31, 2025 
 
 Revenues $ 41,494 $ 27,234 $ 20,923 
 Less: 
 Research and development expense, net 2,202 877 125 
 Gain on Digital Aviation Solutions Divestiture (2) 
 ( 9,566 ) 
 Other segment items (1) 
 46,371 26,485 16,890 
 Segment operating (loss)/earnings ($ 7,079 ) ($ 128 ) $ 13,474 

 (1) Primarily includes costs of products and services and general and administrative expenses. 
 (2) See Note 3 for additional discussion. 
 While our principal operations are in the United States, Canada and Australia, some key suppliers and subcontractors are located in Europe and Japan. Revenues, including foreign military sales, are reported by customer location and consisted of the following: 
 
 Years ended December 31, 2025 2024 2023 
 Asia $ 16,466 $ 11,994 $ 10,013 
 Europe 11,419 8,734 10,520 
 
 Middle East 7,023 4,635 6,594 
 
 Oceania 1,587 1,565 1,655 
 Canada 1,781 1,472 1,256 
 Africa 1,625 1,143 825 
 Latin America, Caribbean and other 1,479 1,246 1,524 
 Total non-U.S. revenues 41,380 30,789 32,387 
 United States 48,083 36,171 45,380 
 Estimated potential concessions and other considerations to 737 MAX customers, net of insurance recoveries 
 ( 443 ) 27 
 Total revenues $ 89,463 $ 66,517 $ 77,794 

 Revenues from the U.S. government (including FMS), primarily recorded at BDS and BGS, represented 35 %, 42 % and 37 % of consolidated revenues for 2025, 2024 and 2023, respectively. Approximately 4 % and 3 % of operating assets were located outside the United States as of December 31, 2025 and 2024. 
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 The following tables present BCA, BDS and BGS revenues from contracts with customers disaggregated in a number of ways, such as geographic location, contract type and the method of revenue recognition. We believe these best depict how the nature, amount, timing and uncertainty of our revenues and cash flows are affected by economic factors. 
 BCA revenues by customer location consisted of the following: 
 
 Years ended December 31, 
 2025 2024 2023 
 Revenue from contracts with customers: 
 Asia $ 11,733 $ 8,060 $ 6,328 
 Europe 6,536 3,956 6,172 
 Middle East 4,202 2,012 4,311 
 
 
 
 Other non-U.S. 2,504 1,815 2,431 
 Total non-U.S. revenues 24,975 15,843 19,242 
 United States 16,357 7,326 14,501 
 Estimated potential concessions and other considerations to 737 MAX customers, net of insurance recoveries 
 ( 443 ) 27 
 Total revenues from contracts with customers 41,332 22,726 33,770 
 Intersegment revenues, eliminated on consolidation 162 135 131 
 Total segment revenues $ 41,494 $ 22,861 $ 33,901 
 
 Revenue recognized on fixed-price contracts 100 % 100 % 100 % 
 
 Revenue recognized at a point in time 100 % 99 % 99 % 

 BDS revenues on contracts with customers, based on the customer's location, consisted of the following: 
 
 Years ended December 31, 
 2025 2024 2023 
 Revenue from contracts with customers: 
 U.S. customers $ 21,070 $ 18,589 $ 20,051 
 Non-U.S. customers (1) 
 6,164 5,329 4,882 
 Total segment revenue from contracts with customers $ 27,234 $ 23,918 $ 24,933 
 
 Revenue recognized over time 99 % 99 % 99 % 
 
 Revenue recognized on fixed-price contracts 58 % 54 % 58 % 
 
 Revenue from the U.S. government (1) 
 91 % 91 % 91 % 

 (1) Includes revenues earned from FMS. 
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 BGS revenues consisted of the following: 
 
 Years ended December 31, 2025 2024 2023 
 Revenue from contracts with customers: 
 Commercial $ 12,015 $ 11,736 $ 11,020 
 Government 8,508 7,832 7,751 
 Total revenues from contracts with customers 20,523 19,568 18,771 
 Intersegment revenues eliminated on consolidation 400 386 356 
 Total segment revenues $ 20,923 $ 19,954 $ 19,127 
 
 Revenue recognized at a point in time 53 % 53 % 51 % 
 
 Revenue recognized on fixed-price contracts 86 % 86 % 87 % 
 
 Revenue from the U.S. government (1) 
 31 % 29 % 30 % 

 (1) Includes revenues earned from FMS. 
 Earnings in Equity Method Investments 
 During the years ended December 31, 2025, 2024 and 2023, our share of income from equity method investments was $ 33 , $ 104 , and $ 70 , respectively. In 2025, 2024 and 2023, earnings from equity method investments were primarily driven by investments held at our BDS segment. 
 Backlog 
 Our total backlog includes contracts that we and our customers are committed to perform. The value in backlog represents the estimated transaction prices on performance obligations to our customers for which work remains to be performed. Backlog is converted into revenue, primarily based on the cost incurred or at delivery and acceptance of products, depending on the applicable revenue recognition model. 
 Our backlog at December 31, 2025 was $ 682,207 . We expect approximately 13 % to be converted to revenue through 2026 and approximately 55 % through 2029, with the remainder thereafter. There is significant uncertainty regarding the timing of when backlog will convert into revenue. We may experience reductions to backlog and/or significant order cancellations due to 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 
 Unallocated items, eliminations and other include common internal services that support Boeing’s global business operations and eliminations of certain sales between segments. We generally allocate costs to business segments based on the U.S. Government Cost Accounting Standards (CAS). 
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 Components of Unallocated items, eliminations and other (expense)/income are shown in the following table. 
 
 Years ended December 31, 2025 2024 2023 
 Share-based plans ($ 49 ) $ 171 $ 62 
 Deferred compensation ( 182 ) ( 114 ) ( 188 ) 
 Amortization of previously capitalized interest ( 92 ) ( 93 ) ( 95 ) 
 Research and development expense, net ( 411 ) ( 377 ) ( 315 ) 
 
 
 Eliminations and other unallocated items ( 2,297 ) ( 1,634 ) ( 1,223 ) 
 Unallocated items, eliminations and other ($ 3,031 ) ($ 2,047 ) ($ 1,759 ) 

 Eliminations and other unallocated items expense during the years ended December 31, 2025 and 2024 included earnings charges of $ 445 and $ 244 related to agreements with the U.S. Department of Justice. For additional discussion, see Note 23 to our Consolidated Financial Statements. 
 Pension and Other Postretirement Benefit Expense 
 Pension costs are allocated to BDS and BGS businesses supporting government customers using CAS, which employ different actuarial assumptions and accounting conventions than GAAP. These costs are allocable to government contracts. Other postretirement benefit costs are allocated to business segments based on CAS, which is generally based on benefits paid. FAS/CAS service cost adjustment represents the difference between the Financial Accounting Standards (FAS) pension and postretirement service costs calculated under GAAP and costs allocated to the business segments. Non-operating pension and postretirement expenses represent the components of net periodic benefit costs other than service cost. These expenses are included in Other income, net. Components of FAS/CAS service cost adjustment are shown in the following table: 
 
 Years ended December 31, 2025 2024 2023 
 Pension FAS/CAS service cost adjustment $ 784 $ 811 $ 799 
 Postretirement FAS/CAS service cost adjustment 261 293 257 
 FAS/CAS service cost adjustment $ 1,045 $ 1,104 $ 1,056 

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 Assets 
 Segment assets are summarized in the table below. 
 
 December 31, 2025 2024 
 Commercial Airplanes $ 91,837 $ 84,177 
 Defense, Space & Security 16,723 15,350 
 Global Services 16,026 16,704 
 Unallocated items, eliminations and other 43,649 40,132 
 Total $ 168,235 $ 156,363 

 Assets included in Unallocated items, eliminations and other primarily consist of Cash and cash equivalents, Short-term and other investments, tax assets, capitalized interest and assets managed centrally on behalf of the three principal business segments and intercompany eliminations. 
 Capital Expenditures 
 
 Years ended December 31, 2025 2024 2023 
 Commercial Airplanes $ 626 $ 508 $ 420 
 Defense, Space & Security 373 296 192 
 Global Services 187 212 127 
 Unallocated items, eliminations and other 1,756 1,214 788 
 Total $ 2,942 $ 2,230 $ 1,527 

 Capital expenditures for Unallocated items, eliminations and other relate primarily to assets managed centrally on behalf of the three principal business segments. 
 Depreciation and Amortization 
 
 Years ended December 31, 2025 2024 2023 
 Commercial Airplanes $ 455 $ 400 $ 464 
 Defense, Space & Security
 221 209 219 
 Global Services 296 304 320 
 
 Centrally Managed Assets (1) 
 981 923 858 
 Total $ 1,953 $ 1,836 $ 1,861 

 (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 allocated to business segments based on usage and occupancy. In 2025, $ 747 was allocated to the primary business segments, of which $ 361 , $ 300 and $ 86 was allocated to BCA, BDS and BGS, respectively. In 2024, $ 705 was allocated the primary business segments, of which $ 339 , $ 289 and $ 77 was allocated to BCA, BDS and BGS, respectively. In 2023, $ 650 was allocated to the primary business segments, of which $ 311 , $ 264 and $ 75 was allocated to BCA, BDS and BGS, respectively. 
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 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM 
 To the shareholders and the Board of Directors of The Boeing Company 
 Opinion on the Financial Statements 
 We have audited the accompanying consolidated statements of financial position of The Boeing Company and subsidiaries (the "Company") as of December 31, 2025 and 2024, the related consolidated statements of operations, comprehensive income, equity, and cash flows, for each of the three years in the period ended December 31, 2025, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025, 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, 2025, 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 30, 2026, expressed an unqualified opinion on the Company's internal control over financial reporting. 
 Basis for Opinion 
 These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. 
 We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion. 
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 Critical Audit Matters 
 The critical audit matters communicated below are matters arising from the current-period audit of the financial statements that were communicated or required to be communicated to the audit committee and that (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate. 
 Cost Estimates for Fixed-Price Development Contracts — Refer to Notes 1 and 15 to the financial statements 
 Critical Audit Matter Description 
 The Company recognizes revenue over time for long-term contracts as goods are produced or services are rendered. The Company uses costs incurred as the method for determining progress, and revenue is recognized based on costs incurred to date plus an estimate of margin at completion. The process of estimating margin at completion involves estimating the costs to complete production of goods or rendering of services and comparing those costs to the estimated final revenue amount. Margins on fixed-price development contracts are inherently uncertain in that revenue is fixed while the estimates of costs required to complete these contracts are subject to significant variability. 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 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. 
 How the Critical Audit Matter Was Addressed in the Audit 
 Our audit procedures related to the cost estimates for the KC-46A Tanker, Commercial Crew, 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 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 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. 
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 • 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 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 judgments made by management when determining the timing of changes to key estimates. 
 • 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 and the mathematical extrapolation of such data. 
 Program Accounting Estimates for the 777X program — Refer to Notes 1 and 9 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 $4.9 billion in reach-forward losses on the 777X program in 2025. The introduction of new aircraft programs brings increased risk related to meeting development, production, and certification timing. The 777X program is currently experiencing production challenges and certification delays, leading to significant uncertainty in the production schedule. These uncertainties could potentially result in production disruptions and delays to the timing of entry into service which further increases the complexity and subjectivity involved in management’s cost and revenue estimates for the program. Production disruptions and delays to entry into service for the 777X program have also 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 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 and customer consideration for the 777X program included the following, among others: 
 • We evaluated the appropriateness and consistency of management’s methods and assumptions in developing and updating cost estimates for the 777X program to complete production of aircraft meeting final certification specifications and address production challenges. 
 • We inquired with multiple members of Management, both inside and outside of accounting, to understand the current status of the 777X program, events affecting certification, delivery schedules, and production schedules, and the status of customer negotiations. 
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 • We evaluated communications with regulatory bodies to assess consistency between management’s certification timeline assumptions and cost and revenue estimates. 
 • We assessed the reasonableness of the Program’s certification schedule and production costs, including performing a lookback analysis on management’s ability to estimate certification timing and production unit time. 
 • We evaluated the appropriateness and consistency of management’s methods and assumptions in developing and updating estimated customer consideration, including comparison to historical re-contracting outcomes and evaluation of customer communications. 
 • We conducted internet searches to identify reports related to the regulatory environment and customer statements. We evaluated whether any contradictory evidence existed that would indicate that the Program would not meet its certification timeline and planned production schedule and if any other media information was inconsistent with our knowledge of the Company and 777X program. 
 • 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. 
 Program Accounting Estimates for the 737 program — Refer to Notes 1 and 9 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’s production rate schedule continues to be an area of focus for the Company and subject to continued oversight from the Federal Aviation Administration (FAA). The influence of these factors over the 737 production rate schedule impacts the timing of future production rate increases and results in increased complexities and related financial risks. There is uncertainty in the 737 program’s production rate schedule that could impact forecasted cost and revenue, with a corresponding impact to the 737 program’s gross margin. 
 Specifically, the uncertainty in the 737 production rate schedule leads to greater subjectivity in management’s determination of the related cost estimates. Therefore, given the uncertainty and significant judgments necessary to estimate the 737 program’s future production rate schedule, auditing these cost 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 production status and challenges which may affect the Program’s ability to increase production rate. 
 • We assessed the ongoing communications between the FAA and Boeing on the continued monitoring of the production health. 
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 • We assessed the status of the comprehensive product safety and quality plan and related production health metrics to evaluate if there was contradictory evidence that the Program would not meet its production rate schedule. 
 • 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 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 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 estimates for the 737 program. 
 /s/ Deloitte & Touche LLP 
 Seattle, Washington 
 January 30, 2026 
 
 
 We have served as the Company's auditor since at least 1934; however, an earlier year could not be reliably determined. 
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 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM 
 To the shareholders and the Board of Directors of The Boeing Company 
 Opinion on Internal Control over Financial Reporting 
 We have audited the internal control over financial reporting of The Boeing Company and subsidiaries (the “Company”) as of December 31, 2025, based on criteria established in Internal Control — Integrated Framework (2013 ) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2025, 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, 2025 of the Company, and our report dated January 30, 2026 expressed an unqualified opinion on those financial statements. 
 As described in Management’s Annual Report on Internal Control Over Financial Reporting, management excluded from its assessment the internal control over financial reporting at Spirit AeroSystems Holdings, Inc., which was acquired on December 8, 2025, and whose financial statements constitute approximately 9 percent of Total assets and less than 1 percent of each Total revenues and Earnings from operations of the consolidated financial statement amounts for the year then ended. Accordingly, our audit did not include the internal control over financial reporting at Spirit AeroSystems Holdings, Inc. 
 Basis for Opinion 
 The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Annual Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. 
 We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. 
 Definition and Limitations of Internal Control over Financial Reporting 
 A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made 
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 only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements. 
 Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. 
 
 
 /s/ Deloitte & Touche LLP 
 
 
 Seattle, Washington 
 January 30, 2026 
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 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 
 None.
BOEING CO 10-K

Item 8. Financial Statements and Supplementary Data
