☒
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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☐
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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THE BOEING COMPANY
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Delaware
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91-0425694
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(State or other jurisdiction of
incorporation or organization)
|
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(I.R.S. Employer Identification No.)
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100 N. Riverside Plaza,
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Chicago,
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IL
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60606-1596
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(Address of principal executive offices)
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(Zip Code)
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(312)
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544-2000
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Large Accelerated Filer
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☒
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Accelerated filer
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☐
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Non-accelerated filer
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☐
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Smaller reporting company
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☐
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Emerging growth company
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☐
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Title of each class
|
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Trading Symbol(s)
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Name of each exchange on which registered
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Common Stock, $5.00 Par Value
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BA
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New York Stock Exchange
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Part I. Financial Information (Unaudited)
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Page
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Item 1.
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Item 2.
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Item 3.
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Item 4.
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Part II. Other Information
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Item 1.
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Item 1A.
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Item 2.
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Item 3.
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Item 4.
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Item 5.
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Item 6.
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|
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(Dollars in millions, except per share data)
|
Six months ended June 30
|
|
Three months ended June 30
|
||||||||||||
|
2020
|
|
|
2019
|
|
|
2020
|
|
|
2019
|
|
||||
Sales of products
|
|
$23,254
|
|
|
|
$33,319
|
|
|
|
$9,063
|
|
|
|
$13,094
|
|
Sales of services
|
5,461
|
|
|
5,349
|
|
|
2,744
|
|
|
2,657
|
|
||||
Total revenues
|
28,715
|
|
|
38,668
|
|
|
11,807
|
|
|
15,751
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|||||
Cost of products
|
(25,091
|
)
|
|
(31,910
|
)
|
|
(10,378
|
)
|
|
(15,672
|
)
|
||||
Cost of services
|
(4,632
|
)
|
|
(4,511
|
)
|
|
(2,589
|
)
|
|
(2,122
|
)
|
||||
Boeing Capital interest expense
|
(23
|
)
|
|
(34
|
)
|
|
(11
|
)
|
|
(16
|
)
|
||||
Total costs and expenses
|
(29,746
|
)
|
|
(36,455
|
)
|
|
(12,978
|
)
|
|
(17,810
|
)
|
||||
|
(1,031
|
)
|
|
2,213
|
|
|
(1,171
|
)
|
|
(2,059
|
)
|
||||
(Loss)/income from operating investments, net
|
(47
|
)
|
|
5
|
|
|
(45
|
)
|
|
(15
|
)
|
||||
General and administrative expense
|
(2,034
|
)
|
|
(1,856
|
)
|
|
(1,161
|
)
|
|
(672
|
)
|
||||
Research and development expense, net
|
(1,297
|
)
|
|
(1,692
|
)
|
|
(625
|
)
|
|
(826
|
)
|
||||
Gain on dispositions, net
|
92
|
|
|
300
|
|
|
38
|
|
|
192
|
|
||||
Loss from operations
|
(4,317
|
)
|
|
(1,030
|
)
|
|
(2,964
|
)
|
|
(3,380
|
)
|
||||
Other income, net
|
206
|
|
|
213
|
|
|
94
|
|
|
107
|
|
||||
Interest and debt expense
|
(815
|
)
|
|
(277
|
)
|
|
(553
|
)
|
|
(154
|
)
|
||||
Loss before income taxes
|
(4,926
|
)
|
|
(1,094
|
)
|
|
(3,423
|
)
|
|
(3,427
|
)
|
||||
Income tax benefit
|
1,890
|
|
|
301
|
|
|
1,028
|
|
|
485
|
|
||||
Net loss
|
(3,036
|
)
|
|
(793
|
)
|
|
(2,395
|
)
|
|
(2,942
|
)
|
||||
Less: net loss attributable to noncontrolling interest
|
(32
|
)
|
|
|
|
|
(19
|
)
|
|
|
|||||
Net loss attributable to Boeing Shareholders
|
|
($3,004
|
)
|
|
|
($793
|
)
|
|
|
($2,376
|
)
|
|
|
($2,942
|
)
|
|
|
|
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||||||||
Basic loss per share
|
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($5.31
|
)
|
|
|
($1.40
|
)
|
|
|
($4.20
|
)
|
|
|
($5.21
|
)
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|
|
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Diluted loss per share
|
|
($5.31
|
)
|
|
|
($1.40
|
)
|
|
|
($4.20
|
)
|
|
|
($5.21
|
)
|
|
|
|
|
|
|
|
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||||||||
Weighted average diluted shares (millions)
|
566.1
|
|
|
566.6
|
|
|
566.4
|
|
|
565.3
|
|
(Dollars in millions)
|
Six months ended June 30
|
|
Three months ended June 30
|
||||||||||||
|
2020
|
|
|
2019
|
|
|
2020
|
|
|
2019
|
|
||||
Net loss
|
|
($3,036
|
)
|
|
|
($793
|
)
|
|
|
($2,395
|
)
|
|
|
($2,942
|
)
|
Other comprehensive (loss)/income, net of tax:
|
|
|
|
|
|
|
|
||||||||
Currency translation adjustments
|
(33
|
)
|
|
(2
|
)
|
|
44
|
|
|
(3
|
)
|
||||
Unrealized gain on certain investments, net of tax of $0 in all periods
|
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|
1
|
|
|
|
|
|
|||||||
Unrealized (loss)/gain on derivative instruments:
|
|
|
|
|
|
|
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||||||||
Unrealized (loss)/gain arising during period, net of tax of $54, $5, ($23) and $8
|
(186
|
)
|
|
(17
|
)
|
|
89
|
|
|
(28
|
)
|
||||
Reclassification adjustment for losses/(gains) included in net loss, net of tax of ($4), $1, ($3) and $0
|
12
|
|
|
(3
|
)
|
|
10
|
|
|
(1
|
)
|
||||
Total unrealized (loss)/gain on derivative instruments, net of tax
|
(174
|
)
|
|
(20
|
)
|
|
99
|
|
|
(29
|
)
|
||||
Defined benefit pension plans and other postretirement benefits:
|
|
|
|
|
|
|
|
||||||||
Amortization of prior service credits included in net periodic pension cost, net of tax of $12, $13, $6 and $7
|
(45
|
)
|
|
(45
|
)
|
|
(22
|
)
|
|
(22
|
)
|
||||
Net actuarial loss arising during the period, net of tax of $3, $0, $3 and $0
|
(12
|
)
|
|
|
|
(12
|
)
|
|
|
||||||
Amortization of actuarial losses included in net periodic pension cost, net of tax of ($103), ($65), ($50) and ($33)
|
390
|
|
|
233
|
|
|
197
|
|
|
115
|
|
||||
Settlements and curtailments included in net loss, net of tax of ($1), $0, ($1) and $0
|
2
|
|
|
|
|
2
|
|
|
|
||||||
Pension and postretirement cost related to our equity method investments, net of tax of $0, ($2), $0, and $0
|
|
|
|
8
|
|
|
|
|
|
||||||
Total defined benefit pension plans and other postretirement benefits, net of tax
|
335
|
|
|
196
|
|
|
165
|
|
|
93
|
|
||||
Other comprehensive income, net of tax
|
128
|
|
|
175
|
|
|
308
|
|
|
61
|
|
||||
Comprehensive loss related to noncontrolling interests
|
|
|
|
(7
|
)
|
|
|
|
(7
|
)
|
|||||
Comprehensive loss, net of tax
|
(2,908
|
)
|
|
(625
|
)
|
|
(2,087
|
)
|
|
(2,888
|
)
|
||||
Less: Comprehensive loss related to noncontrolling interest
|
(32
|
)
|
|
(7
|
)
|
|
(19
|
)
|
|
(7
|
)
|
||||
Comprehensive loss attributable to Boeing Shareholders, net of tax
|
|
($2,876
|
)
|
|
|
($618
|
)
|
|
|
($2,068
|
)
|
|
|
($2,881
|
)
|
(Dollars in millions, except per share data)
|
June 30
2020 |
|
|
December 31
2019 |
|
||
Assets
|
|
|
|
||||
Cash and cash equivalents
|
|
$19,992
|
|
|
|
$9,485
|
|
Short-term and other investments
|
12,438
|
|
|
545
|
|
||
Accounts receivable, net
|
2,793
|
|
|
3,266
|
|
||
Unbilled receivables, net
|
8,570
|
|
|
9,043
|
|
||
Current portion of customer financing, net
|
115
|
|
|
162
|
|
||
Inventories
|
83,745
|
|
|
76,622
|
|
||
Other current assets, net
|
2,624
|
|
|
3,106
|
|
||
Total current assets
|
130,277
|
|
|
102,229
|
|
||
Customer financing, net
|
2,054
|
|
|
2,136
|
|
||
Property, plant and equipment, net of accumulated depreciation of $19,863 and $19,342
|
12,182
|
|
|
12,502
|
|
||
Goodwill
|
8,064
|
|
|
8,060
|
|
||
Acquired intangible assets, net
|
3,019
|
|
|
3,338
|
|
||
Deferred income taxes
|
729
|
|
|
683
|
|
||
Investments
|
1,066
|
|
|
1,092
|
|
||
Other assets, net of accumulated amortization of $617 and $580
|
5,481
|
|
|
3,585
|
|
||
Total assets
|
|
$162,872
|
|
|
|
$133,625
|
|
Liabilities and equity
|
|
|
|
||||
Accounts payable
|
|
$13,700
|
|
|
|
$15,553
|
|
Accrued liabilities
|
22,493
|
|
|
22,868
|
|
||
Advances and progress billings
|
53,367
|
|
|
51,551
|
|
||
Short-term debt and current portion of long-term debt
|
2,922
|
|
|
7,340
|
|
||
Total current liabilities
|
92,482
|
|
|
97,312
|
|
||
Deferred income taxes
|
404
|
|
|
413
|
|
||
Accrued retiree health care
|
4,427
|
|
|
4,540
|
|
||
Accrued pension plan liability, net
|
15,663
|
|
|
16,276
|
|
||
Other long-term liabilities
|
2,821
|
|
|
3,422
|
|
||
Long-term debt
|
58,457
|
|
|
19,962
|
|
||
Total liabilities
|
174,254
|
|
|
141,925
|
|
||
Shareholders’ equity:
|
|
|
|
||||
Common stock, par value $5.00 – 1,200,000,000 shares authorized; 1,012,261,159 shares issued
|
5,061
|
|
|
5,061
|
|
||
Additional paid-in capital
|
6,648
|
|
|
6,745
|
|
||
Treasury stock, at cost - 447,840,938 and 449,352,405 shares
|
(54,829
|
)
|
|
(54,914
|
)
|
||
Retained earnings
|
47,478
|
|
|
50,644
|
|
||
Accumulated other comprehensive loss
|
(16,025
|
)
|
|
(16,153
|
)
|
||
Total shareholders’ equity
|
(11,667
|
)
|
|
(8,617
|
)
|
||
Noncontrolling interests
|
285
|
|
|
317
|
|
||
Total equity
|
(11,382
|
)
|
|
(8,300
|
)
|
||
Total liabilities and equity
|
|
$162,872
|
|
|
|
$133,625
|
|
(Dollars in millions)
|
Six months ended June 30
|
||||||
|
2020
|
|
|
2019
|
|
||
Cash flows – operating activities:
|
|
|
|
||||
Net loss
|
|
($3,036
|
)
|
|
|
($793
|
)
|
Adjustments to reconcile net loss to net cash (used)/provided by operating activities:
|
|
|
|
||||
Non-cash items –
|
|
|
|
||||
Share-based plans expense
|
115
|
|
|
104
|
|
||
Depreciation and amortization
|
1,103
|
|
|
1,067
|
|
||
Investment/asset impairment charges, net
|
280
|
|
|
70
|
|
||
Customer financing valuation adjustments
|
9
|
|
|
249
|
|
||
Gain on dispositions, net
|
(92
|
)
|
|
(300
|
)
|
||
Other charges and credits, net
|
815
|
|
|
145
|
|
||
Changes in assets and liabilities –
|
|
|
|
||||
Accounts receivable
|
143
|
|
|
588
|
|
||
Unbilled receivables
|
285
|
|
|
(222
|
)
|
||
Advances and progress billings
|
1,822
|
|
|
1,842
|
|
||
Inventories
|
(6,741
|
)
|
|
(5,233
|
)
|
||
Other current assets
|
433
|
|
|
(887
|
)
|
||
Accounts payable
|
(3,181
|
)
|
|
2,002
|
|
||
Accrued liabilities
|
514
|
|
|
4,959
|
|
||
Income taxes receivable, payable and deferred
|
(1,894
|
)
|
|
(921
|
)
|
||
Other long-term liabilities
|
(109
|
)
|
|
(509
|
)
|
||
Pension and other postretirement plans
|
(357
|
)
|
|
(390
|
)
|
||
Customer financing, net
|
62
|
|
|
347
|
|
||
Other
|
247
|
|
|
80
|
|
||
Net cash (used)/provided by operating activities
|
(9,582
|
)
|
|
2,198
|
|
||
Cash flows – investing activities:
|
|
|
|
||||
Property, plant and equipment additions
|
(776
|
)
|
|
(922
|
)
|
||
Property, plant and equipment reductions
|
96
|
|
|
331
|
|
||
Acquisitions, net of cash acquired
|
|
|
|
(492
|
)
|
||
Contributions to investments
|
(12,557
|
)
|
|
(496
|
)
|
||
Proceeds from investments
|
543
|
|
|
758
|
|
||
Purchase of distribution rights
|
|
|
|
(20
|
)
|
||
Other
|
8
|
|
|
(12
|
)
|
||
Net cash used by investing activities
|
(12,686
|
)
|
|
(853
|
)
|
||
Cash flows – financing activities:
|
|
|
|
||||
New borrowings
|
42,302
|
|
|
11,670
|
|
||
Debt repayments
|
(8,265
|
)
|
|
(6,422
|
)
|
||
Contributions from noncontrolling interests
|
|
|
|
7
|
|
||
Stock options exercised
|
27
|
|
|
47
|
|
||
Employee taxes on certain share-based payment arrangements
|
(164
|
)
|
|
(238
|
)
|
||
Common shares repurchased
|
|
|
|
(2,651
|
)
|
||
Dividends paid
|
(1,158
|
)
|
|
(2,317
|
)
|
||
Net cash provided by financing activities
|
32,742
|
|
|
96
|
|
||
Effect of exchange rate changes on cash and cash equivalents, including restricted
|
(11
|
)
|
|
(2
|
)
|
||
Net increase in cash & cash equivalents, including restricted
|
10,463
|
|
|
1,439
|
|
||
Cash & cash equivalents, including restricted, at beginning of year
|
9,571
|
|
|
7,813
|
|
||
Cash & cash equivalents, including restricted, at end of period
|
20,034
|
|
|
9,252
|
|
||
Less restricted cash & cash equivalents, included in Investments
|
42
|
|
|
85
|
|
||
Cash and cash equivalents at end of period
|
|
$19,992
|
|
|
|
$9,167
|
|
|
Boeing shareholders
|
|
|
||||||||||||||||||
(Dollars in millions, except per share data)
|
Common
Stock
|
|
Additional
Paid-In
Capital
|
|
Treasury Stock
|
|
Retained
Earnings
|
|
Accumulated Other Comprehensive Loss
|
|
Non-
controlling
Interests
|
|
Total
|
|
|||||||
Balance at January 1, 2019
|
|
$5,061
|
|
|
$6,768
|
|
|
($52,348
|
)
|
|
$55,941
|
|
|
($15,083
|
)
|
|
$71
|
|
|
$410
|
|
Net loss
|
|
|
|
(793
|
)
|
|
(7
|
)
|
(800
|
)
|
|||||||||||
Other comprehensive income, net of tax of ($48)
|
|
|
|
|
175
|
|
|
175
|
|
||||||||||||
Share-based compensation and related dividend equivalents
|
|
120
|
|
|
(16
|
)
|
|
|
104
|
|
|||||||||||
Treasury shares issued for stock options exercised, net
|
|
(39
|
)
|
82
|
|
|
|
|
43
|
|
|||||||||||
Treasury shares issued for other share-based plans, net
|
|
(211
|
)
|
(15
|
)
|
|
|
|
(226
|
)
|
|||||||||||
Common shares repurchased
|
|
|
(2,651
|
)
|
|
|
|
(2,651
|
)
|
||||||||||||
Cash dividends declared ($4.11 per share)
|
|
|
|
(2,313
|
)
|
|
|
(2,313
|
)
|
||||||||||||
Changes in noncontrolling interests
|
|
|
|
|
|
315
|
|
315
|
|
||||||||||||
Balance at June 30, 2019
|
|
$5,061
|
|
|
$6,638
|
|
|
($54,932
|
)
|
|
$52,819
|
|
|
($14,908
|
)
|
|
$379
|
|
|
($4,943
|
)
|
|
|
|
|
|
|
|
|
||||||||||||||
Balance at December 31, 2019
|
|
$5,061
|
|
|
$6,745
|
|
|
($54,914
|
)
|
|
$50,644
|
|
|
($16,153
|
)
|
|
$317
|
|
|
($8,300
|
)
|
Impact of ASU 2016-13
|
|
|
|
(162
|
)
|
|
|
(162
|
)
|
||||||||||||
Balance at January 1, 2020
|
|
$5,061
|
|
|
$6,745
|
|
|
($54,914
|
)
|
|
$50,482
|
|
|
($16,153
|
)
|
|
$317
|
|
|
($8,462
|
)
|
Net loss
|
|
|
|
(3,004
|
)
|
|
(32
|
)
|
(3,036
|
)
|
|||||||||||
Other comprehensive income, net of tax of ($39)
|
|
|
|
|
128
|
|
|
128
|
|
||||||||||||
Share-based compensation and related dividend equivalents
|
|
115
|
|
|
|
|
|
|
115
|
|
|||||||||||
Treasury shares issued for stock options exercised, net
|
|
(20
|
)
|
47
|
|
|
|
|
27
|
|
|||||||||||
Treasury shares issued for other share-based plans, net
|
|
(192
|
)
|
38
|
|
|
|
|
(154
|
)
|
|||||||||||
Balance at June 30, 2020
|
|
$5,061
|
|
|
$6,648
|
|
|
($54,829
|
)
|
|
$47,478
|
|
|
($16,025
|
)
|
|
$285
|
|
|
($11,382
|
)
|
|
Boeing shareholders
|
|
|
||||||||||||||||||
(Dollars in millions, except per share data)
|
Common
Stock |
|
Additional
Paid-In Capital |
|
Treasury Stock
|
|
Retained
Earnings |
|
Accumulated Other Comprehensive Loss
|
|
Non-
controlling Interests |
|
Total
|
|
|||||||
Balance at April 1, 2019
|
|
$5,061
|
|
|
$6,573
|
|
|
($54,630
|
)
|
|
$58,090
|
|
|
($14,969
|
)
|
|
$107
|
|
|
$232
|
|
Net loss
|
|
|
|
(2,942
|
)
|
|
(7
|
)
|
(2,949
|
)
|
|||||||||||
Other comprehensive income, net of tax of ($18)
|
|
|
|
|
61
|
|
|
61
|
|
||||||||||||
Share-based compensation and related dividend equivalents
|
|
73
|
|
|
(16
|
)
|
|
|
57
|
|
|||||||||||
Treasury shares issued for stock options exercised, net
|
|
(3
|
)
|
5
|
|
|
|
|
2
|
|
|||||||||||
Treasury shares issued for other share-based plans, net
|
|
(5
|
)
|
3
|
|
|
|
|
(2
|
)
|
|||||||||||
Common shares repurchased
|
|
|
(310
|
)
|
|
|
|
(310
|
)
|
||||||||||||
Cash dividends declared ($4.11 per share)
|
|
|
|
(2,313
|
)
|
|
|
(2,313
|
)
|
||||||||||||
Changes in noncontrolling interests
|
|
|
|
|
|
279
|
|
279
|
|
||||||||||||
Balance at June 30, 2019
|
|
$5,061
|
|
|
$6,638
|
|
|
($54,932
|
)
|
|
$52,819
|
|
|
($14,908
|
)
|
|
$379
|
|
|
($4,943
|
)
|
|
|
|
|
|
|
|
|
||||||||||||||
Balance at April 1, 2020
|
|
$5,061
|
|
|
$6,595
|
|
|
($54,842
|
)
|
|
$49,854
|
|
|
($16,333
|
)
|
|
$305
|
|
|
($9,360
|
)
|
Net loss
|
|
|
|
(2,376
|
)
|
|
(19
|
)
|
(2,395
|
)
|
|||||||||||
Other comprehensive (loss)/income, net of tax of ($68)
|
|
|
|
|
308
|
|
|
308
|
|
||||||||||||
Share-based compensation and related dividend equivalents
|
|
60
|
|
|
|
|
|
60
|
|
||||||||||||
Treasury shares issued for stock options exercised, net
|
|
(4
|
)
|
11
|
|
|
|
|
7
|
|
|||||||||||
Treasury shares issued for other share-based plans, net
|
|
(3
|
)
|
2
|
|
|
|
|
(1
|
)
|
|||||||||||
Changes in noncontrolling interests
|
|
|
|
|
|
(1
|
)
|
(1
|
)
|
||||||||||||
Balance at June 30, 2020
|
|
$5,061
|
|
|
$6,648
|
|
|
($54,829
|
)
|
|
$47,478
|
|
|
($16,025
|
)
|
|
$285
|
|
|
($11,382
|
)
|
(Dollars in millions)
|
Six months ended June 30
|
|
Three months ended June 30
|
||||||||||||
|
2020
|
|
|
2019
|
|
|
2020
|
|
|
2019
|
|
||||
Revenues:
|
|
|
|
|
|
|
|
||||||||
Commercial Airplanes
|
|
$7,838
|
|
|
|
$16,544
|
|
|
|
$1,633
|
|
|
|
$4,722
|
|
Defense, Space & Security
|
12,630
|
|
|
13,166
|
|
|
6,588
|
|
|
6,579
|
|
||||
Global Services
|
8,116
|
|
|
9,162
|
|
|
3,488
|
|
|
4,543
|
|
||||
Boeing Capital
|
134
|
|
|
141
|
|
|
69
|
|
|
75
|
|
||||
Unallocated items, eliminations and other
|
(3
|
)
|
|
(345
|
)
|
|
29
|
|
|
(168
|
)
|
||||
Total revenues
|
|
$28,715
|
|
|
|
$38,668
|
|
|
|
$11,807
|
|
|
|
$15,751
|
|
Earnings/(loss) from operations:
|
|
|
|
|
|
|
|
||||||||
Commercial Airplanes
|
|
($4,830
|
)
|
|
|
($3,773
|
)
|
|
|
($2,762
|
)
|
|
|
($4,946
|
)
|
Defense, Space & Security
|
409
|
|
|
1,827
|
|
|
600
|
|
|
975
|
|
||||
Global Services
|
36
|
|
|
1,340
|
|
|
(672
|
)
|
|
687
|
|
||||
Boeing Capital
|
17
|
|
|
57
|
|
|
(7
|
)
|
|
37
|
|
||||
Segment operating loss
|
(4,368
|
)
|
|
(549
|
)
|
|
(2,841
|
)
|
|
(3,247
|
)
|
||||
Unallocated items, eliminations and other
|
(651
|
)
|
|
(1,210
|
)
|
|
(478
|
)
|
|
(498
|
)
|
||||
FAS/CAS service cost adjustment
|
702
|
|
|
729
|
|
|
355
|
|
|
365
|
|
||||
Loss from operations
|
(4,317
|
)
|
|
(1,030
|
)
|
|
(2,964
|
)
|
|
(3,380
|
)
|
||||
Other income, net
|
206
|
|
|
213
|
|
|
94
|
|
|
107
|
|
||||
Interest and debt expense
|
(815
|
)
|
|
(277
|
)
|
|
(553
|
)
|
|
(154
|
)
|
||||
Loss before income taxes
|
(4,926
|
)
|
|
(1,094
|
)
|
|
(3,423
|
)
|
|
(3,427
|
)
|
||||
Income tax benefit
|
1,890
|
|
|
301
|
|
|
1,028
|
|
|
485
|
|
||||
Net loss
|
(3,036
|
)
|
|
(793
|
)
|
|
(2,395
|
)
|
|
(2,942
|
)
|
||||
Less: Net loss attributable to noncontrolling interest
|
(32
|
)
|
|
|
|
|
(19
|
)
|
|
|
|
||||
Net loss attributable to Boeing Shareholders
|
|
($3,004
|
)
|
|
|
($793
|
)
|
|
|
($2,376
|
)
|
|
|
($2,942
|
)
|
(In millions - except per share amounts)
|
Six months ended June 30
|
|
Three months ended June 30
|
||||||||||||
|
2020
|
|
|
2019
|
|
|
2020
|
|
|
2019
|
|
||||
(Decrease)/increase to Revenue
|
|
($290
|
)
|
|
|
$229
|
|
|
|
$144
|
|
|
|
$69
|
|
(Decrease)/increase to (Loss)/earnings from operations
|
|
($749
|
)
|
|
|
$175
|
|
|
|
$90
|
|
|
|
$28
|
|
(Decrease)/increase to Diluted EPS
|
|
($0.82
|
)
|
|
|
$0.22
|
|
|
|
$0.11
|
|
|
|
$0.04
|
|
(In millions - except per share amounts)
|
Six months ended June 30
|
|
Three months ended June 30
|
||||||||||||
|
2020
|
|
|
2019
|
|
|
2020
|
|
|
2019
|
|
||||
Net loss attributable to Boeing Shareholders
|
|
($3,004
|
)
|
|
|
($793
|
)
|
|
|
($2,376
|
)
|
|
|
($2,942
|
)
|
Less: earnings available to participating securities
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net loss available to common shareholders
|
|
($3,004
|
)
|
|
|
($793
|
)
|
|
|
($2,376
|
)
|
|
|
($2,942
|
)
|
Basic
|
|
|
|
|
|
|
|
||||||||
Basic weighted average shares outstanding
|
566.1
|
|
|
566.6
|
|
|
566.4
|
|
|
565.3
|
|
||||
Less: participating securities
|
0.5
|
|
|
0.6
|
|
|
0.5
|
|
|
0.6
|
|
||||
Basic weighted average common shares outstanding
|
565.6
|
|
|
566.0
|
|
|
565.9
|
|
|
564.7
|
|
||||
Diluted
|
|
|
|
|
|
|
|
||||||||
Basic weighted average shares outstanding
|
566.1
|
|
|
566.6
|
|
|
566.4
|
|
|
565.3
|
|
||||
Dilutive potential common shares(1)
|
|
|
|
|
|
|
|
||||||||
Diluted weighted average shares outstanding
|
566.1
|
|
|
566.6
|
|
|
566.4
|
|
|
565.3
|
|
||||
Less: participating securities
|
0.5
|
|
|
0.6
|
|
|
0.5
|
|
|
0.6
|
|
||||
Diluted weighted average common shares outstanding
|
565.6
|
|
|
566.0
|
|
|
565.9
|
|
|
564.7
|
|
||||
Net loss per share:
|
|
|
|
|
|
|
|
||||||||
Basic
|
|
($5.31
|
)
|
|
|
($1.40
|
)
|
|
|
($4.20
|
)
|
|
|
($5.21
|
)
|
Diluted
|
(5.31
|
)
|
|
(1.40
|
)
|
|
(4.20
|
)
|
|
(5.21
|
)
|
(1)
|
Diluted earnings per share includes any dilutive impact of stock options, restricted stock units, performance-based restricted stock units and performance awards.
|
(Shares in millions)
|
Six months ended June 30
|
|
Three months ended June 30
|
||||||||
|
2020
|
|
|
2019
|
|
|
2020
|
|
|
2019
|
|
Performance awards
|
6.1
|
|
|
2.7
|
|
|
5.5
|
|
|
2.7
|
|
Performance-based restricted stock units
|
1.4
|
|
|
0.6
|
|
|
1.4
|
|
|
0.6
|
|
|
Accounts receivable, net
|
|
Unbilled receivables, net
|
|
Other Current Assets, net
|
|
Customer financing, net
|
|
Other Assets, net
|
|
Total
|
|||||||
Balance at January 1, 2020
|
|
($138
|
)
|
|
($81
|
)
|
|
($38
|
)
|
|
($5
|
)
|
|
($75
|
)
|
|
($337
|
)
|
Changes in estimates
|
(246
|
)
|
(107
|
)
|
(10
|
)
|
(9
|
)
|
(34
|
)
|
(406
|
)
|
||||||
Write-offs
|
3
|
|
|
|
|
|
|
|
|
|
3
|
|
||||||
Balance at June 30, 2020
|
|
($381
|
)
|
|
($188
|
)
|
|
($48
|
)
|
|
($14
|
)
|
|
($109
|
)
|
|
($740
|
)
|
|
June 30
2020 |
|
|
December 31
2019 |
|
||
Long-term contracts in progress
|
|
$957
|
|
|
|
$1,187
|
|
Commercial aircraft programs
|
71,945
|
|
|
66,016
|
|
||
Commercial spare parts, used aircraft, general stock materials and other
|
10,843
|
|
|
9,419
|
|
||
Total
|
|
$83,745
|
|
|
|
$76,622
|
|
|
June 30
2020 |
|
|
December 31
2019 |
|
||
Financing receivables:
|
|
|
|
||||
Investment in sales-type/finance leases
|
|
$965
|
|
|
|
$1,029
|
|
Notes
|
433
|
|
|
443
|
|
||
Total financing receivables
|
1,398
|
|
|
1,472
|
|
||
Operating lease equipment, at cost, less accumulated depreciation of $248 and $235
|
785
|
|
|
834
|
|
||
Gross customer financing
|
2,183
|
|
|
2,306
|
|
||
Less allowance for losses on receivables
|
(14
|
)
|
|
(8
|
)
|
||
Total
|
|
$2,169
|
|
|
|
$2,298
|
|
Rating categories
|
Current
|
2019
|
2018
|
2017
|
2016
|
Prior
|
Total
|
||||||||||||||
BBB
|
|
|
|
|
|
|
|
|
|
|
|
$400
|
|
|
$400
|
|
|||||
BB
|
|
$69
|
|
|
$54
|
|
|
$17
|
|
|
|
|
|
152
|
|
292
|
|
||||
B
|
|
|
|
|
|
|
|
$53
|
|
|
|
171
|
|
224
|
|
||||||
CCC
|
|
|
38
|
|
|
|
251
|
|
|
$180
|
|
13
|
|
482
|
|
||||||
Total carrying value of financing receivables
|
|
$69
|
|
|
$92
|
|
|
$17
|
|
|
$304
|
|
|
$180
|
|
|
$736
|
|
|
$1,398
|
|
|
June 30
2020 |
|
|
December 31
2019 |
|
||
717 Aircraft ($113 and $124 accounted for as operating leases)
|
|
$689
|
|
|
|
$736
|
|
747-8 Aircraft ($124 and $130 accounted for as operating leases)
|
483
|
|
|
475
|
|
||
737 Aircraft ($231 and $240 accounted for as operating leases)
|
253
|
|
|
263
|
|
||
777 Aircraft ($230 and $236 accounted for as operating leases)
|
232
|
|
|
240
|
|
||
MD-80 Aircraft (accounted for as sales-type finance leases)
|
171
|
|
|
186
|
|
||
757 Aircraft ($14 and $22 accounted for as operating leases)
|
166
|
|
|
182
|
|
||
747-400 Aircraft ($28 and $31 accounted for as operating leases)
|
81
|
|
|
90
|
|
|
June 30
2020 |
|
|
December 31
2019 |
|
||
Equity method investments (1)
|
|
$998
|
|
|
|
$1,031
|
|
Time deposits
|
11,981
|
|
|
50
|
|
||
Available for sale debt instruments
|
411
|
|
|
405
|
|
||
Equity and other investments
|
72
|
|
|
65
|
|
||
Restricted cash & cash equivalents(2)
|
42
|
|
|
86
|
|
||
Total
|
|
$13,504
|
|
|
|
$1,637
|
|
(1)
|
Dividends received were $53 and $20 for the six and three months ended June 30, 2020 and $93 and $30 during the same periods in the prior year.
|
(2)
|
Reflects amounts restricted in support of our workers’ compensation programs, employee benefit programs, and insurance premiums.
|
|
2020
|
|
|
Beginning balance – January 1
|
|
$7,389
|
|
Reductions for payments made
|
(1,211
|
)
|
|
Reductions for concessions and other in-kind considerations
|
(35
|
)
|
|
Changes in estimates
|
521
|
|
|
Ending balance – June 30
|
|
$6,664
|
|
|
2020
|
|
|
2019
|
|
||
Beginning balance – January 1
|
|
$570
|
|
|
|
$555
|
|
Reductions for payments made
|
(21
|
)
|
|
(24
|
)
|
||
Changes in estimates
|
11
|
|
|
17
|
|
||
Ending balance – June 30
|
|
$560
|
|
|
|
$548
|
|
|
2020
|
|
|
2019
|
|
||
Beginning balance – January 1
|
|
$1,267
|
|
|
|
$1,127
|
|
Additions for current year deliveries
|
34
|
|
|
83
|
|
||
Reductions for payments made
|
(149
|
)
|
|
(64
|
)
|
||
Changes in estimates
|
395
|
|
|
(83
|
)
|
||
Ending balance – June 30
|
|
$1,547
|
|
|
|
$1,063
|
|
|
Total
|
|
|
July through December 2020
|
|
$2,462
|
|
2021
|
2,472
|
|
|
2022
|
1,368
|
|
|
2023
|
1,755
|
|
|
2024
|
1,373
|
|
|
Thereafter
|
3,354
|
|
|
|
|
$12,784
|
|
|
Maximum
Potential Payments
|
|
Estimated Proceeds from
Collateral/Recourse
|
|
Carrying Amount of
Liabilities
|
|||||||||||||||
|
June 30
2020 |
|
December 31
2019 |
|
|
June 30
2020 |
|
December 31
2019 |
|
|
June 30
2020 |
|
December 31
2019 |
|
||||||
Contingent repurchase commitments
|
|
$1,480
|
|
|
$1,570
|
|
|
|
$1,480
|
|
|
$1,570
|
|
|
|
|
|
|
||
Indemnifications to ULA:
|
|
|
|
|
|
|
|
|
||||||||||||
Contributed Delta inventory
|
30
|
|
30
|
|
|
|
|
|
|
|
||||||||||
Inventory supply agreement
|
34
|
|
34
|
|
|
|
|
|
|
|
|
|
||||||||
Questioned costs
|
|
|
317
|
|
|
|
|
|
|
|
|
$48
|
|
|||||||
Credit guarantees
|
92
|
|
92
|
|
|
35
|
|
36
|
|
|
|
$24
|
|
16
|
|
|
Six months ended June 30
|
|
Three months ended June 30
|
||||||||||||
Pension Plans
|
2020
|
|
|
2019
|
|
|
2020
|
|
|
2019
|
|
||||
Service cost
|
|
$1
|
|
|
|
$2
|
|
|
|
$1
|
|
|
|
$1
|
|
Interest cost
|
1,228
|
|
|
1,462
|
|
|
614
|
|
|
731
|
|
||||
Expected return on plan assets
|
(1,878
|
)
|
|
(1,930
|
)
|
|
(939
|
)
|
|
(965
|
)
|
||||
Amortization of prior service credits
|
(40
|
)
|
|
(40
|
)
|
|
(20
|
)
|
|
(20
|
)
|
||||
Recognized net actuarial loss
|
516
|
|
|
321
|
|
|
258
|
|
|
160
|
|
||||
Settlement/curtailment/other losses
|
3
|
|
|
|
|
|
3
|
|
|
|
|
||||
Net periodic benefit income
|
|
($170
|
)
|
|
|
($185
|
)
|
|
|
($83
|
)
|
|
|
($93
|
)
|
|
|
|
|
|
|
|
|
||||||||
Net periodic benefit cost included in Loss from operations
|
|
$1
|
|
|
|
$158
|
|
|
|
$1
|
|
|
|
$80
|
|
Net periodic benefit income included in Other income, net
|
(171
|
)
|
|
(187
|
)
|
|
(84
|
)
|
|
(94
|
)
|
||||
Net periodic benefit income included in Loss before income taxes
|
|
($170
|
)
|
|
|
($29
|
)
|
|
|
($83
|
)
|
|
|
($14
|
)
|
|
Six months ended June 30
|
|
Three months ended June 30
|
||||||||||||
Other Postretirement Plans
|
2020
|
|
|
2019
|
|
|
2020
|
|
|
2019
|
|
||||
Service cost
|
|
$43
|
|
|
|
$39
|
|
|
|
$22
|
|
|
|
$20
|
|
Interest cost
|
72
|
|
|
98
|
|
|
36
|
|
|
49
|
|
||||
Expected return on plan assets
|
(5
|
)
|
|
(4
|
)
|
|
(3
|
)
|
|
(2
|
)
|
||||
Amortization of prior service credits
|
(17
|
)
|
|
(18
|
)
|
|
(8
|
)
|
|
(9
|
)
|
||||
Recognized net actuarial gain
|
(23
|
)
|
|
(23
|
)
|
|
(11
|
)
|
|
(12
|
)
|
||||
Net periodic benefit cost
|
|
$70
|
|
|
|
$92
|
|
|
|
$36
|
|
|
|
$46
|
|
|
|
|
|
|
|
|
|
||||||||
Net periodic benefit cost included in Loss from operations
|
|
$44
|
|
|
|
$45
|
|
|
|
$23
|
|
|
|
$23
|
|
Net periodic benefit cost included in Other income, net
|
27
|
|
|
53
|
|
|
14
|
|
|
26
|
|
||||
Net periodic benefit cost included in Loss before income taxes
|
|
$71
|
|
|
|
$98
|
|
|
|
$37
|
|
|
|
$49
|
|
|
Currency Translation Adjustments
|
|
|
Unrealized Gains and Losses on Certain Investments
|
|
|
Unrealized Gains and Losses on Derivative Instruments
|
|
|
Defined Benefit Pension Plans & Other Postretirement Benefits
|
|
|
Total (1)
|
|
|||||
Balance at January 1, 2019
|
|
($101
|
)
|
|
|
|
|
($62
|
)
|
|
|
($14,920
|
)
|
|
|
($15,083
|
)
|
||
Other comprehensive (loss)/income before reclassifications
|
(2
|
)
|
|
1
|
|
|
(17
|
)
|
|
8
|
|
|
(10
|
)
|
|||||
Amounts reclassified from AOCI
|
|
|
|
|
(3
|
)
|
|
188
|
|
(2)
|
185
|
|
|||||||
Net current period Other comprehensive (loss)/income
|
(2
|
)
|
|
1
|
|
|
(20
|
)
|
|
196
|
|
|
175
|
|
|||||
Balance at June 30, 2019
|
|
($103
|
)
|
|
|
$1
|
|
|
|
($82
|
)
|
|
|
($14,724
|
)
|
|
|
($14,908
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance at January 1, 2020
|
|
($128
|
)
|
|
$1
|
|
|
|
($84
|
)
|
|
|
($15,942
|
)
|
|
|
($16,153
|
)
|
|
Other comprehensive (loss)/income before reclassifications
|
(33
|
)
|
|
|
|
(186
|
)
|
|
(12
|
)
|
|
(231
|
)
|
||||||
Amounts reclassified from AOCI
|
|
|
|
|
12
|
|
|
347
|
|
(2)
|
359
|
|
|||||||
Net current period Other comprehensive (loss)/income
|
(33
|
)
|
|
|
|
(174
|
)
|
|
335
|
|
|
128
|
|
||||||
Balance at June 30, 2020
|
|
($161
|
)
|
|
|
$1
|
|
|
|
($258
|
)
|
|
|
($15,607
|
)
|
|
|
($16,025
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance at March 31, 2019
|
|
($100
|
)
|
|
|
$1
|
|
|
|
($53
|
)
|
|
|
($14,817
|
)
|
|
|
($14,969
|
)
|
Other comprehensive (loss)/income before reclassifications
|
(3
|
)
|
|
|
|
(28
|
)
|
|
|
|
(31
|
)
|
|||||||
Amounts reclassified from AOCI
|
|
|
|
|
(1
|
)
|
|
93
|
|
(2)
|
92
|
|
|||||||
Net current period Other comprehensive (loss)/income
|
(3
|
)
|
|
|
|
(29
|
)
|
|
93
|
|
|
61
|
|
||||||
Balance at June 30, 2019
|
|
($103
|
)
|
|
|
$1
|
|
|
|
($82
|
)
|
|
|
($14,724
|
)
|
|
|
($14,908
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance at March 31, 2020
|
|
($205
|
)
|
|
|
$1
|
|
|
|
($357
|
)
|
|
|
($15,772
|
)
|
|
|
($16,333
|
)
|
Other comprehensive (loss)/income before reclassifications
|
44
|
|
|
|
|
89
|
|
|
(12
|
)
|
|
121
|
|
||||||
Amounts reclassified from AOCI
|
|
|
|
|
10
|
|
|
177
|
|
(2)
|
187
|
|
|||||||
Net current period Other comprehensive (loss)/income
|
44
|
|
|
|
|
99
|
|
|
165
|
|
|
308
|
|
||||||
Balance at June 30, 2020
|
|
($161
|
)
|
|
|
$1
|
|
|
|
($258
|
)
|
|
|
($15,607
|
)
|
|
|
($16,025
|
)
|
(1)
|
Net of tax.
|
(2)
|
Primarily relates to amortization of actuarial losses for the six and three months ended June 30, 2019 totaling $233 and $115 (net of tax of ($65) and ($33)) and for the six and three months ended June 30, 2020 totaling $390 and $197 (net of tax of ($103) and ($50)). These are included in the net periodic pension cost.
|
|
Notional amounts (1)
|
Other assets
|
Accrued liabilities
|
|||||||||||||||
|
June 30
2020 |
|
December 31
2019 |
|
June 30
2020 |
|
December 31
2019 |
|
June 30
2020 |
|
December 31
2019 |
|
||||||
Derivatives designated as hedging instruments:
|
|
|
|
|
|
|
||||||||||||
Foreign exchange contracts
|
|
$3,233
|
|
|
$2,590
|
|
|
$7
|
|
|
$29
|
|
|
($165
|
)
|
|
($60
|
)
|
Commodity contracts
|
366
|
|
645
|
|
2
|
|
4
|
|
(119
|
)
|
(72
|
)
|
||||||
Derivatives not receiving hedge accounting treatment:
|
|
|
|
|
|
|
||||||||||||
Foreign exchange contracts
|
399
|
|
285
|
|
7
|
|
1
|
|
(6
|
)
|
(6
|
)
|
||||||
Commodity contracts
|
796
|
|
1,644
|
|
|
|
|
|
(25
|
)
|
|
|||||||
Total derivatives
|
|
$4,794
|
|
|
$5,164
|
|
|
$16
|
|
|
$34
|
|
|
($315
|
)
|
|
($138
|
)
|
Netting arrangements
|
|
|
(14
|
)
|
(20
|
)
|
14
|
|
20
|
|
||||||||
Net recorded balance
|
|
|
|
$2
|
|
|
$14
|
|
|
($301
|
)
|
|
($118
|
)
|
(1)
|
Notional amounts represent the gross contract/notional amount of the derivatives outstanding.
|
|
Six months ended June 30
|
Three months ended June 30
|
||||||||||||
|
2020
|
|
|
2019
|
|
2020
|
|
|
2019
|
|
||||
Recognized in Other comprehensive income, net of taxes:
|
|
|
|
|
|
|
||||||||
Foreign exchange contracts
|
|
($112
|
)
|
|
|
$31
|
|
|
$85
|
|
|
|
$9
|
|
Commodity contracts
|
(74
|
)
|
|
(48
|
)
|
4
|
|
|
(37
|
)
|
|
Six months ended June 30
|
|
Three months ended June 30
|
||||||||||||
|
2020
|
|
|
2019
|
|
|
2020
|
|
|
2019
|
|
||||
Foreign exchange contracts
|
|
|
|
|
|
|
|
||||||||
Revenues
|
|
($1
|
)
|
|
|
$6
|
|
|
|
|
|
|
$1
|
|
|
Costs and expenses
|
(6
|
)
|
|
(12
|
)
|
|
|
($5
|
)
|
|
(7
|
)
|
|||
General and administrative
|
(5
|
)
|
|
9
|
|
|
(5
|
)
|
|
8
|
|
||||
Commodity contracts
|
|
|
|
|
|
|
|
||||||||
Costs and expenses
|
(3
|
)
|
|
1
|
|
|
(2
|
)
|
|
|
|||||
General and administrative expense
|
(1
|
)
|
|
|
|
(1
|
)
|
|
(1
|
)
|
|
June 30, 2020
|
December 31, 2019
|
|||||||||||||||||||||
|
Total
|
|
|
Level 1
|
|
|
Level 2
|
|
|
Total
|
|
|
Level 1
|
|
|
Level 2
|
|
||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Money market funds
|
|
$8,877
|
|
|
|
$8,877
|
|
|
|
|
|
$2,562
|
|
|
|
$2,562
|
|
|
|
||||
Available-for-sale debt investments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Commercial paper
|
93
|
|
|
|
|
|
$93
|
|
|
108
|
|
|
|
|
|
$108
|
|
||||||
Corporate notes
|
321
|
|
|
|
|
321
|
|
|
242
|
|
|
|
|
242
|
|
||||||||
U.S. government agencies
|
|
|
|
|
|
|
|
|
55
|
|
|
55
|
|
|
|
||||||||
Other equity investments
|
40
|
|
|
40
|
|
|
|
|
33
|
|
|
33
|
|
|
|
||||||||
Derivatives
|
2
|
|
|
|
|
2
|
|
|
14
|
|
|
|
|
14
|
|
||||||||
Total assets
|
|
$9,333
|
|
|
|
$8,917
|
|
|
|
$416
|
|
|
|
$3,014
|
|
|
|
$2,650
|
|
|
|
$364
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Derivatives
|
|
($301
|
)
|
|
|
|
|
($301
|
)
|
|
|
($118
|
)
|
|
|
|
|
($118
|
)
|
||||
Total liabilities
|
|
($301
|
)
|
|
|
|
|
($301
|
)
|
|
|
($118
|
)
|
|
|
|
|
($118
|
)
|
|
2020
|
|
2019
|
||||||||||||
|
Fair
Value
|
|
|
Total
Losses
|
|
|
Fair
Value
|
|
|
Total
Losses
|
|
||||
Customer financing assets
|
|
$71
|
|
|
|
($17
|
)
|
|
|
$10
|
|
|
|
($1
|
)
|
Investments
|
64
|
|
|
(49
|
)
|
|
72
|
|
|
(51
|
)
|
||||
Property, plant and equipment
|
82
|
|
|
(59
|
)
|
|
41
|
|
|
(1
|
)
|
||||
Other Assets and Acquired intangible assets
|
201
|
|
|
(155
|
)
|
|
3
|
|
|
(17
|
)
|
||||
Total
|
|
$418
|
|
|
|
($280
|
)
|
|
|
$126
|
|
|
|
($70
|
)
|
|
Fair
Value
|
|
Valuation
Technique(s)
|
|
Unobservable Input
|
|
Range
Median or Average
|
Customer financing assets
|
$71
|
|
Market approach
|
|
Aircraft value publications
|
|
$57 - $118(1)
Median $79
|
|
|
Aircraft condition adjustments
|
|
($8) - $0(2)
Net ($8)
|
(1)
|
The range represents the sum of the highest and lowest values for all aircraft subject to fair value measurement, according to the third party aircraft valuation publications that we use in our valuation process.
|
(2)
|
The negative amount represents the sum, for all aircraft subject to fair value measurement, of all downward adjustments based on consideration of individual aircraft attributes and condition. The positive amount represents the sum of all such upward adjustments.
|
|
June 30, 2020
|
||||||||||||
|
Carrying
Amount
|
|
Total Fair
Value
|
|
Level 1
|
Level 2
|
|
Level 3
|
|
||||
Assets
|
|
|
|
|
|
||||||||
Notes receivable, net
|
|
$433
|
|
|
$429
|
|
|
|
$429
|
|
|
||
Liabilities
|
|
|
|
|
|
||||||||
Debt, excluding commercial paper and capital lease obligations
|
(58,788
|
)
|
(61,367
|
)
|
|
(61,350
|
)
|
|
($17
|
)
|
|
December 31, 2019
|
||||||||||||
|
Carrying
Amount
|
|
Total Fair
Value
|
|
Level 1
|
Level 2
|
|
Level 3
|
|
||||
Assets
|
|
|
|
|
|
||||||||
Notes receivable, net
|
|
$443
|
|
|
$444
|
|
|
|
$444
|
|
|
||
Liabilities
|
|
|
|
|
|
||||||||
Debt, excluding capital lease obligations and commercial paper
|
(20,964
|
)
|
(23,119
|
)
|
|
(23,081
|
)
|
|
($38
|
)
|
(Dollars in millions)
|
Six months ended June 30
|
|
Three months ended June 30
|
||||||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Revenue from contracts with customers:
|
|
|
|
|
|
|
|
||||||||
Europe
|
|
$2,302
|
|
|
|
$2,684
|
|
|
|
$332
|
|
|
|
$1,023
|
|
Asia
|
1,464
|
|
|
7,534
|
|
|
305
|
|
|
4,360
|
|
||||
Middle East
|
556
|
|
|
1,805
|
|
|
7
|
|
|
695
|
|
||||
Other
|
453
|
|
|
2,367
|
|
|
142
|
|
|
829
|
|
||||
Total non-U.S. revenues
|
4,775
|
|
|
14,390
|
|
|
786
|
|
|
6,907
|
|
||||
United States
|
3,557
|
|
|
7,587
|
|
|
1,383
|
|
|
3,417
|
|
||||
Estimated potential concessions and other considerations to 737 MAX customers, net
|
(521
|
)
|
|
(5,610
|
)
|
|
(551
|
)
|
|
(5,610
|
)
|
||||
Total revenues from contracts with customers
|
7,811
|
|
|
16,367
|
|
|
1,618
|
|
|
4,714
|
|
||||
Intersegment revenues eliminated on consolidation
|
27
|
|
|
177
|
|
|
15
|
|
|
8
|
|
||||
Total segment revenues
|
|
$7,838
|
|
|
|
$16,544
|
|
|
|
$1,633
|
|
|
|
$4,722
|
|
|
|
|
|
|
|
|
|
||||||||
Revenue recognized on fixed-price contracts
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
||||
|
|
|
|
|
|
|
|
||||||||
Revenue recognized at a point in time
|
99
|
%
|
|
99
|
%
|
|
99
|
%
|
|
99
|
%
|
(Dollars in millions)
|
Six months ended June 30
|
|
Three months ended June 30
|
||||||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Revenue from contracts with customers:
|
|
|
|
|
|
|
|
||||||||
U.S. customers
|
|
$9,153
|
|
|
|
$9,719
|
|
|
|
$4,837
|
|
|
|
$4,836
|
|
Non U.S. customers(1)
|
3,477
|
|
|
3,447
|
|
|
1,751
|
|
|
1,743
|
|
||||
Total segment revenue from contracts with customers
|
|
$12,630
|
|
|
|
$13,166
|
|
|
|
$6,588
|
|
|
|
$6,579
|
|
|
|
|
|
|
|
|
|
||||||||
Revenue recognized over time
|
99
|
%
|
|
99
|
%
|
|
99
|
%
|
|
99
|
%
|
||||
|
|
|
|
|
|
|
|
||||||||
Revenue recognized on fixed-price contracts
|
68
|
%
|
|
69
|
%
|
|
69
|
%
|
|
69
|
%
|
||||
|
|
|
|
|
|
|
|
||||||||
Revenue from the U.S. government(1)
|
89
|
%
|
|
88
|
%
|
|
89
|
%
|
|
89
|
%
|
(1)
|
Includes revenues earned from foreign military sales through the U.S. government.
|
(Dollars in millions)
|
Six months ended June 30
|
|
Three months ended June 30
|
||||||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Revenue from contracts with customers:
|
|
|
|
|
|
|
|
||||||||
Commercial
|
|
$3,894
|
|
|
|
$5,111
|
|
|
|
$1,371
|
|
|
|
$2,526
|
|
Government
|
4,099
|
|
|
3,974
|
|
|
2,066
|
|
|
1,977
|
|
||||
Total revenues from contracts with customers
|
7,993
|
|
|
9,085
|
|
|
3,437
|
|
|
4,503
|
|
||||
Intersegment revenues eliminated on consolidation
|
123
|
|
|
77
|
|
|
51
|
|
|
40
|
|
||||
Total segment revenues
|
|
$8,116
|
|
|
|
$9,162
|
|
|
|
$3,488
|
|
|
|
$4,543
|
|
|
|
|
|
|
|
|
|
||||||||
Revenue recognized at a point in time
|
49
|
%
|
|
57
|
%
|
|
41
|
%
|
|
57
|
%
|
||||
|
|
|
|
|
|
|
|
||||||||
Revenue recognized on fixed-price contracts
|
88
|
%
|
|
89
|
%
|
|
86
|
%
|
|
90
|
%
|
||||
|
|
|
|
|
|
|
|
||||||||
Revenue from the U.S. government(1)
|
40
|
%
|
|
32
|
%
|
|
46
|
%
|
|
32
|
%
|
(1)
|
Includes revenues earned from foreign military sales through the U.S. government.
|
|
Six months ended June 30
|
|
Three months ended June 30
|
||||||||||||
|
2020
|
|
|
2019
|
|
|
2020
|
|
|
2019
|
|
||||
Share-based plans
|
|
($43
|
)
|
|
|
($36
|
)
|
|
|
($25
|
)
|
|
|
($22
|
)
|
Deferred compensation
|
73
|
|
|
(129
|
)
|
|
(120
|
)
|
|
(27
|
)
|
||||
Amortization of previously capitalized interest
|
(50
|
)
|
|
(45
|
)
|
|
(27
|
)
|
|
(21
|
)
|
||||
Research and development expense, net
|
(116
|
)
|
|
(183
|
)
|
|
(62
|
)
|
|
(105
|
)
|
||||
Customer financing impairment
|
|
|
|
(250
|
)
|
|
|
|
|
|
|
||||
Litigation
|
|
|
|
(109
|
)
|
|
|
|
|
(109
|
)
|
||||
Eliminations and other unallocated items
|
(515
|
)
|
|
(458
|
)
|
|
(244
|
)
|
|
(214
|
)
|
||||
Unallocated items, eliminations and other
|
|
($651
|
)
|
|
|
($1,210
|
)
|
|
|
($478
|
)
|
|
|
($498
|
)
|
|
|
|
|
|
|
|
|
||||||||
Pension FAS/CAS service cost adjustment
|
|
$513
|
|
|
|
$549
|
|
|
|
$258
|
|
|
|
$275
|
|
Postretirement FAS/CAS service cost adjustment
|
189
|
|
|
180
|
|
|
97
|
|
|
90
|
|
||||
FAS/CAS service cost adjustment
|
|
$702
|
|
|
|
$729
|
|
|
|
$355
|
|
|
|
$365
|
|
|
June 30
2020 |
|
|
December 31
2019 |
|
||
Commercial Airplanes
|
|
$80,160
|
|
|
|
$73,995
|
|
Defense, Space & Security
|
15,407
|
|
|
15,757
|
|
||
Global Services
|
18,438
|
|
|
18,605
|
|
||
Boeing Capital
|
2,116
|
|
|
2,269
|
|
||
Unallocated items, eliminations and other
|
46,751
|
|
|
22,999
|
|
||
Total
|
|
$162,872
|
|
|
|
$133,625
|
|
FORWARD-LOOKING STATEMENTS
|
|
This report contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “may,” “should,” “expects,” “intends,” “projects,” “plans,” “believes,” “estimates,” “targets,” “anticipates” and similar expressions generally identify these forward-looking statements. Examples of forward-looking statements include statements relating to our future financial condition and operating results, as well as any other statement that does not directly relate to any historical or current fact.
|
|
|
|
Forward-looking statements are based on expectations and assumptions that we believe to be reasonable when made, but that may not prove to be accurate. These statements are not guarantees and are subject to risks, uncertainties and changes in circumstances that are difficult to predict. Many factors could cause actual results to differ materially and adversely from these forward-looking statements. Among these factors are risks related to:
|
|
|
|
(1)
|
the COVID-19 pandemic and related government actions, including with respect to our operations and access to suppliers, our liquidity, the health of our customers and suppliers, and future demand for our products and services;
|
|
|
(2)
|
the 737 MAX, including the timing and conditions of 737 MAX regulatory approvals, lower than planned production rates and/or delivery rates, and increased considerations to customers and suppliers;
|
|
|
(3)
|
general conditions in the economy and our industry, including those due to regulatory changes;
|
|
|
(4)
|
our reliance on our commercial airline customers;
|
|
|
(5)
|
the overall health of our aircraft production system, planned commercial aircraft production rate changes, our commercial development and derivative aircraft programs, and our aircraft being subject to stringent performance and reliability standards;
|
|
|
(6)
|
changing budget and appropriation levels and acquisition priorities of the U.S. government;
|
|
|
(7)
|
our dependence on U.S. government contracts;
|
|
|
(8)
|
our reliance on fixed-price contracts;
|
|
|
(9)
|
our reliance on cost-type contracts;
|
|
|
(10)
|
uncertainties concerning contracts that include in-orbit incentive payments;
|
|
|
(11)
|
our dependence on our subcontractors and suppliers as well as the availability of raw materials;
|
|
|
(12)
|
changes in accounting estimates;
|
|
|
(13)
|
changes in the competitive landscape in our markets;
|
|
|
(14)
|
our non-U.S. operations, including sales to non-U.S. customers;
|
|
|
(15)
|
threats to the security of our or our customers' information;
|
|
|
(16)
|
potential adverse developments in new or pending litigation and/or government investigations;
|
|
|
(17)
|
customer and aircraft concentration in our customer financing portfolio;
|
|
|
(18)
|
changes in our ability to obtain debt on commercially reasonable terms and at competitive rates;
|
(19)
|
realizing the anticipated benefits of mergers, acquisitions, joint ventures, strategic alliances or divestitures;
|
|
|
(20)
|
the adequacy of our insurance coverage to cover significant risk exposures;
|
|
|
(21)
|
potential business disruptions, including those related to physical security threats, information technology or cyber attacks, epidemics, sanctions or natural disasters;
|
|
|
(22)
|
work stoppages or other labor disruptions;
|
|
|
(23)
|
substantial pension and other postretirement benefit obligations; and
|
|
|
(24)
|
potential environmental liabilities.
|
|
|
Additional information concerning these and other factors can be found in our filings with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Any forward-looking information speaks only as of the date on which it is made, and we assume no obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise, except as required by law.
|
|
|
|
|
|
|
|
(Dollars in millions, except per share data)
|
Six months ended June 30
|
|
Three months ended June 30
|
||||||||||||
|
2020
|
|
|
2019
|
|
|
2020
|
|
|
2019
|
|
||||
Revenues
|
|
$28,715
|
|
|
|
$38,668
|
|
|
|
$11,807
|
|
|
|
$15,751
|
|
|
|
|
|
|
|
|
|
||||||||
GAAP
|
|
|
|
|
|
|
|
||||||||
Loss from operations
|
|
($4,317
|
)
|
|
|
($1,030
|
)
|
|
|
($2,964
|
)
|
|
|
($3,380
|
)
|
Operating margins
|
(15.0
|
)%
|
|
(2.7
|
)%
|
|
(25.1
|
)%
|
|
(21.5
|
)%
|
||||
Effective income tax rate
|
38.4
|
%
|
|
27.5
|
%
|
|
30.0
|
%
|
|
14.2
|
%
|
||||
Net loss attributable to Boeing Shareholders
|
|
($3,004
|
)
|
|
|
($793
|
)
|
|
|
($2,376
|
)
|
|
|
($2,942
|
)
|
Diluted loss per share
|
|
($5.31
|
)
|
|
|
($1.40
|
)
|
|
|
($4.20
|
)
|
|
|
($5.21
|
)
|
|
|
|
|
|
|
|
|
||||||||
Non-GAAP (1)
|
|
|
|
|
|
|
|
||||||||
Core operating loss
|
|
($5,019
|
)
|
|
|
($1,759
|
)
|
|
|
($3,319
|
)
|
|
|
($3,745
|
)
|
Core operating margins
|
(17.5
|
%)
|
|
(4.5
|
%)
|
|
(28.1
|
%)
|
|
(23.8
|
%)
|
||||
Core loss per share
|
|
($6.49
|
)
|
|
|
($2.60
|
)
|
|
|
($4.79
|
)
|
|
|
($5.82
|
)
|
(1)
|
These measures exclude certain components of pension and other postretirement benefit expense. See page 53 for important information about these non-GAAP measures and reconciliations to the most comparable GAAP measures.
|
(Dollars in millions)
|
Six months ended June 30
|
|
Three months ended June 30
|
||||||||||||
|
2020
|
|
|
2019
|
|
|
2020
|
|
|
2019
|
|
||||
Commercial Airplanes
|
|
$7,838
|
|
|
|
$16,544
|
|
|
|
$1,633
|
|
|
|
$4,722
|
|
Defense, Space & Security
|
12,630
|
|
|
13,166
|
|
|
6,588
|
|
|
6,579
|
|
||||
Global Services
|
8,116
|
|
|
9,162
|
|
|
3,488
|
|
|
4,543
|
|
||||
Boeing Capital
|
134
|
|
|
141
|
|
|
69
|
|
|
75
|
|
||||
Unallocated items, eliminations and other
|
(3
|
)
|
|
(345
|
)
|
|
29
|
|
|
(168
|
)
|
||||
Total
|
|
$28,715
|
|
|
|
$38,668
|
|
|
|
$11,807
|
|
|
|
$15,751
|
|
(Dollars in millions)
|
Six months ended June 30
|
|
Three months ended June 30
|
||||||||||||
|
2020
|
|
|
2019
|
|
|
2020
|
|
|
2019
|
|
||||
Commercial Airplanes
|
|
($4,830
|
)
|
|
|
($3,773
|
)
|
|
|
($2,762
|
)
|
|
|
($4,946
|
)
|
Defense, Space & Security
|
409
|
|
|
1,827
|
|
|
600
|
|
|
975
|
|
||||
Global Services
|
36
|
|
|
1,340
|
|
|
(672
|
)
|
|
687
|
|
||||
Boeing Capital
|
17
|
|
|
57
|
|
|
(7
|
)
|
|
37
|
|
||||
Segment operating loss
|
(4,368
|
)
|
|
(549
|
)
|
|
(2,841
|
)
|
|
(3,247
|
)
|
||||
Pension FAS/CAS service cost adjustment
|
513
|
|
|
549
|
|
|
258
|
|
|
275
|
|
||||
Postretirement FAS/CAS service cost adjustment
|
189
|
|
|
180
|
|
|
97
|
|
|
90
|
|
||||
Unallocated items, eliminations and other
|
(651
|
)
|
|
(1,210
|
)
|
|
(478
|
)
|
|
(498
|
)
|
||||
Loss from operations (GAAP)
|
|
($4,317
|
)
|
|
|
($1,030
|
)
|
|
|
($2,964
|
)
|
|
|
($3,380
|
)
|
FAS/CAS service cost adjustment *
|
(702
|
)
|
|
(729
|
)
|
|
(355
|
)
|
|
(365
|
)
|
||||
Core operating loss (Non-GAAP) **
|
|
($5,019
|
)
|
|
|
($1,759
|
)
|
|
|
($3,319
|
)
|
|
|
($3,745
|
)
|
*
|
The FAS/CAS service cost adjustment represents the difference between the FAS pension and postretirement service costs calculated under GAAP and costs allocated to the business segments.
|
**
|
Core operating loss is a Non-GAAP measure that excludes the FAS/CAS service cost adjustment. See page 53.
|
(Dollars in millions)
|
Six months ended June 30
|
|
Three months ended June 30
|
||||||||||||
|
2020
|
|
|
2019
|
|
|
2020
|
|
|
2019
|
|
||||
Share-based plans
|
|
($43
|
)
|
|
|
($36
|
)
|
|
|
($25
|
)
|
|
|
($22
|
)
|
Deferred compensation
|
73
|
|
|
(129
|
)
|
|
(120
|
)
|
|
(27
|
)
|
||||
Amortization of previously capitalized interest
|
(50
|
)
|
|
(45
|
)
|
|
(27
|
)
|
|
(21
|
)
|
||||
Research and development expense, net
|
(116
|
)
|
|
(183
|
)
|
|
(62
|
)
|
|
(105
|
)
|
||||
Customer financing impairment
|
|
|
|
(250
|
)
|
|
|
|
|
|
|
||||
Litigation
|
|
|
|
(109
|
)
|
|
|
|
|
(109
|
)
|
||||
Eliminations and other unallocated items
|
(515
|
)
|
|
(458
|
)
|
|
(244
|
)
|
|
(214
|
)
|
||||
Unallocated items, eliminations and other
|
|
($651
|
)
|
|
|
($1,210
|
)
|
|
|
($478
|
)
|
|
|
($498
|
)
|
(Dollars in millions)
|
Six months ended June 30
|
|
Three months ended June 30
|
||||||||||||
Pension Plans
|
2020
|
|
|
2019
|
|
|
2020
|
|
|
2019
|
|
||||
Allocated to business segments
|
|
($514
|
)
|
|
|
($707
|
)
|
|
|
($259
|
)
|
|
|
($355
|
)
|
Pension FAS/CAS service cost adjustment
|
513
|
|
|
549
|
|
|
258
|
|
|
275
|
|
||||
Net periodic benefit cost included in Loss from operations
|
|
($1
|
)
|
|
|
($158
|
)
|
|
|
($1
|
)
|
|
|
($80
|
)
|
(Dollars in millions)
|
Six months ended June 30
|
|
Three months ended June 30
|
||||||||||||
|
2020
|
|
|
2019
|
|
|
2020
|
|
|
2019
|
|
||||
Loss from operations
|
|
($4,317
|
)
|
|
|
($1,030
|
)
|
|
|
($2,964
|
)
|
|
|
($3,380
|
)
|
Other income, net
|
206
|
|
|
213
|
|
|
94
|
|
|
107
|
|
||||
Interest and debt expense
|
(815
|
)
|
|
(277
|
)
|
|
(553
|
)
|
|
(154
|
)
|
||||
Loss before income taxes
|
(4,926
|
)
|
|
(1,094
|
)
|
|
(3,423
|
)
|
|
(3,427
|
)
|
||||
Income tax benefit
|
1,890
|
|
|
301
|
|
|
1,028
|
|
|
485
|
|
||||
Net loss from continuing operations
|
(3,036
|
)
|
|
(793
|
)
|
|
(2,395
|
)
|
|
(2,942
|
)
|
||||
Less: Net loss attributable to noncontrolling interest
|
(32
|
)
|
|
|
|
|
(19
|
)
|
|
|
|||||
Net loss attributable to Boeing Shareholders
|
|
($3,004
|
)
|
|
|
($793
|
)
|
|
|
($2,376
|
)
|
|
|
($2,942
|
)
|
(Dollars in millions)
|
Six months ended June 30
|
Three months ended June 30
|
||||||||||||||||||
|
2020
|
|
|
2019
|
|
Change
|
|
2020
|
|
|
2019
|
|
Change
|
|
||||||
Cost of sales
|
|
$29,746
|
|
|
|
$36,455
|
|
|
($6,709
|
)
|
|
$12,978
|
|
|
|
$17,810
|
|
|
($4,832
|
)
|
Cost of sales as a % of Revenues
|
103.6
|
%
|
|
94.3
|
%
|
9.3
|
%
|
109.9
|
%
|
|
113.1
|
%
|
(3.2
|
)%
|
(Dollars in millions)
|
Six months ended June 30
|
|
Three months ended June 30
|
||||||||||||
|
2020
|
|
|
2019
|
|
|
2020
|
|
|
2019
|
|
||||
Commercial Airplanes
|
|
$786
|
|
|
|
$1,062
|
|
|
|
$361
|
|
|
|
$498
|
|
Defense, Space & Security
|
330
|
|
|
374
|
|
|
167
|
|
|
190
|
|
||||
Global Services
|
65
|
|
|
73
|
|
|
35
|
|
|
33
|
|
||||
Other
|
116
|
|
|
183
|
|
|
62
|
|
|
105
|
|
||||
Total
|
|
$1,297
|
|
|
|
$1,692
|
|
|
|
$625
|
|
|
|
$826
|
|
(Dollars in millions)
|
June 30
2020 |
|
|
December 31
2019 |
|
||
Commercial Airplanes
|
|
$325,674
|
|
|
|
$376,593
|
|
Defense, Space & Security
|
64,286
|
|
|
63,691
|
|
||
Global Services
|
18,168
|
|
|
22,902
|
|
||
Unallocated items, eliminations and other
|
522
|
|
|
217
|
|
||
Total Backlog
|
|
$408,650
|
|
|
|
$463,403
|
|
|
|
|
|
||||
Contractual backlog
|
|
$385,389
|
|
|
|
$436,473
|
|
Unobligated backlog
|
23,261
|
|
|
26,930
|
|
||
Total Backlog
|
|
$408,650
|
|
|
|
$463,403
|
|
(Dollars in millions)
|
Six months ended June 30
|
|
Three months ended June 30
|
||||||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Revenues
|
|
$7,838
|
|
|
|
$16,544
|
|
|
|
$1,633
|
|
|
|
$4,722
|
|
Loss from operations
|
|
($4,830
|
)
|
|
|
($3,773
|
)
|
|
|
($2,762
|
)
|
|
|
($4,946
|
)
|
Operating margins
|
(61.6
|
)%
|
|
(22.8
|
)%
|
|
(169.1
|
)%
|
|
(104.7
|
)%
|
|
737
|
|
*
|
747
|
|
|
767
|
|
*
|
777
|
|
†
|
787
|
|
|
Total
|
|
Deliveries during the first six months of 2020
|
9
|
|
(7)
|
1
|
|
|
14
|
|
(6)
|
10
|
|
|
36
|
|
|
70
|
|
Deliveries during the first six months of 2019
|
113
|
|
(10)
|
4
|
|
|
22
|
|
(14)
|
22
|
|
(1)
|
78
|
|
|
239
|
|
Deliveries during the second quarter of 2020
|
4
|
|
(4)
|
1
|
|
|
4
|
|
(1)
|
4
|
|
|
7
|
|
|
20
|
|
Deliveries during the second quarter of 2019
|
24
|
|
(6)
|
2
|
|
|
10
|
|
(6)
|
12
|
|
|
42
|
|
|
90
|
|
Cumulative deliveries as of 6/30/2020
|
7,448
|
|
|
1,556
|
|
|
1,190
|
|
|
1,637
|
|
|
975
|
|
|
|
|
Cumulative deliveries as of 12/31/2019
|
7,439
|
|
|
1,555
|
|
|
1,176
|
|
|
1,627
|
|
|
939
|
|
|
|
|
Program
|
|
||||||||||||||||
As of 6/30/2020
|
737
|
|
|
747*
|
|
|
767
|
|
|
777
|
|
|
777X
|
|
|
787
|
|
†
|
Program accounting quantities
|
10,000
|
|
|
1,574
|
|
|
1,207
|
|
|
1,690
|
|
|
**
|
|
|
1,500
|
|
|
Undelivered units under firm orders
|
3,595
|
|
|
12
|
|
|
89
|
|
|
46
|
|
|
309
|
|
|
501
|
|
(27)
|
Cumulative firm orders
|
11,043
|
|
|
1,568
|
|
|
1,279
|
|
|
1,683
|
|
|
309
|
|
|
1,476
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
As of 12/31/2019
|
737
|
|
|
747
|
|
|
767
|
|
|
777
|
|
|
777X
|
|
|
787
|
|
†
|
Program accounting quantities
|
10,400
|
|
|
1,574
|
|
|
1,195
|
|
|
1,690
|
|
|
**
|
|
|
1,600
|
|
|
Undelivered units under firm orders
|
4,398
|
|
|
17
|
|
|
94
|
|
|
68
|
|
|
309
|
|
|
520
|
|
(29)
|
Cumulative firm orders
|
11,837
|
|
|
1,572
|
|
|
1,270
|
|
|
1,695
|
|
|
309
|
|
|
1,459
|
|
|
†
|
Aircraft ordered by BCC are identified in parentheses.
|
*
|
At June 30, 2020, the 747 accounting quantity includes one already completed aircraft that has not been sold and is being remarketed.
|
**
|
The accounting quantity for the 777X will be determined in the year of first airplane delivery.
|
(Dollars in millions)
|
Six months ended June 30
|
|
Three months ended June 30
|
||||||||||||
|
2020
|
|
|
2019
|
|
|
2020
|
|
|
2019
|
|
||||
Revenues
|
|
$12,630
|
|
|
|
$13,166
|
|
|
|
$6,588
|
|
|
|
$6,579
|
|
Earnings from operations
|
|
$409
|
|
|
|
$1,827
|
|
|
|
$600
|
|
|
|
$975
|
|
Operating margins
|
3.2
|
%
|
|
13.9
|
%
|
|
9.1
|
%
|
|
14.8
|
%
|
|
Six months ended June 30
|
|
Three months ended June 30
|
||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
F/A-18 Models
|
9
|
|
10
|
|
4
|
|
3
|
F-15 Models
|
3
|
|
5
|
|
3
|
|
1
|
CH-47 Chinook (New)
|
15
|
|
7
|
|
6
|
|
|
CH-47 Chinook (Renewed)
|
1
|
|
9
|
|
|
|
5
|
AH-64 Apache (New)
|
11
|
|
10
|
|
9
|
|
4
|
AH-64 Apache (Remanufactured)
|
32
|
|
35
|
|
18
|
|
13
|
P-8 Models
|
6
|
|
8
|
|
3
|
|
5
|
KC-46 Tanker
|
6
|
|
12
|
|
1
|
|
5
|
Total
|
83
|
|
96
|
|
44
|
|
36
|
(Dollars in millions)
|
Six months ended June 30
|
Three months ended June 30
|
|||||||||||||
|
2020
|
|
|
2019
|
|
|
2020
|
|
|
2019
|
|
||||
Revenues
|
|
$8,116
|
|
|
|
$9,162
|
|
|
|
$3,488
|
|
|
|
$4,543
|
|
Earnings/(loss) from operations
|
|
$36
|
|
|
|
$1,340
|
|
|
|
($672
|
)
|
|
|
$687
|
|
Operating margins
|
0.4
|
%
|
|
14.6
|
%
|
|
(19.3
|
)%
|
|
15.1
|
%
|
(Dollars in millions)
|
Six months ended June 30
|
|
Three months ended June 30
|
||||||||||||
|
2020
|
|
|
2019
|
|
|
2020
|
|
|
2019
|
|
||||
Revenues
|
|
$134
|
|
|
|
$141
|
|
|
|
$69
|
|
|
|
$75
|
|
Earnings/(loss) from operations
|
|
$17
|
|
|
|
$57
|
|
|
|
($7
|
)
|
|
|
$37
|
|
Operating margins
|
13
|
%
|
|
40
|
%
|
|
(10
|
)%
|
|
49
|
%
|
(Dollars in millions)
|
June 30
2020 |
|
|
December 31
2019 |
|
||
Customer financing and investment portfolio, net
|
|
$2,099
|
|
|
|
$2,251
|
|
Other assets, primarily cash and short-term investments
|
642
|
|
|
535
|
|
||
Total assets
|
|
$2,741
|
|
|
|
$2,786
|
|
|
|
|
|
||||
Other liabilities, primarily deferred income taxes
|
|
$390
|
|
|
|
$432
|
|
Debt, including intercompany loans
|
1,942
|
|
|
1,960
|
|
||
Equity
|
409
|
|
|
394
|
|
||
Total liabilities and equity
|
|
$2,741
|
|
|
|
$2,786
|
|
|
|
|
|
||||
Debt-to-equity ratio
|
4.7-to-1
|
|
|
5.0-to-1
|
|
(Dollars in millions)
|
Six months ended June 30
|
||||||
|
2020
|
|
|
2019
|
|
||
Net loss
|
|
($3,036
|
)
|
|
|
($793
|
)
|
Non-cash items
|
2,230
|
|
|
1,335
|
|
||
Changes in working capital
|
(8,776
|
)
|
|
1,656
|
|
||
Net cash (used)/provided by operating activities
|
(9,582
|
)
|
|
2,198
|
|
||
Net cash used by investing activities
|
(12,686
|
)
|
|
(853
|
)
|
||
Net cash provided by financing activities
|
32,742
|
|
|
96
|
|
||
Effect of exchange rate changes on cash and cash equivalents
|
(11
|
)
|
|
(2
|
)
|
||
Net increase in cash & cash equivalents, including restricted
|
10,463
|
|
|
1,439
|
|
||
Cash & cash equivalents, including restricted, at beginning of year
|
9,571
|
|
|
7,813
|
|
||
Cash & cash equivalents, including restricted, at end of period
|
|
$20,034
|
|
|
|
$9,252
|
|
(Dollars in millions, except per share data)
|
Six months ended June 30
|
|
Three months ended June 30
|
||||||||||||
|
2020
|
|
|
2019
|
|
|
2020
|
|
|
2019
|
|
||||
Revenues
|
|
$28,715
|
|
|
|
$38,668
|
|
|
|
$11,807
|
|
|
|
$15,751
|
|
Loss from operations, as reported
|
|
($4,317
|
)
|
|
|
($1,030
|
)
|
|
|
($2,964
|
)
|
|
|
($3,380
|
)
|
Operating margins
|
(15.0
|
)%
|
|
(2.7
|
)%
|
|
(25.1
|
)%
|
|
(21.5
|
)%
|
||||
|
|
|
|
|
|
|
|
||||||||
Pension FAS/CAS service cost adjustment (1)
|
|
($513
|
)
|
|
|
($549
|
)
|
|
|
($258
|
)
|
|
|
($275
|
)
|
Postretirement FAS/CAS service cost adjustment (1)
|
(189
|
)
|
|
(180
|
)
|
|
(97
|
)
|
|
(90
|
)
|
||||
FAS/CAS service cost adjustment (1)
|
|
($702
|
)
|
|
|
($729
|
)
|
|
|
($355
|
)
|
|
|
($365
|
)
|
Core operating loss (non-GAAP)
|
|
($5,019
|
)
|
|
|
($1,759
|
)
|
|
|
($3,319
|
)
|
|
|
($3,745
|
)
|
Core operating margins (non-GAAP)
|
(17.5
|
)%
|
|
(4.5
|
)%
|
|
(28.1
|
)%
|
|
(23.8
|
)%
|
||||
|
|
|
|
|
|
|
|
||||||||
Diluted loss per share, as reported
|
|
($5.31
|
)
|
|
|
($1.40
|
)
|
|
|
($4.20
|
)
|
|
|
($5.21
|
)
|
Pension FAS/CAS service cost adjustment (1)
|
(0.91
|
)
|
|
(0.97
|
)
|
|
(0.46
|
)
|
|
(0.49
|
)
|
||||
Postretirement FAS/CAS service cost adjustment (1)
|
(0.33
|
)
|
|
(0.32
|
)
|
|
(0.17
|
)
|
|
(0.16
|
)
|
||||
Non-operating pension expense (2)
|
(0.30
|
)
|
|
(0.32
|
)
|
|
(0.14
|
)
|
|
(0.17
|
)
|
||||
Non-operating postretirement expense (2)
|
0.05
|
|
|
0.09
|
|
|
0.02
|
|
|
0.05
|
|
||||
Provision for deferred income taxes on adjustments (3)
|
0.31
|
|
|
0.32
|
|
|
0.16
|
|
|
0.16
|
|
||||
Core loss per share (non-GAAP)
|
|
($6.49
|
)
|
|
|
($2.60
|
)
|
|
|
($4.79
|
)
|
|
|
($5.82
|
)
|
|
|
|
|
|
|
|
|
||||||||
Weighted average diluted shares (in millions)
|
566.1
|
|
|
566.6
|
|
|
566.4
|
|
|
565.3
|
|
(1)
|
FAS/CAS service cost adjustment represents the difference between the FAS pension and postretirement service costs calculated under GAAP and costs allocated to the business segments. This adjustment is excluded from Core operating loss (non-GAAP).
|
(2)
|
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 and are excluded from Core loss per share (non-GAAP).
|
(Dollars in millions, except per share data)
|
||||||||||
|
(a)
|
|
(b)
|
|
(c)
|
|
(d)
|
|||
|
Total Number
of Shares
Purchased (1)
|
|
|
Average
Price
Paid per
Share
|
|
|
Total Number of
Shares Purchased
as Part of Publicly
Announced Plans
or Programs
|
|
Approximate Dollar
Value of Shares That
May Yet be Purchased
Under the Plans or
Programs (2)
|
|
4/1/2020 thru 4/30/2020
|
5,381
|
|
|
|
$138.98
|
|
|
|
|
|
5/1/2020 thru 5/31/2020
|
4,201
|
|
|
140.49
|
|
|
|
|
|
|
6/1/2020 thru 6/30/2020
|
1,761
|
|
|
165.29
|
|
|
|
|
|
|
Total
|
11,343
|
|
|
|
$143.62
|
|
|
|
|
|
(1)
|
A total of 9,175 shares were transferred to us from employees in satisfaction of minimum tax withholding obligations associated with the vesting of restricted stock units during the period. We did not purchase any shares of our common stock in the open market pursuant to our repurchase program. We purchased 2,168 shares in swap transactions.
|
(2)
|
On March 21, 2020, the Board of Directors terminated its prior authorization to repurchase shares of the Company's outstanding common stock. Share repurchases under this plan had been suspended since April 2019.
|
10.1*
|
|
|
|
10.2*
|
|
|
|
15
|
|
|
|
31.1
|
|
|
|
31.2
|
|
|
|
32.1
|
|
|
|
32.2
|
|
|
|
101.INS
|
Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
|
|
|
101.SCH
|
Inline XBRL Taxonomy Extension Schema Document
|
|
|
101.CAL
|
Inline XBRL Taxonomy Extension Calculation Linkbase Document
|
|
|
101.DEF
|
Inline XBRL Taxonomy Extension Definition Linkbase Document
|
|
|
101.LAB
|
Inline XBRL Taxonomy Extension Label Linkbase Document
|
|
|
101.PRE
|
Inline XBRL Taxonomy Extension Presentation Linkbase Document
|
|
|
104
|
The cover page for the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2020, has been formatted in Inline XBRL.
|
|
|
THE BOEING COMPANY
|
|
|
(Registrant)
|
|
|
|
|
|
|
|
|
|
|
|
|
July 29, 2020
|
|
/s/ Robert E. Verbeck
|
(Date)
|
|
Robert E. Verbeck
|
|
|
Senior Vice President and Controller
|
1.0
|
EMPLOYMENT
|
2.0
|
REMUNERATION AND BENEFITS
|
(a)
|
Base Salary: The Employer shall compensate the Employee with a Base Salary of $625,000 USD (converted to $884,875 Canadian Dollars (CAD) based on 1 USD equals 1.4158 CAD conversion) per annum, to be paid in regular installments in accordance with the Employer’s usual practices, and subject to required statutory deductions. Salaries are reviewed annually in accordance with the Employer’s Compensation plan and salary increases are subject to approval from the Compensation Committee. The Employee understands and acknowledges that as she is a “manager” as that term is defined under applicable provincial employment standards legislation, as amended (the “ESA”), she is not eligible for overtime pay.
|
(b)
|
Signing Bonus: Employee will receive a cash sign-on payment of $300,000 USD (converted to $424,740 Canadian Dollars based on 1 USD equals 1.4158 CAD conversion), less applicable statutory deductions, within 30 days of Employee’s report-to-work date. In addition, the Employee will receive 1,500 Boeing restricted stock units with three-year ratable vesting. The Employee’s grant date will coincide with her start date (or the next trading day if Employee’s start date is on a weekend) and has been approved by the Compensation Committee of the Boeing Board of Directors. Vesting will be on the first-, second-, and third-year anniversaries of the Employee’s date of grant, assuming continued employment through the applicable vesting dates.
|
(c)
|
Incentive Compensation:
|
(i)
|
The Employee will be eligible to participate in such annual Employer incentive plans as may be applicable and which provide the opportunity to receive incentive pay as determined by the Employer from time to time. The Employee will have a target annual incentive opportunity of 75% of eligible earnings for the performance period. The annual incentive program rewards previous year performance and will be based on the overall performance of Boeing and an assessment of the Employee’s individual performance. Any annual incentive award earned is paid in cash in March following the year in which they are earned; provided that the Employee’s annual incentive for 2020 only will pay out at no less than full-year target.
|
(ii)
|
The Employee will be eligible to participate in such long-term Employer incentive plans as may be applicable and which provide the opportunity to receive incentive pay as determined by the Employer from time to time. The Employee will have a target long-term incentive opportunity of 250% of base salary. The Employee’s long-term incentive for 2020 will be pro-rated based on the Employee’s report-to-work date.
|
(iii)
|
The Employee’s participation in such annual and long-term Employer incentive plans is subject to the terms of the plans as amended from time to time. Payments under annual incentive plans and awards under long-term incentive plans are entirely at the discretion of the Employer, and the employee will have no legal, acquired or implicit right to such payments, even if they are made over the course of more than one annual period and the Employer has not declared a reservation of rights with regard to each such payment. Except as expressly required by the ESA, no incentive compensation will be paid or awarded or shall be payable following notification of termination of the Employee’s employment for any reason during or in respect of any common law or contractual period of notice, and the Employee waives any entitlement thereto. The Employer also reserves the right to amend, modify, replace or discontinue these incentive
|
(d)
|
Benefits: The Employee shall be entitled to participate in the benefit plans of the Employer for which she is eligible, as they may exist or be amended in the discretion of the Employer from time to time. The Employer shall make the benefit plans available to the Employee and, where applicable, the Employer shall pay premiums to an insurance carrier of its choice. All decisions regarding eligibility and coverage shall be made by the insurance carrier; the Employer shall not bear any responsibility or liability in connection with the benefit plans during the employment of the Employee or thereafter. The Employer’s obligation to provide benefits shall terminate at the end of the Employee’s statutory notice period.
|
(e)
|
Vacation:
|
(i)
|
The Employee’s annual vacation entitlement shall be 21 days per annum (“Annual Vacation”). This is in addition to other holidays normally observed by the Employer, including but not limited to all statutory and observed holidays if any. The Employee’s paid vacation entitlement will be adjusted as per the Employer’s vacation policy which may be amended from time to time;
|
(iii)
|
The Employee shall take her Annual Vacation at a time or times mutually agreed upon, provided that not more than two weeks shall be taken at any one time without the prior written permission of the Employer.
|
(f)
|
Sick Leave:
|
(i)
|
The Employer offers annual sick leave, should the need arise, which may be taken as per the Employer’s sick leave policy, as may be amended from time to time.
|
(g)
|
DPSP Contribution: The Employee is eligible to participate in the Employer’s DPSP as it may be amended from time to time.
|
4.0
|
TERMINATION
|
(a)
|
any property of the Employer which may be in the possession or control of the Employee; and
|
6.0
|
CONFIDENTIAL INFORMATION AND PROPERTY
|
(a)
|
all information defined as Confidential Information in the Intellectual Property and Confidentiality Agreement;
|
(b)
|
financial statements, financial books and records, reserve reports and estimates and other related information;
|
(c)
|
information containing products, pricing, sales and marketing policies, techniques and concepts, including costing information, in respect of products and services provided to, or by the Employee;
|
(d)
|
lists of present and prospective clients and related information, including names and addresses, borrowing habits and preferences of present and prospective clients of the Employer;
|
(e)
|
purchasing information, including the names and addresses of present and prospective suppliers of the Employer and prices charged by such suppliers;
|
(f)
|
computer systems, computer programs, data, software, system documentation, designs, manuals, databases;
|
(g)
|
trade secrets; and
|
(h)
|
any other materials or information related to the personnel, business operations, financing or activities of the Employer which are not generally known to others engaged in similar businesses or activities,
|
8.0
|
SEVERALBILITY
|
9.0
|
ENTIRE AGREEMENT
|
10.0
|
CONTINUING COOPERATION
|
11.0
|
CONTINUING OBLIGATIONS
|
12.0
|
MODIFICATION, AMENDMENT OR WAIVER
|
13.0
|
WAIVER
|
14.0
|
HEADINGS
|
15.0
|
INDEPENDENT LEGAL ADVICE
|
16.0
|
CONDITIONS
|
19.0
|
NOTICE
|
(a)
|
To the Employer:
|
(b)
|
To the Employee:
|
4/28/2020
|
|
/s/ Susan Doniz
|
|
Date
|
|
SUSAN DONIZ
|
|
|
|
|
|
4/29/2020
|
|
By:
|
/s/ Herman Hansen
|
Date
|
|
Name:
|
Herman Hansen
|
|
|
Title:
|
Senior Manager of Human Resources
|
|
|
BOEING CANADA OPERATIONS LTD.
|
1.
|
RSU Award. You have been awarded ___ Supplemental Restricted Stock Units (“RSUs”). Each RSU corresponds to one share of Common Stock.
|
2.
|
RSU Account. The Company will maintain a record of the number of awarded RSUs in an account established in your name.
|
3.
|
Vesting of RSUs. Subject to Sections 6 and 7, your RSUs will vest in three installments of 33%, 33%, and 34% respectively on each of the first, second, and third anniversaries of the Grant Date (or if such date(s) is not a Trading Day, the next Trading Day) (each such date, a “Vesting Date”). As soon as reasonably practicable following the applicable Vesting Date, you shall receive a number of shares of Common Stock equal to the aggregate number of RSUs that vest as of such date. Notwithstanding the foregoing, the RSUs may be settled in the form of: (a) cash, to the extent settlement in shares of Common Stock (i) is not standard Company practice in your country of employment (ii) is prohibited under applicable laws, (iii) would require you, the Company or, if different, the Related Company that employs you (the “Employer”) to obtain the approval of any governmental and/or regulatory body in your country of residence (and country of employment, if different), or (iii) is administratively burdensome; or (b) shares of Common Stock, but the Company may require you to immediately sell such shares if necessary to comply with applicable laws (in which case, you hereby expressly authorize the Company to issue sales instructions in relation to such shares on your behalf). If, after the grant date but prior to an applicable Vesting Date, you transfer employment to a Related Company in another country (you will be considered to have transferred to a Related Company if you are paid through that Related Company’s payroll) and the Company does not settle RSUs in shares of Common Stock in that country, the RSUs will be settled in cash. Subject to the terms and conditions outlined under Section 6 and 7, this Award is granted on the condition that you remain continuously employed by the Company or a Related Company from the Grant Date through the applicable Vesting Dates. “Trading Day” shall mean a day on which the New York Stock Exchange is open for trading.
|
4.
|
Dividend Equivalents.
|
5.
|
Adjustment in Number of RSUs. The number of RSUs in your account will be adjusted proportionately for any increase or decrease in the number of issued shares of Common Stock resulting from any stock split, combination or exchange of Common Stock, consolidation, spin-off or recapitalization of Common Stock, or any similar capital adjustment or the payment of any stock dividend.
|
6.
|
Termination Due to Layoff, Disability, or Death. In the event your employment is terminated prior to the final Vesting Date by reason of layoff, disability, or death, your unvested RSUs, including any dividend equivalent RSUs, will vest in full. Payment for this Award will be made (i) in cash (rather than shares of Common Stock) as soon as administratively possible, but not later than 60 days after your termination of employment, in the event that your employment is terminated by reason of disability or death, or (ii) in shares of Common Stock at the same time as payment would have been made pursuant to Section 3 had your employment not terminated prior to the applicable Vesting Date, in the event that your employment is terminated by reason of layoff (provided, however, that if your termination by reason of layoff results in a taxable event at the time of termination, payment
|
7.
|
Forfeiture Upon Other Terminations. In the event your employment is terminated prior to the final Vesting Date for any reason (including for cause and resignation) other than those reasons described in Section 6, all unvested RSUs (and all associated dividend equivalent RSUs) granted hereunder shall immediately be forfeited and canceled.
|
8.
|
Transferability. RSUs are not transferable except by will or by laws of descent and distribution. You may designate a beneficiary to receive your Award in the event of your death.
|
9.
|
Clawback and Forfeiture Policy.
|
10.
|
Tax Withholding. Subject to the terms of the Plan and as a condition to the grant of the RSUs, you acknowledge and agree that, regardless of any action taken by the Company or the Employer, the ultimate liability for all income tax, social insurance, payroll tax, fringe benefits tax, payment on account or other tax-related items related to your participation in the Plan and legally applicable to you (“Tax-Related Items”), is and remains your responsibility and may exceed the amount actually withheld by the Company or the Employer. You further acknowledge that the Company and/or the Employer (a) make no representations or undertakings regarding the treatment of any Tax-Related Items in connection with any aspect of the RSUs, including, but not limited to, the grant, vesting or payment of the RSUs; and (b) do not commit to and are under no obligation to structure the terms of the grant or any aspect of the RSUs to reduce or eliminate your liability for Tax-Related Items or achieve any particular tax result. If your country of employment (and/or the country of residence, if different) requires withholding of Tax-Related Items, then prior to the issuance and delivery of any shares of Common Stock or cash upon the vesting of this Award, the Company, the Employer, or any plan administrator, as applicable: (x) shall withhold a sufficient number of whole shares of Common Stock otherwise issuable upon the vesting of this Award that have an aggregate Fair Market Value sufficient to pay the Tax-Related Items required to be withheld (in which case, the cash equivalent of such withheld shares of Common Stock shall be used to settle the withholding obligation); or (y) shall withhold an amount from your regular salary and/or wages, or from any other amounts payable to you, equal to the Tax-Related Items required to be withheld.
|
11.
|
Consent to Collection, Processing and Transfer of Personal Data. The Company is located at 100 North Riverside, Chicago, IL 60606, U.S.A. and grants RSUs under the Plan to employees of the Company and its Related Companies in its sole discretion. In conjunction with the Company’s grant of the RSUs under the Plan and its ongoing administration of such awards, the Company is providing the following information about its data collection, processing and transfer practices (“Personal Data Activities”). In accepting the grant of the RSUs, you expressly and explicitly consent to the Personal Data Activities as described herein.
|
12.
|
Miscellaneous.
|
2.
|
Use of English Language. If you are a resident of Quebec, by accepting your RSUs, you acknowledge and agree that it is your wish that the Notice, this Addendum, as well as all other documents, notices and legal proceedings entered into, given or instituted pursuant to your RSUs, either directly or indirectly, be drawn up in English.
|
|
Signature
|
|
|
Printed Name
|
|
|
Date
|
1.
|
Clawback and Forfeiture Policy. The following shall modify Section 9.2 of the Notice:
|
2.
|
Income Tax and Social Insurance Contribution Withholding. The following provision shall replace Section 10 of this Notice:
|
3.
|
Exclusion of Claim. You acknowledge and agree that you shall have no entitlement to compensation or damages in consequence of the termination of your employment with the Company or any Related Company for any reason whatsoever and whether or not in breach of contract, insofar as such entitlement arises or may arise from your ceasing to have rights under or to be entitled to vesting in your RSUs as a result of such termination, or from the loss or diminution in value of your RSUs. Upon the grant of your RSUs, you shall be deemed irrevocably to have waived any such entitlement.
|
4.
|
Brexit. To the extent that the United Kingdom is no longer a part of the European Union following the United Kingdom’s anticipated withdrawal from the European Union, but the laws discussed herein still apply to the United Kingdom for a period of time following the anticipated withdrawal, all references to the European Union shall include the United Kingdom, unless otherwise stated in this document.
|
Name:
|
|
|
|
|
|
Signature:
|
|
|
|
|
|
Date:
|
|
1.
|
I have reviewed this quarterly report on Form 10-Q of The Boeing Company;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, 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;
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
/s/ David L. Calhoun
|
|
1.
|
I have reviewed this quarterly report on Form 10-Q of The Boeing Company;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, 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;
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
/s/ Gregory D. Smith
|
|
(1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
/s/ David L. Calhoun
|
|
(1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
/s/ Gregory D. Smith
|
|