ý | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
THE BOEING COMPANY |
Delaware | 91-0425694 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
100 N. Riverside Plaza, Chicago, IL | 60606-1596 | |
(Address of principal executive offices) | (Zip Code) |
(312) 544-2000 |
Large accelerated filer | ý | Accelerated filer | ¨ | |
Non-accelerated filer | ¨ | (Do not check if a smaller reporting company) | Smaller reporting company | ¨ |
Part I. Financial Information (Unaudited) | Page | |
Item 1. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
Part II. Other Information | ||
Item 1. | ||
Item 1A. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
Item 5. | ||
Item 6. | ||
(Dollars in millions, except per share data) | Six months ended June 30 | Three months ended June 30 | |||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Sales of products | $35,556 | $34,026 | $19,238 | $17,341 | |||||||||||
Sales of services | 5,152 | 5,362 | 2,577 | 2,664 | |||||||||||
Total revenues | 40,708 | 39,388 | 21,815 | 20,005 | |||||||||||
Cost of products | (30,165 | ) | (28,420 | ) | (16,437 | ) | (14,759 | ) | |||||||
Cost of services | (4,004 | ) | (4,342 | ) | (1,995 | ) | (1,962 | ) | |||||||
Boeing Capital interest expense | (37 | ) | (58 | ) | (18 | ) | (25 | ) | |||||||
Total costs and expenses | (34,206 | ) | (32,820 | ) | (18,450 | ) | (16,746 | ) | |||||||
6,502 | 6,568 | 3,365 | 3,259 | ||||||||||||
Income from operating investments, net | 88 | 91 | 43 | 45 | |||||||||||
General and administrative expense | (1,900 | ) | (1,858 | ) | (929 | ) | (903 | ) | |||||||
Research and development expense, net | (1,468 | ) | (1,692 | ) | (763 | ) | (857 | ) | |||||||
Gain/(loss) on dispositions, net | 22 | (2 | ) | (2 | ) | ||||||||||
Earnings from operations | 3,244 | 3,107 | 1,716 | 1,542 | |||||||||||
Other income, net | 22 | 22 | 13 | 10 | |||||||||||
Interest and debt expense | (195 | ) | (220 | ) | (96 | ) | (106 | ) | |||||||
Earnings before income taxes | 3,071 | 2,909 | 1,633 | 1,446 | |||||||||||
Income tax expense | (878 | ) | (1,018 | ) | (546 | ) | (479 | ) | |||||||
Net earnings from continuing operations | 2,193 | 1,891 | 1,087 | 967 | |||||||||||
Net gain/(loss) on disposal of discontinued operations, net of taxes of $0, $1, $0 and $0 | 1 | (1 | ) | 1 | |||||||||||
Net earnings | $2,194 | $1,890 | $1,088 | $967 | |||||||||||
Basic earnings per share from continuing operations | $2.88 | $2.51 | $1.43 | $1.28 | |||||||||||
Net gain/(loss) on disposal of discontinued operations, net of taxes | |||||||||||||||
Basic earnings per share | $2.88 | $2.51 | $1.43 | $1.28 | |||||||||||
Diluted earnings per share from continuing operations | $2.85 | $2.49 | $1.41 | $1.27 | |||||||||||
Net gain/(loss) on disposal of discontinued operations, net of taxes | |||||||||||||||
Diluted earnings per share | $2.85 | $2.49 | $1.41 | $1.27 | |||||||||||
Cash dividends paid per share | $0.97 | $0.88 | $0.485 | $0.44 | |||||||||||
Weighted average diluted shares (millions) | 770.1 | 760.7 | 771.8 | 762.0 |
(Dollars in millions) | Six months ended June 30 | Three months ended June 30 | |||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Net earnings | $2,194 | $1,890 | $1,088 | $967 | |||||||||||
Other comprehensive income, net of tax: | |||||||||||||||
Currency translation adjustments | (88 | ) | (10 | ) | (65 | ) | (55 | ) | |||||||
Unrealized loss on derivative instruments: | |||||||||||||||
Unrealized loss arising during period, net of tax of $51, $7, $36 and $18 | (89 | ) | (12 | ) | (63 | ) | (30 | ) | |||||||
Reclassification adjustment for (gain)/loss included in net earnings, net of tax of $3, ($5), $4 and ($5) | (3 | ) | 8 | (5 | ) | 8 | |||||||||
Total unrealized loss on derivative instruments, net of tax | (92 | ) | (4 | ) | (68 | ) | (22 | ) | |||||||
Defined benefit pension plans & other postretirement benefits: | |||||||||||||||
Amortization of prior service cost included in net periodic pension cost, net of tax of ($3), ($6), ($2) and ($3) | 5 | 8 | 2 | 4 | |||||||||||
Net actuarial gain arising during the period, net of tax of ($16), ($24), $0 and ($15) | 30 | 43 | 27 | ||||||||||||
Amortization of actuarial losses included in net periodic pension cost, net of tax of ($431), ($375), ($216) and ($187) | 755 | 653 | 377 | 327 | |||||||||||
Settlements and curtailments included in net income, net of tax of ($5), ($3), $0 and ($1) | 9 | 5 | 2 | ||||||||||||
Pension and post retirement benefits related to our equity method investments, net of tax ($1), $6, $0 and $2 | 3 | (11 | ) | 1 | (5 | ) | |||||||||
Total defined benefit pension plans & other postretirement benefits, net of tax | 802 | 698 | 380 | 355 | |||||||||||
Other comprehensive income, net of tax | 622 | 684 | 247 | 278 | |||||||||||
Comprehensive income related to noncontrolling interest | 21 | 1 | 19 | 1 | |||||||||||
Comprehensive income, net of tax | $2,837 | $2,575 | $1,354 | $1,246 |
(Dollars in millions, except per share data) | June 30 2013 | December 31 2012 | |||||
Assets | |||||||
Cash and cash equivalents | $8,694 | $10,341 | |||||
Short-term and other investments | 5,631 | 3,217 | |||||
Accounts receivable, net | 6,406 | 5,608 | |||||
Current portion of customer financing, net | 320 | 364 | |||||
Deferred income taxes | 25 | 28 | |||||
Inventories, net of advances and progress billings | 40,234 | 37,751 | |||||
Total current assets | 61,310 | 57,309 | |||||
Customer financing, net | 3,991 | 4,056 | |||||
Property, plant and equipment, net of accumulated depreciation of $14,717 and $14,645 | 9,814 | 9,660 | |||||
Goodwill | 5,043 | 5,035 | |||||
Acquired intangible assets, net | 3,011 | 3,111 | |||||
Deferred income taxes | 6,307 | 6,753 | |||||
Investments | 1,166 | 1,180 | |||||
Other assets, net of accumulated amortization of $464 and $504 | 1,449 | 1,792 | |||||
Total assets | $92,091 | $88,896 | |||||
Liabilities and equity | |||||||
Accounts payable | $10,437 | $9,394 | |||||
Accrued liabilities | 12,412 | 12,995 | |||||
Advances and billings in excess of related costs | 18,145 | 16,672 | |||||
Deferred income taxes and income taxes payable | 5,072 | 4,485 | |||||
Short-term debt and current portion of long-term debt | 883 | 1,436 | |||||
Total current liabilities | 46,949 | 44,982 | |||||
Accrued retiree health care | 7,431 | 7,528 | |||||
Accrued pension plan liability, net | 20,070 | 19,651 | |||||
Non-current income taxes payable | 275 | 366 | |||||
Other long-term liabilities | 1,039 | 1,429 | |||||
Long-term debt | 8,695 | 8,973 | |||||
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 | 4,181 | 4,122 | |||||
Treasury stock, at cost - 258,226,771 and 256,630,628 shares | (16,412 | ) | (15,937 | ) | |||
Retained earnings | 31,490 | 30,037 | |||||
Accumulated other comprehensive loss | (16,794 | ) | (17,416 | ) | |||
Total shareholders’ equity | 7,526 | 5,867 | |||||
Noncontrolling interest | 106 | 100 | |||||
Total equity | 7,632 | 5,967 | |||||
Total liabilities and equity | $92,091 | $88,896 |
(Dollars in millions) | Six months ended June 30 | ||||||
2013 | 2012 | ||||||
Cash flows – operating activities: | |||||||
Net earnings | $2,194 | $1,890 | |||||
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||||||
Non-cash items – | |||||||
Share-based plans expense | 107 | 99 | |||||
Depreciation and amortization | 865 | 848 | |||||
Investment/asset impairment charges, net | 26 | 45 | |||||
Customer financing valuation benefit | (5 | ) | (1 | ) | |||
(Gain)/loss on disposal of discontinued operations | (1 | ) | 2 | ||||
(Gain)/loss on dispositions, net | (22 | ) | 2 | ||||
Other charges and credits, net | 31 | 361 | |||||
Excess tax benefits from share-based payment arrangements | (47 | ) | (39 | ) | |||
Changes in assets and liabilities – | |||||||
Accounts receivable | (550 | ) | (310 | ) | |||
Inventories, net of advances and progress billings | (2,614 | ) | (2,737 | ) | |||
Accounts payable | 848 | 742 | |||||
Accrued liabilities | (682 | ) | (594 | ) | |||
Advances and billings in excess of related costs | 1,472 | (152 | ) | ||||
Income taxes receivable, payable and deferred | 608 | 705 | |||||
Other long-term liabilities | (60 | ) | (15 | ) | |||
Pension and other postretirement plans | 1,638 | 686 | |||||
Customer financing, net | 188 | 216 | |||||
Other | (5 | ) | (3 | ) | |||
Net cash provided by operating activities | 3,991 | 1,745 | |||||
Cash flows – investing activities: | |||||||
Property, plant and equipment additions | (976 | ) | (780 | ) | |||
Property, plant and equipment reductions | 44 | 16 | |||||
Acquisitions, net of cash acquired | (26 | ) | (18 | ) | |||
Contributions to investments | (7,045 | ) | (6,396 | ) | |||
Proceeds from investments | 4,632 | 3,596 | |||||
Purchase of distribution rights | (6 | ) | |||||
Net cash used by investing activities | (3,371 | ) | (3,588 | ) | |||
Cash flows – financing activities: | |||||||
New borrowings | 531 | 24 | |||||
Debt repayments | (1,361 | ) | (1,233 | ) | |||
Repayments of distribution rights financing | (139 | ) | (72 | ) | |||
Stock options exercised, other | 484 | 71 | |||||
Excess tax benefits from share-based payment arrangements | 47 | 39 | |||||
Employee taxes on certain share-based payment arrangements | (57 | ) | (68 | ) | |||
Common shares repurchased | (1,000 | ) | |||||
Dividends paid | (735 | ) | (658 | ) | |||
Net cash used by financing activities | (2,230 | ) | (1,897 | ) | |||
Effect of exchange rate changes on cash and cash equivalents | (37 | ) | (4 | ) | |||
Net decrease in cash and cash equivalents | (1,647 | ) | (3,744 | ) | |||
Cash and cash equivalents at beginning of year | 10,341 | 10,049 | |||||
Cash and cash equivalents at end of period | $8,694 | $6,305 |
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 Interest | Total | ||||||||||||||
Balance January 1, 2012 | $5,061 | $4,033 | ($16,603 | ) | $27,524 | ($16,500 | ) | $93 | $3,608 | ||||||||||||
Net earnings | 1,890 | 1 | 1,891 | ||||||||||||||||||
Other comprehensive income, net of tax of ($400) | 684 | 684 | |||||||||||||||||||
Share-based compensation and related dividend equivalents | 106 | (10 | ) | 96 | |||||||||||||||||
Excess tax pools | 39 | 39 | |||||||||||||||||||
Treasury shares issued for stock options exercised, net | (31 | ) | 104 | 73 | |||||||||||||||||
Treasury shares issued for other share-based plans, net | (166 | ) | 104 | (62 | ) | ||||||||||||||||
Treasury shares issued for 401(k) contribution | 37 | 193 | 230 | ||||||||||||||||||
Cash dividends declared ($0.88 per share) | (661 | ) | (661 | ) | |||||||||||||||||
Changes in non-controlling interest | (6 | ) | (6 | ) | |||||||||||||||||
Balance June 30, 2012 | $5,061 | $4,018 | ($16,202 | ) | $28,743 | ($15,816 | ) | $88 | $5,892 | ||||||||||||
Balance January 1, 2013 | $5,061 | $4,122 | ($15,937 | ) | $30,037 | ($17,416 | ) | $100 | $5,967 | ||||||||||||
Net earnings | 2,194 | 21 | 2,215 | ||||||||||||||||||
Other comprehensive income, net of tax of ($403) | 622 | 622 | |||||||||||||||||||
Share-based compensation and related dividend equivalents | 111 | (7 | ) | 104 | |||||||||||||||||
Excess tax pools | 27 | 27 | |||||||||||||||||||
Treasury shares issued for stock options exercised, net | 45 | 448 | 493 | ||||||||||||||||||
Treasury shares issued for other share-based plans, net | (124 | ) | 77 | (47 | ) | ||||||||||||||||
Common shares repurchased | (1,000 | ) | (1,000 | ) | |||||||||||||||||
Cash dividends declared ($0.97 per share) | (734 | ) | (734 | ) | |||||||||||||||||
Changes in non-controlling interest | (15 | ) | (15 | ) | |||||||||||||||||
Balance June 30, 2013 | $5,061 | $4,181 | ($16,412 | ) | $31,490 | ($16,794 | ) | $106 | $7,632 |
(Dollars in millions) | Six months ended June 30 | Three months ended June 30 | |||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Revenues: | |||||||||||||||
Commercial Airplanes | $24,314 | $22,780 | $13,624 | $11,843 | |||||||||||
Defense, Space & Security: | |||||||||||||||
Boeing Military Aircraft | 7,998 | 8,272 | 3,889 | 4,050 | |||||||||||
Network & Space Systems | 4,009 | 3,832 | 2,049 | 1,960 | |||||||||||
Global Services & Support | 4,289 | 4,321 | 2,248 | 2,182 | |||||||||||
Total Defense, Space & Security | 16,296 | 16,425 | 8,186 | 8,192 | |||||||||||
Boeing Capital | 209 | 238 | 104 | 113 | |||||||||||
Other segment | 54 | 52 | 27 | 28 | |||||||||||
Unallocated items and eliminations | (165 | ) | (107 | ) | (126 | ) | (171 | ) | |||||||
Total revenues | $40,708 | $39,388 | $21,815 | $20,005 | |||||||||||
Earnings from operations: | |||||||||||||||
Commercial Airplanes | $2,672 | $2,292 | $1,453 | $1,211 | |||||||||||
Defense, Space & Security: | |||||||||||||||
Boeing Military Aircraft | 803 | 752 | 373 | 353 | |||||||||||
Network & Space Systems | 293 | 245 | 137 | 136 | |||||||||||
Global Services & Support | 512 | 493 | 266 | 259 | |||||||||||
Total Defense, Space & Security | 1,608 | 1,490 | 776 | 748 | |||||||||||
Boeing Capital | 63 | 72 | 19 | 39 | |||||||||||
Other segment | (101 | ) | (143 | ) | (43 | ) | (64 | ) | |||||||
Unallocated items and eliminations | (998 | ) | (604 | ) | (489 | ) | (392 | ) | |||||||
Earnings from operations | 3,244 | 3,107 | 1,716 | 1,542 | |||||||||||
Other income, net | 22 | 22 | 13 | 10 | |||||||||||
Interest and debt expense | (195 | ) | (220 | ) | (96 | ) | (106 | ) | |||||||
Earnings before income taxes | 3,071 | 2,909 | 1,633 | 1,446 | |||||||||||
Income tax expense | (878 | ) | (1,018 | ) | (546 | ) | (479 | ) | |||||||
Net earnings from continuing operations | 2,193 | 1,891 | 1,087 | 967 | |||||||||||
Net gain/(loss) on disposal of discontinued operations, net of taxes of $0, $1, $0 and $0 | 1 | (1 | ) | 1 | |||||||||||
Net earnings | $2,194 | $1,890 | $1,088 | $967 |
(In millions - except per share amounts) | Six months ended June 30 | Three months ended June 30 | |||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Net earnings | $2,194 | $1,890 | $1,088 | $967 | |||||||||||
Less: earnings available to participating securities | 4 | 4 | 1 | 1 | |||||||||||
Net earnings available to common shareholders | $2,190 | $1,886 | $1,087 | $966 | |||||||||||
Basic | |||||||||||||||
Basic weighted average shares outstanding | 763.2 | 754.2 | 763.3 | 755.9 | |||||||||||
Less: participating securities | 2.0 | 2.4 | 1.9 | 2.4 | |||||||||||
Basic weighted average common shares outstanding | 761.2 | 751.8 | 761.4 | 753.5 | |||||||||||
Diluted | |||||||||||||||
Basic weighted average shares outstanding | 763.2 | 754.2 | 763.3 | 755.9 | |||||||||||
Dilutive potential common shares(1) | 6.9 | 6.5 | 8.5 | 6.1 | |||||||||||
Diluted weighted average shares outstanding | 770.1 | 760.7 | 771.8 | 762.0 | |||||||||||
Less: participating securities | 2.0 | 2.4 | 1.9 | 2.4 | |||||||||||
Diluted weighted average common shares outstanding | 768.1 | 758.3 | 769.9 | 759.6 | |||||||||||
Net earnings per share: | |||||||||||||||
Basic | $2.88 | $2.51 | $1.43 | $1.28 | |||||||||||
Diluted | 2.85 | 2.49 | 1.41 | 1.27 |
(1) | Diluted EPS includes any dilutive impact of stock options, restricted stock units and Performance Awards. |
(Shares in millions) | Six months ended June 30 | Three months ended June 30 | |||||||||
2013 | 2012 | 2013 | 2012 | ||||||||
Stock options | 9.6 | 22.1 | 25.6 | ||||||||
Performance Awards | 5.2 | 4.5 | 4.5 | 4.5 |
June 30 2013 | December 31 2012 | ||||||
Long-term contracts in progress | $14,983 | $15,130 | |||||
Commercial aircraft programs | 45,877 | 40,389 | |||||
Commercial spare parts, used aircraft, general stock materials and other | 7,206 | 7,206 | |||||
Inventory before advances and progress billings | 68,066 | 62,725 | |||||
Less advances and progress billings | (27,832 | ) | (24,974 | ) | |||
Total | $40,234 | $37,751 |
June 30 2013 | December 31 2012 | ||||||
Financing receivables: | |||||||
Investment in sales-type/finance leases | $1,759 | $1,850 | |||||
Notes | 611 | 592 | |||||
Operating lease equipment, at cost, less accumulated depreciation of $574 and $628 | 1,996 | 2,038 | |||||
Gross customer financing | 4,366 | 4,480 | |||||
Less allowance for losses on receivables | (55 | ) | (60 | ) | |||
Total | $4,311 | $4,420 |
Rating categories | June 30 2013 | December 31 2012 | |||||
BBB | $1,137 | $1,201 | |||||
BB | 56 | 63 | |||||
B | 149 | 51 | |||||
CCC | 465 | 511 | |||||
D | 463 | 524 | |||||
Other | 100 | 92 | |||||
Total carrying value of financing receivables | $2,370 | $2,442 |
June 30 2013 | December 31 2012 | ||||||
717 Aircraft ($454 and $465 accounted for as operating leases) (1) | $1,728 | $1,781 | |||||
757 Aircraft ($415 and $454 accounted for as operating leases) (1) | 485 | 561 | |||||
MD-80 Aircraft (Accounted for as sales-type finance leases) (1) | 420 | 446 | |||||
787 Aircraft (Accounted for as operating leases) | 376 | 286 | |||||
747 Aircraft ($238 and $221 accounted for as operating leases) | 343 | 221 | |||||
MD-11 Aircraft (Accounted for as operating leases) (1) | 261 | 269 | |||||
737 Aircraft ($147 and $193 accounted for as operating leases) | 224 | 316 | |||||
767 Aircraft ($62 and $63 accounted for as operating leases) | 205 | 223 |
(1) | Out-of-production aircraft. |
June 30 2013 | December 31 2012 | ||||||
Time deposits | $5,560 | $3,135 | |||||
Pledged money market funds (1) | 46 | 56 | |||||
Available-for-sale investments | 7 | 9 | |||||
Equity method investments (2) | 1,126 | 1,137 | |||||
Restricted cash (3) | 24 | 25 | |||||
Other investments | 34 | 35 | |||||
Total | $6,797 | $4,397 |
(1) | Reflects amounts pledged in lieu of letters of credit as collateral in support of our workers’ compensation programs. These funds can become available within 30 days notice upon issuance of replacement letters of credit. |
(2) | Dividends received were $103 and $53 during the six and three months ended June 30, 2013, and $121 and $68 during the same periods in the prior year. |
(3) | Restricted to pay life insurance premiums for certain employees and certain claims related to workers' compensation. |
2013 | 2012 | ||||||
Beginning balance – January 1 | $710 | $758 | |||||
Reductions for payments made | (37 | ) | (33 | ) | |||
Changes in estimates | 25 | 45 | |||||
Ending balance – June 30 | $698 | $770 |
2013 | 2012 | ||||||
Beginning balance – January 1 | $1,572 | $1,046 | |||||
Additions for current year deliveries | 231 | 212 | |||||
Reductions for payments made | (243 | ) | (137 | ) | |||
Changes in estimates | (50 | ) | 86 | ||||
Ending balance – June 30 | $1,510 | $1,207 |
Total | |||
July through December 2013 | $486 | ||
2014 | 2,995 | ||
2015 | 3,724 | ||
2016 | 3,272 | ||
2017 | 3,105 | ||
Thereafter | 4,233 | ||
$17,815 |
Maximum Potential Payments | Estimated Proceeds from Collateral/Recourse | Carrying Amount of Liabilities | ||||||||||||||||||
June 30 2013 | December 31 2012 | June 30 2013 | December 31 2012 | June 30 2013 | December 31 2012 | |||||||||||||||
Contingent repurchase commitments | $2,170 | $2,065 | $2,165 | $2,065 | $5 | $5 | ||||||||||||||
Indemnifications to ULA: | ||||||||||||||||||||
Contributed Delta program launch inventory | 135 | 137 | ||||||||||||||||||
Contract pricing | 261 | 261 | 7 | 7 | ||||||||||||||||
Other Delta contracts | 234 | 232 | 8 | 8 | ||||||||||||||||
Other indemnifications | 116 | 137 | 26 | 32 |
Six months ended June 30 | Three months ended June 30 | ||||||||||||||
Pension Plans | 2013 | 2012 | 2013 | 2012 | |||||||||||
Service cost | $946 | $822 | $473 | $411 | |||||||||||
Interest cost | 1,462 | 1,502 | 731 | 751 | |||||||||||
Expected return on plan assets | (1,938 | ) | (1,916 | ) | (969 | ) | (958 | ) | |||||||
Amortization of prior service costs | 98 | 112 | 49 | 56 | |||||||||||
Recognized net actuarial loss | 1,138 | 968 | 569 | 484 | |||||||||||
Settlement and curtailment loss | 20 | 10 | 3 | ||||||||||||
Net periodic benefit cost | $1,726 | $1,498 | $853 | $747 | |||||||||||
Net periodic benefit cost included in Earnings from operations | $1,544 | $1,248 | $753 | $593 |
Six months ended June 30 | Three months ended June 30 | ||||||||||||||
Other Postretirement Benefit Plans | 2013 | 2012 | 2013 | 2012 | |||||||||||
Service cost | $74 | $72 | $37 | $36 | |||||||||||
Interest cost | 133 | 158 | 66 | 79 | |||||||||||
Expected return on plan assets | (4 | ) | (4 | ) | (2 | ) | (2 | ) | |||||||
Amortization of prior service costs | (90 | ) | (98 | ) | (45 | ) | (49 | ) | |||||||
Recognized net actuarial loss | 48 | 60 | 24 | 30 | |||||||||||
Settlement and curtailment gain | (2 | ) | |||||||||||||
Net periodic benefit cost | $161 | $186 | $80 | $94 | |||||||||||
Net periodic benefit cost included in Earnings from operations | $179 | $282 | $88 | $133 |
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 January 1, 2013 | $214 | ($8 | ) | $86 | ($17,708 | ) | ($17,416 | ) | |||||||||||
OCI before reclassifications | (88 | ) | (89 | ) | 33 | (144 | ) | ||||||||||||
Amounts reclassified from AOCI | (3 | ) | 769 | (2) | 766 | ||||||||||||||
Net current period OCI | (88 | ) | (92 | ) | 802 | 622 | |||||||||||||
Balance June 30, 2013 | $126 | ($8 | ) | ($6 | ) | ($16,906 | ) | ($16,794 | ) |
Balance March 31, 2013 | $191 | ($8 | ) | $62 | ($17,286 | ) | ($17,041 | ) | |||||||||||
OCI before reclassifications | (65 | ) | (63 | ) | 1 | (127 | ) | ||||||||||||
Amounts reclassified from AOCI | (5 | ) | 379 | (2) | 374 | ||||||||||||||
Net current period OCI | (65 | ) | (68 | ) | 380 | 247 | |||||||||||||
Balance June 30, 2013 | $126 | ($8 | ) | ($6 | ) | ($16,906 | ) | ($16,794 | ) |
(1) | Net of tax. |
(2) | Primarily relates to amortization of actuarial gains/losses for the six and three months ended June 30, 2013 totaling $755 and $377 (net of tax of $431 and $216) which is included in the net periodic pension cost of which a portion is allocated to production as inventoried costs. |
Notional amounts (1) | Other assets | Accrued liabilities | ||||||||||||||||
June 30 2013 | December 31 2012 | June 30 2013 | December 31 2012 | June 30 2013 | December 31 2012 | |||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||||
Foreign exchange contracts | $2,388 | $2,310 | $111 | $202 | ($65 | ) | ($16 | ) | ||||||||||
Interest rate contracts | 313 | 388 | 17 | 26 | ||||||||||||||
Commodity contracts | 92 | 99 | (57 | ) | (71 | ) | ||||||||||||
Derivatives not receiving hedge accounting treatment: | ||||||||||||||||||
Foreign exchange contracts | 323 | 412 | 18 | 3 | (36 | ) | (42 | ) | ||||||||||
Commodity contracts | 15 | 15 | (7 | ) | (8 | ) | ||||||||||||
Total derivatives | 3,131 | 3,224 | 146 | 231 | (165 | ) | (137 | ) | ||||||||||
Netting arrangements | (53 | ) | (53 | ) | 53 | 53 | ||||||||||||
Net recorded balance | $93 | $178 | ($112 | ) | ($84 | ) |
(1) | Notional amounts represent the gross contract/notional amount of the derivatives outstanding. |
Six months ended June 30 | Three months ended June 30 | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Effective portion recognized in Other comprehensive income/(loss), net of taxes: | |||||||||||||||
Foreign exchange contracts | ($87 | ) | ($1 | ) | ($61 | ) | ($33 | ) | |||||||
Commodity contracts | (2 | ) | (11 | ) | (2 | ) | 3 | ||||||||
Effective portion reclassified out of Accumulated other comprehensive loss into earnings, net of taxes: | |||||||||||||||
Foreign exchange contracts | 14 | 10 | 11 | 3 | |||||||||||
Commodity contracts | (11 | ) | (18 | ) | (6 | ) | (11 | ) | |||||||
Forward points recognized in Other income/(expense), net: | |||||||||||||||
Foreign exchange contracts | 22 | 12 | 14 | 16 | |||||||||||
Undesignated derivatives recognized in Other income/(expense), net: | |||||||||||||||
Foreign exchange contracts | 14 | (10 | ) | 15 | (14 | ) |
June 30, 2013 | December 31, 2012 | ||||||||||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||
Money market funds | $3,411 | $3,411 | $4,534 | $4,534 | |||||||||||||||||||||||||||
Available-for-sale investments | 7 | 5 | $2 | 9 | 6 | $3 | |||||||||||||||||||||||||
Derivatives | 93 | $93 | 178 | $178 | |||||||||||||||||||||||||||
Total assets | $3,511 | $3,416 | $93 | $2 | $4,721 | $4,540 | $178 | $3 | |||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||
Derivatives | ($112 | ) | ($112 | ) | ($84 | ) | ($84 | ) | |||||||||||||||||||||||
Total liabilities | ($112 | ) | ($112 | ) | ($84 | ) | ($84 | ) |
2013 | 2012 | ||||||||||||||
Fair Value | Total Losses | Fair Value | Total Losses | ||||||||||||
Operating lease equipment | $28 | ($21 | ) | $25 | ($31 | ) | |||||||||
Property, plant and equipment | 6 | (5 | ) | 18 | (5 | ) | |||||||||
Total | $34 | ($26 | ) | $43 | ($36 | ) |
Fair Value | Valuation Technique(s) | Unobservable Input | Range Median or Average | ||||
Operating lease equipment | $28 | Market approach | Aircraft value publications | $18 - $34(1) Median $30 | |||
Aircraft condition adjustments | ($7) - $5(2) Net ($2) |
(1) | The range represents the sum of the highest and lowest values for all aircraft subject to fair value measurement, according to the third party aircraft valuation publications that we use in our valuation process. |
(2) | The negative amount represents the sum for all aircraft subject to fair value measurement, of all downward adjustments based on consideration of individual aircraft attributes and condition. The positive amount represents the sum of all such upward adjustments. |
June 30, 2013 | |||||||||||||
Carrying Amount | Total Fair Value | Level 1 | Level 2 | Level 3 | |||||||||
Assets | |||||||||||||
Accounts receivable, net | $6,406 | $6,383 | $6,383 | ||||||||||
Notes receivable, net | 592 | 645 | 645 | ||||||||||
Liabilities | |||||||||||||
Debt, excluding capital lease obligations | (9,436 | ) | (10,946 | ) | (10,899 | ) | ($47 | ) |
December 31, 2012 | |||||||||||||
Carrying Amount | Total Fair Value | Level 1 | Level 2 | Level 3 | |||||||||
Assets | |||||||||||||
Accounts receivable, net | $5,608 | $5,642 | $5,642 | ||||||||||
Notes receivable, net | 571 | 632 | 632 | ||||||||||
Liabilities | |||||||||||||
Debt, excluding capital lease obligations | (10,231 | ) | (12,269 | ) | (12,221 | ) | ($48 | ) |
Six months ended June 30 | Three months ended June 30 | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Commercial Airplanes | $563 | $344 | $368 | $216 | |||||||||||
Boeing Capital | 17 | 27 | 8 | 15 | |||||||||||
Total | $580 | $371 | $376 | $231 |
Six months ended June 30 | Three months ended June 30 | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Share-based plans | ($53 | ) | ($41 | ) | ($22 | ) | ($19 | ) | |||||||
Deferred compensation | (102 | ) | (34 | ) | (46 | ) | 2 | ||||||||
Capitalized interest | (34 | ) | (37 | ) | (17 | ) | (16 | ) | |||||||
Eliminations and other | (158 | ) | (39 | ) | (92 | ) | (114 | ) | |||||||
Sub-total | (347 | ) | (151 | ) | (177 | ) | (147 | ) | |||||||
Pension | (689 | ) | (404 | ) | (331 | ) | (215 | ) | |||||||
Postretirement | 38 | (49 | ) | 19 | (30 | ) | |||||||||
Pension and Postretirement | (651 | ) | (453 | ) | (312 | ) | (245 | ) | |||||||
Total | ($998 | ) | ($604 | ) | ($489 | ) | ($392 | ) |
June 30 2013 | December 31 2012 | ||||||
Commercial Airplanes | $45,593 | $41,769 | |||||
Defense, Space & Security: | |||||||
Boeing Military Aircraft | 6,363 | 6,582 | |||||
Network & Space Systems | 6,512 | 6,669 | |||||
Global Services & Support | 3,898 | 3,692 | |||||
Total Defense, Space & Security | 16,773 | 16,943 | |||||
Boeing Capital | 4,173 | 4,347 | |||||
Other segment | 1,116 | 1,043 | |||||
Unallocated items and eliminations | 24,436 | 24,794 | |||||
Total | $92,091 | $88,896 |
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 are used to 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 our current expectations and assumptions, which may not prove to be accurate. These statements are not guarantees and are subject to risks, uncertainties and changes in circumstances that are difficult to predict. Many factors could cause actual results to differ materially and adversely from these forward-looking statements. Among these factors are risks related to: | |
(1) | general conditions in the economy and our industry, including those due to regulatory changes; |
(2) | our reliance on our commercial airline customers; |
(3) | the overall health of our aircraft production system, planned production rate increases across multiple commercial airline programs, our commercial development and derivative aircraft programs, and our aircraft being subject to stringent performance and reliability standards; |
(4) | changing acquisition priorities of the U.S. government; |
(5) | our dependence on U.S. government contracts; |
(6) | our reliance on fixed-price contracts; |
(7) | our reliance on cost-type contracts; |
(8) | uncertainties concerning contracts that include in-orbit incentive payments; |
(9) | our dependence on our subcontractors and suppliers as well as the availability of raw materials; |
(10) | changes in accounting estimates; |
(11) | changes in the competitive landscape in our markets; |
(12) | our non-U.S. operations, including sales to non-U.S. customers; |
(13) | potential adverse developments in new or pending litigation and/or government investigations; |
(14) | customer and aircraft concentration in Boeing Capital’s customer financing portfolio; |
(15) | changes in our ability to obtain debt on commercially reasonable terms and at competitive rates in order to fund our operations and contractual commitments; |
(16) | realizing the anticipated benefits of mergers, acquisitions, joint ventures, strategic alliances or divestitures; |
(17) | the adequacy of our insurance coverage to cover significant risk exposures; |
(18) | potential business disruptions, including those related to physical security threats, information technology or cyber attacks or natural disasters; |
(19) | work stoppages or other labor disruptions; |
(20) | significant changes in discount rates and actual investment return on pension assets; |
(21) | potential environmental liabilities; and |
(22) | threats to the security of our or our customers’ information. |
Additional information concerning these and other factors can be found in our filings with the Securities and Exchange Commission, including the “Risk Factors” on pages 6 through 15 of our most recent Annual Report on Form 10-K, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and Notes 9, 10, and 17 to our Condensed Consolidated Financial Statements included in this Quarterly Report 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 | |||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Revenues | $40,708 | $39,388 | $21,815 | $20,005 | |||||||||||
GAAP | |||||||||||||||
Earnings from operations | $3,244 | $3,107 | $1,716 | $1,542 | |||||||||||
Operating margins | 8.0 | % | 7.9 | % | 7.9 | % | 7.7 | % | |||||||
Effective income tax rate | 28.6 | % | 35.0 | % | 33.4 | % | 33.1 | % | |||||||
Net earnings from continuing operations | $2,193 | $1,891 | $1,087 | $967 | |||||||||||
Diluted earnings per share | $2.85 | $2.49 | $1.41 | $1.27 | |||||||||||
Non-GAAP (1) | |||||||||||||||
Core operating earnings | $3,895 | $3,560 | $2,028 | $1,787 | |||||||||||
Core operating margin | 9.6 | % | 9.0 | % | 9.3 | % | 8.9 | % | |||||||
Core earnings per share | $3.40 | $2.88 | $1.67 | $1.48 |
(1) | These measures exclude certain components of pension and postretirement benefit expense. See pages 46 - 47 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 | |||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Commercial Airplanes | $24,314 | $22,780 | $13,624 | $11,843 | |||||||||||
Defense, Space & Security | 16,296 | 16,425 | 8,186 | 8,192 | |||||||||||
Boeing Capital | 209 | 238 | 104 | 113 | |||||||||||
Other segment | 54 | 52 | 27 | 28 | |||||||||||
Unallocated items and eliminations | (165 | ) | (107 | ) | (126 | ) | (171 | ) | |||||||
Total | $40,708 | $39,388 | $21,815 | $20,005 |
(Dollars in millions) | Six months ended June 30 | Three months ended June 30 | |||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Commercial Airplanes | $2,672 | $2,292 | $1,453 | $1,211 | |||||||||||
Defense, Space & Security | 1,608 | 1,490 | 776 | 748 | |||||||||||
Boeing Capital | 63 | 72 | 19 | 39 | |||||||||||
Other segment | (101 | ) | (143 | ) | (43 | ) | (64 | ) | |||||||
Unallocated pension/postretirement expense | (651 | ) | (453 | ) | (312 | ) | (245 | ) | |||||||
Other unallocated items and eliminations | (347 | ) | (151 | ) | (177 | ) | (147 | ) | |||||||
Earnings from operations (GAAP) | $3,244 | $3,107 | $1,716 | $1,542 | |||||||||||
Unallocated pension/postretirement expense | 651 | 453 | 312 | 245 | |||||||||||
Core operating earnings (Non-GAAP) | $3,895 | $3,560 | $2,028 | $1,787 |
(Dollars in millions) | Six months ended June 30 | Three months ended June 30 | |||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Commercial Airplanes | $865 | $1,104 | $446 | $560 | |||||||||||
Defense, Space & Security | 579 | 562 | 307 | 281 | |||||||||||
Other | 24 | 26 | 10 | 16 | |||||||||||
Research and development expense, net | $1,468 | $1,692 | $763 | $857 |
(Dollars in millions) | Six months ended June 30 | Three months ended June 30 | |||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Share-based plans | ($53 | ) | ($41 | ) | ($22 | ) | ($19 | ) | |||||||
Deferred compensation | (102 | ) | (34 | ) | (46 | ) | 2 | ||||||||
Eliminations and other | (192 | ) | (76 | ) | (109 | ) | (130 | ) | |||||||
Sub-total (included in core operating earnings*) | (347 | ) | (151 | ) | (177 | ) | (147 | ) | |||||||
Pension | (689 | ) | (404 | ) | (331 | ) | (215 | ) | |||||||
Postretirement | 38 | (49 | ) | 19 | (30 | ) | |||||||||
Pension and Postretirement (excluded from core operating earnings*) | (651 | ) | (453 | ) | (312 | ) | (245 | ) | |||||||
Total | ($998 | ) | ($604 | ) | ($489 | ) | ($392 | ) |
(Dollars in millions) | Six months ended June 30 | Three months ended June 30 | |||||||||||||
Pension Plans | 2013 | 2012 | 2013 | 2012 | |||||||||||
Allocated to business segments | ($855 | ) | ($844 | ) | ($422 | ) | ($378 | ) | |||||||
Other unallocated items and eliminations | (689 | ) | (404 | ) | (331 | ) | (215 | ) | |||||||
Total | ($1,544 | ) | ($1,248 | ) | ($753 | ) | ($593 | ) |
(Dollars in millions) | Six months ended June 30 | Three months ended June 30 | |||||||||||||
Other Postretirement Plans | 2013 | 2012 | 2013 | 2012 | |||||||||||
Allocated to business segments | ($217 | ) | ($233 | ) | ($107 | ) | ($103 | ) | |||||||
Other unallocated items and eliminations | 38 | (49 | ) | 19 | (30 | ) | |||||||||
Total | ($179 | ) | ($282 | ) | ($88 | ) | ($133 | ) |
(Dollars in millions) | Six months ended June 30 | Three months ended June 30 | |||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Earnings from operations | $3,244 | $3,107 | $1,716 | $1,542 | |||||||||||
Other income, net | 22 | 22 | 13 | 10 | |||||||||||
Interest and debt expense | (195 | ) | (220 | ) | (96 | ) | (106 | ) | |||||||
Earnings before income taxes | 3,071 | 2,909 | 1,633 | 1,446 | |||||||||||
Income tax expense | (878 | ) | (1,018 | ) | (546 | ) | (479 | ) | |||||||
Net earnings from continuing operations | $2,193 | $1,891 | $1,087 | $967 |
(Dollars in millions) | June 30 2013 | December 31 2012 | |||||
Total contractual backlog | $389,231 | $372,355 | |||||
Unobligated backlog | 21,116 | 17,873 |
(Dollars in millions) | Six months ended June 30 | Three months ended June 30 | |||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Revenues | $24,314 | $22,780 | $13,624 | $11,843 | |||||||||||
Earnings from operations | $2,672 | $2,292 | $1,453 | $1,211 | |||||||||||
Operating margins | 11.0 | % | 10.1 | % | 10.7 | % | 10.2 | % |
(Dollars in millions) | June 30 2013 | December 31 2012 | |||||
Contractual backlog | $337,691 | $317,287 | |||||
Unobligated backlog | 1,187 | 1,466 |
737 | 747 | 767 | 777 | 787 | Total | ||||||||||||
Deliveries during the first six months of 2013 | 218 | 12 | 12 | 47 | 17 | (1) | 306 | ||||||||||
Deliveries during the first six months of 2012 | 208 | 13 | 13 | 42 | 11 | 287 | |||||||||||
Deliveries during the second quarter of 2013 | 116 | 6 | 8 | 23 | 16 | (1) | 169 | ||||||||||
Deliveries during the second quarter of 2012 | 109 | 7 | 6 | 22 | 6 | 150 | |||||||||||
Cumulative deliveries as of 6/30/2013 | 4,511 | 1,470 | 1,052 | 1,113 | 66 | ||||||||||||
Cumulative deliveries as of 12/31/2012 | 4,293 | 1,458 | 1,040 | 1,066 | 49 |
(1) | Includes one aircraft accounted for as revenue by BCA and as an operating lease in consolidation. |
Program | ||||||||||||||
As of 6/30/2013 | 737 | 747 | 767 | 777 | 787 | |||||||||
Program accounting quantities | 6,800 | 1,574 | 1,103 | 1,450 | 1,100 | |||||||||
Undelivered units under firm orders | 3,445 | 53 | 56 | 339 | 864 | |||||||||
Cumulative firm orders | 7,956 | 1,523 | 1,108 | 1,452 | 930 |
Program | ||||||||||||||
As of 12/31/2012 | 737 | 747 | 767 | 777 | 787 | |||||||||
Program accounting quantities | 6,600 | 1,574 | 1,103 | 1,450 | 1,100 | |||||||||
Undelivered units under firm orders | 3,074 | 67 | 68 | 365 | 799 | |||||||||
Cumulative firm orders | 7,367 | 1,525 | 1,108 | 1,431 | 848 |
(Dollars in millions) | Six months ended June 30 | Three months ended June 30 | |||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Revenues | $16,296 | $16,425 | $8,186 | $8,192 | |||||||||||
Earnings from operations | $1,608 | $1,490 | $776 | $748 | |||||||||||
Operating margins | 9.9 | % | 9.1 | % | 9.5 | % | 9.1 | % |
(Dollars in millions) | June 30 2013 | December 31 2012 | |||||
Contractual backlog | $51,540 | $55,068 | |||||
Unobligated backlog | 19,929 | 16,407 |
(Dollars in millions) | Six months ended June 30 | Three months ended June 30 | |||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Revenues | $7,998 | $8,272 | $3,889 | $4,050 | |||||||||||
Earnings from operations | $803 | $752 | $373 | $353 | |||||||||||
Operating margins | 10.0 | % | 9.1 | % | 9.6 | % | 8.7 | % |
(Dollars in millions) | June 30 2013 | December 31 2012 | |||||
Contractual backlog | $26,475 | $29,226 | |||||
Unobligated backlog | 12,597 | 9,270 |
Six months ended June 30 | Three months ended June 30 | ||||||
2013 | 2012 | 2013 | 2012 | ||||
F/A-18 Models | 24 | 24 | 12 | 12 | |||
F-15E Eagle | 3 | 8 | 3 | ||||
C-17 Globemaster III | 6 | 5 | 3 | 3 | |||
CH-47 Chinook | 17 | 22 | 8 | 12 | |||
AH-64 Apache | 20 | 3 | 5 | 3 | |||
P-8 Models | 5 | 1 | 3 | ||||
AEW&C | 2 | 2 | |||||
Total new-build production aircraft | 75 | 65 | 31 | 35 |
(Dollars in millions) | Six months ended June 30 | Three months ended June 30 | |||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Revenues | $4,009 | $3,832 | $2,049 | $1,960 | |||||||||||
Earnings from operations | $293 | $245 | $137 | $136 | |||||||||||
Operating margins | 7.3 | % | 6.4 | % | 6.7 | % | 6.9 | % |
(Dollars in millions) | June 30 2013 | December 31 2012 | |||||
Contractual backlog | $10,232 | $10,078 | |||||
Unobligated backlog | 6,557 | 6,937 |
(Dollars in millions) | Six months ended June 30 | Three months ended June 30 | |||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Revenues | $4,289 | $4,321 | $2,248 | $2,182 | |||||||||||
Earnings from operations | $512 | $493 | $266 | $259 | |||||||||||
Operating margins | 11.9 | % | 11.4 | % | 11.8 | % | 11.9 | % |
(Dollars in millions) | June 30 2013 | December 31 2012 | |||||
Contractual backlog | $14,833 | $15,764 | |||||
Unobligated backlog | 775 | 200 |
(Dollars in millions) | Six months ended June 30 | Three months ended June 30 | |||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Revenues | $209 | $238 | $104 | $113 | |||||||||||
Earnings from operations | $63 | $72 | $19 | $39 | |||||||||||
Operating margins | 30 | % | 30 | % | 18 | % | 35 | % |
(Dollars in millions) | June 30 2013 | December 31 2012 | |||||
Customer financing and investment portfolio, net | $4,139 | $4,290 | |||||
Other assets, primarily cash and short-term investments | 282 | 402 | |||||
Total assets | $4,421 | $4,692 | |||||
Other liabilities, primarily deferred income taxes | $1,348 | $1,429 | |||||
Debt, including intercompany loans | 2,560 | 2,742 | |||||
Equity | 513 | 521 | |||||
Total liabilities and equity | $4,421 | $4,692 | |||||
Debt-to-equity ratio | 5.0-to-1 | 5.3-to-1 |
(Dollars in millions) | Six months ended June 30 | Three months ended June 30 | |||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Revenues | $54 | $52 | $27 | $28 | |||||||||||
Loss from operations | (101 | ) | (143 | ) | (43 | ) | (64 | ) |
(Dollars in millions) | Six months ended June 30 | ||||||
2013 | 2012 | ||||||
Net earnings | $2,194 | $1,890 | |||||
Non-cash items | 954 | 1,317 | |||||
Changes in working capital | 843 | (1,462 | ) | ||||
Net cash provided by operating activities | 3,991 | 1,745 | |||||
Net cash used by investing activities | (3,371 | ) | (3,588 | ) | |||
Net cash used by financing activities | (2,230 | ) | (1,897 | ) | |||
Effect of exchange rate changes on cash and cash equivalents | (37 | ) | (4 | ) | |||
Net decrease in cash and cash equivalents | (1,647 | ) | (3,744 | ) | |||
Cash and cash equivalents at beginning of year | 10,341 | 10,049 | |||||
Cash and cash equivalents at end of period | $8,694 | $6,305 |
(Dollars in millions, except per share data) | Six months ended June 30 | Three months ended June 30 | |||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Revenues | $40,708 | $39,388 | $21,815 | $20,005 | |||||||||||
Earnings from operations, as reported | $3,244 | $3,107 | $1,716 | $1,542 | |||||||||||
Operating margins | 8.0 | % | 7.9 | % | 7.9 | % | 7.7 | % | |||||||
Unallocated pension/postretirement expense | $651 | $453 | $312 | $245 | |||||||||||
Core operating earnings (non-GAAP) | $3,895 | $3,560 | $2,028 | $1,787 | |||||||||||
Core operating margins (non-GAAP) | 9.6 | % | 9.0 | % | 9.3 | % | 8.9 | % | |||||||
Diluted earnings per share, as reported | $2.85 | $2.49 | $1.41 | $1.27 | |||||||||||
Unallocated pension/postretirement expense (1) | $0.55 | $0.39 | $0.26 | $0.21 | |||||||||||
Core earnings per share (non-GAAP) | $3.40 | $2.88 | $1.67 | $1.48 | |||||||||||
Weighted average diluted shares (in millions) | 770.1 | 760.7 | 771.8 | 762.0 |
(1) | Earnings per share impact is presented net of the federal statutory rate of 35.0%. |
(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) | ||||||||||
4/1/2013 thru 4/30/2013 | 56,916 | $85.50 | $3,610 | ||||||||||
5/1/2013 thru 5/31/2013 | 6,872,647 | 96.88 | 6,868,263 | 2,945 | |||||||||
6/1/2013 thru 6/30/2013 | 3,358,307 | 99.72 | 3,356,518 | 2,610 | |||||||||
Total | 10,287,870 | $97.74 | 10,224,781 |
(1) | We purchased an aggregate of 10,224,781 shares of our common stock in the open market pursuant to our repurchase program and 62,992 shares transferred to us from employees in satisfaction of minimum tax withholding obligations associated with the vesting of restricted stock units during the period. In addition, we purchased an aggregate of 97 shares in swap transactions. |
(2) | On October 29, 2007, the Board approved the repurchase of up to $7 billion of common stock (the Program). Unless terminated earlier by a Board resolution, the Program will expire when we have used all authorized funds for repurchase. In February 2009, repurchases were suspended and in May 2013 were resumed. |
10 (i) | Notice of Terms of Restricted Stock Units dated February 25, 2013. |
10 (ii) | Supplemental Executive Retirement Plan for Employees of The Boeing Company, as Amended and Restated as of May 1, 2013. |
12 | Computation of Ratio of Earnings to Fixed Charges. |
15 | Letter from Independent Registered Public Accounting Firm regarding unaudited interim financial information. |
31(i) | Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
31(ii) | Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
32(i) | Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
32(ii) | Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
101.INS | XBRL Instance Document. |
101.SCH | XBRL Taxonomy Extension Schema Document. |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document. |
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document. |
101.LAB | XBRL Taxonomy Extension Label Linkbase Document. |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document. |
THE BOEING COMPANY | ||
(Registrant) | ||
July 24, 2013 | /s/ DIANA L. SANDS | |
(Date) | Diana L. Sands Vice President of Finance & Corporate Controller |
(a) | the highest five completed consecutive calendar years of Compensation divided by five, or |
(b) | the daily Compensation received during the last 1,825 days before the Participant’s Termination of Employment, divided by 1,825 and multiplied by 365 or, if a Participant has less than 1,825 days between his or her Employment Commencement Date and his or her |
A. | Special Bridging Rules for Early Retirement Benefits |
1. | The Participant Separated from Service (including deemed Separations from Service) in a manner (such as layoff) that permits the accrual of additional vesting service credit toward early retirement eligibility following such separation. |
2. | The Participant is described in one of the following categories as of his or her Separation from Service: |
(a) | The Participant has attained age 54 or older with 9 or more years of Vesting Service (but has not yet attained both age 55 and 10 years of Vesting Service), or |
(b) | The Participant has a Heritage MDC Benefit and has attained age 54 or older with 29 or more years of Accumulated Benefit Service (but has not yet reached an MDC 50/30 Date). |
1. | The Participant Separated from Service (including deemed Separations from Service) in a manner (such as layoff) that permits the accrual of additional vesting service credit toward early retirement eligibility following such separation. |
2. | The Participant has a Heritage MDC Benefit and has attained age 49 or older (but not age 54) with 29 or more years of Accumulated Benefit Service as of his or her Separation from Service (but has not yet reached an MDC 50/30 Date). |
1. | The Participant is convicted of a felony involving theft, fraud, embezzlement, or other similar unlawful acts against the Company or against the Company’s interests. For purposes of this Plan, “other similar unlawful acts against the Company or against the Company’s interests” shall include any other unlawful act (i) committed against the Company, or the interests of the Company, including, but not limited to, a governmental agency or instrumentality which conducts business with the Company, or a customer of the Company, or (ii) affecting the Company or the interests of the |
2. | The Participant, directly or indirectly, engages in any activity, whether individually or as an employee, consultant or otherwise, which the Committee determines, in its sole discretion, to be an activity in which the Participant is “engaging in competition” with any significant aspect of Company business. For purposes of this Plan, “engaging in competition” shall include but is not limited to representing, providing services to, or being an employee of or associated in a business capacity, any person or entity that is engaged, directly or indirectly, in competition with any Company business or that takes a position adverse to any Company business, regardless of the position or duties the Participant takes, in such a manner that is determined to be detrimental to, prejudicial to or in conflict with the interests of the Company, all as determined by the Committee in its sole discretion. |
3. | The Participant, without the advance approval of the Company’s Senior Vice President, Human Resources and Administration, induces or attempts to induce, directly or indirectly, any of the Company’s employees, representatives or consultants to terminate, discontinue or cease working with or for the Company, or to breach any contract with the Company, in order to work with or for, or enter into a contract with, the Participant or any third party. |
4. | The Participant disparages or otherwise makes any statements about the Company, its products, or its employees that could be in any way viewed as negative or critical. Nothing in this paragraph will apply to legally protected statements to government agencies or statements made in the course of sworn testimony in administrative, judicial, or arbitral proceedings. |
(b) | Returns from Leave, Reduced Services or Layoff After 1/1/08– Supplemental and Excess Benefit |
(i) | The total Supplemental Benefit (if eligible). For purposes of calculating the Participant’s total Supplemental Benefit as of his or her subsequent Commencement Date, the total Target Benefit will equal the amount determined under Section 4.B. (taking account of Benefit Service and Total Average Compensation accrued before and after rehire), reduced for early commencement by the applicable reduction factors described in Section 4.C. The total Target Benefit will be reduced by the total Offset Benefit (accrued before and after rehire), which offset represents the PVP benefit as if no prior Separation had occurred. |
(ii) | The total Excess Benefit, calculated as if no prior Separation from Service had occurred and reduced for early retirement as applicable. |
(a) | The Supplemental Benefit accrued and vested before the prior Separation from Service (or as of the end of an Authorized Period of Absence or a period of a reduced level of services that constitutes a deemed Separation from Service), calculated as described further below. |
(b) | The Excess Benefit accrued and vested as to the first period of employment, reduced for early retirement as applicable, in accordance with the applicable Vested Termination factors under the PVP. |
(1) | The greater of the following: |
(2) | The Offset Benefit – a monthly amount equal to the benefits payable to or on account of the Participant under the PVP, adjusted to reflect payment at the Participant’s Commencement Date as a Single Life Annuity according to the provisions of the PVP. |
(a) | For Heritage Boeing Participants, the portion of Final Average Monthly Total Earnings as defined in the Supplemental Retirement Plan for Executives of The Boeing Company, determined by reference to Final Average Monthly Earnings as defined in The Boeing Company Employee Retirement Plan, multiplied by twelve; |
(b) | For Heritage MDC Participants, the portion of Average Monthly Salary as defined in the Employee Retirement Income Plan of McDonnell Douglas Corporation, Salaried Plan determined without inclusion of any payments of incentive compensation awards and without regard to any compensation limits under the Code, multiplied by twelve. |
(a) | For Heritage Boeing Participants, the portion of Final Average Monthly Total Earnings as defined in the Supplemental Retirement Plan for Executives of The Boeing Company, determined by reference to awards under the Incentive Compensation Plan, multiplied by twelve; |
(b) | For Heritage MDC Participants, the portion of Average Monthly Salary as defined in the Employee Retirement Income Plan of McDonnell Douglas Corporation, Salaried Plan determined by reference to incentive compensation awards of such Participants, multiplied by twelve. |
3. | Frozen Benefit |
C. | Adjustments for Commencement Dates other than the Normal Retirement Date |
(a) | General Rule |
(A) | The Participant’s attainment of age 55. |
(B) | The Participant’s Separation from Service. |
(b) | Participants Working Past Age 70½ |
(c) | Specified Employees |
2. | Death After Commencement of Benefits |
D. | Involuntary Inclusion in Income |
1. | RSU Award. You have been awarded ______ Restricted Stock Units. Each Restricted Stock Unit (RSU) has the potential to become one share of Boeing stock. Your RSUs are awarded pursuant to “The Boeing Company 2003 Incentive Stock Plan for Employees” (the “Plan”) and the award is subject to the terms of the Plan. A summary of the Plan accompanies this notice. |
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. ___________ of the RSUs along with the related Earnings Credit RSUs (as defined in paragraph 5.1) ______. The remainder of the RSUs along with the related earnings credit RSUs will vest on ______. You must be employed by the Company or one of its subsidiaries on the vesting date, in order for the RSUs to vest. Notwithstanding the foregoing, if your employment with the Company terminates before a vesting date because of involuntary layoff, disability, or death, all of the RSUs will vest. |
4. | Stock Issuance at Vesting. At the time your RSUs vest, the Company will issue to you shares of Boeing stock equal in number to the vested number of whole RSUs in your account, after deduction of shares to cover appropriate taxes and other charges as described in paragraph 9.2. |
6. | 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 Boeing stock resulting from any stock split, combination or exchange of shares, consolidation, spin-off or recapitalization of shares, or any similar capital adjustment or the payment of any stock dividend. |
7. | Termination due to Layoff, Disability, or Death. In the event your employment is terminated by reason of involuntary layoff, disability, or death, your RSU payout, including any Earnings Credit RSUs, will vest after termination of employment. Payment for such awards will be made as soon as administratively possible, but not later than 60 days after your termination of employment. |
8. | Forfeiture of Non-Vested RSUs. If your employment with the Company or a subsidiary of the Company terminates before a vesting date for the award for any reason other than involuntary layoff, disability (as defined in paragraph 3), or death, your nonvested RSUs will be forfeited and canceled. Earnings Credit RSUs will be forfeited and canceled along with the RSUs with which they are associated. |
Six months ended June 30, 2013 | Years ended December 31, | |||||||||||||||||
2012 | 2011 | 2010 | 2009 | 2008 | ||||||||||||||
Earnings before income taxes | $3,071 | $5,910 | $5,393 | $4,507 | $1,731 | $3,995 | ||||||||||||
Fixed charges excluding capitalized interest | 260 | 603 | 677 | 726 | 564 | 492 | ||||||||||||
Amortization of previously capitalized interest | 37 | 75 | 64 | 60 | 61 | 50 | ||||||||||||
Net adjustment for earnings from affiliates | 16 | 69 | (38 | ) | (11 | ) | (10 | ) | (10 | ) | ||||||||
Earnings available for fixed charges | $3,384 | $6,657 | $6,096 | $5,282 | $2,346 | $4,527 | ||||||||||||
Fixed charges: | ||||||||||||||||||
Interest and debt expense(1) | $232 | $551 | $626 | $676 | $514 | $425 | ||||||||||||
Interest capitalized during the period | 42 | 74 | 57 | 48 | 90 | 99 | ||||||||||||
Rentals deemed representative of an interest factor | 28 | 52 | 51 | 50 | 50 | 67 | ||||||||||||
Total fixed charges | $302 | $677 | $734 | $774 | $654 | $591 | ||||||||||||
Ratio of earnings to fixed charges | 11.2 | 9.8 | 8.3 | 6.8 | 3.6 | 7.7 |
(1) | Amount does not include tax-related interest expense which is reported as a component of Income tax expense in our Condensed Consolidated Statements of Operations. |
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/ W. JAMES MCNERNEY, JR. | |
W. James McNerney, Jr. Chairman, President and Chief Executive Officer |
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 | |
Gregory D. Smith Executive Vice President and Chief Financial Officer |
(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/ W. JAMES MCNERNEY, JR. | |
W. James McNerney, Jr. Chairman, President and Chief Executive Officer |
(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 | |
Gregory D. Smith Executive Vice President and Chief Financial Officer |
Segment Information Segment Information (Narrative) (Details) (USD $)
In Millions, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
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Jun. 30, 2013
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Jun. 30, 2012
|
Jun. 30, 2013
|
Jun. 30, 2012
|
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Segment Reporting Information [Line Items] | ||||
Earnings from operations | $ (1,716) | $ (1,542) | $ (3,244) | $ (3,107) |
Other Segment [Member]
|
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Segment Reporting Information [Line Items] | ||||
Earnings from operations | 43 | 64 | 101 | 143 |
Other Segment [Member] | Boeing Capital [Member]
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Segment Reporting Information [Line Items] | ||||
Earnings from operations | $ 18 | $ 24 | $ 30 | $ 62 |
Customer Financing
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6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Customer Financing [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Customer Financing Footnote [Text Block] | Customer Financing Customer financing primarily relates to the BCC segment and consisted of the following:
We determine a receivable is impaired 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. At June 30, 2013 and December 31, 2012, we individually evaluated for impairment customer financing receivables of $563 and $616 and determined that $420 and $446 were impaired. We recorded no allowance for losses on these impaired receivables as the collateral values exceed the carrying values of the receivables. The adequacy of the allowance for losses is assessed quarterly. Three primary factors influencing the level of our allowance for losses on customer financing receivables are customer credit ratings, default rates and collateral values. We assign internal credit ratings for all customers and determine the creditworthiness of each customer based upon publicly available information and information obtained directly from our customers. Our rating categories are comparable to those used by the major credit rating agencies. Our financing receivable balances by internal credit rating category are shown below.
At June 30, 2013, our allowance primarily related to receivables with ratings of CCC and we applied default rates that averaged 46% to the exposure associated with those receivables. In the fourth quarter of 2011, American Airlines Inc. (American Airlines) filed for Chapter 11 bankruptcy protection. We believe that our customer financing receivables from American Airlines of $463 are sufficiently collateralized such that we do not expect to incur losses related to those receivables and have not recorded an allowance for losses as of June 30, 2013 as a result of the bankruptcy. Customer Financing Exposure Customer financing is collateralized by security in the related asset. The value of the collateral is closely tied to commercial airline performance and overall market conditions and may be subject to reduced valuation with market decline. Declines in collateral values are also a significant driver of our allowance for losses. Generally, out-of-production aircraft have experienced greater collateral value declines than in-production aircraft. Our customer financing portfolio is primarily collateralized by out-of-production aircraft. The majority of customer financing carrying values are concentrated in the following aircraft models:
|
Customer Financing (Narrative) (Details) (USD $)
In Millions, unless otherwise specified |
Jun. 30, 2013
|
Dec. 31, 2012
|
---|---|---|
Customer Financing [Line Items] | ||
Financing receivables individually evaluated for impairment | $ 563 | $ 616 |
Impaired financing receivables | 420 | 446 |
American Airlines [Member]
|
||
Customer Financing [Line Items] | ||
Financing receivables individually evaluated for impairment | $ 463 | |
Internally Assigned Grade [Member] | CCC Credit Rating [Member]
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||
Customer Financing [Line Items] | ||
Percentage of Credit Default Rates Applied to Customers | 46.00% |
Condensed Consolidated Statements Of Equity (Parenthetical) (USD $)
In Millions, except Per Share data, unless otherwise specified |
6 Months Ended | |
---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
|
Statement of Stockholders' Equity [Abstract] | ||
Other comprehensive income (loss), tax | $ 403 | $ 400 |
Common stock, dividends, per share, declared | $ 0.97 | $ 0.88 |
Share-Based Compensation And Other Compensation Arrangements
|
6 Months Ended |
---|---|
Jun. 30, 2013
|
|
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation And Other Compensation Arrangements | Share-Based Compensation and Other Compensation Arrangements Stock Options On February 25, 2013, we granted to our executives 6,591,968 options with an exercise price equal to the fair market value of our stock on the date of grant and which expire 10 years after the date of grant. The stock options vest over a period of three years, with 34% vesting after the first year, 33% vesting after the second year and the remaining 33% vesting after the third year. The grant-date fair value of each stock option was $15.85. Restricted Stock Units On February 25, 2013, we granted to our executives 1,375,414 restricted stock units (RSUs) as part of our long-term incentive program with a grant date fair value of $75.97 per share. The RSUs granted under this program will vest and settle in common stock (on a one-for-one basis) on the third anniversary of the grant date. Performance Awards On February 25, 2013, we granted to our executives Performance Awards with the payout based on the achievement of financial goals for the three-year period ending December 31, 2015. The minimum payout amount is $0 and the maximum payout is $278. |
Postretirement Plans (Components of Net Periodic Benefit Cost) (Details) (USD $)
In Millions, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
|
Jun. 30, 2012
|
|
Pension Plans, Defined Benefit [Member]
|
||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 473 | $ 411 | $ 946 | $ 822 |
Interest cost | 731 | 751 | 1,462 | 1,502 |
Expected return on plan assets | (969) | (958) | (1,938) | (1,916) |
Amortization of prior service costs | 49 | 56 | 98 | 112 |
Recognized net actuarial loss | 569 | 484 | 1,138 | 968 |
Settlement and curtailment loss/(gain) | 3 | 20 | 10 | |
Net periodic benefit cost | 853 | 747 | 1,726 | 1,498 |
Net periodic benefit cost included in Earnings from operations | 753 | 593 | 1,544 | 1,248 |
Other Postretirement Benefit Plans, Defined Benefit [Member]
|
||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 37 | 36 | 74 | 72 |
Interest cost | 66 | 79 | 133 | 158 |
Expected return on plan assets | (2) | (2) | (4) | (4) |
Amortization of prior service costs | (45) | (49) | (90) | (98) |
Recognized net actuarial loss | 24 | 30 | 48 | 60 |
Settlement and curtailment loss/(gain) | (2) | |||
Net periodic benefit cost | 80 | 94 | 161 | 186 |
Net periodic benefit cost included in Earnings from operations | $ 88 | $ 133 | $ 179 | $ 282 |
Investments
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Investments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment | Investments Our investments, which are recorded in Short-term and other investments or Investments, consisted of the following:
|
Earnings Per Share (Schedule Of Weighted Average Number Of Shares Outstanding Excluded From The Computation Of Diluted Earnings Per Share) (Details)
In Millions, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
|
Jun. 30, 2012
|
|
Stock Options [Member]
|
||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Shares excluded from the computation of diluted earnings | 25.6 | 9.6 | 22.1 | |
Performance Awards [Member]
|
||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Shares excluded from the computation of diluted earnings | 4.5 | 4.5 | 5.2 | 4.5 |
Schedule Of Unallocated Items and Eliminations (Details) (USD $)
In Millions, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
|
Jun. 30, 2012
|
|
Segment Reporting Information [Line Items] | ||||
Share-based plans | $ (107) | $ (99) | ||
Earnings from operations | 1,716 | 1,542 | 3,244 | 3,107 |
Pension Plans, Defined Benefit [Member]
|
||||
Segment Reporting Information [Line Items] | ||||
Pension and Other Postretirement Benefit Expense | (753) | (593) | (1,544) | (1,248) |
Other Postretirement Benefit Plans, Defined Benefit [Member]
|
||||
Segment Reporting Information [Line Items] | ||||
Pension and Other Postretirement Benefit Expense | (88) | (133) | (179) | (282) |
Unallocated Items And Eliminations [Member]
|
||||
Segment Reporting Information [Line Items] | ||||
Share-based plans | (22) | (19) | (53) | (41) |
Deferred compensation | (46) | 2 | (102) | (34) |
Capitalized interest | (17) | (16) | (34) | (37) |
Eliminations and other | (92) | (114) | (158) | (39) |
Operating Income (Loss) Before Pension Adjustments | (177) | (147) | (347) | (151) |
Pension and Other Postretirement Benefit Expense | (312) | (245) | (651) | (453) |
Earnings from operations | (489) | (392) | (998) | (604) |
Unallocated Items And Eliminations [Member] | Pension Plans, Defined Benefit [Member]
|
||||
Segment Reporting Information [Line Items] | ||||
Pension and Other Postretirement Benefit Expense | (331) | (215) | (689) | (404) |
Unallocated Items And Eliminations [Member] | Other Postretirement Benefit Plans, Defined Benefit [Member]
|
||||
Segment Reporting Information [Line Items] | ||||
Pension and Other Postretirement Benefit Expense | $ 19 | $ (30) | $ 38 | $ (49) |
Investments (Schedule Of Investments) (Details) (USD $)
In Millions, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
|
Jun. 30, 2012
|
Dec. 31, 2012
|
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Investments [Abstract] | ||||||||||||||
Time deposits | $ 5,560 | $ 5,560 | $ 3,135 | |||||||||||
Pledged money market funds | 46 | [1] | 46 | [1] | 56 | [1] | ||||||||
Available-for-sale investments | 7 | 7 | 9 | |||||||||||
Equity method investments | 1,126 | [2] | 1,126 | [2] | 1,137 | [2] | ||||||||
Restricted cash | 24 | [3] | 24 | [3] | 25 | [3] | ||||||||
Other investments | 34 | 34 | 35 | |||||||||||
Total | 6,797 | 6,797 | 4,397 | |||||||||||
Proceeds from Equity Method Investment, Dividends or Distributions | $ 53 | $ 68 | $ 103 | $ 121 | ||||||||||
|
Arrangements With Off-Balance Sheet Risk (Tables)
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6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Guarantees [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Arrangements With Off-Balance Sheet Risk | 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. Estimated proceeds from collateral and recourse represent the anticipated values of assets we could liquidate or receive from other parties to offset our payments under guarantees. The carrying amount of liabilities represents the amount included in Accrued liabilities.
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Fair Value Measurements
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6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures | Fair Value Measurements 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. 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.
Money market funds and available-for-sale equity securities are valued using a market approach based on the quoted market prices of identical instruments. Available-for-sale debt investments are primarily valued using an income approach based on benchmark yields, reported trades and broker/dealer quotes. Derivatives include foreign currency, commodity and interest rate contracts. Our foreign currency forward contracts are valued using an income approach based on the present value of the forward rate less the contract rate multiplied by the notional amount. Commodity derivatives are valued using an income approach based on the present value of the commodity index prices less the contract rate multiplied by the notional amount. The fair value of our interest rate swaps is derived from a discounted cash flow analysis based on the terms of the contract and the interest rate curve. Certain assets have been measured at fair value on a nonrecurring basis using significant unobservable inputs (Level 3). The following table presents the nonrecurring losses recognized for the six months ended June 30 and the fair value and asset classification of the related assets as of the impairment date:
The fair value of the impaired equipment under operating lease is derived by calculating a median collateral value from a consistent group of third party aircraft value publications. The values provided by the third party aircraft publications are derived from their knowledge of market trades and other market factors. 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. Property, plant and equipment was primarily valued using an income approach based on the discounted cash flows associated with the underlying assets. For Level 3 assets that were measured at fair value on a nonrecurring basis during the six months ended June 30, 2013, the following table presents the fair value of those assets as of the measurement date, valuation techniques and related unobservable inputs of those assets.
Fair Value Disclosures The fair values and related carrying values of financial instruments that are not required to be remeasured at fair value on the Condensed Consolidated Statements of Financial Position were as follows:
The fair value of Accounts receivable is based on current market rates for loans of the same risk and maturities. The fair values of our variable rate notes receivable that reprice frequently approximate their carrying amounts. The fair values of fixed rate notes receivable are estimated with discounted cash flow analysis using interest rates currently offered on loans with similar terms to borrowers of similar credit quality. The fair value of 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. The fair value of our debt classified as Level 3 is based on the median of the underlying collateral value as described above. With regard to other financial instruments with off-balance sheet risk, it is not practicable to estimate the fair value of our indemnifications because the amount and timing of those arrangements are uncertain. Items not included in the above disclosures include cash, restricted cash, time deposits and other deposits, commercial paper, money market funds, Accounts payable and long-term payables. The carrying values of those items, as reflected in the Condensed Consolidated Statements of Financial Position, approximate their fair value at June 30, 2013 and December 31, 2012. 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). |
Derivative Financial Instruments
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6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Financial Instruments | Derivative Financial Instruments Cash Flow Hedges Our cash flow hedges include foreign currency forward contracts, foreign currency option contracts, commodity swaps, and commodity purchase contracts. We use foreign currency forward and option contracts to manage currency risk associated with certain transactions, specifically forecasted sales and purchases made in foreign currencies. Our foreign currency contracts hedge forecasted transactions principally occurring within five years in the future, with certain contracts hedging transactions through 2023. We use commodity derivatives, such as swaps and fixed-price purchase commitments to hedge against potentially unfavorable price changes for items used in production. Our commodity contracts hedge forecasted transactions through 2016. Fair Value Hedges Interest rate swaps under which we agree to pay variable rates of interest are designated as fair value hedges of fixed-rate debt. The net change in fair value of the derivatives and the hedged items is reported in Boeing Capital interest expense. Derivative Instruments Not Receiving Hedge Accounting Treatment We also hold certain derivative instruments, primarily foreign currency forward contracts, for risk management purposes that are not receiving hedge accounting treatment. Notional Amounts and Fair Values The notional amounts and fair values of derivative instruments in the Condensed Consolidated Statements of Financial Position were as follows:
Gains/(losses) associated with our cash flow and undesignated hedging transactions and their effect on Other comprehensive income/(loss) and Net earnings were as follows:
Based on our portfolio of cash flow hedges, we expect to reclassify losses of $7 (pre-tax) out of Accumulated other comprehensive loss into earnings during the next 12 months. Ineffectiveness related to our hedges recognized in Other income/(expense) was insignificant for the six and three months ended June 30, 2013 and 2012. We have derivative instruments with credit-risk-related contingent features. For foreign exchange contracts with original maturities of at least five years, our derivative counterparties could require settlement if we default on our five-year credit facility. For commodity contracts, our counterparties could require collateral posted in an amount determined by our credit ratings. The fair value of foreign exchange and commodity contracts that have credit-risk-related contingent features that are in a net liability position at June 30, 2013 was $12. At June 30, 2013, there was no collateral posted related to our derivatives. |
Basis Of Presentation (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2013
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Jun. 30, 2012
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Jun. 30, 2013
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Jun. 30, 2012
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Increase in Earnings from operations due to net favorable cumulative catch-up adjustments | $ 59 | $ 122 | $ 164 | $ 234 |
Increase in diluted earnings per share due to net favorable cumulative catch-up adjustments | $ 0.04 | $ 0.11 | $ 0.15 | $ 0.20 |
Inventories (Tables)
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6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Inventory, Current | Inventories consisted of the following:
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Shareholders' Equity (Tables)
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Jun. 30, 2013
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of changes in Accumulated other comprehensive income | Changes in Accumulated other comprehensive loss (AOCI) by component for the six and three months ended June 30, 2013 were as follows:
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Income Taxes (Details) (USD $)
In Millions, unless otherwise specified |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2013
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Mar. 31, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
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Jun. 30, 2012
|
|
Income Tax Disclosure [Abstract] | |||||
Effective income tax rate | 33.40% | 33.10% | 28.60% | 35.00% | |
R&D tax credit | $ 145 | ||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit | $ 260 | $ 260 |
Earnings Per Share (Policy)
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6 Months Ended |
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Jun. 30, 2013
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Earnings Per Share [Abstract] | |
Earnings Per Share Accounting Policy | 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, less earnings available to participating securities, divided by the basic weighted average common shares outstanding. Diluted earnings per share is calculated by taking net earnings, less earnings available to participating securities, divided by the diluted weighted average common shares outstanding. |
Arrangements With Off-Balance Sheet Risk (Schedule Of Arrangements With Off-Balance Sheet Risk) (Details) (USD $)
In Millions, unless otherwise specified |
Jun. 30, 2013
|
Dec. 31, 2012
|
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Contingent Repurchase Commitments [Member]
|
||
Guarantor Obligations [Line Items] | ||
Maximum Potential Payments | $ 2,170 | $ 2,065 |
Estimated Proceeds from Collateral or Recourse | 2,165 | 2,065 |
Carrying Amount of Liabilities | 5 | 5 |
Contributed Delta Program Launch Inventory [Member]
|
||
Guarantor Obligations [Line Items] | ||
Maximum Potential Payments | 135 | 137 |
Contract Pricing [Member]
|
||
Guarantor Obligations [Line Items] | ||
Maximum Potential Payments | 261 | 261 |
Carrying Amount of Liabilities | 7 | 7 |
Other Delta Contracts [Member]
|
||
Guarantor Obligations [Line Items] | ||
Maximum Potential Payments | 234 | 232 |
Carrying Amount of Liabilities | 8 | 8 |
Other Indemnifications [Member]
|
||
Guarantor Obligations [Line Items] | ||
Maximum Potential Payments | 116 | 137 |
Carrying Amount of Liabilities | $ 26 | $ 32 |
Derivative Financial Instruments (Schedule Of Derivative Instruments, Gains/(Losses) In Statement Of Financial Performance) (Details) (USD $)
In Millions, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
|
Jun. 30, 2012
|
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Derivative [Line Items] | ||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax | $ (63) | $ (30) | $ (89) | $ (12) |
Other Comprehensive Income (Loss), Reclassification Adjustment on Derivatives Included in Net Income, Net of Tax | (5) | 8 | (3) | 8 |
Foreign Exchange Contract [Member]
|
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Derivative [Line Items] | ||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax | (61) | (33) | (87) | (1) |
Other Comprehensive Income (Loss), Reclassification Adjustment on Derivatives Included in Net Income, Net of Tax | 11 | 3 | 14 | 10 |
Forward points recognized in other income (expense), net | 14 | 16 | 22 | 12 |
Undesignated derivatives recognized in Other income/(expense), net: | 15 | (14) | 14 | (10) |
Commodity Contract [Member]
|
||||
Derivative [Line Items] | ||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax | (2) | 3 | (2) | (11) |
Other Comprehensive Income (Loss), Reclassification Adjustment on Derivatives Included in Net Income, Net of Tax | $ (6) | $ (11) | $ (11) | $ (18) |
Arrangements With Off-Balance Sheet Risk (Narrative) (Details) (USD $)
In Millions, unless otherwise specified |
1 Months Ended | ||||||||||||||
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Dec. 31, 2011
|
Jun. 30, 2011
|
Jun. 30, 2013
satellites
|
Jun. 30, 2013
ULA [Member]
|
Jun. 30, 2013
Contributed Delta Program Launch Inventory [Member]
|
Dec. 31, 2012
Contributed Delta Program Launch Inventory [Member]
|
Jun. 30, 2013
Indemnification Agreement [Member]
|
Jun. 30, 2013
Indemnification Agreement [Member]
Boeing Portion Of Additional Contract Losses [Member]
|
Jun. 30, 2013
Indemnification Agreement [Member]
Indemnification Payment [Member]
|
Jun. 30, 2013
Other Delta Contracts [Member]
|
Dec. 31, 2012
Other Delta Contracts [Member]
|
Jun. 30, 2013
Other Delta Contracts [Member]
Deferred support costs [Member]
|
Jun. 30, 2013
Deferred Support and Production Costs [Member]
|
Jun. 30, 2013
Other Indemnifications [Member]
|
Dec. 31, 2012
Other Indemnifications [Member]
|
|
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||||||||||||
Delta launch program inventories included in contributed assets | $ 1,360 | ||||||||||||||
Delta launch program inventories subject to inventory supply agreement | 1,860 | ||||||||||||||
Contributed inventories consumed by ULA | 1,225 | ||||||||||||||
Maximum Potential Payments | 135 | 137 | 261 | 234 | 232 | 85 | 116 | 137 | |||||||
Advanced payments received for contributed inventories | 1,140 | ||||||||||||||
Revenues and cost of sales recorded under inventory supply agreement | 868 | ||||||||||||||
Number of satellite missions | 4 | ||||||||||||||
Maximum exposure to loss | 278 | 17 | |||||||||||||
Additional potentially unrecoverable deferred production costs | 114 | 271 | |||||||||||||
Loss Contingency, Estimate of Possible Loss | 317 | ||||||||||||||
Carrying Amount of Liabilities | $ 8 | $ 8 | $ 26 | $ 32 |
Segment Information (Tables)
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Segment Reporting Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Intersegment Revenues Text Block | Intersegment revenues, eliminated in Unallocated items and eliminations, are shown in the following table.
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Reconciliation of Other Significant Reconciling Items from Segments to Consolidated [Table Text Block] | Unallocated items and eliminations includes costs not attributable to business segments as well as intercompany profit eliminations. We generally allocate costs to business segments based on the U.S. federal cost accounting standards. Unallocated pension and other postretirement expense represents the portion of pension and other postretirement costs that are not recognized by business segments for segment reporting purposes. The business segments have traditionally been allocated pension and other postretirement costs using U.S. Government Cost Accounting Standards (CAS), which employ different actuarial assumptions and accounting conventions than Generally Accepted Accounting Principles in the United States of America (GAAP). Beginning in 2013, pension costs, comprising GAAP service and prior service costs, are allocated to Commercial Airplanes. BDS continues to be allocated CAS pension costs which are allocable to government contracts. Other postretirement costs will continue to be allocated to business segments based on CAS, which is generally based on benefits paid. Prior year allocations have not been adjusted. Components of Unallocated items and eliminations are shown in the following table.
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Reconciliation of Assets from Segment to Consolidated [Table Text Block] | Segment assets are summarized in the table below:
Assets included in Unallocated items and eliminations primarily consist of Cash and cash equivalents, Short-term and other investments, Deferred tax assets, capitalized interest and assets held by SSG as well as intercompany eliminations. |
Shareholders' Equity (Schedule of changes in AOCI by component) (Details) (USD $)
In Millions, unless otherwise specified |
3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | |||||||||||||
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Jun. 30, 2013
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Jun. 30, 2012
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Jun. 30, 2013
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Jun. 30, 2012
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Jun. 30, 2013
Accumulated Translation Adjustment [Member]
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Jun. 30, 2013
Accumulated Translation Adjustment [Member]
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Jun. 30, 2013
Unrealized Gains and Losses on Certain Investments
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Mar. 31, 2013
Unrealized Gains and Losses on Certain Investments
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Dec. 31, 2012
Unrealized Gains and Losses on Certain Investments
|
Jun. 30, 2013
Unrealized Gains and Losses on Derivative Instruments
|
Jun. 30, 2013
Unrealized Gains and Losses on Derivative Instruments
|
Jun. 30, 2013
Defined Benefit Pension Plans and Other Postretirement Benefits
|
Jun. 30, 2013
Defined Benefit Pension Plans and Other Postretirement Benefits
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Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||||||||||||
Beginning Balance | $ (17,041) | [1] | $ (17,416) | [1] | $ 191 | $ 214 | $ (8) | $ (8) | $ (8) | $ 62 | $ 86 | $ (17,286) | $ (17,708) | ||||||||
OCI before reclassifications | (127) | [1] | (144) | [1] | (65) | (88) | (63) | (89) | 1 | 33 | |||||||||||
Amounts reclassified from AOCI | 374 | [1] | 766 | [1] | (5) | (3) | 379 | [2] | 769 | [2] | |||||||||||
Net current period OCI | 247 | [1] | 622 | [1] | (65) | (88) | (68) | (92) | 380 | 802 | |||||||||||
Balance June 30, 2013 | (16,794) | [1] | (16,794) | [1] | 126 | 126 | (8) | (8) | (8) | (6) | (6) | (16,906) | (16,906) | ||||||||
Other Comprehensive Income (Loss), Reclassification, Pension and Other Postretirement Benefit Plans, Net Gain (Loss) Recognized in Net Periodic Benefit Cost, Net of Tax | 377 | 327 | 755 | 653 | |||||||||||||||||
Other Comprehensive Income (Loss), Reclassification, Pension and Other Postretirement Benefit Plans, Net Gain (Loss) Recognized in Net Periodic Benefit Cost, Tax | $ 216 | $ 187 | $ 431 | $ 375 | |||||||||||||||||
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Shareholders' Equity
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6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shareholders' Equity | Shareholders' Equity Accumulated Other Comprehensive Loss Changes in Accumulated other comprehensive loss (AOCI) by component for the six and three months ended June 30, 2013 were as follows:
|
Condensed Consolidated Statements Of Financial Position (USD $)
In Millions, unless otherwise specified |
Jun. 30, 2013
|
Dec. 31, 2012
|
||||
---|---|---|---|---|---|---|
Assets | ||||||
Cash and cash equivalents | $ 8,694 | $ 10,341 | ||||
Short-term and other investments | 5,631 | 3,217 | ||||
Accounts receivable, net | 6,406 | 5,608 | ||||
Current portion of customer financing, net | 320 | 364 | ||||
Deferred income taxes | 25 | 28 | ||||
Inventories, net of advances and progress billings | 40,234 | 37,751 | ||||
Total current assets | 61,310 | 57,309 | ||||
Customer financing, net | 3,991 | 4,056 | ||||
Property, plant and equipment, net of accumulated depreciation of $14,717 and $14,645 | 9,814 | 9,660 | ||||
Goodwill | 5,043 | 5,035 | ||||
Acquired intangible assets, net | 3,011 | 3,111 | ||||
Deferred income taxes | 6,307 | 6,753 | ||||
Investments | 1,166 | 1,180 | ||||
Other assets, net of accumulated amortization of $464 and $504 | 1,449 | 1,792 | ||||
Total assets | 92,091 | 88,896 | ||||
Liabilities and equity | ||||||
Accounts payable | 10,437 | 9,394 | ||||
Accrued liabilities | 12,412 | 12,995 | ||||
Advances and billings in excess of related costs | 18,145 | 16,672 | ||||
Deferred income taxes and income taxes payable | 5,072 | 4,485 | ||||
Short-term debt and current portion of long-term debt | 883 | 1,436 | ||||
Total current liabilities | 46,949 | 44,982 | ||||
Accrued retiree health care | 7,431 | 7,528 | ||||
Accrued pension plan liability, net | 20,070 | 19,651 | ||||
Non-current income taxes payable | 275 | 366 | ||||
Other long-term liabilities | 1,039 | 1,429 | ||||
Long-term debt | 8,695 | 8,973 | ||||
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 | 4,181 | 4,122 | ||||
Treasury stock, at cost - 258,226,771 and 256,630,628 shares | (16,412) | (15,937) | ||||
Retained earnings | 31,490 | 30,037 | ||||
Accumulated other comprehensive loss | (16,794) | [1] | (17,416) | [1] | ||
Total shareholder's equity | 7,526 | 5,867 | ||||
Noncontrolling interest | 106 | 100 | ||||
Total equity | 7,632 | 5,967 | ||||
Total liabilities and equity | $ 92,091 | $ 88,896 | ||||
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Condensed Consolidated Statements Of Cash Flows (USD $)
In Millions, unless otherwise specified |
6 Months Ended | |
---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
|
Cash flows - operation activities: | ||
Net earnings | $ 2,194 | $ 1,890 |
Non-cash items – | ||
Share-based plans expense | 107 | 99 |
Depreciation and amortization | 865 | 848 |
Investment/asset impairment charges, net | 26 | 45 |
Customer financing valuation provision | (5) | (1) |
(Gain)/loss on disposal of discontinued operations | (1) | 2 |
(Gain)/loss on dispositions, net | (22) | 2 |
Other charges and credits, net | 31 | 361 |
Excess tax benefits from share-based payment arrangements | (47) | (39) |
Changes in assets and liabilities – | ||
Accounts receivable | (550) | (310) |
Inventories, net of advances and progress billings | (2,614) | (2,737) |
Accounts payable | 848 | 742 |
Accrued liabilities | (682) | (594) |
Advances and billings in excess of related costs | 1,472 | (152) |
Income taxes receivable, payable and deferred | 608 | 705 |
Other long-term liabilities | (60) | (15) |
Pension and other postretirement plans | 1,638 | 686 |
Customer financing, net | 188 | 216 |
Other | (5) | (3) |
Net cash provided by operating activities | 3,991 | 1,745 |
Cash flows – investing activities: | ||
Property, plant and equipment additions | (976) | (780) |
Property, plant and equipment reductions | 44 | 16 |
Acquisitions, net of cash acquired | (26) | (18) |
Contributions to investments | (7,045) | (6,396) |
Proceeds from investments | 4,632 | 3,596 |
Purchase of distribution rights | (6) | |
Net cash used by investing activities | (3,371) | (3,588) |
Cash flows – financing activities: | ||
New borrowings | 531 | 24 |
Debt repayments | (1,361) | (1,233) |
Repayments of distribution rights financing | (139) | (72) |
Stock options exercised, other | 484 | 71 |
Excess tax benefits from share-based payment arrangements | 47 | 39 |
Employee taxes on certain share-based payment arrangements | (57) | (68) |
Payments for Repurchase of Common Stock | (1,000) | |
Dividends paid | (735) | (658) |
Net cash used by financing activities | (2,230) | (1,897) |
Effect of exchange rate changes on cash and cash equivalents | (37) | (4) |
Net decrease in cash and cash equivalents | (1,647) | (3,744) |
Cash and cash equivalents at beginning of year | 10,341 | 10,049 |
Cash and cash equivalents at end of period | $ 8,694 | $ 6,305 |
Summary Of Business Segment Data Summary of Business Segment Data (Notes)
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6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary Of Business Segment Data [Text Block] | The Boeing Company and Subsidiaries Notes to Condensed Consolidated Financial Statements Summary of Business Segment Data (Unaudited)
This information is an integral part of the Notes to the Condensed Consolidated Financial Statements. See Note 18 for further segment results. |
Fair Value Measurements Fair Value, Assets and Liabilities Measured on Recurring Basis (Details) (USD $)
In Millions, unless otherwise specified |
Jun. 30, 2013
|
Dec. 31, 2012
|
---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | $ 3,411 | $ 4,534 |
Available-for-sale investments | 7 | 9 |
Derivatives, Assets | 93 | 178 |
Total assets | 3,511 | 4,721 |
Derivatives, Liabilities | (112) | (84) |
Total liabilities | (112) | (84) |
Level 1 [Member]
|
||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 3,411 | 4,534 |
Available-for-sale investments | 5 | 6 |
Total assets | 3,416 | 4,540 |
Level 2 [Member]
|
||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, Assets | 93 | 178 |
Total assets | 93 | 178 |
Derivatives, Liabilities | (112) | (84) |
Total liabilities | (112) | (84) |
Level 3 [Member]
|
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Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale investments | 2 | 3 |
Total assets | $ 2 | $ 3 |
Condensed Consolidated Statements Of Equity (USD $)
In Millions |
Total
|
Common Stock [Member]
|
Additional Paid-In Capital [Member]
|
Treasury Stock [Member]
|
Retained Earnings [Member]
|
Accumulated Other Comprehensive Loss [Member]
|
Non-Controlling Interest [Member]
|
---|---|---|---|---|---|---|---|
Balance at Dec. 31, 2011 | $ 3,608 | $ 5,061 | $ 4,033 | $ (16,603) | $ 27,524 | $ (16,500) | $ 93 |
Net earnings | 1,891 | 1,890 | 1 | ||||
Other comprehensive income (loss), net of tax of ($402) and ($400) | 684 | 684 | |||||
Share-based compensation and related dividend equivalents | 96 | 106 | (10) | ||||
Excess tax pools | 39 | 39 | |||||
Treasury shares issued for stock options exercised, net | 73 | (31) | 104 | ||||
Treasury shares issued for other share-based plans, net | (62) | (166) | 104 | ||||
Treasury shares issued for 401(k) contribution | 230 | 37 | 193 | ||||
Cash dividends declared of $0.97 per share in 2013 and $0.88 per share in 2012 | (661) | (661) | |||||
Changes in noncontrolling interest | (6) | (6) | |||||
Balance at Jun. 30, 2012 | 5,892 | 5,061 | 4,018 | (16,202) | 28,743 | (15,816) | 88 |
Balance at Dec. 31, 2012 | 5,967 | 5,061 | 4,122 | (15,937) | 30,037 | (17,416) | 100 |
Net earnings | 2,215 | 2,194 | 21 | ||||
Other comprehensive income (loss), net of tax of ($402) and ($400) | 622 | 622 | |||||
Share-based compensation and related dividend equivalents | 104 | 111 | (7) | ||||
Excess tax pools | 27 | 27 | |||||
Treasury shares issued for stock options exercised, net | 493 | 45 | 448 | ||||
Treasury shares issued for other share-based plans, net | (47) | (124) | 77 | ||||
Treasury shares repurchased | (1,000) | (1,000) | |||||
Cash dividends declared of $0.97 per share in 2013 and $0.88 per share in 2012 | (734) | (734) | |||||
Changes in noncontrolling interest | (15) | (15) | |||||
Balance at Jun. 30, 2013 | $ 7,632 | $ 5,061 | $ 4,181 | $ (16,412) | $ 31,490 | $ (16,794) | $ 106 |
Derivative Financial Instruments (Tables)
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Jun. 30, 2013
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | The notional amounts and fair values of derivative instruments in the Condensed Consolidated Statements of Financial Position were as follows:
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Schedule Of Derivative Instruments, Gains/(Losses) In Statement Of Financial Performance [Table Text Block] | Gains/(losses) associated with our cash flow and undesignated hedging transactions and their effect on Other comprehensive income/(loss) and Net earnings were as follows:
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Legal Proceedings
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6 Months Ended |
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Jun. 30, 2013
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Legal Proceedings [Abstract] | |
Legal Matters and Contingencies | Legal Proceedings Various legal proceedings, claims and investigations related to products, contracts and other matters are pending against us. Potentially material contingencies including A-12 and Employment, Labor and Benefits litigation are discussed below. We are subject to various U.S. government investigations, from which civil, criminal or administrative proceedings could result or have resulted. Such proceedings involve or could involve claims by the government for fines, penalties, compensatory and treble damages, restitution and/or forfeitures. Under government regulations, a company, or one or more of its operating divisions or subdivisions, can also be suspended or debarred from government contracts, or lose its export privileges, based on the results of investigations. We believe, based upon current information, that the outcome of any such government disputes and investigations will not have a material effect on our financial position, results of operations, or cash flows, except as set forth below. Where it is reasonably possible that we will incur losses in excess of recorded amounts in connection with any of the matters set forth below, we have disclosed either the amount or range of reasonably possible losses in excess of such amounts or, where no such amount or range can be reasonably estimated, the reasons why no such estimate can be made. A-12 Litigation In 1991, the Department of the Navy (the Navy) notified McDonnell Douglas Corporation (now merged into The Boeing Company) and General Dynamics Corporation (together, the Team) that it was terminating for default the Team’s contract for development and initial production of the A-12 aircraft. The Team had full responsibility for performance of the contract and both contractors are jointly and severally liable for any potential liabilities resulting from the termination. The Team filed a legal action to contest the Navy’s default termination, to assert its rights to convert the termination to one for “the convenience of the government,” and to obtain payment for work done and costs incurred on the A-12 contract but not paid to date. As of June 30, 2013, inventories included approximately $587 of recorded costs on the A-12 contract, against which we have established a loss provision of $350. The amount of the provision, which was established in 1990, was based on McDonnell Douglas Corporation’s belief, supported by an opinion of outside counsel, that the termination for default would be converted to a termination for convenience, and that the best estimate of possible loss on termination for convenience was $350. The U.S. Court of Federal Claims held that the default termination decision could not be sustained and on March 31, 1998, awarded the Team $1,200 in unreimbursed costs. The Court of Appeals for the Federal Circuit reversed in July 1999 and remanded the case back to the trial court to determine whether the Team was in fact in default. On August 31, 2001, the U.S. Court of Federal Claims issued a decision after trial upholding the government’s default termination of the A-12 contract. In 2003, the Court of Appeals for the Federal Circuit, finding that the trial court had applied the wrong legal standard, vacated the trial court’s 2001 decision and ordered the case sent back to the trial court for further proceedings. On May 3, 2007, the U.S. Court of Federal Claims issued a decision upholding the government’s default termination of the A-12 contract. We filed a Notice of Appeal on May 4, 2007 with the Court of Appeals for the Federal Circuit. On June 2, 2009, the Court of Appeals rendered an opinion affirming the trial court’s 2007 decision sustaining the government’s default termination. On May 23, 2011, the U.S. Supreme Court vacated the decision of the Court of Appeals upholding the default termination, and remanded the case to the Court of Appeals. On July 7, 2011, the Court of Appeals remanded the case to the trial court for additional factual determinations and the trial court heard oral argument on May 7, 2013. On December 29, 2009, the Navy sent letters to the Team requesting payment of $1,352 in unliquidated progress payments, plus applicable interest. On November 15, 2011, the Navy sent a letter confirming that it would not pursue payment from the Team pending all trial court and appellate proceedings adjudicating the issues remanded by the Supreme Court. On May 17, 2013, the President's Fiscal 2014 Budget Request to Congress included a new Department of Defense General Provision that would authorize the Secretary of the Navy to receive and retain payment in-kind in settlement of the A-12 aircraft litigation. If this legislation is enacted and the litigation is settled, we could incur a pre-tax charge to write-off A-12 costs included in inventory in addition to costs associated with an in-kind settlement. We believe it is reasonably possible that the litigation could be settled. We believe that the termination for default is contrary to law and fact and that the loss provision established by McDonnell Douglas Corporation in 1990, which was supported by an opinion from outside counsel, continues to provide adequately for the reasonably possible reduction in value of A-12 net contracts in process as of June 30, 2013. Final resolution of the A-12 litigation will depend on whether the litigation is settled or the outcome of further proceedings. If after all legal proceedings are concluded, the court determines, contrary to our belief, that a termination for default was appropriate, we could incur an additional loss of up to $275, consisting principally of $237 of remaining inventory costs. If the courts further hold that a money judgment should be entered against the Team, we could be required to pay the U.S. government up to one-half of the unliquidated progress payments of $1,350 plus statutory interest from February 1991 (currently totaling up to $1,595). In that event, our loss would total approximately $1,745 in pre-tax charges. Should, however, the March 31, 1998 judgment of the U.S. Court of Federal Claims in favor of the Team be reinstated, we could be entitled to receive payment of approximately $1,191, including interest from June 26, 1991. Employment, Labor and Benefits Litigation In connection with the 2005 sale of our former Wichita facility to Spirit AeroSystems, Inc. (Spirit), certain individuals not hired by Spirit alleged that Spirit’s hiring decisions following the sale were tainted by age discrimination, violated ERISA, violated our collective bargaining agreements, and constituted retaliation. The case was brought in 2006 as a class action on behalf of individuals not hired by Spirit. In 2012, the Tenth Circuit Court of Appeals affirmed the district court's 2010 summary judgment in favor of Boeing and Spirit on all class action claims, but the parties were not precluded from making claims on an individual basis. As of June 30, 2013, eighty-nine individuals have asserted individual claims related to this matter. Spirit has agreed to indemnify Boeing for any and all losses. Also related to the 2005 sale of the former Wichita facility, on February 16, 2007, an action entitled Harkness et al. v. The Boeing Company et al. was filed in the U.S. District Court for the District of Kansas, alleging collective bargaining agreement breaches and ERISA violations in connection with alleged failures to provide benefits to certain former employees of the Wichita facility. On December 11, 2012 the court denied plaintiffs’ motion for summary judgment and granted Boeing’s motion for summary judgment on plaintiffs’ claim that amendment of The Boeing Company Employee Retirement Plan violated the IAM collective bargaining agreement, as well as individual ERISA §510 claims for interference with benefits. The court denied Boeing’s motion for all other claims. The parties are preparing to conduct additional discovery in anticipation of further court proceedings, which have not yet been scheduled. We believe that Spirit is obligated to indemnify Boeing for any and all losses in this matter, although to date Spirit has acknowledged a limited indemnification obligation. We currently estimate that the putative class includes 2,000 former Wichita employees. We cannot reasonably estimate the range of loss, if any, that may result from both these matters given the current procedural status of the litigation. On October 13, 2006, we were named as a defendant in a lawsuit filed in the U.S. District Court for the Southern District of Illinois. Plaintiffs, seeking to represent a class of similarly situated participants and beneficiaries in The Boeing Company Voluntary Investment Plan (the VIP), alleged that fees and expenses incurred by the VIP were and are unreasonable and excessive, not incurred solely for the benefit of the VIP and its participants, and were undisclosed to participants. The plaintiffs further alleged that defendants breached their fiduciary duties in violation of §502(a)(2) of ERISA, and sought injunctive and equitable relief pursuant to §502(a)(3) of ERISA. During the first quarter of 2010, the Seventh Circuit Court of Appeals granted a stay of trial proceedings in the district court pending resolution of an appeal made by Boeing in 2008 to the case’s class certification order. On January 21, 2011, the Seventh Circuit reversed the district court’s class certification order and decertified the class. The Seventh Circuit remanded the case to the district court for further proceedings. On March 2, 2011, plaintiffs filed an amended motion for class certification and a supplemental motion on August 7, 2011. Boeing’s opposition to class certification was filed on September 6, 2011. Plaintiffs’ reply brief in support of class certification was filed on September 27, 2011. The court has stated its intent to issue rulings on the amended motion for class certification and the alternative motion to proceed as a direct action for breach of fiduciary duty and then stay the case until it is determined if an appeal of the class certification order is filed. As a result, on September 19, 2012 the district court issued an order denying Boeing’s motions for summary judgment as premature pending class determination. We cannot reasonably estimate the range of loss, if any, that may result from this matter given the current procedural status of the litigation. |
Summary Of Business Segment Data Summary of Business Segment Data (Tables)
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Jun. 30, 2013
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Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment [Table Text Block] |
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Derivative Financial Instruments (Schedule Of Notional Amounts And Fair Values Of Derivative Instruments) (Details) (USD $)
In Millions, unless otherwise specified |
Jun. 30, 2013
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Dec. 31, 2012
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Derivative [Line Items] | ||||||
Notional amounts | $ 3,131 | [1] | $ 3,224 | [1] | ||
Other assets | 146 | 231 | ||||
Derivatives, Assets | 93 | 178 | ||||
Accrued liabilities | (165) | (137) | ||||
Derivatives, Liabilities | (112) | (84) | ||||
Netting Arrangements [Member]
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Derivative [Line Items] | ||||||
Netting arrangements, Accrued liabilities | (53) | (53) | ||||
Netting arrangements, Other assets | 53 | 53 | ||||
Derivatives designated as hedging instruments: | Foreign Exchange Contract [Member]
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Derivative [Line Items] | ||||||
Notional amounts | 2,388 | [1] | 2,310 | [1] | ||
Other assets | 111 | 202 | ||||
Accrued liabilities | (65) | (16) | ||||
Derivatives designated as hedging instruments: | Interest Rate Contract [Member]
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Derivative [Line Items] | ||||||
Notional amounts | 313 | [1] | 388 | [1] | ||
Other assets | 17 | 26 | ||||
Derivatives designated as hedging instruments: | Commodity Contract [Member]
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Derivative [Line Items] | ||||||
Notional amounts | 92 | [1] | 99 | [1] | ||
Accrued liabilities | (57) | (71) | ||||
Derivatives not receiving hedge accounting treatment: | Foreign Exchange Contract [Member]
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Derivative [Line Items] | ||||||
Notional amounts | 323 | [1] | 412 | [1] | ||
Other assets | 18 | 3 | ||||
Accrued liabilities | (36) | (42) | ||||
Derivatives not receiving hedge accounting treatment: | Commodity Contract [Member]
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Derivative [Line Items] | ||||||
Notional amounts | 15 | [1] | 15 | [1] | ||
Accrued liabilities | $ (7) | $ (8) | ||||
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Commitments And Contingencies (Tables)
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6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Environmental Remediation Activity | The following table summarizes environmental remediation activity during the six months ended June 30, 2013 and 2012.
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Schedule Of Product Warranty Activity | The following table summarizes product warranty activity recorded during the six months ended June 30, 2013 and 2012.
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Contractual Obligation, Fiscal Year Maturity Schedule [Table Text Block] | Financing commitments related to aircraft on order, including options and those proposed in sales campaigns, totaled $17,815 and $18,083 as of June 30, 2013 and December 31, 2012. The estimated earliest potential funding dates for these commitments as of June 30, 2013 are as follows:
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Derivative Financial Instruments (Narrative) (Details) (USD $)
In Millions, unless otherwise specified |
6 Months Ended |
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Jun. 30, 2013
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Derivative [Line Items] | |
Cash flow hedge losses to be reclassified during the next 12 months, pre-tax | $ 7 |
Fair value of foreign exchange and commodity contracts that have credit-risk-related contingent features that are in a net liability position | $ 12 |
Foreign Exchange Contract [Member] | Maximum [Member]
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Derivative [Line Items] | |
Derivative, Maturity Date | Dec. 31, 2023 |
Commodity Contract [Member] | Maximum [Member]
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Derivative [Line Items] | |
Derivative, Maturity Date | Dec. 31, 2016 |
Customer Financing (Financing Receivable Credit Quality Indicators) (Details) (USD $)
In Millions, unless otherwise specified |
Jun. 30, 2013
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Dec. 31, 2012
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Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivables | $ 2,370 | $ 2,442 |
Internally Assigned Grade [Member] | BBB Credit Rating [Member]
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Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivables by internal credit rating | 1,137 | 1,201 |
Internally Assigned Grade [Member] | BB Credit Rating [Member]
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Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivables by internal credit rating | 56 | 63 |
Internally Assigned Grade [Member] | B Credit Rating [Member]
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Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivables by internal credit rating | 149 | 51 |
Internally Assigned Grade [Member] | CCC Credit Rating [Member]
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Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivables by internal credit rating | 465 | 511 |
Internally Assigned Grade [Member] | D Credit Rating [Member]
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Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivables by internal credit rating | 463 | 524 |
Internally Assigned Grade [Member] | Other Credit Rating [Member]
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Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivables by internal credit rating | $ 100 | $ 92 |
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