In the first quarter of 2018, we adopted the following ASUs: ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606); ASU No. 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost; ASU 2016-18 Statement of Cash Flows (Topic 230) Restricted Cash; and ASU 2018-02 Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.

The impact to our unaudited Consolidated Financial Statements as a result of adopting these standards was as follows:

Condensed Consolidated Statement of Operations (Unaudited)



	Six months ended June 30, 2017									Three months ended June 30, 2017
(Dollars in millions)	Reported			Impact of New Standards			Restated			Reported			Impact of New Standards			Restated
Sales of products		$38,659			$1,226			$39,885			$20,147			$371			$20,518
Sales of services	5,056			71			5,127			2,592			(59		)	2,533
Total revenues	43,715			1,297			45,012			22,739			312			23,051

Cost of products	(31,806		)	(1,080		)	(32,886		)	(16,443		)	(381		)	(16,824		)
Cost of services	(3,820		)	(43		)	(3,863		)	(1,932		)	67			(1,865		)
Boeing Capital interest expense	(26		)				(26		)	(13		)				(13		)
Total costs and expenses	(35,652		)	(1,123		)	(36,775		)	(18,388		)	(314		)	(18,702		)
	8,063			174			8,237			4,351			(2		)	4,349
Income from operating investments, net	120						120			39						39
General and administrative expense	(1,973		)	1			(1,972		)	(1,040		)	(3		)	(1,043		)
Research and development expense, net	(1,651		)	2			(1,649		)	(813		)				(813		)
Loss on dispositions, net										(2		)				(2		)
Earnings from operations	4,559			177			4,736			2,535			(5		)	2,530
Other income, net	49			2			51			27			(2		)	25
Interest and debt expense	(180		)				(180		)	(93		)				(93		)
Earnings before income taxes	4,428			179			4,607			2,469			(7		)	2,462
Income tax expense	(1,216		)	(63		)	(1,279		)	(708		)	(5		)	(713		)
Net earnings		$3,212			$116			$3,328			$1,761			($12	)		$1,749

Basic earnings per share		$5.28			$0.19			$5.47			$2.93			($0.02	)		$2.91

Diluted earnings per share		$5.22			$0.19			$5.41			$2.89			($0.02	)		$2.87

Condensed Consolidated Statement of Financial Position



(Dollars in millions)	December 31, 2017
Assets	Reported			Impact of New Standards			Restated
Cash and cash equivalents		$8,813						$8,813
Short-term and other investments	1,179						1,179
Accounts receivable, net	10,516				($7,622	)	2,894
Unbilled receivables, net				8,194			8,194
Current portion of customer financing, net	309						309
Inventories	44,344			17,044			61,388
Other current assets				2,417			2,417
Total current assets	65,161			20,033			85,194
Customer financing, net	2,740			16			2,756
Property, plant and equipment, net	12,672						12,672
Goodwill	5,559						5,559
Acquired intangible assets, net	2,573						2,573
Deferred income taxes	341			(20		)	321
Investments	1,260						1,260
Other assets, net of accumulated amortization	2,027						2,027
Total assets		$92,333			$20,029			$112,362
Liabilities and equity
Accounts payable		$12,202						$12,202
Accrued liabilities	15,292				($2,223	)	13,069
Advances and billings in excess of related costs	27,440			(27,440		)
Advances and progress billings				48,042			48,042
Short-term debt and current portion of long-term debt	1,335						1,335
Total current liabilities	56,269			18,379			74,648
Deferred income taxes	1,839			349			2,188
Accrued retiree health care	5,545						5,545
Accrued pension plan liability, net	16,471						16,471
Other long-term liabilities	2,015						2,015
Long-term debt	9,782						9,782
Shareholders’ equity:
Common stock	5,061						5,061
Additional paid-in capital	6,804						6,804
Treasury stock, at cost	(43,454		)				(43,454		)
Retained earnings	45,320			4,298			49,618
Accumulated other comprehensive loss	(13,376		)	(2,997		)	(16,373		)
Total shareholders’ equity	355			1,301			1,656
Noncontrolling interests	57						57
Total equity	412			1,301			1,713
Total liabilities and equity		$92,333			$20,029			$112,362

Condensed Consolidated Statement of Cash Flows (Unaudited)



(Dollars in millions)	Six months ended June 30, 2017
	Reported			Impact of New Standards			Restated
Cash flows - operating activities:
Net earnings		$3,212			$116			$3,328
Adjustments to reconcile net earnings to net cash provided by operating activities:
Non-cash items -
Share-based plans expense	98						98
Depreciation and amortization	965			(9		)	956
Investment/asset impairment charges, net	46						46
Customer financing valuation expense	5						5
Other charges and credits, net	129			6			135
Changes in assets and liabilities -
Accounts receivable	(912		)	749			(163		)
Unbilled receivables				(950		)	(950		)
Advances and progress billings				3,916			3,916
Inventories	877			(1,913		)	(1,036		)
Other current assets				(148		)	(148		)
Accounts payable	419						419
Accrued liabilities	(680		)	110			(570		)
Advances and billings in excess of related costs	1,934			(1,934		)
Income taxes receivable, payable and deferred	712			62			774
Other long-term liabilities	(18		)				(18		)
Pension and other postretirement plans	13						13
Customer financing, net	343			(1		)	342
Other	(99		)	(1		)	(100		)
Net cash provided by operating activities	7,044			3			7,047
Cash flows - investing activities:
Property, plant and equipment additions	(905		)				(905		)
Property, plant and equipment reductions	25						25
Contributions to investments	(1,820		)				(1,820		)
Proceeds from investments	1,441						1,441
Purchase of distribution rights	(131		)				(131		)
Other	4			3			7
Net cash used by investing activities	(1,386		)	3			(1,383		)
Cash flows - financing activities:
New borrowings	874						874
Debt repayments	(56		)				(56		)
Stock options exercised	240						240
Employee taxes on certain share-based payment arrangements	(112		)				(112		)
Common shares repurchased	(5,000		)				(5,000		)
Dividends paid	(1,720		)				(1,720		)
Net cash used by financing activities	(5,774		)				(5,774		)
Effect of exchange rate changes on cash & cash equivalents, including restricted	52						52
Net (decrease)/increase in cash & cash equivalents, including restricted	(64		)	6			(58		)
Cash & cash equivalents, including restricted*, at beginning of year	8,801			68			8,869
Cash & cash equivalents, including restricted*, at end of period		$8,737			$74		8,811
Less restricted cash & cash equivalents, included in Investments							74
Cash and cash equivalents at end of period								$8,737

* Reported balance excludes restricted amounts

Condensed Consolidated Statements of Equity (Unaudited)



	Boeing shareholders
(Dollars in millions)	Common Stock		Additional Paid-In Capital		Treasury Stock			Retained Earnings		Accumulated Other Comprehensive Loss			Non- controlling Interests		Total
Balance at January 1, 2017, as reported		$5,061		$4,762		($36,097	)		$40,714		($13,623	)		$60		$877
Cumulative Impact of Topic 606 at 1/1/2016								901							901
Impact of Topic 606 on 2016 earnings								139							139
Balance at January 1, 2017, as restated		$5,061		$4,762		($36,097	)		$41,754		($13,623	)		$60		$1,917



	Boeing shareholders
(Dollars in millions)	Common Stock		Additional Paid-In Capital		Treasury Stock			Retained Earnings		Accumulated Other Comprehensive Loss			Non- controlling Interests		Total
Balance at December 31, 2017, as reported		$5,061		$6,804		($43,454	)		$45,320		($13,376	)		$57		$412
Cumulative Impact of Topic 606 at 1/1/2016								901							901
Impact of Topic 606 on 2016 earnings								139							139
Impact of Topic 606 on 2017 earnings								261							261
Total impact of ASC 606 through December 31, 2017								1,301							1,301
Impact of ASU 2018-02								2,997		(2,997		)
Balance at December 31, 2017, as restated		$5,061		$6,804		($43,454	)		$49,618		($16,373	)		$57		$1,713