Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Oct. 16, 2013 | |
Document Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 30-Sep-13 | |
Document Fiscal Year Focus | 2013 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | BOEING CO | |
Entity Central Index Key | 12927 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 751,453,447 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements Of Operations (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Income Statement [Abstract] | ||||
Sales of products | $19,754 | $17,415 | $55,310 | $51,441 |
Sales of services | 2,376 | 2,593 | 7,528 | 7,955 |
Total revenues | 22,130 | 20,008 | 62,838 | 59,396 |
Cost of products | -16,865 | -14,683 | -47,030 | -43,103 |
Cost of services | -1,791 | -2,089 | -5,795 | -6,431 |
Boeing Capital interest expense | -18 | -27 | -55 | -85 |
Total costs and expenses | -18,674 | -16,799 | -52,880 | -49,619 |
Gross profit | 3,456 | 3,209 | 9,958 | 9,777 |
Income from operating investments, net | 59 | 120 | 147 | 211 |
General and administrative expense | -956 | -916 | -2,856 | -2,774 |
Research and development expense, net | -755 | -853 | -2,223 | -2,545 |
Gain/(loss) on dispositions, net | -1 | -1 | 21 | -3 |
Earnings from operations | 1,803 | 1,559 | 5,047 | 4,666 |
Other income, net | 19 | 17 | 41 | 39 |
Interest and debt expense | -95 | -110 | -290 | -330 |
Earnings before income taxes | 1,727 | 1,466 | 4,798 | 4,375 |
Income tax expense | -567 | -432 | -1,445 | -1,450 |
Net earnings from continuing operations | 1,160 | 1,034 | 3,353 | 2,925 |
Net loss on disposal of discontinued operations, net of taxes of $0, $1, $0 and $2 | -2 | -2 | -1 | -3 |
Net earnings | $1,158 | $1,032 | $3,352 | $2,922 |
Basic earnings per share from continuing operations | $1.53 | $1.36 | $4.40 | $3.86 |
Net loss on disposal of discontinued operations, net of taxes | ||||
Basic earnings per share | $1.53 | $1.36 | $4.40 | $3.86 |
Diluted earnings per share from continuing operations | $1.51 | $1.35 | $4.36 | $3.84 |
Net loss on disposal of discontinued operations, net of taxes | ||||
Diluted earnings per share | $1.51 | $1.35 | $4.36 | $3.84 |
Cash dividends paid per share | $0.49 | $0.44 | $1.46 | $1.32 |
Weighted average diluted shares (millions) | 769.1 | 765.2 | 769.8 | 762.3 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements Of Operations (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Income Statement [Abstract] | ||||
Net loss on disposal of discontinued operations, taxes | $0 | $1 | $0 | $2 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Statement of Comprehensive Income [Abstract] | ||||
Net earnings | $1,158 | $1,032 | $3,352 | $2,922 |
Currency translation adjustments | 42 | 36 | -46 | 26 |
Unrealized (loss)/gain on derivative instruments [Abstract] | ||||
Unrealized loss/(gain) arising during period, net of tax of ($20), ($21), $31 and ($14) | 35 | 37 | -54 | 25 |
Reclassification adjustment for (gain)/loss included in net earnings, net of tax of $5, $0, $8 and ($5) | -10 | -13 | 8 | |
Total unrealized (loss)/gain on derivative instruments, net of tax | 25 | 37 | -67 | 33 |
Defined benefit pension plans & other postretirement benefits [Abstract] | ||||
Amortization of prior service cost included in net periodic pension cost, net of tax of ($3), ($3), ($6) and ($9) | 4 | 4 | 9 | 12 |
Net actuarial gain arising during the period, net of tax of ($56), ($5), ($72) and ($29) | 101 | 9 | 131 | 52 |
Amortization of actuarial losses included in net periodic pension cost, net of tax of ($213), ($188), ($644) and ($563) | 380 | 326 | 1,135 | 979 |
Settlements and curtailments included in net income, net of tax of ($30), $0, ($35) and ($3) | 54 | 63 | 5 | |
Pension and post retirement benefits related to our equity method investments, net of tax ($1), ($81), ($2) and ($75) | 1 | 143 | 4 | 132 |
Total defined benefit pension plans & other postretirement benefits, net of tax | 540 | 482 | 1,342 | 1,180 |
Other comprehensive income, net of tax | 607 | 555 | 1,229 | 1,239 |
Comprehensive income/(loss) related to non-controlling interest | -18 | 3 | 3 | 4 |
Comprehensive income, net of tax | $1,747 | $1,590 | $4,584 | $4,165 |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Tax Effect [Abstract] | ||||
Unrealized loss arising during period, tax | ($20) | ($21) | $31 | ($14) |
Reclassification adjustment for (gain)/loss included in net earnings, tax | 5 | 0 | 8 | -5 |
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Tax, Portion Attributable to Parent [Abstract] | ||||
Amortization of prior service cost included in net periodic pension cost, tax | -3 | -3 | -6 | -9 |
Net actuarial loss arising during the period, tax | -56 | -5 | -72 | -29 |
Amortization of actuarial losses included in net periodic pension cost, tax | 213 | -188 | 644 | -563 |
Settlements and curtailments included in net income, tax | -30 | 0 | -35 | -3 |
Pension and post retirement benefits related to our equity method investments, tax | ($1) | ($81) | ($2) | ($75) |
Condensed_Consolidated_Stateme4
Condensed Consolidated Statements Of Financial Position (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Assets | ||||
Cash and cash equivalents | $10,041 | $10,341 | ||
Short-term and other investments | 5,870 | 3,217 | ||
Accounts receivable, net | 6,652 | 5,608 | ||
Current portion of customer financing, net | 316 | 364 | ||
Deferred income taxes | 43 | 28 | ||
Inventories, net of advances and progress billings | 41,240 | 37,751 | ||
Total current assets | 64,162 | 57,309 | ||
Customer financing, net | 3,903 | 4,056 | ||
Property, plant and equipment, net of accumulated depreciation of $14,938 and $14,645 | 9,987 | 9,660 | ||
Goodwill | 5,047 | 5,035 | ||
Acquired intangible assets, net | 2,962 | 3,111 | ||
Deferred income taxes | 5,957 | 6,753 | ||
Investments | 1,168 | 1,180 | ||
Other assets, net of accumulated amortization of $493 and $504 | 1,447 | 1,792 | ||
Total assets | 94,633 | 88,896 | ||
Liabilities and equity | ||||
Accounts payable | 10,657 | 9,394 | ||
Accrued liabilities | 12,384 | 12,995 | ||
Advances and billings in excess of related costs | 20,216 | 16,672 | ||
Deferred income taxes and income taxes payable | 5,504 | 4,485 | ||
Short-term debt and current portion of long-term debt | 919 | 1,436 | ||
Total current liabilities | 49,680 | 44,982 | ||
Accrued retiree health care | 7,415 | 7,528 | ||
Accrued pension plan liability, net | 18,559 | 19,651 | ||
Non-current income taxes payable | 299 | 366 | ||
Other long-term liabilities | 936 | 1,429 | ||
Long-term debt | 8,677 | 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 | 4,295 | 4,122 | ||
Treasury stock, at cost - 260,351,104 and 256,630,628 shares | -16,865 | -15,937 | ||
Retained earnings | 32,647 | 30,037 | ||
Accumulated other comprehensive loss | -16,187 | [1] | -17,416 | [1] |
Total shareholder's equity | 8,951 | 5,867 | ||
Noncontrolling interest | 116 | 100 | ||
Total equity | 9,067 | 5,967 | ||
Total liabilities and equity | $94,633 | $88,896 | ||
[1] | Net of tax. |
Condensed_Consolidated_Stateme5
Condensed Consolidated Statements Of Financial Position (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
Property, plant and equipment, accumulated depreciation | $14,938 | $14,645 |
Other assets, accumulated amortization | $493 | $504 |
Common stock, par value | $5 | $5 |
Common stock, authorized | 1,200,000,000 | 1,200,000,000 |
Common stock, shares issued | 1,012,261,159 | 1,012,261,159 |
Treasury stock, shares | 260,351,104 | 256,630,628 |
Condensed_Consolidated_Stateme6
Condensed Consolidated Statements Of Cash Flows (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Cash flows - operation activities: | ||
Net earnings | $3,352 | $2,922 |
Non-cash items – | ||
Share-based plans expense | 156 | 148 |
Depreciation and amortization | 1,323 | 1,313 |
Investment/asset impairment charges, net | 38 | 59 |
Customer financing valuation provision | -7 | -4 |
Loss on disposal of discontinued operations | 1 | 5 |
(Gain)/loss on dispositions, net | -21 | 3 |
Other charges and credits, net | 48 | 559 |
Excess tax benefits from share-based payment arrangements | -86 | -43 |
Changes in assets and liabilities – | ||
Accounts receivable | -1,006 | 150 |
Inventories, net of advances and progress billings | -3,631 | -4,588 |
Accounts payable | 943 | 857 |
Accrued liabilities | -338 | -123 |
Advances and billings in excess of related costs | 3,543 | 123 |
Income taxes receivable, payable and deferred | 1,336 | 1,085 |
Other long-term liabilities | -52 | 22 |
Pension and other postretirement plans | 954 | 571 |
Customer financing, net | 223 | 254 |
Other | 23 | 28 |
Net cash provided by operating activities | 6,799 | 3,341 |
Cash flows – investing activities: | ||
Property, plant and equipment additions | -1,460 | -1,208 |
Property, plant and equipment reductions | 47 | 29 |
Acquisitions, net of cash acquired | -26 | -18 |
Contributions to investments | -9,640 | -10,331 |
Proceeds from investments | 6,997 | 6,941 |
Purchase of distribution rights | -6 | |
Net cash used by investing activities | -4,082 | -4,593 |
Cash flows – financing activities: | ||
New borrowings | 547 | 34 |
Debt repayments | -1,397 | -1,273 |
Repayments of distribution rights financing | -139 | -72 |
Stock options exercised, other | 871 | 96 |
Excess tax benefits from share-based payment arrangements | 86 | 43 |
Employee taxes on certain share-based payment arrangements | -60 | -72 |
Payments for Repurchase of Common Stock | -1,799 | |
Dividends paid | -1,102 | -990 |
Net cash used by financing activities | -2,993 | -2,234 |
Effect of exchange rate changes on cash and cash equivalents | -24 | 19 |
Net decrease in cash and cash equivalents | -300 | -3,467 |
Cash and cash equivalents at beginning of year | 10,341 | 10,049 |
Cash and cash equivalents at end of period | $10,041 | $6,582 |
Condensed_Consolidated_Stateme7
Condensed Consolidated Statements Of Equity (USD $) | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Treasury Stock [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member] | Non-Controlling Interest [Member] |
In Millions | |||||||
Balance at Dec. 31, 2011 | $3,608 | $5,061 | $4,033 | ($16,603) | $27,524 | ($16,500) | $93 |
Net earnings | 2,926 | 2,922 | 4 | ||||
Other comprehensive income, net of tax of ($720) in 2013 and ($698) in 2012 | 1,239 | 1,239 | |||||
Share-based compensation and related dividend equivalents | 145 | 155 | -10 | ||||
Excess tax pools | 43 | 43 | |||||
Treasury shares issued for stock options exercised, net | 95 | -43 | 138 | ||||
Treasury shares issued for other share-based plans, net | -64 | -174 | 110 | ||||
Treasury shares issued for 401(k) contribution | 354 | 54 | 300 | ||||
Cash dividends declared of $0.97 per share in 2013 and $0.88 per share in 2012 | -661 | -661 | |||||
Changes in noncontrolling interest | -3 | -3 | |||||
Balance at Sep. 30, 2012 | 7,682 | 5,061 | 4,068 | -16,055 | 29,775 | -15,261 | 94 |
Balance at Dec. 31, 2012 | 5,967 | 5,061 | 4,122 | -15,937 | 30,037 | -17,416 | 100 |
Net earnings | 3,355 | 3,352 | 3 | ||||
Other comprehensive income, net of tax of ($720) in 2013 and ($698) in 2012 | 1,229 | 1,229 | |||||
Share-based compensation and related dividend equivalents | 154 | 161 | -7 | ||||
Excess tax pools | 60 | 60 | |||||
Treasury shares issued for stock options exercised, net | 873 | 80 | 793 | ||||
Treasury shares issued for other share-based plans, net | -50 | -128 | 78 | ||||
Treasury shares repurchased | -1,799 | -1,799 | |||||
Cash dividends declared of $0.97 per share in 2013 and $0.88 per share in 2012 | -735 | -735 | |||||
Changes in noncontrolling interest | 13 | 13 | |||||
Balance at Sep. 30, 2013 | $9,067 | $5,061 | $4,295 | ($16,865) | $32,647 | ($16,187) | $116 |
Condensed_Consolidated_Stateme8
Condensed Consolidated Statements Of Equity (Parenthetical) (USD $) | 9 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Statement of Stockholders' Equity [Abstract] | ||
Other comprehensive income, tax | ($720) | ($698) |
Cash dividends declared, per share | $0.97 | $0.88 |
Summary_Of_Business_Segment_Da
Summary Of Business Segment Data Summary of Business Segment Data (Notes) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | ||||||||||||||||
Summary Of Business Segment Data | The Boeing Company and Subsidiaries | |||||||||||||||
Notes to Condensed Consolidated Financial Statements | ||||||||||||||||
Summary of Business Segment Data | ||||||||||||||||
(Unaudited) | ||||||||||||||||
(Dollars in millions) | Nine months ended September 30 | Three months ended September 30 | ||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Revenues: | ||||||||||||||||
Commercial Airplanes | $38,301 | $34,966 | $13,987 | $12,186 | ||||||||||||
Defense, Space & Security: | ||||||||||||||||
Boeing Military Aircraft | 11,541 | 11,982 | 3,543 | 3,710 | ||||||||||||
Network & Space Systems | 6,240 | 5,887 | 2,231 | 2,055 | ||||||||||||
Global Services & Support | 6,561 | 6,395 | 2,272 | 2,074 | ||||||||||||
Total Defense, Space & Security | 24,342 | 24,264 | 8,046 | 7,839 | ||||||||||||
Boeing Capital | 303 | 339 | 94 | 101 | ||||||||||||
Other segment | 80 | 79 | 26 | 27 | ||||||||||||
Unallocated items and eliminations | (188 | ) | (252 | ) | (23 | ) | (145 | ) | ||||||||
Total revenues | $62,838 | $59,396 | $22,130 | $20,008 | ||||||||||||
Earnings from operations: | ||||||||||||||||
Commercial Airplanes | $4,289 | $3,445 | $1,617 | $1,153 | ||||||||||||
Defense, Space & Security: | ||||||||||||||||
Boeing Military Aircraft | 1,024 | 1,176 | 221 | 424 | ||||||||||||
Network & Space Systems | 486 | 424 | 193 | 179 | ||||||||||||
Global Services & Support | 771 | 717 | 259 | 224 | ||||||||||||
Total Defense, Space & Security | 2,281 | 2,317 | 673 | 827 | ||||||||||||
Boeing Capital | 98 | 100 | 35 | 28 | ||||||||||||
Other segment | (57 | ) | (217 | ) | 44 | (74 | ) | |||||||||
Unallocated items and eliminations | (1,564 | ) | (979 | ) | (566 | ) | (375 | ) | ||||||||
Earnings from operations | 5,047 | 4,666 | 1,803 | 1,559 | ||||||||||||
Other income, net | 41 | 39 | 19 | 17 | ||||||||||||
Interest and debt expense | (290 | ) | (330 | ) | (95 | ) | (110 | ) | ||||||||
Earnings before income taxes | 4,798 | 4,375 | 1,727 | 1,466 | ||||||||||||
Income tax expense | (1,445 | ) | (1,450 | ) | (567 | ) | (432 | ) | ||||||||
Net earnings from continuing operations | 3,353 | 2,925 | 1,160 | 1,034 | ||||||||||||
Net loss on disposal of discontinued operations, net of taxes of $0, $2, $0 and $1 | (1 | ) | (3 | ) | (2 | ) | (2 | ) | ||||||||
Net earnings | $3,352 | $2,922 | $1,158 | $1,032 | ||||||||||||
This information is an integral part of the Notes to the Condensed Consolidated Financial Statements. See Note 18 for further segment results. |
Basis_Of_Presentation
Basis Of Presentation | 9 Months Ended |
Sep. 30, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis Of Presentation | Basis of Presentation |
The condensed consolidated interim financial statements included in this report have been prepared by management of The Boeing Company (herein referred to as “Boeing”, the “Company”, “we”, “us”, or “our”). In the opinion of management, all adjustments (consisting of normal recurring accruals) necessary for a fair presentation are reflected in the interim financial statements. The results of operations for the period ended September 30, 2013 are not necessarily indicative of the operating results for the full year. The interim financial statements should be read in conjunction with the audited Consolidated Financial Statements, including the notes thereto, included in our 2012 Annual Report on Form 10-K. Amounts reported in prior periods as Interest and debt expense have been reclassified to Boeing Capital interest expense to conform to the current period's presentation. | |
Use of Estimates | |
Management makes assumptions and estimates to prepare financial statements in conformity with accounting principles generally accepted in the United States of America. Those assumptions and estimates directly affect the amounts reported in the Condensed Consolidated Financial Statements. Significant estimates for which changes in the near term are considered reasonably possible and that may have a material impact on the financial statements are disclosed in these Notes to the Condensed Consolidated Financial Statements. | |
Contract accounting is used for development and production activities predominantly by Defense, Space & Security (BDS). Contract accounting involves a judgmental process of estimating total sales and costs for each contract resulting in the development of estimated cost of sales percentages. Changes in estimated revenues, cost of sales and the related effect on operating income are recognized using a cumulative catch-up adjustment which recognizes in the current period the cumulative effect of the changes on current and prior periods based on a contract’s percent complete. For the nine months ended September 30, 2013 and 2012, net favorable cumulative catch-up adjustments, including reach-forward losses, across all BDS contracts increased Earnings from operations by $184 and $308 and diluted earnings per share by $0.17 and $0.27. For the three months ended September 30, 2013 and 2012, net favorable cumulative catch-up adjustments, including reach-forward losses, across all BDS contracts increased Earnings from operations by $20 and $74 and diluted earnings per share by $0.02 and $0.07. |
Earnings_Per_Share
Earnings Per Share | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||
Earnings Per Share | Earnings Per Share | |||||||||||||||
Basic and diluted earnings per share are computed using the two-class method, which is an earnings allocation method that determines earnings per share for common shares and participating securities. The undistributed earnings are allocated between common shares and participating securities as if all earnings had been distributed during the period. Participating securities and common shares have equal rights to undistributed earnings. | ||||||||||||||||
Basic earnings per share is calculated by taking net earnings, 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. | ||||||||||||||||
The elements used in the computation of basic and diluted earnings per share were as follows: | ||||||||||||||||
(In millions - except per share amounts) | Nine months ended September 30 | Three months ended September 30 | ||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Net earnings | $3,352 | $2,922 | $1,158 | $1,032 | ||||||||||||
Less: earnings available to participating securities | 6 | 7 | 2 | 3 | ||||||||||||
Net earnings available to common shareholders | $3,346 | $2,915 | $1,156 | $1,029 | ||||||||||||
Basic | ||||||||||||||||
Basic weighted average shares outstanding | 762 | 756.6 | 759.4 | 759.5 | ||||||||||||
Less: participating securities | 1.9 | 2.3 | 1.8 | 2.4 | ||||||||||||
Basic weighted average common shares outstanding | 760.1 | 754.3 | 757.6 | 757.1 | ||||||||||||
Diluted | ||||||||||||||||
Basic weighted average shares outstanding | 762 | 756.6 | 759.4 | 759.5 | ||||||||||||
Dilutive potential common shares(1) | 7.8 | 5.7 | 9.7 | 5.7 | ||||||||||||
Diluted weighted average shares outstanding | 769.8 | 762.3 | 769.1 | 765.2 | ||||||||||||
Less: participating securities | 1.9 | 2.3 | 1.8 | 2.4 | ||||||||||||
Diluted weighted average common shares outstanding | 767.9 | 760 | 767.3 | 762.8 | ||||||||||||
Net earnings per share: | ||||||||||||||||
Basic | $4.40 | $3.86 | $1.53 | $1.36 | ||||||||||||
Diluted | 4.36 | 3.84 | 1.51 | 1.35 | ||||||||||||
(1) | Diluted EPS includes any dilutive impact of stock options, restricted stock units and Performance Awards. | |||||||||||||||
The shares included in the following table were not included in the computation of diluted earnings per share because the effect was antidilutive. However, these shares may be dilutive potential common shares in the future. | ||||||||||||||||
(Shares in millions) | Nine months ended September 30 | Three months ended September 30 | ||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Stock options | 6.4 | 23.2 | 25.4 | |||||||||||||
Performance Awards | 4.6 | 4.7 | 3.6 | 5 | ||||||||||||
Income_Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2013 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes |
Our effective income tax rate was 30.1% and 33.1% for the nine months ended September 30, 2013 and 2012 and 32.8% and 29.5% for the three months ended September 30, 2013 and 2012. The effective tax rate for the nine months ended September 30, 2013 is lower than the comparable prior year period primarily due to the inclusion of U.S. research and development (R&D) tax credits in 2013 which were not available in 2012. On January 2, 2013, President Obama signed into law the American Taxpayer Relief Act of 2012 that retroactively renewed the research and development tax credit for 2012 and extended the credit through December 31, 2013. As tax law changes are recognized in the period in which new legislation is enacted, the 2012 R&D credit of $145 was recorded in the first quarter of 2013. The effective tax rate for the three months ended September 30, 2013 is higher than the comparable prior year period primarily due to discrete tax adjustments, including settlement of non-US audits, during the three months ended September 30, 2012 partially offset by research and development tax credits in 2013, which were not available in 2012. | |
Federal income tax audits have been settled for all years prior to 2007. The years 2009-2010 are currently being examined by the IRS, and we have filed appeals with the IRS for tax years 2007-2008. We are also subject to examination in major state and international jurisdictions for the 2001-2012 tax years. We believe appropriate provisions for all outstanding tax issues have been made for all jurisdictions and all open years. | |
Audit outcomes and the timing of audit settlements are subject to significant uncertainty. It is reasonably possible that within the next 12 months we will resolve the matters presently under consideration for the 2007-2010 tax years with the IRS. Depending on the timing and outcome of the audit settlements, unrecognized tax benefits that affect the effective tax rate could increase earnings by up to $420 based on current estimates. | |
On September 5, 2013, the IRS issued proposed regulations that amend the definition of research and experimental (R&E) expenditures. The regulations are generally taxpayer favorable and provide clarity for the categories of expense that can be considered when computing the research credit. Upon issuance of the regulations we commenced an analysis to determine the impact to the Company’s financial statements. Such analysis is expected to be completed in the fourth quarter of 2013, as effort to apply the regulations to the Company’s R&E expenditures will be extensive. Upon completion of the analysis, we expect to record certain previously unrecognized tax benefits related to research tax credits including portions of the $420 of unrecognized tax benefits related to the 2007-2010 audit settlements described above. |
Accounts_Receivable
Accounts Receivable | 9 Months Ended |
Sep. 30, 2013 | |
Receivables [Abstract] | |
Accounts Receivable | Accounts Receivable |
Accounts receivable as of September 30, 2013, includes $112 of unbillable receivables on a long-term contract with LightSquared, LLC (LightSquared) related to the construction of two commercial satellites. One of the satellites has been delivered, and the other is substantially complete but remains in Boeing’s possession. On May 14, 2012, LightSquared filed for Chapter 11 bankruptcy protection. We believe that our rights in the second satellite and related ground-segment assets are sufficient to protect the value of our receivables in the event LightSquared fails to make payments as contractually required or rejects its contract with us. Given the uncertainties inherent in bankruptcy proceedings it is reasonably possible that we could incur losses related to these receivables in connection with the LightSquared bankruptcy. |
Inventories
Inventories | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Inventories | Inventories | |||||||
Inventories consisted of the following: | ||||||||
September 30 | December 31 | |||||||
2013 | 2012 | |||||||
Long-term contracts in progress | $13,872 | $15,130 | ||||||
Commercial aircraft programs | 47,063 | 40,389 | ||||||
Commercial spare parts, used aircraft, general stock materials and other | 7,115 | 7,206 | ||||||
Inventory before advances and progress billings | 68,050 | 62,725 | ||||||
Less advances and progress billings | (26,810 | ) | (24,974 | ) | ||||
Total | $41,240 | $37,751 | ||||||
Long-Term Contracts in Progress | ||||||||
Long-term contracts in progress includes Delta launch program inventory that is being sold at cost to United Launch Alliance (ULA) under an inventory supply agreement that terminates on March 31, 2021. At September 30, 2013 and December 31, 2012, the inventory balance, net of advances, was $425 and $725. At September 30, 2013, $390 of this inventory related to unsold launches. See Note 10. | ||||||||
Inventory balances included $237 subject to claims or other uncertainties relating to the A-12 program at September 30, 2013 and December 31, 2012. See Note 17. | ||||||||
Capitalized precontract costs of $374 and $238 at September 30, 2013 and December 31, 2012, are included in inventories. | ||||||||
Commercial Aircraft Programs | ||||||||
At September 30, 2013 and December 31, 2012, commercial aircraft programs inventory included the following amounts related to the 787 program: $26,453 and $21,289 of work in process (including deferred production costs of $20,189 and $15,929), $2,143 and $1,908 of supplier advances, and $2,862 and $2,339 of unamortized tooling and other non-recurring costs. At September 30, 2013, $14,657 of 787 deferred production costs, unamortized tooling and other non-recurring costs are expected to be recovered from units included in the program accounting quantity that have firm orders and $8,394 is expected to be recovered from units included in the program accounting quantity that represent expected future orders. | ||||||||
At September 30, 2013 and December 31, 2012, commercial aircraft programs inventory included the following amounts related to the 747 program: $1,237 and $1,292 of deferred production costs, net of previously recorded reach-forward losses, and $611 and $683 of unamortized tooling costs. At September 30, 2013, $859 of 747 deferred production costs and unamortized tooling are expected to be recovered from units included in the program accounting quantity that have firm orders and $989 is expected to be recovered from units included in the program accounting quantity that represent expected future orders. | ||||||||
Commercial aircraft programs inventory included amounts credited in cash or other consideration (early issue sales consideration) to airline customers totaling $3,502 and $2,989 at September 30, 2013 and December 31, 2012. |
Customer_Financing
Customer Financing | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Customer Financing [Abstract] | ||||||||
Customer Financing | Customer Financing | |||||||
Customer financing primarily relates to the Boeing Capital (BCC) segment and consisted of the following: | ||||||||
September 30 | December 31 | |||||||
2013 | 2012 | |||||||
Financing receivables: | ||||||||
Investment in sales-type/finance leases | $1,736 | $1,850 | ||||||
Notes | 600 | 592 | ||||||
Operating lease equipment, at cost, less accumulated depreciation of $550 and $628 | 1,936 | 2,038 | ||||||
Gross customer financing | 4,272 | 4,480 | ||||||
Less allowance for losses on receivables | (53 | ) | (60 | ) | ||||
Total | $4,219 | $4,420 | ||||||
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 September 30, 2013 and December 31, 2012, we individually evaluated for impairment customer financing receivables of $555 and $616 and determined that $418 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. | ||||||||
Rating categories | September 30 | December 31 | ||||||
2013 | 2012 | |||||||
BBB | $1,118 | $1,201 | ||||||
BB | 57 | 63 | ||||||
B | 146 | 51 | ||||||
CCC | 460 | 511 | ||||||
D | 454 | 524 | ||||||
Other | 101 | 92 | ||||||
Total carrying value of financing receivables | $2,336 | $2,442 | ||||||
At September 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 $454 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 September 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: | ||||||||
September 30 | December 31 | |||||||
2013 | 2012 | |||||||
717 Aircraft ($449 and $465 accounted for as operating leases) (1) | $1,701 | $1,781 | ||||||
757 Aircraft ($408 and $454 accounted for as operating leases) (1) | 473 | 561 | ||||||
MD-80 Aircraft (Accounted for as sales-type finance leases) (1) | 418 | 446 | ||||||
787 Aircraft (Accounted for as operating leases) | 370 | 286 | ||||||
747 Aircraft ($230 and $221 accounted for as operating leases) | 336 | 221 | ||||||
MD-11 Aircraft (Accounted for as operating leases) (1) | 257 | 269 | ||||||
737 Aircraft ($144 and $193 accounted for as operating leases) | 218 | 316 | ||||||
767 Aircraft ($62 and $63 accounted for as operating leases) | 204 | 223 | ||||||
(1) | Out-of-production aircraft. |
Investments
Investments | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Investments [Abstract] | ||||||||
Investments | Investments | |||||||
Our investments, which are recorded in Short-term and other investments or Investments, consisted of the following: | ||||||||
September 30 | December 31 | |||||||
2013 | 2012 | |||||||
Time deposits | $5,790 | $3,135 | ||||||
Pledged money market funds (1) | 46 | 56 | ||||||
Available-for-sale investments | 8 | 9 | ||||||
Equity method investments (2) | 1,127 | 1,137 | ||||||
Restricted cash (3) | 33 | 25 | ||||||
Other investments | 34 | 35 | ||||||
Total | $7,038 | $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 $163 and $60 during the nine and three months ended September 30, 2013, and $276 and $155 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. |
Other_Assets
Other Assets | 9 Months Ended |
Sep. 30, 2013 | |
Other Assets [Abstract] | |
Other Assets | Other Assets |
Sea Launch | |
At September 30, 2013 and December 31, 2012, Other assets included $356 of receivables related to our former investment in the Sea Launch venture which became payable by certain Sea Launch partners following Sea Launch’s bankruptcy filing in June 2009. The $356 includes $147 related to a payment made by us under a bank guarantee on behalf of Sea Launch and $209 related to loans (partner loans) we made to Sea Launch. The net amounts owed to Boeing by each of the partners are as follows: S.P. Koroley Rocket and Space Corporation Energia of Russia – $223, PO Yuzhnoye Mashinostroitelny Zavod of Ukraine – $89 and KB Yuzhnoye of Ukraine – $44. | |
Although each partner is contractually obligated to reimburse us for its share of the bank guarantee, the Russian and Ukrainian partners have raised defenses to enforcement and contested our claims. On October 19, 2009, we filed a Notice of Arbitration with the Stockholm Chamber of Commerce seeking reimbursement from the other Sea Launch partners of the $147 bank guarantee payment. On October 7, 2010, the arbitrator ruled that the Stockholm Chamber of Commerce lacked jurisdiction to hear the matter but did not resolve the merits of our claim. We filed a notice appealing the arbitrator’s ruling on January 11, 2011. The Ukrainian partners responded to our appeal on June 30, 2012 and the Russian partner responded on July 3, 2012. We filed replies on September 20, 2012. On February 1, 2013, we filed an action in the United States District Court for the Central District of California seeking reimbursement from the other Sea Launch partners of the $147 bank guarantee payment and the $209 partner loan obligations. We believe the partners have the financial wherewithal to pay and intend to pursue vigorously all of our rights and remedies. In the event we are unable to secure reimbursement of $147 related to our payment under the bank guarantee and $209 related to partner loans made to Sea Launch, we could incur additional pre-tax charges of up to $356. |
Commitments_And_Contingencies
Commitments And Contingencies | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||
Commitments And Contingencies | Commitments and Contingencies | |||||||
Environmental | ||||||||
The following table summarizes environmental remediation activity during the nine months ended September 30, 2013 and 2012. | ||||||||
2013 | 2012 | |||||||
Beginning balance – January 1 | $710 | $758 | ||||||
Reductions for payments made | (69 | ) | (61 | ) | ||||
Changes in estimates | 48 | 65 | ||||||
Ending balance – September 30 | $689 | $762 | ||||||
The liabilities recorded represent our best estimate or the low end of a range of reasonably possible costs expected to be incurred to remediate sites, including operation and maintenance over periods of up to 30 years. It is reasonably possible that we may incur charges that exceed these recorded amounts because of regulatory agency orders and directives, changes in laws and/or regulations, higher than expected costs and/or the discovery of new or additional contamination. As part of our estimating process, we develop a range of reasonably possible alternate scenarios which include the high end of a range of reasonably possible cost estimates for all remediation sites for which we have sufficient information based on our experience and existing laws and regulations. There are some potential remediation obligations where the costs of remediation cannot be reasonably estimated. At September 30, 2013 and December 31, 2012, the high end of the estimated range of reasonably possible remediation costs exceeded our recorded liabilities by $905 and $865. | ||||||||
Product Warranties | ||||||||
The following table summarizes product warranty activity recorded during the nine months ended September 30, 2013 and 2012. | ||||||||
2013 | 2012 | |||||||
Beginning balance – January 1 | $1,572 | $1,046 | ||||||
Additions for current year deliveries | 427 | 367 | ||||||
Reductions for payments made | (326 | ) | (244 | ) | ||||
Changes in estimates | (110 | ) | 212 | |||||
Ending balance – September 30 | $1,563 | $1,381 | ||||||
Commercial Aircraft Commitments | ||||||||
In conjunction with signing definitive agreements for the sale of new aircraft (Sale Aircraft), we have entered into trade-in commitments with certain customers that give them the right to trade in used aircraft at a specified price upon the purchase of Sale Aircraft. The probability that trade-in commitments will be exercised is determined by using both quantitative information from valuation sources and qualitative information from other sources. The probability of exercise is assessed quarterly, or as events trigger a change, and takes into consideration the current economic and airline industry environments. Trade-in commitments, which can be terminated by mutual consent with the customer, may be exercised only during the period specified in the agreement, and require advance notice by the customer. | ||||||||
Trade-in commitment agreements at September 30, 2013 have expiration dates from 2013 through 2023. At September 30, 2013, and December 31, 2012 total contractual trade-in commitments were $1,500 and $1,535. As of September 30, 2013 and December 31, 2012, we estimated that it was probable we would be obligated to perform on certain of these commitments with net amounts payable to customers totaling $227 and $108 and the fair value of the related trade-in aircraft was $227 and $108. | ||||||||
Financing Commitments | ||||||||
Financing commitments related to aircraft on order, including options and those proposed in sales campaigns, totaled $19,095 and $18,083 as of September 30, 2013 and December 31, 2012. The estimated earliest potential funding dates for these commitments as of September 30, 2013 are as follows: | ||||||||
Total | ||||||||
October through December 2013 | $264 | |||||||
2014 | 2,774 | |||||||
2015 | 3,608 | |||||||
2016 | 3,791 | |||||||
2017 | 3,062 | |||||||
Thereafter | 5,596 | |||||||
$19,095 | ||||||||
As of September 30, 2013, all of these financing commitments related to customers we believe have less than investment-grade credit. We have concluded that no reserve for future potential losses is required for these financing commitments based upon the terms, such as collateralization and interest rates, under which funding would be provided. | ||||||||
Standby Letters of Credit and Surety Bonds | ||||||||
We have entered into standby letters of credit and surety bonds with financial institutions primarily relating to the guarantee of our future performance on certain contracts. Contingent liabilities on outstanding letters of credit agreements and surety bonds aggregated approximately $4,318 and $4,545 as of September 30, 2013 and December 31, 2012. | ||||||||
Commitments to ULA | ||||||||
We and Lockheed Martin Corporation have each committed to provide ULA with up to $527 of additional capital contributions in the event ULA does not have sufficient funds to make a required payment to us under an inventory supply agreement. See Note 5. | ||||||||
C-17 | ||||||||
In September 2013, we decided to end production of C-17 aircraft in 2015 and recorded charges of $92, primarily for pension curtailment costs. We are currently producing C-17 aircraft at a rate of 10 per year and plan to continue producing at that rate through 2015. At September 30, 2013, our backlog included 8 international orders for C-17 aircraft that are scheduled for delivery through mid-2014. In addition, we believe it is probable that we will receive orders from international customers for 14 unsold aircraft that we are planning to produce in 2014 and 2015. We are currently incurring costs and have made commitments to suppliers related to the unsold aircraft. Should orders for the 14 unsold aircraft not materialize or no longer be considered probable we could incur charges to write-down inventory and/or record termination liabilities. At September 30, 2013, we had approximately $256 of capitalized precontract costs and $436 of potential termination liabilities to suppliers associated with the unsold aircraft. | ||||||||
U.S. Government Defense Budget/Sequestration | ||||||||
In August 2011, the Budget Control Act (The Act) reduced the United States defense top line budget by approximately $490 billion through 2021. The Act further reduced the defense top line budget by an additional $500 billion through 2021 if Congress did not enact $1.2 trillion in further budget reductions by January 15, 2012. Should Congress in future years provide funding above the yearly spending limits of The Act, sequestration will automatically take effect and cancel any excess amount above the limits. The annual spending limits of The Act will remain in place unless and until the current law is changed. | ||||||||
On March 1, 2013, sequestration was implemented for the U.S. government fiscal year 2013 (FY2013) and the Office of Management and Budget (OMB) issued a report to Congress listing illustrative cuts which equal a 7.8% reduction in FY2013 non-exempt defense discretionary funding and a 5.0% reduction in non-exempt nondefense discretionary funding. However, as noted in the OMB report, the effective reduction in funds would be approximately 13% for non-exempt defense programs and 9% for non-exempt nondefense programs if implemented over the seven-month period from March 1, 2013 to September 30, 2013. | ||||||||
On June 10, 2013, the United States Department of Defense (U.S. DoD) released its Report on the Joint Committee Sequestration for FY2013, which summarized the budgetary resources sequestered at the U.S. DoD's program, project and activity levels. | ||||||||
On August 20, 2013, OMB issued a Sequestration Update Report for FY2014 identifying enforcement of The Act's discretionary spending caps. Under these caps the U.S. DoD will be subject to approximately $52 billion in reductions from the totals contained in the President's FY2014 budget proposal. | ||||||||
The lack of agreement between Congress and the Administration to end sequestration, the OMB reports, and communications with the U.S. DoD indicate that there are likely to be reductions to our defense business. However, at this time we cannot determine how sequestration will impact specific programs and contracts at Boeing. Reductions, cancellations or delays impacting existing contracts or programs could have a material effect on our results of operations, financial position and/or cash flows. While U.S. DoD would sustain the bulk of sequestration cuts affecting the Company, civil programs and agencies could be significantly impacted as well. | ||||||||
BDS Fixed-Price Development Contracts | ||||||||
Fixed-price development work is inherently uncertain and subject to significant variability in estimates of the cost and time required to complete the work. BDS fixed-price contracts with significant development work include Airborne Early Warning and Control, Family of Advanced Beyond Line-of-Sight Terminals, India P-8I, Saudi Arabia F-15, USAF KC-46A Tanker and commercial and military satellites. The operational and technical complexities of these contracts create financial risk, which could trigger termination provisions, order cancellations or other financially significant exposure. Changes to cost and revenue estimates could also result in lower margins or a material charge for reach-forward losses during the next 12 months. | ||||||||
Recoverable Costs on Government Contracts | ||||||||
Our final incurred costs for each year are subject to audit and review for allowability by the U.S. government, which can result in payment demands related to costs they believe should be disallowed. We work with the U.S government to assess the merits of claims and where appropriate reserve for amounts disputed. If we are unable to satisfactorily resolve disputed costs, we could be required to record an earnings charge and/or provide refunds to the U.S. government. | ||||||||
747 and 787 Commercial Airplane Programs | ||||||||
The development and initial production of new commercial airplanes and new commercial airplane derivatives, which include the 747 and 787, entail significant commitments to customers and suppliers as well as substantial investments in working capital, infrastructure and research and development. The 747 and 787 programs have gross margins that are breakeven or near breakeven at September 30, 2013. | ||||||||
Continued weakness in the air cargo market and lower-than-expected demand for large commercial passenger aircraft have resulted in pricing pressures and fewer 747 orders than anticipated. We continue to have a number of unsold 747 production positions. If market and production risks cannot be mitigated, the program could face a reach-forward loss that may be material. | ||||||||
The cumulative impacts of production challenges, change incorporation, schedule delays and customer and supplier impacts have created significant pressure on 787 program profitability. If risks related to this program, including risks associated with planned production rate increases, or introducing the 787-9 and 787-10 derivatives as scheduled cannot be mitigated, the program could face additional customer claims and/or supplier assertions, as well as a reach-forward loss that may be material. |
Arrangements_With_OffBalance_S
Arrangements With Off-Balance Sheet Risk | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Guarantees [Abstract] | |||||||||||||||||||||
Arrangements With Off-Balance Sheet Risk | Arrangements with Off-Balance Sheet Risk | ||||||||||||||||||||
We enter into arrangements with off-balance sheet risk in the normal course of business, primarily in the form of guarantees. | |||||||||||||||||||||
The following table provides quantitative data regarding our third party guarantees. The maximum potential payments represent a “worst-case scenario,” and do not necessarily reflect amounts that we expect to pay. 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. | |||||||||||||||||||||
Maximum | Estimated Proceeds from | Carrying Amount of | |||||||||||||||||||
Potential Payments | Collateral/Recourse | Liabilities | |||||||||||||||||||
September 30 | December 31 | September 30 | December 31 | September 30 | December 31 | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||
Contingent repurchase commitments | $1,909 | $2,065 | $1,906 | $2,065 | $5 | $5 | |||||||||||||||
Indemnifications to ULA: | |||||||||||||||||||||
Contributed Delta program launch inventory | 127 | 137 | |||||||||||||||||||
Contract pricing | 261 | 261 | 7 | 7 | |||||||||||||||||
Other Delta contracts | 227 | 232 | 8 | 8 | |||||||||||||||||
Other indemnifications | 111 | 137 | 28 | 32 | |||||||||||||||||
Contingent Repurchase Commitments The repurchase price specified in contingent repurchase commitments is generally lower than the expected fair value at the specified repurchase date. Estimated proceeds from collateral/recourse in the table above represent the lower of the contracted repurchase price or the expected fair value of each aircraft at the specified repurchase date. | |||||||||||||||||||||
Indemnifications to ULA In 2006, we agreed to indemnify ULA through December 31, 2020 against potential non-recoverability and non-allowability of $1,360 of Boeing Delta launch program inventory included in contributed assets plus $1,860 of inventory subject to an inventory supply agreement which ends on March 31, 2021. Since inception, ULA has consumed $1,233 of the $1,360 of inventory that was contributed by us and has yet to consume $127. ULA has made advance payments of $1,380 to us and we have recorded revenues and cost of sales of $1,037 under the inventory supply agreement through September 30, 2013. | |||||||||||||||||||||
We agreed to indemnify ULA against potential losses that ULA may incur in the event ULA is unable to obtain certain additional contract pricing from the U.S.Air Force (USAF) for four satellite missions. We believe ULA is entitled to additional contract pricing. In December 2008, ULA submitted a claim to the USAF to re-price the contract value for two satellite missions. In March 2009, the USAF issued a denial of that claim. In June 2009, ULA filed a notice of appeal, and in October 2009, ULA filed a complaint before the Armed Services Board of Contract Appeals (ASBCA) for a contract adjustment for the price of the two satellite missions. In September 2009, the USAF exercised its option for a third satellite mission. During the third quarter of 2010, ULA submitted a claim to the USAF to re-price the contract value of the third mission. The USAF did not exercise an option for a fourth mission prior to the expiration. In March 2011, ULA filed a notice of appeal before the ASBCA, seeking to re-price the third mission. A hearing before the ASBCA has been scheduled for November 18, 2013. On March 1, 2013, the USAF filed two motions for summary judgment before the ASBCA. ULA's oppositions to these motions were filed on April 19, 2013 and USAF filed its replies to ULA's oppositions on May 10, 2013. There is no deadline for the ASBCA to rule on these motions. If ULA is unsuccessful in obtaining additional pricing, we may be responsible for a portion of the shortfall and may record up to $278 in pre-tax losses associated with the three missions, representing up to $261 for the indemnification payment and up to $17 for our portion of additional contract losses incurred by ULA. | |||||||||||||||||||||
Potential payments for Other Delta contracts include $85 related to deferred support costs. In June 2011, the Defense Contract Management Agency (DCMA) notified ULA that it had determined that $271 of deferred support costs are not recoverable under government contracts. In December 2011, the DCMA notified ULA of the potential non-recoverability of an additional $114 of deferred production costs. The DCMA has not yet issued a final decision related to the recoverability of the $114. ULA and Boeing believe that all costs are recoverable and in November 2011, ULA filed a certified claim with the USAF for collection of deferred support and production costs. The USAF issued a final decision denying ULA’s certified claim in May 2012. On June 14, 2012, Boeing and ULA filed a suit in the Court of Federal Claims seeking recovery of the deferred support and production costs from the U.S. government. On November 9, 2012, the U.S. government filed an answer to our claim and asserted a counterclaim for credits that it alleges were offset by deferred support cost invoices. We believe that the U.S. government’s counterclaim is without merit, and have filed an answer challenging it on multiple grounds. The litigation proceeds, with no trial date having yet been set. If, contrary to our belief, it is determined that some or all of the deferred support or production costs are not recoverable, we could be required to record pre-tax losses and make indemnification payments to ULA for up to $317 of the costs questioned by the DCMA. | |||||||||||||||||||||
Other Indemnifications As part of the 2004 sale agreement with General Electric Capital Corporation related to the sale of Boeing Capital’s (BCC) Commercial Financial Services business, BCC is involved in a loss sharing arrangement for losses on transferred portfolio assets, such as asset sales, provisions for loss or asset impairment charges offset by gains from asset sales. At September 30, 2013 and December 31, 2012, our maximum future cash exposure to losses associated with the loss sharing arrangement was $111 and $137 and our accrued liability under the loss sharing arrangement was $28 and $32. | |||||||||||||||||||||
In conjunction with our sales of Electron Dynamic Devices, Inc. and Rocketdyne Propulsion and Power businesses and our Commercial Airplanes facilities in Wichita, Kansas and Tulsa and McAlester, Oklahoma, we agreed to indemnify, for an indefinite period, the buyers for costs relating to pre-closing environmental conditions and certain other items. It is impossible to assess the potential number of future claims that may be asserted under these indemnifications, nor the amounts thereof (if any). As a result, we cannot estimate the maximum potential amount of future payments under these indemnities and therefore, no liability has been recorded. To the extent that claims have been made under these indemnities and/or are probable and reasonably estimable, liabilities associated with these indemnities are included in the environmental liability disclosure in Note 9. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2013 | |
Debt Disclosure [Abstract] | |
Debt | Debt |
On May 3, 2013, we issued $350 of fixed rate senior notes due May 15, 2018 (Fixed Rate Senior Notes) and $150 of floating rate senior notes due November 3, 2014 (Floating Rate Senior Notes). The Fixed Rate Senior Notes bear an annual interest rate of 0.95%, and may be redeemed at our option at any time for a redemption price equal to the full principal amount plus any accrued and unpaid interest and a make-whole premium. The Floating Rate Senior Notes bear an annual interest rate of three-month LIBOR plus one basis point, and are not redeemable prior to maturity. The notes are unsecured senior obligations and rank equally in right of payment with our existing and future unsecured and unsubordinated indebtedness. The net proceeds of the issuance totaling $494, after deducting underwriting discounts, commissions and offering expenses, were used to fund Boeing Capital Corporation. |
Postretirement_Plans
Postretirement Plans | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ||||||||||||||||
Postretirement Plans | Postretirement Plans | |||||||||||||||
The components of net periodic benefit cost were as follows: | ||||||||||||||||
Nine months ended September 30 | Three months ended September 30 | |||||||||||||||
Pension Plans | 2013 | 2012 | 2013 | 2012 | ||||||||||||
Service cost | $1,414 | $1,233 | $468 | $411 | ||||||||||||
Interest cost | 2,175 | 2,253 | 713 | 751 | ||||||||||||
Expected return on plan assets | (2,907 | ) | (2,874 | ) | (969 | ) | (958 | ) | ||||||||
Amortization of prior service costs | 150 | 168 | 52 | 56 | ||||||||||||
Recognized net actuarial loss | 1,668 | 1,452 | 530 | 484 | ||||||||||||
Settlement and curtailment loss | 104 | 10 | 84 | |||||||||||||
Net periodic benefit cost | $2,604 | $2,242 | $878 | $744 | ||||||||||||
Net periodic benefit cost included in Earnings from operations | $2,319 | $1,831 | $775 | $583 | ||||||||||||
Nine months ended September 30 | Three months ended September 30 | |||||||||||||||
Other Postretirement Benefit Plans | 2013 | 2012 | 2013 | 2012 | ||||||||||||
Service cost | $111 | $108 | $37 | $36 | ||||||||||||
Interest cost | 198 | 237 | 65 | 79 | ||||||||||||
Expected return on plan assets | (5 | ) | (6 | ) | (1 | ) | (2 | ) | ||||||||
Amortization of prior service costs | (135 | ) | (147 | ) | (45 | ) | (49 | ) | ||||||||
Recognized net actuarial loss | 72 | 90 | 24 | 30 | ||||||||||||
Settlement and curtailment gain | (2 | ) | ||||||||||||||
Net periodic benefit cost | $241 | $280 | $80 | $94 | ||||||||||||
Net periodic benefit cost included in Earnings from operations | $269 | $414 | $90 | $132 | ||||||||||||
During each of the nine-month periods ended September 30, 2013 and 2012, we made discretionary pension contributions of $1,513. |
ShareBased_Compensation_And_Ot
Share-Based Compensation And Other Compensation Arrangements | 9 Months Ended |
Sep. 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 $276. |
Shareholders_Equity
Shareholders' Equity | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Equity [Abstract] | ||||||||||||||||||||
Shareholders' Equity | Shareholders' Equity | |||||||||||||||||||
Accumulated Other Comprehensive Loss | ||||||||||||||||||||
Changes in Accumulated other comprehensive loss (AOCI) by component for the nine and three months ended September 30, 2013 were as follows: | ||||||||||||||||||||
Currency Translation Adjustments | Unrealized Gains and Losses on Certain Investments | Unrealized Gains and Losses on Derivative Instruments | Defined Benefit Pension Plans & Other Postretirement Benefits | Total (1) | ||||||||||||||||
Balance January 1, 2013 | $214 | ($8 | ) | $86 | ($17,708 | ) | ($17,416 | ) | ||||||||||||
OCI before reclassifications | (46 | ) | (54 | ) | 135 | 35 | ||||||||||||||
Amounts reclassified from AOCI | (13 | ) | 1,207 | (2) | 1,194 | |||||||||||||||
Net current period OCI | (46 | ) | (67 | ) | 1,342 | 1,229 | ||||||||||||||
Balance September 30, 2013 | $168 | ($8 | ) | $19 | ($16,366 | ) | ($16,187 | ) | ||||||||||||
Balance June 30, 2013 | $126 | ($8 | ) | ($6 | ) | ($16,906 | ) | ($16,794 | ) | |||||||||||
OCI before reclassifications | 42 | 35 | 102 | 179 | ||||||||||||||||
Amounts reclassified from AOCI | (10 | ) | 438 | (2) | 428 | |||||||||||||||
Net current period OCI | 42 | 25 | 540 | 607 | ||||||||||||||||
Balance September 30, 2013 | $168 | ($8 | ) | $19 | ($16,366 | ) | ($16,187 | ) | ||||||||||||
(1) | Net of tax. | |||||||||||||||||||
(2) | Primarily relates to amortization of actuarial gains/losses for the nine and three months ended September 30, 2013 totaling $1,135 and $380 (net of tax of $644 and $213) which is included in the net periodic pension cost of which a portion is allocated to production as inventoried costs. |
Derivative_Financial_Instrumen
Derivative Financial Instruments | 9 Months Ended | ||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||
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: | |||||||||||||||||||
Notional amounts (1) | Other assets | Accrued liabilities | |||||||||||||||||
September 30 | December 31 | September 30 | December 31 | September 30 | December 31 | ||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||||
Foreign exchange contracts | $2,309 | $2,310 | $134 | $202 | ($41 | ) | ($16 | ) | |||||||||||
Interest rate contracts | 313 | 388 | 16 | 26 | |||||||||||||||
Commodity contracts | 59 | 99 | (52 | ) | (71 | ) | |||||||||||||
Derivatives not receiving hedge accounting treatment: | |||||||||||||||||||
Foreign exchange contracts | 342 | 412 | 21 | 3 | (35 | ) | (42 | ) | |||||||||||
Commodity contracts | 10 | 15 | (6 | ) | (8 | ) | |||||||||||||
Total derivatives | 3,033 | 3,224 | 171 | 231 | (134 | ) | (137 | ) | |||||||||||
Netting arrangements | (51 | ) | (53 | ) | 51 | 53 | |||||||||||||
Net recorded balance | $120 | $178 | ($83 | ) | ($84 | ) | |||||||||||||
(1) | Notional amounts represent the gross contract/notional amount of the derivatives outstanding. | ||||||||||||||||||
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: | |||||||||||||||||||
Nine months ended September 30 | Three months ended September 30 | ||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||
Effective portion recognized in Other comprehensive income/(loss), net of taxes: | |||||||||||||||||||
Foreign exchange contracts | ($51 | ) | $35 | $36 | $36 | ||||||||||||||
Commodity contracts | (3 | ) | (10 | ) | (1 | ) | 1 | ||||||||||||
Effective portion reclassified out of Accumulated other comprehensive loss into earnings, net of taxes: | |||||||||||||||||||
Foreign exchange contracts | 28 | 18 | 14 | 8 | |||||||||||||||
Commodity contracts | (15 | ) | (26 | ) | (4 | ) | (8 | ) | |||||||||||
Forward points recognized in Other income/(expense), net: | |||||||||||||||||||
Foreign exchange contracts | 24 | 16 | 2 | 4 | |||||||||||||||
Undesignated derivatives recognized in Other income/(expense), net: | |||||||||||||||||||
Foreign exchange contracts | 13 | (11 | ) | (1 | ) | (1 | ) | ||||||||||||
Based on our portfolio of cash flow hedges, we expect to reclassify gains of $4 (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 nine and three months ended September 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 September 30, 2013 was $10. At September 30, 2013, there was no collateral posted related to our derivatives. |
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | |||||||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||
Fair Value Measurements | 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. | ||||||||||||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Money market funds | $4,744 | $4,744 | $4,534 | $4,534 | ||||||||||||||||||||||||||||
Available-for-sale investments | 8 | 6 | $2 | 9 | 6 | $3 | ||||||||||||||||||||||||||
Derivatives | 120 | $120 | 178 | $178 | ||||||||||||||||||||||||||||
Total assets | $4,872 | $4,750 | $120 | $2 | $4,721 | $4,540 | $178 | $3 | ||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
Derivatives | ($83 | ) | ($83 | ) | ($84 | ) | ($84 | ) | ||||||||||||||||||||||||
Total liabilities | ($83 | ) | ($83 | ) | ($84 | ) | ($84 | ) | ||||||||||||||||||||||||
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 nine months ended September 30 and the fair value and asset classification of the related assets as of the impairment date: | ||||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||
Fair | Total | Fair | Total | |||||||||||||||||||||||||||||
Value | Losses | Value | Losses | |||||||||||||||||||||||||||||
Operating lease equipment | $28 | ($21 | ) | $25 | ($31 | ) | ||||||||||||||||||||||||||
Property, plant and equipment | 39 | (12 | ) | 19 | (21 | ) | ||||||||||||||||||||||||||
Total | $67 | ($33 | ) | $44 | ($52 | ) | ||||||||||||||||||||||||||
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 nine months ended September 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 | Valuation | Unobservable Input | Range | |||||||||||||||||||||||||||||
Value | Technique(s) | 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. | |||||||||||||||||||||||||||||||
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: | ||||||||||||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||||||||||
Carrying | Total Fair | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||
Amount | Value | |||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Accounts receivable, net | $6,652 | $6,633 | $6,633 | |||||||||||||||||||||||||||||
Notes receivable, net | 582 | 633 | 633 | |||||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
Debt, excluding capital lease obligations | (9,448 | ) | (10,855 | ) | (10,811 | ) | ($44 | ) | ||||||||||||||||||||||||
31-Dec-12 | ||||||||||||||||||||||||||||||||
Carrying | Total Fair | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||
Amount | Value | |||||||||||||||||||||||||||||||
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 | ) | ||||||||||||||||||||||||
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 September 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). |
Legal_Proceedings
Legal Proceedings | 9 Months Ended |
Sep. 30, 2013 | |
Legal Proceedings [Abstract] | |
Legal Proceedings | 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 in the past. 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 September 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. On July 30, 2013, the Team and the Navy executed a settlement agreement that would take effect if the authorizing legislation is enacted on or prior to May 31, 2014. If this legislation is enacted and the litigation is settled pursuant to the terms of the settlement agreement, we would 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 September 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 $1,600). In that event, our loss would total approximately $1,748 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 $1,193, 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 September 30, 2013, eighty-eight individual claims related to this matter were pending. 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 conducting 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. On September 19, 2013, the district court granted plaintiffs’ motion for class certification. On October 3, 2013, Boeing filed a petition for review of the class certification order with the Seventh Circuit Court of Appeals. We cannot reasonably estimate the range of loss, if any, that may result from this matter given the current procedural status of the litigation. |
Segment_Information
Segment Information | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||
Segment Information | Segment Information | |||||||||||||||
Effective January 1, 2013, certain programs were realigned among BDS segments. Business segment data for all periods presented have been adjusted to reflect the realignment. Effective January 1, 2013, BCC's accounting policies for certain leasing transactions were aligned with Boeing's consolidated accounting policies. Segment information previously reported has been adjusted to reflect this change. The resulting adjustments affected the BCC and Other segments as well as consolidated amounts reported for Boeing Capital interest expense, Earnings from operations, and Interest and debt expense. | ||||||||||||||||
Our primary profitability measurements to review a segment’s operating results are Earnings from operations and operating margins. See page 6 for a Summary of Business Segment Data, which is an integral part of this note. | ||||||||||||||||
Intersegment revenues, eliminated in Unallocated items and eliminations, are shown in the following table. | ||||||||||||||||
Nine months ended September 30 | Three months ended September 30 | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Commercial Airplanes | $752 | $624 | $189 | $280 | ||||||||||||
Boeing Capital | 22 | 38 | 5 | 11 | ||||||||||||
Total | $774 | $662 | $194 | $291 | ||||||||||||
Other segment's Loss from operations related to support provided to BCC was $40 and $10 during the nine and three months ended September 30, 2013 and $77 and $15 for the same periods in the prior year. | ||||||||||||||||
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. | ||||||||||||||||
Nine months ended September 30 | Three months ended September 30 | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Share-based plans | ($74 | ) | ($64 | ) | ($21 | ) | ($23 | ) | ||||||||
Deferred compensation | (165 | ) | (49 | ) | (63 | ) | (15 | ) | ||||||||
Capitalized interest | (52 | ) | (53 | ) | (18 | ) | (16 | ) | ||||||||
Eliminations and other | (282 | ) | (126 | ) | (124 | ) | (87 | ) | ||||||||
Sub-total | (573 | ) | (292 | ) | (226 | ) | (141 | ) | ||||||||
Pension | (1,045 | ) | (608 | ) | (356 | ) | (204 | ) | ||||||||
Postretirement | 54 | (79 | ) | 16 | (30 | ) | ||||||||||
Pension and Postretirement | (991 | ) | (687 | ) | (340 | ) | (234 | ) | ||||||||
Total | ($1,564 | ) | ($979 | ) | ($566 | ) | ($375 | ) | ||||||||
Segment assets are summarized in the table below: | ||||||||||||||||
September 30 | December 31 | |||||||||||||||
2013 | 2012 | |||||||||||||||
Commercial Airplanes | $47,851 | $41,769 | ||||||||||||||
Defense, Space & Security: | ||||||||||||||||
Boeing Military Aircraft | 6,637 | 6,582 | ||||||||||||||
Network & Space Systems | 6,220 | 6,669 | ||||||||||||||
Global Services & Support | 3,951 | 3,692 | ||||||||||||||
Total Defense, Space & Security | 16,808 | 16,943 | ||||||||||||||
Boeing Capital | 4,113 | 4,347 | ||||||||||||||
Other segment | 1,331 | 1,043 | ||||||||||||||
Unallocated items and eliminations | 24,530 | 24,794 | ||||||||||||||
Total | $94,633 | $88,896 | ||||||||||||||
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. |
Basis_Of_Presentation_Policy
Basis Of Presentation (Policy) | 9 Months Ended |
Sep. 30, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Use Of Estimates | Use of Estimates |
Management makes assumptions and estimates to prepare financial statements in conformity with accounting principles generally accepted in the United States of America. Those assumptions and estimates directly affect the amounts reported in the Condensed Consolidated Financial Statements. Significant estimates for which changes in the near term are considered reasonably possible and that may have a material impact on the financial statements are disclosed in these Notes to the Condensed Consolidated Financial Statements. | |
Contract accounting is used for development and production activities predominantly by Defense, Space & Security (BDS). Contract accounting involves a judgmental process of estimating total sales and costs for each contract resulting in the development of estimated cost of sales percentages. Changes in estimated revenues, cost of sales and the related effect on operating income are recognized using a cumulative catch-up adjustment which recognizes in the current period the cumulative effect of the changes on current and prior periods based on a contract’s percent complete. |
Earnings_Per_Share_Policy
Earnings Per Share (Policy) | 9 Months Ended |
Sep. 30, 2013 | |
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. |
Commitments_And_Contingencies_
Commitments And Contingencies Commitments and Contingencies (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | |
Environmental | The liabilities recorded represent our best estimate or the low end of a range of reasonably possible costs expected to be incurred to remediate sites, including operation and maintenance over periods of up to 30 years. It is reasonably possible that we may incur charges that exceed these recorded amounts because of regulatory agency orders and directives, changes in laws and/or regulations, higher than expected costs and/or the discovery of new or additional contamination. As part of our estimating process, we develop a range of reasonably possible alternate scenarios which include the high end of a range of reasonably possible cost estimates for all remediation sites for which we have sufficient information based on our experience and existing laws and regulations. There are some potential remediation obligations where the costs of remediation cannot be reasonably estimated. |
Summary_Of_Business_Segment_Da1
Summary Of Business Segment Data Summary of Business Segment Data (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | ||||||||||||||||
Schedule of Segment Reporting Information, by Segment [Table Text Block] | ||||||||||||||||
(Dollars in millions) | Nine months ended September 30 | Three months ended September 30 | ||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Revenues: | ||||||||||||||||
Commercial Airplanes | $38,301 | $34,966 | $13,987 | $12,186 | ||||||||||||
Defense, Space & Security: | ||||||||||||||||
Boeing Military Aircraft | 11,541 | 11,982 | 3,543 | 3,710 | ||||||||||||
Network & Space Systems | 6,240 | 5,887 | 2,231 | 2,055 | ||||||||||||
Global Services & Support | 6,561 | 6,395 | 2,272 | 2,074 | ||||||||||||
Total Defense, Space & Security | 24,342 | 24,264 | 8,046 | 7,839 | ||||||||||||
Boeing Capital | 303 | 339 | 94 | 101 | ||||||||||||
Other segment | 80 | 79 | 26 | 27 | ||||||||||||
Unallocated items and eliminations | (188 | ) | (252 | ) | (23 | ) | (145 | ) | ||||||||
Total revenues | $62,838 | $59,396 | $22,130 | $20,008 | ||||||||||||
Earnings from operations: | ||||||||||||||||
Commercial Airplanes | $4,289 | $3,445 | $1,617 | $1,153 | ||||||||||||
Defense, Space & Security: | ||||||||||||||||
Boeing Military Aircraft | 1,024 | 1,176 | 221 | 424 | ||||||||||||
Network & Space Systems | 486 | 424 | 193 | 179 | ||||||||||||
Global Services & Support | 771 | 717 | 259 | 224 | ||||||||||||
Total Defense, Space & Security | 2,281 | 2,317 | 673 | 827 | ||||||||||||
Boeing Capital | 98 | 100 | 35 | 28 | ||||||||||||
Other segment | (57 | ) | (217 | ) | 44 | (74 | ) | |||||||||
Unallocated items and eliminations | (1,564 | ) | (979 | ) | (566 | ) | (375 | ) | ||||||||
Earnings from operations | 5,047 | 4,666 | 1,803 | 1,559 | ||||||||||||
Other income, net | 41 | 39 | 19 | 17 | ||||||||||||
Interest and debt expense | (290 | ) | (330 | ) | (95 | ) | (110 | ) | ||||||||
Earnings before income taxes | 4,798 | 4,375 | 1,727 | 1,466 | ||||||||||||
Income tax expense | (1,445 | ) | (1,450 | ) | (567 | ) | (432 | ) | ||||||||
Net earnings from continuing operations | 3,353 | 2,925 | 1,160 | 1,034 | ||||||||||||
Net loss on disposal of discontinued operations, net of taxes of $0, $2, $0 and $1 | (1 | ) | (3 | ) | (2 | ) | (2 | ) | ||||||||
Net earnings | $3,352 | $2,922 | $1,158 | $1,032 | ||||||||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||
Schedule Of Weighted-Average Number Of Shares Outstanding Used To Compute Earnings Per Share | The elements used in the computation of basic and diluted earnings per share were as follows: | |||||||||||||||
(In millions - except per share amounts) | Nine months ended September 30 | Three months ended September 30 | ||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Net earnings | $3,352 | $2,922 | $1,158 | $1,032 | ||||||||||||
Less: earnings available to participating securities | 6 | 7 | 2 | 3 | ||||||||||||
Net earnings available to common shareholders | $3,346 | $2,915 | $1,156 | $1,029 | ||||||||||||
Basic | ||||||||||||||||
Basic weighted average shares outstanding | 762 | 756.6 | 759.4 | 759.5 | ||||||||||||
Less: participating securities | 1.9 | 2.3 | 1.8 | 2.4 | ||||||||||||
Basic weighted average common shares outstanding | 760.1 | 754.3 | 757.6 | 757.1 | ||||||||||||
Diluted | ||||||||||||||||
Basic weighted average shares outstanding | 762 | 756.6 | 759.4 | 759.5 | ||||||||||||
Dilutive potential common shares(1) | 7.8 | 5.7 | 9.7 | 5.7 | ||||||||||||
Diluted weighted average shares outstanding | 769.8 | 762.3 | 769.1 | 765.2 | ||||||||||||
Less: participating securities | 1.9 | 2.3 | 1.8 | 2.4 | ||||||||||||
Diluted weighted average common shares outstanding | 767.9 | 760 | 767.3 | 762.8 | ||||||||||||
Net earnings per share: | ||||||||||||||||
Basic | $4.40 | $3.86 | $1.53 | $1.36 | ||||||||||||
Diluted | 4.36 | 3.84 | 1.51 | 1.35 | ||||||||||||
Schedule Of Weighted Average Number Of Shares Outstanding Excluded From The Computation Of Diluted Earnings Per Share | The shares included in the following table were not included in the computation of diluted earnings per share because the effect was antidilutive. However, these shares may be dilutive potential common shares in the future. | |||||||||||||||
(Shares in millions) | Nine months ended September 30 | Three months ended September 30 | ||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Stock options | 6.4 | 23.2 | 25.4 | |||||||||||||
Performance Awards | 4.6 | 4.7 | 3.6 | 5 | ||||||||||||
Inventories_Tables
Inventories (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Schedule of Inventory, Current | Inventories consisted of the following: | |||||||
September 30 | December 31 | |||||||
2013 | 2012 | |||||||
Long-term contracts in progress | $13,872 | $15,130 | ||||||
Commercial aircraft programs | 47,063 | 40,389 | ||||||
Commercial spare parts, used aircraft, general stock materials and other | 7,115 | 7,206 | ||||||
Inventory before advances and progress billings | 68,050 | 62,725 | ||||||
Less advances and progress billings | (26,810 | ) | (24,974 | ) | ||||
Total | $41,240 | $37,751 | ||||||
Customer_Financing_Tables
Customer Financing (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Customer Financing [Abstract] | ||||||||
Schedule Of Customer Financing | Customer financing primarily relates to the Boeing Capital (BCC) segment and consisted of the following: | |||||||
September 30 | December 31 | |||||||
2013 | 2012 | |||||||
Financing receivables: | ||||||||
Investment in sales-type/finance leases | $1,736 | $1,850 | ||||||
Notes | 600 | 592 | ||||||
Operating lease equipment, at cost, less accumulated depreciation of $550 and $628 | 1,936 | 2,038 | ||||||
Gross customer financing | 4,272 | 4,480 | ||||||
Less allowance for losses on receivables | (53 | ) | (60 | ) | ||||
Total | $4,219 | $4,420 | ||||||
Financing Receivable Credit Quality Indicators | Our financing receivable balances by internal credit rating category are shown below. | |||||||
Rating categories | September 30 | December 31 | ||||||
2013 | 2012 | |||||||
BBB | $1,118 | $1,201 | ||||||
BB | 57 | 63 | ||||||
B | 146 | 51 | ||||||
CCC | 460 | 511 | ||||||
D | 454 | 524 | ||||||
Other | 101 | 92 | ||||||
Total carrying value of financing receivables | $2,336 | $2,442 | ||||||
Schedule Of Customer Financing Carrying Values Related To Major Aircraft Concentrations | 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: | |||||||
September 30 | December 31 | |||||||
2013 | 2012 | |||||||
717 Aircraft ($449 and $465 accounted for as operating leases) (1) | $1,701 | $1,781 | ||||||
757 Aircraft ($408 and $454 accounted for as operating leases) (1) | 473 | 561 | ||||||
MD-80 Aircraft (Accounted for as sales-type finance leases) (1) | 418 | 446 | ||||||
787 Aircraft (Accounted for as operating leases) | 370 | 286 | ||||||
747 Aircraft ($230 and $221 accounted for as operating leases) | 336 | 221 | ||||||
MD-11 Aircraft (Accounted for as operating leases) (1) | 257 | 269 | ||||||
737 Aircraft ($144 and $193 accounted for as operating leases) | 218 | 316 | ||||||
767 Aircraft ($62 and $63 accounted for as operating leases) | 204 | 223 | ||||||
(1) | Out-of-production aircraft. |
Investments_Tables
Investments (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Investments [Abstract] | ||||||||
Schedule Of Investments | Our investments, which are recorded in Short-term and other investments or Investments, consisted of the following: | |||||||
September 30 | December 31 | |||||||
2013 | 2012 | |||||||
Time deposits | $5,790 | $3,135 | ||||||
Pledged money market funds (1) | 46 | 56 | ||||||
Available-for-sale investments | 8 | 9 | ||||||
Equity method investments (2) | 1,127 | 1,137 | ||||||
Restricted cash (3) | 33 | 25 | ||||||
Other investments | 34 | 35 | ||||||
Total | $7,038 | $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 $163 and $60 during the nine and three months ended September 30, 2013, and $276 and $155 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. |
Commitments_And_Contingencies_1
Commitments And Contingencies (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||
Environmental | The following table summarizes environmental remediation activity during the nine months ended September 30, 2013 and 2012. | |||||||
2013 | 2012 | |||||||
Beginning balance – January 1 | $710 | $758 | ||||||
Reductions for payments made | (69 | ) | (61 | ) | ||||
Changes in estimates | 48 | 65 | ||||||
Ending balance – September 30 | $689 | $762 | ||||||
Product Warranties | The following table summarizes product warranty activity recorded during the nine months ended September 30, 2013 and 2012. | |||||||
2013 | 2012 | |||||||
Beginning balance – January 1 | $1,572 | $1,046 | ||||||
Additions for current year deliveries | 427 | 367 | ||||||
Reductions for payments made | (326 | ) | (244 | ) | ||||
Changes in estimates | (110 | ) | 212 | |||||
Ending balance – September 30 | $1,563 | $1,381 | ||||||
Financing Commitments | Financing commitments related to aircraft on order, including options and those proposed in sales campaigns, totaled $19,095 and $18,083 as of September 30, 2013 and December 31, 2012. The estimated earliest potential funding dates for these commitments as of September 30, 2013 are as follows: | |||||||
Total | ||||||||
October through December 2013 | $264 | |||||||
2014 | 2,774 | |||||||
2015 | 3,608 | |||||||
2016 | 3,791 | |||||||
2017 | 3,062 | |||||||
Thereafter | 5,596 | |||||||
$19,095 | ||||||||
Arrangements_With_OffBalance_S1
Arrangements With Off-Balance Sheet Risk (Tables) | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Guarantees [Abstract] | |||||||||||||||||||||
Third Party Guarantees | The following table provides quantitative data regarding our third party guarantees. The maximum potential payments represent a “worst-case scenario,” and do not necessarily reflect amounts that we expect to pay. 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. | ||||||||||||||||||||
Maximum | Estimated Proceeds from | Carrying Amount of | |||||||||||||||||||
Potential Payments | Collateral/Recourse | Liabilities | |||||||||||||||||||
September 30 | December 31 | September 30 | December 31 | September 30 | December 31 | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||
Contingent repurchase commitments | $1,909 | $2,065 | $1,906 | $2,065 | $5 | $5 | |||||||||||||||
Indemnifications to ULA: | |||||||||||||||||||||
Contributed Delta program launch inventory | 127 | 137 | |||||||||||||||||||
Contract pricing | 261 | 261 | 7 | 7 | |||||||||||||||||
Other Delta contracts | 227 | 232 | 8 | 8 | |||||||||||||||||
Other indemnifications | 111 | 137 | 28 | 32 | |||||||||||||||||
Postretirement_Plans_Tables
Postretirement Plans (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Pension Plans, Defined Benefit [Member] | ||||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans [Abstract] | ||||||||||||||||
Net Periodic Benefit Cost | The components of net periodic benefit cost were as follows: | |||||||||||||||
Nine months ended September 30 | Three months ended September 30 | |||||||||||||||
Pension Plans | 2013 | 2012 | 2013 | 2012 | ||||||||||||
Service cost | $1,414 | $1,233 | $468 | $411 | ||||||||||||
Interest cost | 2,175 | 2,253 | 713 | 751 | ||||||||||||
Expected return on plan assets | (2,907 | ) | (2,874 | ) | (969 | ) | (958 | ) | ||||||||
Amortization of prior service costs | 150 | 168 | 52 | 56 | ||||||||||||
Recognized net actuarial loss | 1,668 | 1,452 | 530 | 484 | ||||||||||||
Settlement and curtailment loss | 104 | 10 | 84 | |||||||||||||
Net periodic benefit cost | $2,604 | $2,242 | $878 | $744 | ||||||||||||
Net periodic benefit cost included in Earnings from operations | $2,319 | $1,831 | $775 | $583 | ||||||||||||
Other Postretirement Benefit Plans [Member] | ||||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans [Abstract] | ||||||||||||||||
Net Periodic Benefit Cost | ||||||||||||||||
Nine months ended September 30 | Three months ended September 30 | |||||||||||||||
Other Postretirement Benefit Plans | 2013 | 2012 | 2013 | 2012 | ||||||||||||
Service cost | $111 | $108 | $37 | $36 | ||||||||||||
Interest cost | 198 | 237 | 65 | 79 | ||||||||||||
Expected return on plan assets | (5 | ) | (6 | ) | (1 | ) | (2 | ) | ||||||||
Amortization of prior service costs | (135 | ) | (147 | ) | (45 | ) | (49 | ) | ||||||||
Recognized net actuarial loss | 72 | 90 | 24 | 30 | ||||||||||||
Settlement and curtailment gain | (2 | ) | ||||||||||||||
Net periodic benefit cost | $241 | $280 | $80 | $94 | ||||||||||||
Net periodic benefit cost included in Earnings from operations | $269 | $414 | $90 | $132 | ||||||||||||
Shareholders_Equity_Tables
Shareholders' Equity (Tables) | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Equity [Abstract] | ||||||||||||||||||||
Accumulated other comprehensive income | Changes in Accumulated other comprehensive loss (AOCI) by component for the nine and three months ended September 30, 2013 were as follows: | |||||||||||||||||||
Currency Translation Adjustments | Unrealized Gains and Losses on Certain Investments | Unrealized Gains and Losses on Derivative Instruments | Defined Benefit Pension Plans & Other Postretirement Benefits | Total (1) | ||||||||||||||||
Balance January 1, 2013 | $214 | ($8 | ) | $86 | ($17,708 | ) | ($17,416 | ) | ||||||||||||
OCI before reclassifications | (46 | ) | (54 | ) | 135 | 35 | ||||||||||||||
Amounts reclassified from AOCI | (13 | ) | 1,207 | (2) | 1,194 | |||||||||||||||
Net current period OCI | (46 | ) | (67 | ) | 1,342 | 1,229 | ||||||||||||||
Balance September 30, 2013 | $168 | ($8 | ) | $19 | ($16,366 | ) | ($16,187 | ) | ||||||||||||
Balance June 30, 2013 | $126 | ($8 | ) | ($6 | ) | ($16,906 | ) | ($16,794 | ) | |||||||||||
OCI before reclassifications | 42 | 35 | 102 | 179 | ||||||||||||||||
Amounts reclassified from AOCI | (10 | ) | 438 | (2) | 428 | |||||||||||||||
Net current period OCI | 42 | 25 | 540 | 607 | ||||||||||||||||
Balance September 30, 2013 | $168 | ($8 | ) | $19 | ($16,366 | ) | ($16,187 | ) | ||||||||||||
(1) | Net of tax. | |||||||||||||||||||
(2) | Primarily relates to amortization of actuarial gains/losses for the nine and three months ended September 30, 2013 totaling $1,135 and $380 (net of tax of $644 and $213) which is included in the net periodic pension cost of which a portion is allocated to production as inventoried costs. |
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 9 Months Ended | ||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||
Schedule of Derivative Instruments, 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: | ||||||||||||||||||
Notional amounts (1) | Other assets | Accrued liabilities | |||||||||||||||||
September 30 | December 31 | September 30 | December 31 | September 30 | December 31 | ||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||||
Foreign exchange contracts | $2,309 | $2,310 | $134 | $202 | ($41 | ) | ($16 | ) | |||||||||||
Interest rate contracts | 313 | 388 | 16 | 26 | |||||||||||||||
Commodity contracts | 59 | 99 | (52 | ) | (71 | ) | |||||||||||||
Derivatives not receiving hedge accounting treatment: | |||||||||||||||||||
Foreign exchange contracts | 342 | 412 | 21 | 3 | (35 | ) | (42 | ) | |||||||||||
Commodity contracts | 10 | 15 | (6 | ) | (8 | ) | |||||||||||||
Total derivatives | 3,033 | 3,224 | 171 | 231 | (134 | ) | (137 | ) | |||||||||||
Netting arrangements | (51 | ) | (53 | ) | 51 | 53 | |||||||||||||
Net recorded balance | $120 | $178 | ($83 | ) | ($84 | ) | |||||||||||||
(1) | Notional amounts represent the gross contract/notional amount of the derivatives outstanding. | ||||||||||||||||||
Schedule Of Derivative Instruments, Gains/(Losses) | 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: | ||||||||||||||||||
Nine months ended September 30 | Three months ended September 30 | ||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||
Effective portion recognized in Other comprehensive income/(loss), net of taxes: | |||||||||||||||||||
Foreign exchange contracts | ($51 | ) | $35 | $36 | $36 | ||||||||||||||
Commodity contracts | (3 | ) | (10 | ) | (1 | ) | 1 | ||||||||||||
Effective portion reclassified out of Accumulated other comprehensive loss into earnings, net of taxes: | |||||||||||||||||||
Foreign exchange contracts | 28 | 18 | 14 | 8 | |||||||||||||||
Commodity contracts | (15 | ) | (26 | ) | (4 | ) | (8 | ) | |||||||||||
Forward points recognized in Other income/(expense), net: | |||||||||||||||||||
Foreign exchange contracts | 24 | 16 | 2 | 4 | |||||||||||||||
Undesignated derivatives recognized in Other income/(expense), net: | |||||||||||||||||||
Foreign exchange contracts | 13 | (11 | ) | (1 | ) | (1 | ) | ||||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | |||||||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||
Fair Value, Assets And Liabilities Measured On Recurring Basis | 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. | |||||||||||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Money market funds | $4,744 | $4,744 | $4,534 | $4,534 | ||||||||||||||||||||||||||||
Available-for-sale investments | 8 | 6 | $2 | 9 | 6 | $3 | ||||||||||||||||||||||||||
Derivatives | 120 | $120 | 178 | $178 | ||||||||||||||||||||||||||||
Total assets | $4,872 | $4,750 | $120 | $2 | $4,721 | $4,540 | $178 | $3 | ||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
Derivatives | ($83 | ) | ($83 | ) | ($84 | ) | ($84 | ) | ||||||||||||||||||||||||
Total liabilities | ($83 | ) | ($83 | ) | ($84 | ) | ($84 | ) | ||||||||||||||||||||||||
Fair Value, Assets Measured On Nonrecurring Basis Using Unobservable Inputs | 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 nine months ended September 30 and the fair value and asset classification of the related assets as of the impairment date: | |||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||
Fair | Total | Fair | Total | |||||||||||||||||||||||||||||
Value | Losses | Value | Losses | |||||||||||||||||||||||||||||
Operating lease equipment | $28 | ($21 | ) | $25 | ($31 | ) | ||||||||||||||||||||||||||
Property, plant and equipment | 39 | (12 | ) | 19 | (21 | ) | ||||||||||||||||||||||||||
Total | $67 | ($33 | ) | $44 | ($52 | ) | ||||||||||||||||||||||||||
Fair Value, Assets Measured On Nonrecurring Basis, Valuation Techniques | For Level 3 assets that were measured at fair value on a nonrecurring basis during the nine months ended September 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 | Valuation | Unobservable Input | Range | |||||||||||||||||||||||||||||
Value | Technique(s) | 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. | |||||||||||||||||||||||||||||||
Fair Values And Related Carrying Values Of Financial Instruments | 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: | ||||||||||||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||||||||||
Carrying | Total Fair | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||
Amount | Value | |||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Accounts receivable, net | $6,652 | $6,633 | $6,633 | |||||||||||||||||||||||||||||
Notes receivable, net | 582 | 633 | 633 | |||||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
Debt, excluding capital lease obligations | (9,448 | ) | (10,855 | ) | (10,811 | ) | ($44 | ) | ||||||||||||||||||||||||
31-Dec-12 | ||||||||||||||||||||||||||||||||
Carrying | Total Fair | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||
Amount | Value | |||||||||||||||||||||||||||||||
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 | ) | ||||||||||||||||||||||||
Segment_Information_Tables
Segment Information (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||
Schedule of Intersegment Revenues | Intersegment revenues, eliminated in Unallocated items and eliminations, are shown in the following table. | |||||||||||||||
Nine months ended September 30 | Three months ended September 30 | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Commercial Airplanes | $752 | $624 | $189 | $280 | ||||||||||||
Boeing Capital | 22 | 38 | 5 | 11 | ||||||||||||
Total | $774 | $662 | $194 | $291 | ||||||||||||
Reconciliation of Other Significant Reconciling Items from Segments to Consolidated | 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. | |||||||||||||||
Nine months ended September 30 | Three months ended September 30 | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Share-based plans | ($74 | ) | ($64 | ) | ($21 | ) | ($23 | ) | ||||||||
Deferred compensation | (165 | ) | (49 | ) | (63 | ) | (15 | ) | ||||||||
Capitalized interest | (52 | ) | (53 | ) | (18 | ) | (16 | ) | ||||||||
Eliminations and other | (282 | ) | (126 | ) | (124 | ) | (87 | ) | ||||||||
Sub-total | (573 | ) | (292 | ) | (226 | ) | (141 | ) | ||||||||
Pension | (1,045 | ) | (608 | ) | (356 | ) | (204 | ) | ||||||||
Postretirement | 54 | (79 | ) | 16 | (30 | ) | ||||||||||
Pension and Postretirement | (991 | ) | (687 | ) | (340 | ) | (234 | ) | ||||||||
Total | ($1,564 | ) | ($979 | ) | ($566 | ) | ($375 | ) | ||||||||
Reconciliation of Assets from Segment to Consolidated | Segment assets are summarized in the table below: | |||||||||||||||
September 30 | December 31 | |||||||||||||||
2013 | 2012 | |||||||||||||||
Commercial Airplanes | $47,851 | $41,769 | ||||||||||||||
Defense, Space & Security: | ||||||||||||||||
Boeing Military Aircraft | 6,637 | 6,582 | ||||||||||||||
Network & Space Systems | 6,220 | 6,669 | ||||||||||||||
Global Services & Support | 3,951 | 3,692 | ||||||||||||||
Total Defense, Space & Security | 16,808 | 16,943 | ||||||||||||||
Boeing Capital | 4,113 | 4,347 | ||||||||||||||
Other segment | 1,331 | 1,043 | ||||||||||||||
Unallocated items and eliminations | 24,530 | 24,794 | ||||||||||||||
Total | $94,633 | $88,896 | ||||||||||||||
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. |
Summary_Of_Business_Segment_Da2
Summary Of Business Segment Data (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Segment Reporting Information [Line Items] | ||||
Revenues | $22,130 | $20,008 | $62,838 | $59,396 |
Earnings from operations | 1,803 | 1,559 | 5,047 | 4,666 |
Other income, net | 19 | 17 | 41 | 39 |
Interest and debt expense | -95 | -110 | -290 | -330 |
Earnings before income taxes | 1,727 | 1,466 | 4,798 | 4,375 |
Income tax expense | -567 | -432 | -1,445 | -1,450 |
Net earnings from continuing operations | 1,160 | 1,034 | 3,353 | 2,925 |
Net loss on disposal of discontinued operations, net of taxes of $0, $1, $0 and $2 | -2 | -2 | -1 | -3 |
Net earnings | 1,158 | 1,032 | 3,352 | 2,922 |
Operating Segments [Member] | Commercial Airplanes [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 13,987 | 12,186 | 38,301 | 34,966 |
Earnings from operations | 1,617 | 1,153 | 4,289 | 3,445 |
Operating Segments [Member] | Defense, Space & Security [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 8,046 | 7,839 | 24,342 | 24,264 |
Earnings from operations | 673 | 827 | 2,281 | 2,317 |
Operating Segments [Member] | Defense, Space & Security [Member] | Boeing Military Aircraft [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 3,543 | 3,710 | 11,541 | 11,982 |
Earnings from operations | 221 | 424 | 1,024 | 1,176 |
Operating Segments [Member] | Defense, Space & Security [Member] | Network And Space Systems Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 2,231 | 2,055 | 6,240 | 5,887 |
Earnings from operations | 193 | 179 | 486 | 424 |
Operating Segments [Member] | Defense, Space & Security [Member] | Global Services And Support [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 2,272 | 2,074 | 6,561 | 6,395 |
Earnings from operations | 259 | 224 | 771 | 717 |
Operating Segments [Member] | Boeing Capital [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 94 | 101 | 303 | 339 |
Earnings from operations | 35 | 28 | 98 | 100 |
Consolidated Other [Member] | Other Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 26 | 27 | 80 | 79 |
Earnings from operations | 44 | -74 | -57 | -217 |
Unallocated Items And Eliminations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | -23 | -145 | -188 | -252 |
Earnings from operations | ($566) | ($375) | ($1,564) | ($979) |
Summary_Of_Business_Segment_Da3
Summary Of Business Segment Data (Parenthetical) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | ||||
Net loss on disposal of discontinued operations, taxes | $0 | $1 | $0 | $2 |
Basis_Of_Presentation_Details
Basis Of Presentation (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Increase in Earnings from operations due to net favorable cumulative catch-up adjustments | $20 | $74 | $184 | $308 |
Increase in diluted earnings per share due to net favorable cumulative catch-up adjustments | $0.02 | $0.07 | $0.17 | $0.27 |
Earnings_Per_Share_Schedule_Of
Earnings Per Share (Schedule Of Weighted-Average Number Of Shares Outstanding Used To Compute Earnings Per Share) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Earnings Per Share [Abstract] | ||||||||
Net earnings | $1,158 | $1,032 | $3,352 | $2,922 | ||||
Earnings available to participating securities | 2 | 3 | 6 | 7 | ||||
Net earnings available to common shareholders | $1,156 | $1,029 | $3,346 | $2,915 | ||||
Basic weighted average shares outstanding | 759.4 | 759.5 | 762 | 756.6 | ||||
Participating securities | 1.8 | 2.4 | 1.9 | 2.3 | ||||
Basic weighted average common shares outstanding | 757.6 | 757.1 | 760.1 | 754.3 | ||||
Basic weighted average shares outstanding | 759.4 | 759.5 | 762 | 756.6 | ||||
Dilutive potential common shares | 9.7 | [1] | 5.7 | [1] | 7.8 | [1] | 5.7 | [1] |
Diluted weighted average shares outstanding | 769.1 | 765.2 | 769.8 | 762.3 | ||||
Participating securities | 1.8 | 2.4 | 1.9 | 2.3 | ||||
Diluted weighted average common shares outstanding | 767.3 | 762.8 | 767.9 | 760 | ||||
Net earnings per share, Basic | $1.53 | $1.36 | $4.40 | $3.86 | ||||
Net earnings per share, Diluted | $1.51 | $1.35 | $4.36 | $3.84 | ||||
[1] | Diluted EPS includes any dilutive impact of stock options, restricted stock units and Performance Awards. |
Earnings_Per_Share_Schedule_Of1
Earnings Per Share (Schedule Of Weighted Average Number Of Shares Outstanding Excluded From The Computation Of Diluted Earnings Per Share) (Details) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Stock Options [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Shares excluded from the computation of diluted earnings | 25.4 | 6.4 | 23.2 | |
Performance Awards [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Shares excluded from the computation of diluted earnings | 3.6 | 5 | 4.6 | 4.7 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Income Tax Disclosure [Abstract] | |||||
Effective income tax rate | 32.80% | 29.50% | 30.10% | 33.10% | |
R&D tax credit | $145 | ||||
Unrecognized tax benefits that could affect earnings within next 12 months | $420 | $420 |
Accounts_Receivable_Details
Accounts Receivable (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable, net | $6,652 | $5,608 |
LightSquared [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable, net | $112 | |
Number of satellites | 2 |
Inventories_Narrative_Details
Inventories (Narrative) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Airplane Program 787 [Member] | ||
Inventories [Line Items] | ||
Inventory, work in process | $26,453 | $21,289 |
Deferred production costs | 20,189 | 15,929 |
Supplier advances | 2,143 | 1,908 |
Unamortized tooling and other non-recurring costs | 2,862 | 2,339 |
Deferred production, unamortized tooling and other nonrecurring costs to be recovered from firm orders at the balance sheet date | 14,657 | |
Deferred production, unamortized tooling and other nonrecurring costs to be recovered from future orders | 8,394 | |
Airplane Program 747 [Member] | ||
Inventories [Line Items] | ||
Deferred production costs | 1,237 | 1,292 |
Unamortized tooling and other non-recurring costs | 611 | 683 |
Deferred production, unamortized tooling and other nonrecurring costs to be recovered from firm orders at the balance sheet date | 859 | |
Deferred production, unamortized tooling and other nonrecurring costs to be recovered from future orders | 989 | |
Capitalized Precontract Costs [Member] | ||
Inventories [Line Items] | ||
Inventory subject to uncertainty | 374 | 238 |
Early Issue Sales Consideration [Member] | ||
Inventories [Line Items] | ||
Inventory subject to uncertainty | 3,502 | 2,989 |
ULA [Member] | ||
Inventories [Line Items] | ||
Inventory subject to uncertainty | 425 | 725 |
ULA [Member] | Unsold Launches [Member] | ||
Inventories [Line Items] | ||
Inventory subject to uncertainty | 390 | |
A12 Program [Member] | ||
Inventories [Line Items] | ||
Inventory subject to uncertainty | $237 | $237 |
Inventories_Inventory_Disclosu
Inventories (Inventory Disclosure Table) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ||
Long-term contracts in progress | $13,872 | $15,130 |
Commercial aircraft programs | 47,063 | 40,389 |
Commercial spare parts, used aircraft, general stock materials and other | 7,115 | 7,206 |
Inventory before advances and progress billings | 68,050 | 62,725 |
Less advances and progress billings | -26,810 | -24,974 |
Inventories, net of advances and progress billings | $41,240 | $37,751 |
Customer_Financing_Narrative_D
Customer Financing (Narrative) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Customer Financing [Line Items] | ||
Customer financing receivables individually evaluated for impairment | $555 | $616 |
Impaired customer financing receivables | 418 | 446 |
Customer Financing Receivable individually evluated for impairment, allowance for credit losses | 0 | 0 |
American Airlines [Member] | ||
Customer Financing [Line Items] | ||
Customer financing receivables individually evaluated for impairment | $454 | |
C C C Credit Rating [Member] | ||
Customer Financing [Line Items] | ||
Percentage of Credit Default Rates Applied to Customers | 46.00% |
Customer_Financing_Schedule_Of
Customer Financing (Schedule Of Customer Financing) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Customer Financing [Abstract] | ||
Investment in sales-type/finance leases | $1,736 | $1,850 |
Notes | 600 | 592 |
Operating lease equipment, at cost, less accumulated depreciation of $550 and $628 | 1,936 | 2,038 |
Gross Customer Financing | 4,272 | 4,480 |
Less allowance for losses on receivables | -53 | -60 |
Total | 4,219 | 4,420 |
Operating lease equipment, accumulated depreciation | $550 | $628 |
Customer_Financing_Financing_R
Customer Financing (Financing Receivable Credit Quality Indicators) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Carrying value of financing receivables | $2,336 | $2,442 |
B B B Credit Rating [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Carrying value of financing receivables | 1,118 | 1,201 |
B B Credit Rating [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Carrying value of financing receivables | 57 | 63 |
B Credit Rating [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Carrying value of financing receivables | 146 | 51 |
C C C Credit Rating [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Carrying value of financing receivables | 460 | 511 |
D Credit Rating [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Carrying value of financing receivables | 454 | 524 |
Other Credit Rating [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Carrying value of financing receivables | $101 | $92 |
Customer_Financing_Carrying_Va
Customer Financing (Carrying Values Related to Major Aircraft Concentrations) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Customer Financing [Line Items] | ||||
Customer financing carrying value | $4,272 | $4,480 | ||
Operating leases | 1,936 | 2,038 | ||
717 Aircraft [Member] | ||||
Customer Financing [Line Items] | ||||
Customer financing carrying value | 1,701 | [1] | 1,781 | [1] |
Operating leases | 449 | [1] | 465 | [1] |
757 Aircraft [Member] | ||||
Customer Financing [Line Items] | ||||
Customer financing carrying value | 473 | [1] | 561 | [1] |
Operating leases | 408 | [1] | 454 | [1] |
MD 80 Aircraft [Member] | ||||
Customer Financing [Line Items] | ||||
Customer financing carrying value | 418 | [1] | 446 | [1] |
787 Aircraft [Member] | ||||
Customer Financing [Line Items] | ||||
Customer financing carrying value | 370 | 286 | ||
Operating leases | 370 | 286 | ||
747 Aircraft [Member] | ||||
Customer Financing [Line Items] | ||||
Customer financing carrying value | 336 | 221 | ||
Operating leases | 230 | [1] | 221 | |
MD-11 Aircraft [Member] | ||||
Customer Financing [Line Items] | ||||
Customer financing carrying value | 257 | [1] | 269 | [1] |
Operating leases | 257 | [1] | 269 | [1] |
737 Aircraft [Member] | ||||
Customer Financing [Line Items] | ||||
Customer financing carrying value | 218 | 316 | ||
Operating leases | 144 | [1] | 193 | |
767 Aircraft [Member] | ||||
Customer Financing [Line Items] | ||||
Customer financing carrying value | 204 | 223 | ||
Operating leases | $62 | $63 | ||
[1] | Out-of-production aircraft |
Investments_Schedule_Of_Invest
Investments (Schedule Of Investments) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |||
Investments [Abstract] | ||||||||
Time deposits | $5,790 | $5,790 | $3,135 | |||||
Pledged money market funds | 46 | [1] | 46 | [1] | 56 | [1] | ||
Available-for-sale investments | 8 | 8 | 9 | |||||
Equity method investments | 1,127 | [2] | 1,127 | [2] | 1,137 | [2] | ||
Restricted cash | 33 | [3] | 33 | [3] | 25 | [3] | ||
Other investments | 34 | 34 | 35 | |||||
Total | 7,038 | 7,038 | 4,397 | |||||
Proceeds from Equity Method Investment, Dividends or Distributions | $60 | $155 | $163 | $276 | ||||
[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 $163 and $60 during the nine and three months ended September 30, 2013, and $276 and $155 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. |
Other_Assets_Narrative_Details
Other Assets (Narrative) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Other Assets [Line Items] | ||
Net receivable balance recorded in Other assets | $1,447 | $1,792 |
Sea Launch Receivables [Member] | ||
Other Assets [Line Items] | ||
Net receivable balance recorded in Other assets | 356 | 356 |
Maximum exposure to loss | 356 | |
Sea Launch Receivables [Member] | S.P. Koroley Rocket And Space Corporation Energia [Member] | ||
Other Assets [Line Items] | ||
Net receivable balance recorded in Other assets | 223 | |
Sea Launch Receivables [Member] | PO Yuzhnoye Mashinostroitelny Zavod [Member] | ||
Other Assets [Line Items] | ||
Net receivable balance recorded in Other assets | 89 | |
Sea Launch Receivables [Member] | KB Yuzhnoye [Member] | ||
Other Assets [Line Items] | ||
Net receivable balance recorded in Other assets | 44 | |
Sea Launch Receivables [Member] | Bank Guarantees [Member] | ||
Other Assets [Line Items] | ||
Net receivable balance recorded in Other assets | 147 | |
Maximum exposure to loss | 147 | |
Sea Launch Receivables [Member] | Partner Loans [Member] | ||
Other Assets [Line Items] | ||
Net receivable balance recorded in Other assets | 209 | |
Maximum exposure to loss | $209 |
Commitments_And_Contingencies_2
Commitments And Contingencies (Narrative) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 |
In Millions, unless otherwise specified | C-17 Program [Member] | C-17 Program [Member] | C-17 Program [Member] | C-17 Program [Member] | Financing Commitment [Member] | Financing Commitment [Member] | Financing Commitment [Member] | Commitments to ULA [Member] | Total Contractual Trade-In Commitment [Member] | Total Contractual Trade-In Commitment [Member] | Net Amounts Payable to Customers Related to Probable Contractual Trade-In Commitments [Member] | Net Amounts Payable to Customers Related to Probable Contractual Trade-In Commitments [Member] | Probable Contractual Trade In Value of Aircraft [Member] | Probable Contractual Trade In Value of Aircraft [Member] | Minimum [Member] | Maximum [Member] | ||
aircraft | Capitalized Precontract Costs [Member] | Potential Termination Liabilities [Member] | International [Member] | External Credit Rating, Non Investment Grade [Member] | Commercial Aircraft Commitments [Member] | Commercial Aircraft Commitments [Member] | Commercial Aircraft Commitments [Member] | Commercial Aircraft Commitments [Member] | Commercial Aircraft Commitments [Member] | Commercial Aircraft Commitments [Member] | ||||||||
aircraft | ||||||||||||||||||
Commitments And Contingencies [Line Items] | ||||||||||||||||||
Loss Contingency, Range of Possible Loss, Portion Not Accrued | $905 | $865 | ||||||||||||||||
Trade-In Commitment Expiration Date | 2013 | 2023 | ||||||||||||||||
Other Commitment | 19,095 | 18,083 | 19,095 | 527 | 1,500 | 1,535 | 227 | 108 | 227 | 108 | ||||||||
Letters of Credit Outstanding, Amount | 4,318 | 4,545 | ||||||||||||||||
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Curtailments | 92 | |||||||||||||||||
Number of Aircraft Included In Backlog | 8 | |||||||||||||||||
Number of aircraft associated with inventory expenditures and potential termiation liability | 14 | |||||||||||||||||
Loss Contingency, Estimate of Possible Loss | $256 | $436 |
Commitments_And_Contingencies_3
Commitments And Contingencies (Environmental) (Details) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Environmental [Roll Forward] | ||
Beginning balance – January 1 | $710 | $758 |
Reductions for payments made | -69 | -61 |
Changes in estimates | 48 | 65 |
Ending balance – September 30 | $689 | $762 |
Commitments_And_Contingencies_4
Commitments And Contingencies (Product Warranties) (Details) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Product Warranties [Roll Forward] | ||
Beginning balance – January 1 | $1,572 | $1,046 |
Additions for current year deliveries | 427 | 367 |
Reductions for payments made | -326 | -244 |
Changes in estimates | -110 | 212 |
Ending balance – September 30 | $1,563 | $1,381 |
Commitments_And_Contingencies_5
Commitments And Contingencies (Financing Commitments) (Details) (Financing Commitment [Member], USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Financing Commitment [Member] | ||
Financing Commitments [Line Items] | ||
October through December 2013 | $264 | |
2014 | 2,774 | |
2015 | 3,608 | |
2016 | 3,791 | |
2017 | 3,062 | |
Thereafter | 5,596 | |
Total | $19,095 | $18,083 |
Arrangements_With_OffBalance_S2
Arrangements With Off-Balance Sheet Risk (Narrative) (Details) (USD $) | 1 Months Ended | ||||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2011 | Jun. 30, 2011 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 |
satellites | ULA [Member] | Contributed Delta Program Launch Inventory [Member] | Contributed Delta Program Launch Inventory [Member] | Indemnification Agreement [Member] | Indemnification Agreement [Member] | Indemnification Agreement [Member] | Other Delta Contracts [Member] | Other Delta Contracts [Member] | Other Delta Contracts [Member] | Deferred Support and Production Costs [Member] | Other Indemnifications [Member] | Other Indemnifications [Member] | |||
Boeing Portion Of Additional Contract Losses [Member] | Indemnification Payment [Member] | Deferred support costs [Member] | |||||||||||||
Guarantees [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 | 1,233 | ||||||||||||||
Maximum Potential Payments | 127 | 137 | 261 | 227 | 232 | 85 | 111 | 137 | |||||||
Advanced payments received for contributed inventories | 1,380 | ||||||||||||||
Revenues and cost of sales recorded under inventory supply agreement | 1,037 | ||||||||||||||
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 | $28 | $32 |
Arrangements_With_OffBalance_S3
Arrangements With Off-Balance Sheet Risk (Third Party Guarantees) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Contingent Repurchase Commitments [Member] | ||
Guarantor Obligations [Line Items] | ||
Maximum Potential Payments | $1,909 | $2,065 |
Estimated Proceeds from Collateral or Recourse1 | 1,906 | 2,065 |
Carrying Amount of Liabilities | 5 | 5 |
Contributed Delta Program Launch Inventory [Member] | ||
Guarantor Obligations [Line Items] | ||
Maximum Potential Payments | 127 | 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 | 227 | 232 |
Carrying Amount of Liabilities | 8 | 8 |
Other Indemnifications [Member] | ||
Guarantor Obligations [Line Items] | ||
Maximum Potential Payments | 111 | 137 |
Carrying Amount of Liabilities | $28 | $32 |
Debt_Narrative_Details
Debt (Narrative) (Details) (USD $) | 0 Months Ended |
In Millions, unless otherwise specified | 3-May-13 |
Debt Instrument [Line Items] | |
Debt Instrument, Issuance Date | 3-May-13 |
Proceeds from Debt, Net of Issuance Costs | $494 |
0.95% Due May 15, 2018 | |
Debt Instrument [Line Items] | |
Debt Instrument, Face Amount | 350 |
Debt Instrument, Maturity Date | 15-May-18 |
Debt Instrument, Interest Rate, Stated Percentage | 0.95% |
Floating Rate Due November 3, 2014 [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Face Amount | $150 |
Debt Instrument, Maturity Date | 3-Nov-14 |
Debt Instrument, Description of Variable Rate Basis | three-month LIBOR |
Debt Instrument, Basis Spread on Variable Rate | 0.01% |
Postretirement_Plans_Narrative
Postretirement Plans (Narrative) (Details) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Compensation and Retirement Disclosure [Abstract] | ||
Defined Benefit Plan, Discretionary Pension Contributions by Employer | $1,513 | $1,513 |
Postretirement_Plans_Net_Perio
Postretirement Plans (Net Periodic Benefit Cost) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Pension Plans, Defined Benefit [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $468 | $411 | $1,414 | $1,233 |
Interest cost | 713 | 751 | 2,175 | 2,253 |
Expected return on plan assets | -969 | -958 | -2,907 | -2,874 |
Amortization of prior service costs | 52 | 56 | 150 | 168 |
Recognized net actuarial loss | 530 | 484 | 1,668 | 1,452 |
Settlement and curtailment loss/(gain) | 84 | 104 | 10 | |
Net periodic benefit cost | 878 | 744 | 2,604 | 2,242 |
Net periodic benefit cost included in Earnings from operations | 775 | 583 | 2,319 | 1,831 |
Other Postretirement Benefit Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 37 | 36 | 111 | 108 |
Interest cost | 65 | 79 | 198 | 237 |
Expected return on plan assets | -1 | -2 | -5 | -6 |
Amortization of prior service costs | -45 | -49 | -135 | -147 |
Recognized net actuarial loss | 24 | 30 | 72 | 90 |
Settlement and curtailment loss/(gain) | -2 | |||
Net periodic benefit cost | 80 | 94 | 241 | 280 |
Net periodic benefit cost included in Earnings from operations | $90 | $132 | $269 | $414 |
ShareBased_Compensation_And_Ot1
Share-Based Compensation And Other Compensation Arrangements (Narrative) (Details) (USD $) | 0 Months Ended | |||||
Feb. 25, 2013 | Feb. 25, 2013 | Feb. 25, 2013 | Feb. 25, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | |
Stock Options [Member] | Restricted Stock Units (RSUs) [Member] | Performance Awards [Member] | Performance Awards [Member] | Performance Awards [Member] | ||
Minimum [Member] | Maximum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of options granted to our executives | 6,591,968 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | |||||
Share-based payment award vesting period (in years) | 3 years | 3 years | 3 years | |||
Stock options vesting percentage after the first year | 34.00% | |||||
Stock options vesting percentage after the second year | 33.00% | |||||
Stock options vesting percentage after the third year | 33.00% | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $15.85 | |||||
Restricted stock units (RSUs) granted to executives | 1,375,414 | |||||
Restricted stock units (RSUs) granted to executives (fair value per share) | $75.97 | |||||
Performance award period end date | 31-Dec-15 | |||||
Performance Award Aggregate Payout Amount | $0 | $276,000,000 |
Shareholders_Equity_Accumulate
Shareholders' Equity (Accumulated other comprehensive income) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | |||||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | ||||
Currency Translation Adjustments [Member] | Currency Translation Adjustments [Member] | Unrealized Gains and Losses on Certain Investments | Unrealized Gains and Losses on Certain Investments | Unrealized Gains and Losses on Certain Investments | Unrealized Gains and Losses on Derivative Instruments | Unrealized Gains and Losses on Derivative Instruments | Defined Benefit Pension Plans and Other Postretirement Benefits | Defined Benefit Pension Plans and Other Postretirement Benefits | |||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||||||||
Beginning Balance | ($16,794) | [1] | ($17,416) | [1] | $126 | $214 | ($8) | ($8) | ($8) | ($6) | $86 | ($16,906) | ($17,708) | ||||
OCI before reclassifications | 179 | [1] | 35 | [1] | 42 | -46 | 35 | -54 | 102 | 135 | |||||||
Amounts reclassified from AOCI | 428 | [1] | 1,194 | [1] | -10 | -13 | 438 | [2] | 1,207 | [2] | |||||||
Net current period OCI | 607 | [1] | 1,229 | [1] | 42 | -46 | 25 | -67 | 540 | 1,342 | |||||||
Balance September 30, 2013 | -16,187 | [1] | -16,187 | [1] | 168 | 168 | -8 | -8 | -8 | 19 | 19 | -16,366 | -16,366 | ||||
Other Comprehensive Income (Loss), Reclassification, Pension and Other Postretirement Benefit Plans, Net Gain (Loss) Recognized in Net Periodic Benefit Cost, Net of Tax | -380 | -326 | -1,135 | -979 | |||||||||||||
Amortization of actuarial losses included in net periodic pension cost, tax | $213 | ($188) | $644 | ($563) | |||||||||||||
[1] | Net of tax. | ||||||||||||||||
[2] | Primarily relates to amortization of actuarial gains/losses for the nine and three months ended September 30, 2013 totaling $1,135 and $380 (net of tax of $644 and $213) which is included in the net periodic pension cost of which a portion is allocated to production as inventoried costs. |
Derivative_Financial_Instrumen2
Derivative Financial Instruments (Narrative) (Details) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 |
Derivative [Line Items] | |
Cash flow hedge gains to be reclassified during the next 12 months, pre-tax | $4 |
Fair value of foreign exchange and commodity contracts that have credit-risk-related contingent features that are in a net liability position | $10 |
Foreign Exchange Contract [Member] | Maximum [Member] | |
Derivative [Line Items] | |
Derivative, Maturity Date | 31-Dec-23 |
Commodity Contract [Member] | Maximum [Member] | |
Derivative [Line Items] | |
Derivative, Maturity Date | 31-Dec-16 |
Derivative_Financial_Instrumen3
Derivative Financial Instruments (Schedule of Derivative Instruments, Notional Amounts and Fair Values) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Derivative [Line Items] | ||||
Notional amounts | $3,033 | [1] | $3,224 | [1] |
Other assets | 171 | 231 | ||
Derivatives, Assets | 120 | 178 | ||
Accrued liabilities | -134 | -137 | ||
Derivatives, Liabilities | -83 | -84 | ||
Netting Arrangements [Member] | ||||
Derivative [Line Items] | ||||
Netting arrangements, Other assets | -51 | -53 | ||
Netting arrangements, Accrued liabilities | 51 | 53 | ||
Derivatives designated as hedging instruments: | Foreign Exchange Contract [Member] | ||||
Derivative [Line Items] | ||||
Notional amounts | 2,309 | [1] | 2,310 | [1] |
Other assets | 134 | 202 | ||
Accrued liabilities | -41 | -16 | ||
Derivatives designated as hedging instruments: | Interest Rate Contract [Member] | ||||
Derivative [Line Items] | ||||
Notional amounts | 313 | [1] | 388 | [1] |
Other assets | 16 | 26 | ||
Derivatives designated as hedging instruments: | Commodity Contract [Member] | ||||
Derivative [Line Items] | ||||
Notional amounts | 59 | [1] | 99 | [1] |
Accrued liabilities | -52 | -71 | ||
Derivatives not receiving hedge accounting treatment: | Foreign Exchange Contract [Member] | ||||
Derivative [Line Items] | ||||
Notional amounts | 342 | [1] | 412 | [1] |
Other assets | 21 | 3 | ||
Accrued liabilities | -35 | -42 | ||
Derivatives not receiving hedge accounting treatment: | Commodity Contract [Member] | ||||
Derivative [Line Items] | ||||
Notional amounts | 10 | [1] | 15 | [1] |
Accrued liabilities | ($6) | ($8) | ||
[1] | Notional amounts represent the gross contract/notional amount of the derivatives outstanding. |
Derivative_Financial_Instrumen4
Derivative Financial Instruments (Schedule Of Derivative Instruments, Gains/(Losses)) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Derivative [Line Items] | ||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax | $35 | $37 | ($54) | $25 |
Other Comprehensive Income (Loss), Reclassification Adjustment on Derivatives Included in Net Income, Net of Tax | 10 | 13 | -8 | |
Foreign Exchange Contract [Member] | ||||
Derivative [Line Items] | ||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax | 36 | 36 | -51 | 35 |
Other Comprehensive Income (Loss), Reclassification Adjustment on Derivatives Included in Net Income, Net of Tax | 14 | 8 | 28 | 18 |
Forward points recognized in other income (expense), net | 2 | 4 | 24 | 16 |
Undesignated derivatives recognized in Other income/(expense), net: | -1 | -1 | 13 | -11 |
Commodity Contract [Member] | ||||
Derivative [Line Items] | ||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax | -1 | 1 | -3 | -10 |
Other Comprehensive Income (Loss), Reclassification Adjustment on Derivatives Included in Net Income, Net of Tax | ($4) | ($8) | ($15) | ($26) |
Fair_Value_Measurements_Fair_V
Fair Value Measurements Fair Value, Assets and Liabilities Measured on Recurring Basis (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale investments | $8 | $9 |
Derivatives, Assets | 120 | 178 |
Derivatives, Liabilities | -83 | -84 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 4,744 | 4,534 |
Available-for-sale investments | 8 | 9 |
Derivatives, Assets | 120 | 178 |
Total assets | 4,872 | 4,721 |
Derivatives, Liabilities | -83 | -84 |
Total liabilities | -83 | -84 |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 4,744 | 4,534 |
Available-for-sale investments | 6 | 6 |
Total assets | 4,750 | 4,540 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, Assets | 120 | 178 |
Total assets | 120 | 178 |
Derivatives, Liabilities | -83 | -84 |
Total liabilities | -83 | -84 |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale investments | 2 | 3 |
Total assets | $2 | $3 |
Fair_Value_Measurements_Fair_V1
Fair Value Measurements Fair Value, Assets Measured on Nonrecurring Basis Using Unobservable Inputs (Details) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Nonrecurring fair value losses | ($38) | ($59) |
Fair Value Measurements Nonrecurring [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Fair Value | 67 | 44 |
Nonrecurring fair value losses | -33 | -52 |
Fair Value Measurements Nonrecurring [Member] | Level 3 [Member] | Market Approach Valuation Technique [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Operating Lease Equipment | 28 | 25 |
Fair Value Measurements Nonrecurring [Member] | Level 3 [Member] | Income Approach Valuation Technique [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Property, Plant, and Equipment, Fair Value | 39 | 19 |
Fair Value Measurements Nonrecurring [Member] | Level 3 [Member] | Operating Lease Equipment [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Nonrecurring fair value losses | -21 | -31 |
Fair Value Measurements Nonrecurring [Member] | Level 3 [Member] | Property, Plant and Equipment [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Nonrecurring fair value losses | ($12) | ($21) |
Fair_Value_Assets_Measured_On_
Fair Value, Assets Measured On Nonrecurring Basis, Valuation Techniques (Details) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 | |
In Millions, unless otherwise specified | |||
Aircraft Value Publications [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | |||
Fair value of assets and liabilities measured on nonrecurring basis valuation techniques, median | $30 | ||
Aircraft Value Publications [Member] | Minimum [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | |||
Range of fair value of assets measured on nonrecurring basis valuation techniques | 18 | ||
Aircraft Value Publications [Member] | Maximum [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | |||
Range of fair value of assets measured on nonrecurring basis valuation techniques | 34 | [1] | |
Aircraft Condition Adjustments [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | |||
Net fair value of assets measured on nonrecurring basis valuation techniques | -2 | ||
Aircraft Condition Adjustments [Member] | Minimum [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | |||
Range of fair value of assets measured on nonrecurring basis valuation techniques | -7 | ||
Aircraft Condition Adjustments [Member] | Maximum [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | |||
Range of fair value of assets measured on nonrecurring basis valuation techniques | 5 | [2] | |
Fair Value Measurements Nonrecurring [Member] | Level 3 [Member] | Market Approach Valuation Technique [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | |||
Operating Lease Equipment | $28 | $25 | |
[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. |
Fair_Value_Measurements_Fair_V2
Fair Value Measurements Fair Values And Related Carrying Values of Financial Instruments (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Accounts receivable, net Carrying amount | $6,652 | $5,608 |
Carrying Amount [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Accounts receivable, net Carrying amount | 6,652 | 5,608 |
Notes receivable, net Carrying amount | 582 | 571 |
Debt, excluding capital lease obligations, Carrying amount | -9,448 | -10,231 |
Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Accounts receivable, Fair value | 6,633 | 5,642 |
Notes receivable, Fair value | 633 | 632 |
Debt, excluding capital lease obligations, Fair value | -10,855 | -12,269 |
Level 2 [Member] | Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Accounts receivable, Fair value | 6,633 | 5,642 |
Notes receivable, Fair value | 633 | 632 |
Debt, excluding capital lease obligations, Fair value | -10,811 | -12,221 |
Level 3 [Member] | Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt, excluding capital lease obligations, Fair value | ($44) | ($48) |
Legal_Proceedings_Details
Legal Proceedings (Details) (USD $) | 9 Months Ended | 0 Months Ended | |||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 | Mar. 31, 1998 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 29, 2009 | Sep. 30, 2013 | Sep. 30, 2013 |
employee | A12 Program [Member] | A12 Program [Member] | A12 Program [Member] | A12 Program [Member] | A12 Program [Member] | A12 Program [Member] | A12 Program [Member] | ||
Unliquidated Progress Payments [Member] | Unliquidated Progress Payments [Member] | Program Termination [Member] | Interest On Unliquidated Progress Payments [Member] | ||||||
Legal Proceedings [Line Items] | |||||||||
Long-term contracts in progress | $13,872 | $15,130 | $587 | ||||||
Inventory Valuation Reserves | 350 | ||||||||
Loss Contingency, Damages Awarded | 1,200 | ||||||||
Loss Contingency, Estimate of Possible Loss | 1,748 | 1,350 | 1,352 | 275 | 1,600 | ||||
Inventory subject to uncertainty | 237 | 237 | |||||||
Unrecorded gain contingency | $1,193 | ||||||||
Individual Asserted Legal Claims | 88 | ||||||||
Employees Formerly Employed at Wichita Facility | 2,000 |
Segment_Information_Segment_In
Segment Information Segment Information (Narrative) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Segment Reporting Information [Line Items] | ||||
Operating Income (Loss) | $1,803 | $1,559 | $5,047 | $4,666 |
Other Segment [Member] | Boeing Capital [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating Income (Loss) | ($10) | ($15) | ($40) | ($77) |
Schedule_Of_Intersegment_Reven
Schedule Of Intersegment Revenues (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Segment Reporting Information [Line Items] | ||||
Intersegment revenues | $22,130 | $20,008 | $62,838 | $59,396 |
Intersegment Eliminations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Intersegment revenues | 194 | 291 | 774 | 662 |
Commercial Airplanes [Member] | Intersegment Eliminations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Intersegment revenues | 189 | 280 | 752 | 624 |
Boeing Capital [Member] | Intersegment Eliminations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Intersegment revenues | $5 | $11 | $22 | $38 |
Schedule_Of_Unallocated_Items_
Schedule Of Unallocated Items and Eliminations (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Segment Reporting Information [Line Items] | ||||
Share-based plans | ($156) | ($148) | ||
Earnings from operations | 1,803 | 1,559 | 5,047 | 4,666 |
Pension Plans, Defined Benefit [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Pension and Other Postretirement Benefit Expense | -775 | -583 | -2,319 | -1,831 |
Other Postretirement Benefit Plans [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Pension and Other Postretirement Benefit Expense | -90 | -132 | -269 | -414 |
Unallocated Items And Eliminations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Share-based plans | -21 | -23 | -74 | -64 |
Deferred compensation | -63 | -15 | -165 | -49 |
Capitalized interest | -18 | -16 | -52 | -53 |
Eliminations and other | -124 | -87 | -282 | -126 |
Operating Income (Loss) Before Pension Adjustments | -226 | -141 | -573 | -292 |
Pension and Other Postretirement Benefit Expense | -340 | -234 | -991 | -687 |
Earnings from operations | -566 | -375 | -1,564 | -979 |
Unallocated Items And Eliminations [Member] | Pension Plans, Defined Benefit [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Pension and Other Postretirement Benefit Expense | -356 | -204 | -1,045 | -608 |
Unallocated Items And Eliminations [Member] | Other Postretirement Benefit Plans [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Pension and Other Postretirement Benefit Expense | $16 | ($30) | $54 | ($79) |
Reconciliation_of_Assets_from_
Reconciliation of Assets from Segment to Consolidated (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Segment Reporting Information [Line Items] | ||
Assets | $94,633 | $88,896 |
Operating Segments [Member] | Commercial Airplanes [Member] | ||
Segment Reporting Information [Line Items] | ||
Assets | 47,851 | 41,769 |
Operating Segments [Member] | Defense, Space & Security [Member] | ||
Segment Reporting Information [Line Items] | ||
Assets | 16,808 | 16,943 |
Operating Segments [Member] | Defense, Space & Security [Member] | Boeing Military Aircraft [Member] | ||
Segment Reporting Information [Line Items] | ||
Assets | 6,637 | 6,582 |
Operating Segments [Member] | Defense, Space & Security [Member] | Network And Space Systems Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Assets | 6,220 | 6,669 |
Operating Segments [Member] | Defense, Space & Security [Member] | Global Services And Support [Member] | ||
Segment Reporting Information [Line Items] | ||
Assets | 3,951 | 3,692 |
Operating Segments [Member] | Boeing Capital [Member] | ||
Segment Reporting Information [Line Items] | ||
Assets | 4,113 | 4,347 |
Consolidated Other [Member] | Other Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Assets | 1,331 | 1,043 |
Unallocated Items And Eliminations [Member] | ||
Segment Reporting Information [Line Items] | ||
Assets | $24,530 | $24,794 |