The Boeing Company (BA) 10-Q 21 Oct 09 2009 Q3 Quarterly report Financial data

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (USD $)
In Millions, except Per Share data	3 Months Ended Sep. 30, 2009	3 Months Ended Sep. 30, 2008	9 Months Ended Sep. 30, 2009	9 Months Ended Sep. 30, 2008
Sales of products	$13,967	$12,407	$42,098	$40,393
Sales of services	2,721	2,886	8,246	7,852
Total revenues	16,688	15,293	50,344	48,245
Cost of products	(12,273)	(10,311)	(35,432)	(32,736)
Cost of services	(2,165)	(2,176)	(6,468)	(6,179)
Boeing Capital Corporation interest expense	(42)	(54)	(132)	(173)
Total costs and expenses	(14,480)	(12,541)	(42,032)	(39,088)
Gross Profit, Total	2,208	2,752	8,312	9,157
Income from operating investments, net	84	72	186	195
General and administrative expense	(868)	(740)	(2,584)	(2,350)
Research and development expense, net	(3,574)	(937)	(5,504)	(2,811)
(Loss)/gain on dispositions, net	(1)	0	(7)	2
Earnings/(loss) from operations	(2,151)	1,147	403	4,193
Other income/(loss), net	(4)	55	7	257
Interest and debt expense	(92)	(49)	(229)	(145)
Earnings/(loss) before income taxes	(2,247)	1,153	181	4,305
Income tax (expense)/benefit	687	(470)	(129)	(1,565)
Net earnings/(loss) from continuing operations	(1,560)	683	52	2,740
Net (loss)/gain on disposal of discontinued operations, net of taxes of $5, ($10), $2 and ($6)	(4)	12	(8)	18
Net earnings/(loss)	($1,564)	$695	$44	$2,758
Basic earnings/(loss) per share from continuing operations	-2.22	0.95	0.08	3.78
Net (loss)/gain on disposal of discontinued operations, net of taxes	-0.01	0.02	-0.01	0.02
Basic earnings/(loss) per share	-2.23	0.97	0.07	3.8
Diluted earnings/(loss) per share from continuing operations	-2.22	0.94	0.07	3.74
Net (loss)/gain on disposal of discontinued operations, net of taxes	-0.01	0.02	-0.01	0.02
Diluted earnings/(loss) per share	-2.23	0.96	0.06	3.76
Cash dividends paid per share	0.42	0.4	1.26	1.2
Weighted average diluted shares (millions)	701.3	721.9	708.1	734.2

1_Condensed Consolidated Statem

Condensed Consolidated Statements of Operations (Parenthetical) (USD $)
In Millions	3 Months Ended Sep. 30, 2009	3 Months Ended Sep. 30, 2008	9 Months Ended Sep. 30, 2009	9 Months Ended Sep. 30, 2008
Net (loss)/ gain on disposal of discontinued operations, taxes	$2	($6)	$5	($10)

2_Condensed Consolidated Statem

Condensed Consolidated Statements of Financial Position (USD $)
In Millions	Sep. 30, 2009	Dec. 31, 2008
Assets
Cash and cash equivalents	$6,095	$3,268
Short-term investments	351	11
Accounts receivable, net	6,718	5,602
Current portion of customer financing, net	341	425
Deferred income taxes	741	1,046
Inventories, net of advances and progress billings	15,981	15,612
Total current assets	30,227	25,964
Customer financing, net	5,923	5,857
Property, plant and equipment, net of accumulated depreciation of $12,742 and $12,280	8,912	8,762
Goodwill	4,293	3,647
Other acquired intangibles, net	2,920	2,685
Deferred income taxes	3,835	4,114
Investments	1,120	1,328
Pension plan assets, net	20	16
Other assets, net of accumulated amortization of $511 and $400	1,417	1,406
Total assets	58,667	53,779
Liabilities and shareholders' equity
Accounts payable	7,053	5,871
Other accrued liabilities	12,217	11,564
Advances and billings in excess of related costs	11,792	12,737
Income taxes payable	14	41
Short-term debt and current portion of long-term debt	973	560
Total current liabilities	32,049	30,773
Accrued retiree health care	7,344	7,322
Accrued pension plan liability, net	8,553	8,383
Non-current income taxes payable	998	1,154
Other long-term liabilities	535	337
Long-term debt	10,065	6,952
Shareholders' equity:
Common shares, par value $5.00 - 1,200,000,000 shares authorized; shares issued - 1,012,261,159 and 1,012,261,159 shares	5,061	5,061
Additional paid-in capital	3,956	3,456
Treasury shares, at cost - 285,761,457 and 285,661,944 shares	(17,733)	(17,758)
Retained earnings	22,104	22,675
Accumulated other comprehensive loss	(12,821)	(13,525)
ShareValue Trust shares - 29,338,820 and 28,460,769	(1,595)	(1,203)
Total Boeing shareholders' equity	(1,028)	(1,294)
Noncontrolling interest	151	152
Total shareholders' equity	(877)	(1,142)
Total liabilities and shareholders' equity	$58,667	$53,779

3_Condensed Consolidated Statem

Condensed Consolidated Statements of Financial Position (Parenthetical) (USD $)
In Millions, except Share data	Sep. 30, 2009	Dec. 31, 2008
Property, plant and equipment, accumulated depreciation	$12,742	$12,280
Other assets, accumulated amortization	$511	$400
Common shares, par value	$5	$5
Common shares, shares authorized	1,200,000,000	1,200,000,000
Common shares, shares issued	1,012,261,159	1,012,261,159
Treasury shares, shares	285,761,457	285,661,944
ShareValue Trust shares, shares	29,338,820	28,460,769

4_Condensed Consolidated Statem

Condensed Consolidated Statements of Cash Flows (USD $)
In Millions	9 Months Ended Sep. 30, 2009	9 Months Ended Sep. 30, 2008
Cash flows - operating activities:
Net earnings	$44	$2,758
Non-cash items -
Share-based plans expense	180	159
Depreciation	1,047	952
Amortization of other acquired intangibles	152	122
Amortization of debt discount/premium and issuance costs	7	8
Investment/asset impairment charges, net	66	21
Customer financing valuation provision	31	73
Loss/(gain) on disposal of discontinued operations	13	(28)
Loss/(gain) on dispositions, net	7	(2)
Other charges and credits, net	170	83
Excess tax benefits from share-based payment arrangements	(5)	(100)
Changes in assets and liabilities -
Accounts receivable	(818)	(145)
Inventories, net of advances and progress billings	(582)	(1,670)
Accounts payable	1,169	742
Other accrued liabilities	1,091	(570)
Advances and billings in excess of related costs	(961)	(2,061)
Income taxes receivable, payable and deferred	133	733
Other long-term liabilities	(3)	(157)
Pension and other postretirement plans	819	(159)
Customer financing, net	(204)	628
Other	35	(147)
Net cash provided by operating activities	2,391	1,240
Cash flows - investing activities:
Property, plant and equipment additions	(965)	(1,229)
Property, plant and equipment reductions	25	16
Acquisitions, net of cash acquired	(639)	(490)
Contributions to investments	(728)	(6,372)
Proceeds from investments	606	8,399
Payments on Sea Launch guarantees	(448)	0
Purchase of distribution rights	0	(151)
Net cash (used)/provided by investing activities	(2,149)	173
Cash flows - financing activities:
New borrowings	3,772	5
Debt repayments	(256)	(616)
Repayments of distribution rights financing	0	(210)
Stock options exercised, other	8	43
Excess tax benefits from share-based payment arrangements	5	100
Employee taxes on certain share-based payment arrangements	(19)	(81)
Common shares repurchased	(50)	(2,583)
Dividends paid	(915)	(901)
Net cash provided/(used) by financing activities	2,545	(4,243)
Effect of exchange rate changes on cash and cash equivalents	40	(26)
Net increase/(decrease) in cash and cash equivalents	2,827	(2,856)
Cash and cash equivalents at beginning of year	3,268	7,042
Cash and cash equivalents at end of period	6,095	4,186
Non-cash investing and financing activities:
Purchase of distribution rights	$316	$170

5_Condensed Consolidated Statem

Condensed Consolidated Statement of Shareholders' Equity (USD $)
In Millions	Common Stock	Additional Paid-In Capital	Treasury Stock	ShareValue Trust	Retained Earnings	Accumulated Other Comprehensive Loss	Noncontrolling Interest	Total
Beginning Balance at Dec. 31, 2007	$5,061	$4,757	($14,842)	($2,752)	$21,376	($4,596)	$74	$9,078
Net earnings					2,672		(2)	2,670
Unrealized gain (loss) on derivative instruments, net of tax of ($82) and $93						(159)		(159)
Unrealized gain (loss) on certain investments, net of tax of ($20) and $61						(121)		(121)
Reclassification adjustment for losses realized in net earnings, net of tax of ($9) and ($2)						4		4
Currency translation adjustment						(180)		(180)
Postretirement liability adjustment, net of tax of ($234) and ($4,883)						(8,565)		(8,565)
Share-based compensation and related dividend equivalents		243			(8)			235
ShareValue Trust activity		(1,540)		1,452				(88)
Excess tax pools		99						99
Treasury shares issued for stock options exercised, net		(9)	53					44
Treasury shares issued for other share-based plans, net		(94)	65					(29)
Treasury shares repurchased			(2,937)					(2,937)
Treasury shares transfer			(97)	97				0
Cash dividends declared ($0.84 and $1.62 per share)					(1,187)			(1,187)
Postretirement transition amount, net of tax of $50					(178)	92		(86)
Increase in noncontrolling interest							80	80
Ending Balance at Dec. 31, 2008	5,061	3,456	(17,758)	(1,203)	22,675	(13,525)	152	(1,142)
Net earnings					44		(1)	43
Unrealized gain (loss) on derivative instruments, net of tax of ($82) and $93						144		144
Unrealized gain (loss) on certain investments, net of tax of ($20) and $61						32		32
Reclassification adjustment for losses realized in net earnings, net of tax of ($9) and ($2)						14		14
Currency translation adjustment						147		147
Postretirement liability adjustment, net of tax of ($234) and ($4,883)						367		367
Share-based compensation and related dividend equivalents		184						184
ShareValue Trust activity		392		(392)
Excess tax pools		(1)						(1)
Treasury shares issued for stock options exercised, net		(4)	13					9
Treasury shares issued for other share-based plans, net		(71)	62					(9)
Treasury shares repurchased			(50)					(50)
Dividends related to share-based plans payout					(5)			(5)
Cash dividends declared ($0.84 and $1.62 per share)					(610)			(610)
Ending Balance at Sep. 30, 2009	$5,061	$3,956	($17,733)	($1,595)	$22,104	($12,821)	$151	($877)

6_Condensed Consolidated Statem

Condensed Consolidated Statement of Shareholders' Equity (Parenthetical) (USD $)
In Millions, except Per Share data	9 Months Ended Sep. 30, 2009	12 Months Ended Dec. 31, 2008
Unrealized gain (loss) on derivative instruments, tax	($82)	$93
Unrealized gain (loss) on certain investments, tax	(20)	61
Reclassification adjustment for losses realized in net earnings, tax	(9)	(2)
Postretirement liability adjustment, tax	(234)	(4,883)
Cash dividends declared, per share	0.84	1.62
Postretirement transition amount, tax		$50

Summary of Business Segment Dat

Summary of Business Segment Data
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
Summary of Business Segment Data	Summary of Business Segment Data (Unaudited) (Dollars in millions) Nine months ended September30 Three months ended September30 2009 2008 2009 2008 Revenues: Commercial Airplanes $ 24,868 $ 23,674 $ 7,883 $ 6,946 Integrated Defense Systems: Boeing Military Aircraft 10,324 10,169 3,951 3,702 Network and Space Systems 8,492 8,485 2,711 2,987 Global Services and Support 6,298 5,352 2,082 1,808 Total Integrated Defense Systems 25,114 24,006 8,744 8,497 Boeing Capital Corporation 496 535 166 171 Other segment 125 527 51 300 Unallocated items and eliminations (259 ) (497 ) (156 ) (621 ) Total revenues $ 50,344 $ 48,245 $ 16,688 $ 15,293 Earnings/(loss) from operations: Commercial Airplanes $ (1,603 ) $ 2,154 $ (2,837 ) $ 394 Integrated Defense Systems: Boeing Military Aircraft 1,160 929 486 388 Network and Space Systems 698 806 252 302 Global Services and Support 612 616 147 164 Total Integrated Defense Systems 2,470 2,351 885 854 Boeing Capital Corporation 112 143 39 37 Other segment (105 ) (233 ) (36 ) (48 ) Unallocated items and eliminations (471 ) (222 ) (202 ) (90 ) Earnings/(loss) from operations 403 4,193 (2,151 ) 1,147 Other income/(loss), net 7 257 (4 ) 55 Interest and debt expense (229 ) (145 ) (92 ) (49 ) Earnings/(loss) before income taxes 181 4,305 (2,247 ) 1,153 Income tax (expense)/benefit (129 ) (1,565 ) 687 (470 ) Net earnings/(loss) from continuing operations 52 2,740 (1,560 ) 683 Net (loss)/gain on disposal of discontinued operations, net of taxes of $5, ($10), $2 and ($6) (8 ) 18 (4 ) 12 Net earnings/(loss) $ 44 $ 2,758 $ (1,564 ) $ 695 Research and development expense, net: Commercial Airplanes $ 4,642 $ 2,108 $ 3,272 $ 705 Integrated Defense Systems: Boeing Military Aircraft 430 361 143 121 Network and Space Systems 293 227 108 73 Global Services and Support 126 113 42 38 Total Integrated Defense Systems 849 701 293 232 Other segment 13 2 9 Total research and development expense, net $ 5,504 $ 2,811 $ 3,574 $ 937 This information is an integral part of the Notes to Condensed Consolidated Financial Statements. See Note 15 for further segment results.

Note 1 - Basis of Presentation

Note 1 - Basis of Presentation
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
Note 1 - Basis of Presentation	Note 1 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. We have evaluated subsequent events through October21, 2009, which is the date that these financial statements were issued. The results of operations for the period ended September30, 2009, 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 2008 Annual Report on Form 10-K. Certain amounts have been reclassified to conform to the current periods presentation. Effective January1, 2009, we adopted a newly issued accounting standard which was retrospectively applied and requires the noncontrolling interest to be separately presented as a component of shareholders equity on the Condensed Consolidated Statements of Financial Position and Shareholders Equity.

Note 2 - Acquisition

Note 2 - Acquisition
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
Note 2 - Acquisition	Note 2 Acquisition On July30, 2009, we acquired the business, assets and operations of Vought Aircraft Industries, Inc.s (Vought) 787 business conducted at North Charleston, South Carolina. In connection with the acquisition, we paid cash consideration at closing of $592 and released Vought from its obligation to repay amounts of $416 previously advanced by us. Voughts 787 business produces aft fuselage sections, including the fabrication, assembly and systems installation, for the 787 program. The results of operations from the acquisition date are included in our Commercial Airplanes segment. Management expects to complete the allocation process in the fourth quarter of 2009. The preliminary allocation of the purchase price is as follows: Net inventory $ 187 Property, plant and equipment 227 Goodwill 605 Finite-lived intangible assets1 50 Accounts payable (24 ) Other accrued liabilities (32 ) Other long-term liabilities (5 ) Total net assets acquired $ 1,008 1 The weighted average amortization period for finite-lived intangible assets is 17 years.

Note 3 - Earnings Per Share

Note 3 - Earnings Per Share
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
Note 3 - Earnings Per Share	Note 3 Earnings Per Share The weighted average number of shares outstanding used to compute earnings per share are as follows: (Shares in millions) Ninemonthsended September30 Threemonthsended September30 2009 2008 2009 2008 Weighted average shares outstanding 701.6 724.5 701.3 714.6 Participating securities 3.6 2.9 3.1 Basic weighted average shares outstanding 705.2 727.4 701.3 717.7 Dilutive potential common shares 2.9 6.8 4.2 Diluted weighted average shares outstanding 708.1 734.2 701.3 721.9 As a result of incurring a net loss for three months ended September30, 2009, participating securities of 3.9million and potential common shares of 2.5million were excluded from diluted earnings per share because the effect would have been anti-dilutive. Basic earnings per share is calculated by the sum of (1)net earnings less declared dividends and dividend equivalents related to share-based compensation divided by the basic weighted average shares outstanding and (2)declared dividends and dividend equivalents related to share-based compensation divided by the weighted average shares outstanding. The weighted average number of shares outstanding, included in the table below, is excluded from the computation of diluted earnings per share because the average market price did not exceed the exercise/threshold price. However, these shares may be dilutive potential common shares in the future. (Shares in millions) Ninemonthsended September30 Threemonthsended September30 2009 2008 2009 2008 Stock options 17.4 14.7 16.8 15.8 ShareValue Trust 13.1 12.6 13.1 12.6 Performance Awards 3.7 2.8 3.7 2.8 Performance Shares 0.8 0.7 0.8 0.7 Stock units 0.3 0.2 0.2 0.3

Note 4 - Income Taxes

Note 4 - Income Taxes
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
Note 4 - Income Taxes	Note 4 Income Taxes The year-over-year tax rate variances are primarily due to lower pre-tax income in 2009 which was partially offset by research and development tax credit benefits that exist in 2009, but did not exist as of the third quarter of 2008. The year-to-date 2009 tax expense reflects discrete tax adjustments of $107 and a projected full year tax rate of 20%. The years 2004-2006 are currently being examined by the Internal Revenue Service (IRS), and we have filed appeals with the IRS for 1998-2003. We are also subject to examination in major state and international jurisdictions for the 2001-2008 tax years, for which no individually material unrecognized tax benefits exist. We believe appropriate provisions for all outstanding issues have been made for all jurisdictions and all open years. The unrecognized tax benefits for the nine months ended September30, 2009 increased by $209. This increase was primarily attributable to federal and state research and development tax credits. 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 some or all of the matters presently under consideration for 1998-2006 with the IRS. Depending on the timing and outcomes of the audit settlements, unrecognized tax benefits that affect the effective tax rate could increase earnings by up to $600 based on current estimates.

Note 5 - Inventories

Note 5 - Inventories
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
Note 5 - Inventories	Note 5 Inventories Inventories consisted of the following: September30 2009 December31 2008 Long-term contracts in progress $ 14,829 $ 14,051 Commercial aircraft programs1 18,162 19,309 Commercial spare parts, used aircraft, general stock materials and other 4,919 4,340 37,910 37,700 Less advances and progress billings (21,929 ) (22,088 ) $ 15,981 $ 15,612 1 Includes deferred production costs related to the 777 program of $612 and $1,223 and unamortized tooling related to the 777 program of $208 and $255 as of September30, 2009 and December31, 2008. Also includes work in process (including deferred production costs), supplier advances, and tooling and other non-recurring costs related to the 787 program of $2,828, $2,181 and $996 as of September30, 2009 and $3,021, $2,548 and $755 as of December31, 2008. In August 2009, we concluded that the first three flight-test airplanes for the 787 program will not be sold as previously anticipated due to the inordinate amount of rework and unique and extensive modifications made to those aircraft. Therefore, $2,481 in costs previously recorded for the first three flight-test airplanes were reclassified from program inventory to Research and development expense during the third quarter of 2009. Costs incurred in August and September 2009 of $138 related to these flight-test airplanes were also included in research and development expense. Delta launch program inventories that will be sold at cost to United Launch Alliance (ULA) under an inventory supply agreement that terminates on March31, 2021 are included in long-term contracts in progress inventories. At September30, 2009 and December31, 2008, the inventory balance was $1,827 and $1,822, of which $1,119 relates to yet unsold launches at September30, 2009. ULA is continuing to assess the future of the Delta II program. In the event ULA is unable to sell additional Delta II inventory, earnings could be reduced by up to $85. See Note 8. Inventories included $235 subject to claims or other uncertainties relating to the A-12 program as of September30, 2009 and December31, 2008. See Note 14.

Note 6 - Investments

Note 6 - Investments
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
Note 6 - Investments	Note 6 Investments Our investments, which are recorded in Short-term investments or Investments, consisted of the following: September30 2009 December31 2008 Time deposits $ 350 Available-for-sale investments 148 $ 352 Equity method investments 947 942 Other investments 26 45 Total investments $ 1,471 $ 1,339 Available-For-Sale Investments Our investments in available-for-sale debt and equity securities consisted of the following: September30, 2009 December31, 2008 Cost or Amortized Cost Gross Unrealized Gain Gross Unrealized Loss Fair Value Cost or Amortized Cost Gross Unrealized Gain Gross Unrealized Loss Fair Value Debt: Residential mortgage- backed securities $ 135 $ (22 ) $ 113 $ 285 $ (89 ) $ 196 Other debt obligations 6 (1 ) 5 172 (16 ) 156 Equity 39 $ 1 (10 ) 30 Total $ 180 $ 1 $ (33 ) $ 148 $ 457 $ (105 ) $ 352 Debt securities that have been in a continuous unrealized loss position for 12 months or longer are as follows: September30, 2009 December31, 2008 Fair Value Unrealized Losses Fair Value Unrealized Losses Residential mortgage-backed securities $ 113 $ (22 ) $ 28 $ (14 ) Other debt obligations 5 (1 ) 21 (6 ) Total $ 118 $ (23 ) $ 49 $ (20 ) We believe that the unrealized losses, other than those included in the table below, are not other-than-temporary. The unrealized losses are driven by market illiquidity that has caused price deterioration. We use analytic tools to assess the fundamentals of these securities to identify their individual sources of risk and potential for other-than-temporary impairment. Our quarterly assessment includes review of current market liquidity, interest rate risk, extension risk, credit rating downgrades and credit default swap spreads, as well as analysis of performance of the underlying collateral. We do not have a foreseeable need to liquidate the portfolio and anticipate recovering the full cost of the securities either as market conditions improve, or as the securities mature. Effective April1, 2009, we adopted a newly issued accounting standard on the recognition of other-than-temporary impairments of debt securities. Upon initial adoption, the amount of credit losses recognized in retained earnings at March31, 2009 was not material. Other-than-temporary impairment losses recognized in Net earnings, related to available-for-sale investments, from the effective date of April1, 2009, were as follows: Sixmonthsended September30 Threemonthsended September30 2009 2009 Total gross unrealized losses on other-than-temporarily impaired securities $ (57 ) $ (6 ) Portion of losses recognized in Comprehensive income (before taxes) 46 5 Net other-than-temporary-impairment losses rec

Note 7 - Liabilities, Commitmen

Note 7 - Liabilities, Commitments and Contingencies
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
Note 7 - Liabilities, Commitments and Contingencies	Note 7 Liabilities, Commitments and Contingencies Environmental Matters The following table summarizes environmental matter activity recorded during the nine months ended September30, 2009 and 2008. Environmental Liabilities 2009 2008 Beginning balance January1 $ 731 $ 679 Reductions for payments made (52 ) (62 ) Changes in estimates 53 114 Ending balance September30 $ 732 $ 731 The liabilities recorded represent our best estimate of costs expected to be incurred to remediate, operate and maintain sites over periods of up to 30 years. It is reasonably possible that we may incur additional charges because of regulatory complexities, higher than expected costs and the risk of unidentified contamination. As part of our estimating process, we develop a range of reasonably possible alternate scenarios which include highest cost estimates to remediate identified contamination at all sites based on our experience and existing laws and regulations. At September30, 2009 and December31, 2008 our reasonably possible highest cost estimate for all remediation sites exceeded our recorded liabilities by $949 and $1,206. Product Warranties The following table summarizes product warranty activity recorded during the nine months ended September30, 2009 and 2008. ProductWarranty Liabilities 2009 2008 Beginning balance January1 $ 959 $ 962 Additions for current year deliveries 126 128 Reductions for payments made (172 ) (175 ) Changes in estimates 83 16 Ending balance September30 $ 996 $ 931 Discontinued Operations As part of the 2004 purchase and sale agreement with General Electric Capital Corporation related to the sale of Boeing Capital Corporations (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. As of September30, 2009 and December31, 2008, our maximum exposure to loss associated with the loss sharing arrangement was $220 and $232. As of September30, 2009 and December31, 2008, the accrued liability under the loss sharing arrangement was $55 and $39. Commercial Aircraft Commitments In conjunction with signing a definitive agreement for the sale of new aircraft (Sale Aircraft), we have entered into specified-price trade-in commitments with certain customers that give them the right to trade in used aircraft upon the purchase of Sale Aircraft. The total contractual trade-in value was $538 and $1,045 as of September30, 2009 and December31, 2008. We anticipate that a significant portion of these commitments will not be exercised by customers. 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 continually assessed, taking into consideration the current economic environment. Trade-in co

Note 8 - Arrangements with Off-

Note 8 - Arrangements with Off-Balance Sheet Risk
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
Note 8 - Arrangements with Off-Balance Sheet Risk	Note 8 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. Third-Party Guarantees The following tables provide quantitative data regarding our third-party guarantees. The maximum potential payments represent a worst-case scenario, and do not necessarily reflect our expected results. 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. As of September30, 2009 Maximum Potential Payments Estimated Proceeds from Collateral/ Recourse Carrying Amount of Liabilities* Contingent repurchase commitments $ 3,938 $ 3,921 $ 7 Indemnifications to ULA** 807 19 Other credit guarantees 150 139 2 Residual value guarantees 51 44 10 As of December31, 2008 Maximum Potential Payments Estimated Proceeds from Collateral/ Recourse Carrying Amountof Liabilities* Contingent repurchase commitments $ 4,024 $ 4,014 $ 7 Indemnifications to ULA** 1,184 7 Credit guarantees related to the Sea Launch venture 451 271 180 Other credit guarantees 158 145 11 Residual value guarantees 51 47 10 * Amounts included in Other accrued liabilities ** Amount includes contributed Delta launch program inventory of $406 and $813, plus $348 related to the pricing of certain contracts and $53 and $23 related to miscellaneous Delta contracts at September30, 2009 and December31, 2008. Contingent Repurchase Commitments We have entered into contingent repurchase commitments with certain customers in conjunction with signing a definitive agreement for the sale of new aircraft (Sale Aircraft). Under these commitments, we agreed to repurchase the Sale Aircraft at a specified price, generally 10 years after delivery of the Sale Aircraft. Our repurchase of the Sale Aircraft is contingent upon a future, mutually acceptable agreement for the sale of additional new aircraft, and the subsequent exercise by the customer of its right to sell the Sale Aircraft to us. 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 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 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 of the four satellite missions covered by the indemnification. In March 2009, the USAF issued a denial of that c

Note 9 - Debt

Note 9 - Debt
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
Note 9 - Debt	Note 9 Debt On March9, 2009, we filed a public shelf registration with the U.S. Securities and Exchange Commission for the issuance of an indeterminate amount of debt securities and common stock. On March13, 2009, we issued notes totaling $1,850, which included $700 bearing an interest rate of 5% due March15, 2014, $650 bearing an interest rate of 6% due March15, 2019 and $500 bearing an interest rate of 6.875% due March15, 2039. The net proceeds after deducting the discount, underwriting fees and issuance costs were $1,817. On July28, 2009, we issued notes totaling $1,950, which included $750 bearing an interest rate of 3.5% due February15, 2015, $750 bearing an interest rate of 4.875% due February15, 2020 and $450 bearing an interest rate of 5.875% due February15, 2040. The net proceeds after deducting the discount, underwriting fees and issuance costs were $1,914. We may redeem each series of notes issued in 2009 at any time prior to maturity, in whole or in part, upon at least 30 days notice, at a redemption price equal to the principal amount of the notes to be redeemed plus a make-whole premium, together with accrued interest on such notes to the redemption date. The notes are unsecured senior obligations and rank equally in right of payment with all our existing and future unsecured and unsubordinated indebtedness.

Note 10 - Postretirement Plans

Note 10 - Postretirement Plans
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
Note 10 - Postretirement Plans	Note 10 Postretirement Plans The components of net periodic benefit cost are as follows: Ninemonthsended September30 Threemonthsended September30 Pension Plans 2009 2008 2009 2008 Components of net periodic benefit cost Service cost $ 818 $ 713 $ 273 $ 238 Interest cost 2,223 2,113 741 705 Expected return on plan assets (2,803 ) (2,852 ) (935 ) (951 ) Amortization of prior service costs 182 154 61 50 Recognized net actuarial loss 486 295 162 99 Settlement/curtailment loss 2 Net periodic benefit cost $ 908 $ 423 $ 302 $ 141 Net periodic benefit cost included in Earnings/(loss) from operations $ 656 $ 583 $ 230 $ 176 Ninemonthsended September30 Threemonthsended September30 Other Postretirement Benefit Plans 2009 2008 2009 2008 Components of net periodic benefit cost Service cost $ 99 $ 95 $ 33 $ 32 Interest cost 349 344 116 115 Expected return on plan assets (4 ) (7 ) (1 ) (3 ) Amortization of prior service costs (67 ) (70 ) (22 ) (23 ) Recognized net actuarial loss 71 64 24 21 Net periodic benefit cost $ 448 $ 426 $ 150 $ 142 Net periodic benefit cost included in Earnings/(loss) from operations $ 466 $ 418 $ 163 $ 132 A portion of net periodic benefit cost is allocated to production as product costs and may remain in inventory at the end of the reporting period. During the nine months ended September30, 2009 and 2008, we made discretionary pension contributions of $60 and $531. During the nine months ended September30, 2009 and 2008, we made contributions to our other postretirement benefit plans of $12 and $11.

Note 11 - Share-Based Compensat

Note 11 - Share-Based Compensation and Other Compensation Arrangements
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
Note 11 - Share-Based Compensation and Other Compensation Arrangements	Note 11 Share-Based Compensation and Other Compensation Arrangements Stock Options On February23, 2009, we granted to our executives 7,423,242 options with an exercise price equal to the fair market value of our stock on the date of grant. The stock options vest over a period of 3 years, with 34% vesting after the first year, 33% vesting after the second year and the remaining 33% vesting after the third year. The options expire 10 years after the date of grant. The fair value of stock options granted was estimated using the Black-Scholes option-pricing model with the following assumptions: GrantDate ExpectedLife Expected Volatility Expected Dividend Yield Risk Free InterestRate Weighted- Average Grant Date Fair Value 2/23/2009 6years 39.0 % 2.4 % 2.03 % $ 11.12 We determined the expected lifeof the 2009 stock option grant to be 6 years, calculated using the simplified method in accordance with the Securities and Exchange Commission Staff Accounting Bulletin 107, Valuation of Share-Based Payment Arrangements for Public Companies. Restricted Stock Units On February23, 2009, we granted to our executives 2,144,501 restricted stock units (RSUs) with a fair value of $35.57 per share. The RSUs will vest and settle in common stock (on a one-for-one basis) on the third anniversary of the grant date. Performance Awards On February23, 2009, we also granted to our executives Performance Awards with the payout based on the achievement of financial goals for the three-year period ending December31, 2011. The minimum payout is $0 and the maximum payout is $304.

Note 12 - Derivative Financial

Note 12 - Derivative Financial Instruments
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
Note 12 - Derivative Financial Instruments	Note 12 Derivative Financial Instruments Cash Flow Hedges Our cash flow hedges include certain interest rate swaps, cross currency swaps, foreign currency forward contracts, foreign currency option contracts and commodity purchase contracts. Interest rate swap contracts under which we agree to pay fixed rates of interest are designated as cash flow hedges of variable-rate debt obligations. We use foreign currency forward and option contracts to manage currency risk associated with certain forecasted transactions, specifically sales and purchase commitments made in foreign currencies. Our foreign currency forward contracts hedge forecasted transactions principally occurring within five years in the future, with certain contracts hedging transactions up to 2021. We use commodity derivatives, such as fixed-price purchase commitments, to hedge against potentially unfavorable price changes for items used in production. These include commitments to purchase electricity at fixed prices through 2015. 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. Gains/(losses) of hedged items designated and qualifying in fair value hedges recognized in earnings for the nine and three months ended September30, 2009 were not material. Notional Amounts and Fair Values The fair values of derivative instruments are recorded in the Condensed Consolidated Statements of Financial Position. The notional amounts and fair values were as follows: Notional amounts1 Other assets Other accrued liabilities September30 2009 December31 2008 September30 2009 December31 2008 September30 2009 December31 2008 Derivatives designated as hedging instruments Foreign exchange contracts $ 2,449 $ 1,992 $ 248 $ 26 $ (25 ) $ (39 ) Interest rate contracts 817 817 38 48 (3 ) Commodity contracts 196 147 (88 ) (75 ) 3,462 2,956 286 74 (113 ) (117 ) Derivatives not receiving hedge accounting treatment Foreign exchange contracts 610 646 38 42 (103 ) (128 ) Warrants 21 10 Total derivatives 4,072 3,623 324 126 (216 ) (245 ) Netting arrangements (111 ) (64 ) 111 64 Net recorded balance $ 213 $ 62 $ (105 ) $ (181 ) 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 its effect on Accumulated other comprehensive loss or earnings during the nine and three months ended September30, 2009 were as follows: Ninemonths ended Threemonths ended Location gains/(losses) are recognized Effective portion recognized in other comprehensive income, net of taxes Foreign exchange

Note 13 - Fair Value Measuremen

Note 13 - Fair Value Measurements
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
Note 13 - Fair Value Measurements	Note 13 Fair Value Measurements The following tables present 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 non-observable inputs. FairValueMeasurementsatSeptember30,2009 Total Level1 Level2 Level3 Assets Money market funds $ 2,940 $ 2,940 Available-for-sale investments: Debt: Residential mortgage-backed securities 113 $ 113 Other debt obligations 5 $ 5 Equity 30 30 Derivatives 213 213 Total assets $ 3,301 $ 2,970 $ 326 $ 5 Liabilities Derivatives $ (105 ) $ (105 ) Total liabilities $ (105 ) $ (105 ) Fair Value Measurements at December 31, 2008 Total Level 1 Level 2 Level 3 Assets Money market funds $ 2,128 $ 2,128 Available-for-sale debt investments: Residential mortgage-backed securities 196 $ 196 Other debt obligations 156 151 $ 5 Derivatives 62 52 10 Total assets $ 2,542 $ 2,128 $ 399 $ 15 Liabilities Derivatives $ (181 ) $ (181 ) Total liabilities $ (181 ) $ (181 ) Money market funds and equity securities are valued using a market approach based on the quoted market prices of identical instruments. Residential mortgage-backed securities are valued using an income approach based on prepayment speeds, yields, discount margin and collateral performance. The other debt securities are primarily valued using a market approach based on benchmark yields, reported trades and broker/dealer quotes. Derivatives include foreign currency, commodity, interest rate contracts and warrants. 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. The fair value of warrants is based on a third-party options model and principal inputs of stock price, volatility and time to expiry. Assets that are measured at fair value on a nonrecurring basis were not material during the nine and three months ended S

Note 14 - Legal Proceedings

Note 14 - Legal Proceedings
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
Note 14 - Legal Proceedings	Note 14 Legal Proceedings Various legal proceedings, claims and investigations related to products, contracts and other matters are pending against us. Potentially material contingencies are discussed below. We are subject to various U.S. government investigations, from which civil, criminal or administrative proceedings could result or have resulted. Such proceedings involve, or could involve claims by the government for fines, penalties, compensatory and treble damages, restitution and/or forfeitures. Under government regulations, a company, or one or more of its operating divisions or subdivisions, can also be suspended or debarred from government contracts, or lose its export privileges, based on the results of investigations. We believe, based upon current information, that the outcome of any such government disputes and investigations will not have a material adverse effect on our financial position, except as set forth below. A-12 Litigation In 1991, the U.S. Navy notified McDonnell Douglas Corporation (now one of our subsidiaries) and General Dynamics Corporation (together, the Team) that it was terminating for default the Teams contract for development and initial production of the A-12 aircraft. The Team filed a legal action to contest the Navys 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 September30, 2009, inventories included approximately $585 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 Corporations 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. On August31, 2001, the U.S. Court of Federal Claims issued a decision after trial upholding the governments 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 courts 2001 decision and ordered the case sent back to that court for further proceedings. On May3, 2007, the U.S. Court of Federal Claims issued a decision upholding the governments default termination of the A-12 contract. We filed a Notice of Appeal on May4, 2007 with the Court of Appeals for the Federal Circuit. On June2, 2009, the Court of Appeals rendered an opinion affirming the trial courts 2007 decision sustaining the governments default termination. We believe that the ruling of the Court of Appeals upholding the default termination is erroneous and in conflict with the governing law. On August14, 2009, we filed a Combined Petition for Panel Rehearing and for Rehearing En Banc in the Court of Appeals for the Federal Circuit. The Court has requested that the government file a response to our Combined Petition. The timing for a ruling on the Petition is uncertain. We believe that the terminati

Note 15 - Business Segment Data

Note 15 - Business Segment Data
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
Note 15 - Business Segment Data	Note 15 Business Segment Data Effective January1, 2009,certain programs were realigned between IDS segments. Business segment data for all periods presented have been adjusted to reflect the realignment. Our primary profitability measurements to review a segments operating results are earnings from operations and operating margins. See page 5 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. Ninemonthsended September30 Threemonthsended September30 2009 2008 2009 2008 Commercial Airplanes $ 586 $ 1,076 $ 184 $ 743 Boeing Capital Corporation 65 67 21 26 Total $ 651 $ 1,143 $ 205 $ 769 Unallocated items and eliminations includes costs not attributable to business segments. Unallocated items and eliminations also includes the impact of cost measurement differences between Generally Accepted Accounting Principles and federal cost accounting standards as well as intercompany profit eliminations. The most significant items not allocated to segments are shown in the following table. Nine months ended September30 Threemonthsended September30 Unallocated items and eliminations 2009 2008 2009 2008 Share-based plans $ (140 ) $ (115 ) $ (24 ) $ (70 ) Deferred compensation (134 ) 136 (88 ) 55 Pension 69 (194 ) 24 (51 ) Postretirement (61 ) (60 ) (17 ) (20 ) Capitalized interest (42 ) (38 ) (15 ) (11 ) Other unallocated items and eliminations (163 ) 49 (82 ) 7 Total $ (471 ) $ (222 ) $ (202 ) $ (90 ) Assets September30 2009 December31 2008 Commercial Airplanes $ 20,163 $ 18,893 Integrated Defense Systems: Boeing Military Aircraft 6,024 5,746 Network and Space Systems 7,362 7,177 Global Services and Support 3,888 3,559 Total Integrated Defense Systems 17,274 16,482 Boeing Capital Corporation 6,120 6,073 Other segment 1,366 1,207 Unallocated items and eliminations 13,744 11,124 Total assets $ 58,667 $ 53,779 Liabilities Commercial Airplanes $ 18,446 $ 17,141 Integrated Defense Systems: Boeing Military Aircraft 3,456 3,675 Network and Space Systems 944 1,239 Global Services and Support 1,390 1,352 Total Integrated Defense Systems 5,790 6,266 Boeing Capital Corporation 3,780 4,115 Other segment 810 845 Unallocated items and eliminations 30,718 26,554 Total liabilities $ 59,544 $ 54,921

Document Information

Document Information
	9 Months Ended Sep. 30, 2009 USD / shares
Document Information [Text Block]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	2009-09-30

Entity Information

Entity Information (USD $)
	9 Months Ended Sep. 30, 2009	Oct. 16, 2009
Entity [Text Block]
Trading Symbol	BA
Entity Registrant Name	BOEING CO
Entity Central Index Key	0000012927
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		726,599,064