BOEING CO

Notes to Condensed Consolidated Financial Statements

Summary of Business Segment Data

This information is an integral part of the Notes to the Condensed Consolidated Financial Statements. See Note 20 for further segment results.

Notes to the Condensed Consolidated Financial Statements

(Dollars in millions, except per share amounts or as otherwise stated)

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. The results of operations for the period ended September 30, 2026, 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 2025 Annual Report on Form 10-K.

Use of Estimates

The preparation of financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Goodwill

We performed our annual goodwill impairment test as of April 1, 2026, using a qualitative assessment. We determined the fair value of each of our reporting units substantially exceeded their respective carrying values.

Long-term Contracts

Substantially all contracts at our Defense, Space & Security (BDS) segment and certain contracts at our Global Services (BGS) segment are long-term contracts with the U.S. government and other customers that generally extend over several years. 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 long-term contract’s percentage-of-completion. When the current estimates of total revenues and costs at completion for a long-term contract indicate a loss, a provision for the entire reach-forward loss on the long-term contract is recognized.

The table below reflects the impact of net cumulative catch-up adjustments for changes in estimated revenues and costs at completion across all long-term contracts, including the impact to Earnings/(loss) from operations from changes in estimated losses on unexercised options.

Note 2 –Spirit Acquisition

On December 8, 2025, we completed our acquisition of Spirit AeroSystems Holdings, Inc. (Spirit) pursuant to the Agreement and Plan of Merger dated June 30, 2024 (Merger Agreement). In connection with the closing of the transactions contemplated by the Merger Agreement (Spirit Acquisition), Boeing became the ultimate parent company of Spirit and its respective subsidiaries, including Spirit AeroSystems, Inc.

Total consideration for the Spirit Acquisition was $8,389 comprised of the following:

(1) Fair value of consideration reflects the price per share of Boeing common stock on the acquisition date.

The preliminary allocation of the purchase price was as follows:

The amounts recorded for acquired assets and assumed liabilities are preliminary and are based on the information available as of the reporting date. The primary areas that remain preliminary relate to the fair values of goodwill, off-market contract liabilities and certain other accrued liabilities. The Company will continue to adjust the provisional estimates as additional information becomes available and final valuation and analyses are completed. Provisional goodwill of $10,598 associated with the Spirit Acquisition was assigned to our Commercial Airplanes (BCA) segment as we expect the majority of synergies from the Spirit Acquisition to relate to the commercial airplane segment. The acquired intangible assets include customer relationships of $109 which have a weighted-average useful life offive years and in-process research and development of $64. Accrued liabilities includes $1,890 for the fair value of off-market customer contracts measured as the present value of the amount by which the terms of the contract deviated from the terms that a market participant could have achieved. Future estimated revenues from the amortization of off-market contract liabilities are as follows:

We expect to finalize the purchase price allocation as soon as practicable, but no later thanone year from the acquisition date.

Note 3 –Insitu, Wisk Aero and SkyGrid Divestiture

On August 9, 2026, we entered into an agreement with Archer Aviation Inc. (Archer) to sell our Insitu, Inc. (Insitu), Wisk Aero LLC (Wisk Aero) and SkyGrid, LLC (SkyGrid) subsidiaries, together with certain of their related entities, in consideration for Archer's issuance to Boeing of (i) a number of shares equal to 19.75% of Archer's Class A common stock outstanding prior to transaction close, and (ii)two warrants to purchase up to $200 in further shares of Archer's Class A common stock, in each case, subject to the further terms and conditions set out in the definitive transaction agreements. The transaction is subject to regulatory approval and customary closing conditions. We expect the transaction to close later in 2026. Post closing, we expect to account for our investment in Archer common shares under the equity method.

Insitu is reported within our BDS segment, and Wisk Aero and SkyGrid are reported within Unallocated items, elimination and other. At September 30, 2026, Insitu, Wisk Aero and SkyGrid assets of $688 and liabilities of $161 were classified as held for sale in our Condensed Consolidated Statements of Financial Position. Assets held for sale primarily include Acquired intangible assets, net of $203, Inventories of $192, and Goodwill of $97.