Company: BA
Filing Date: 2025-02-03
Form Type: 10-K
Source: 0000012927-25-000015
Chunk: 127

Company: BOEING CO
Filing Date: 2025-02-03
Form: 10-K
Item: Item 8
Chunk 127
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42023Accumulated benefit obligation$44,470 $47,665 Fair value of plan assets38,866 41,666 20242023Projected benefit obligation$45,002 $48,320 Fair value of plan assets38,866 41,666 AssumptionsThe following assumptions, which are the weighted average for all plans, are used to calculate the benefit obligation at December 31 of each year and the net periodic benefit cost for the subsequent year.December 31,202420232022Discount rate:Pension5.60 %5.10 %5.40 %Other postretirement benefits5.40 %5.00 %5.30 %Expected return on plan assets6.00 %6.00 %6.00 %Rate of compensation increase4.30 %4.30 %4.30 %Interest crediting rates for cash balance plans5.00 %5.00 %5.00 %The discount rate for each plan is determined based on the plans’ expected future benefit payments using a yield curve developed from high quality bonds that are rated as Aa or better by at least half of the four rating agencies utilized as of the measurement date. The yield curve is fitted to yields developed from bonds at various maturity points. Bonds with the ten percent highest and the ten percent lowest yields are omitted. The present value of each plan’s benefits is calculated by applying the discount rates to projected benefit cash flows.The pension fund’s expected return on plan assets assumption is derived from a review of actual historical returns achieved by the pension trust and anticipated future long-term performance of individual asset classes. While consideration is given to historical returns, the assumption represents a long-term, prospective return. The expected return on plan assets component of the net periodic benefit cost for the upcoming plan year is determined based on the expected return on plan assets assumption and the market-related value of plan assets (MRVA). Since our adoption of the accounting standard for pensions in 1987, we have determined the MRVA based on a five-year moving average of plan assets. As of December 31, 2024, the MRVA was approximately $7,955 more than the fair market value of assets.Assumed health care cost trend rates were as follows:December 31,202420232022Health care cost trend rate assumed next year6.00 %5.50 %5.50 %Ultimate trend rate4.50 %