Company: BA
Filing Date: 2025-04-23
Form Type: 10-Q
Source: 0000012927-25-000031
Chunk: 38

Company: BOEING CO
Filing Date: 2025-04-23
Form: 10-Q
Item: Item 1
Chunk 38
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. The contracted amount includes $109 expected to be paid in cash primarily in 2025, while the remaining amounts are primarily expected to be liquidated by lower customer delivery payments.EnvironmentalThe following table summarizes changes in environmental remediation liabilities during the three months ended March 31, 2025 and 2024.20252024Beginning balance – January 1$834 $844 Reductions for payments made, net of recoveries(13)(14)Changes in estimates34 7 Ending balance – March 31$855 $837 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 costs 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 that includes 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 March 31, 2025 and December 31, 2024, the high end of the estimated range of reasonably possible remediation costs exceeded our recorded liabilities by $996 and $1,002.

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Product WarrantiesThe following table summarizes changes in product warranty liabilities recorded during the three months ended March 31, 2025 and 2024.20252024Beginning balance – January 1$2,133 $2,448 Additions for current year deliveries34 22 Reductions for payments made(84)(75)Changes in estimates240  Ending balance – March 31$2,323 $2,395 Commercial Aircraft Trade-In CommitmentsIn conjunction with signing definitive agreements for the sale of new 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. 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