Company: BA
Filing Date: 2025-10-29
Form Type: 10-Q
Source: 0001628280-25-047023
Chunk: 87

Company: BOEING CO
Filing Date: 2025-10-29
Form: 10-Q
Item: Item 1
Chunk 87
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 service conditions. In all other cases, the RSUs will not vest and all rights to the stock units will terminate.

Note 16 – Shareholders' Equity

Mandatory Convertible Preferred StockOn October 31, 2024, we issued 115,000,000 depositary shares, representing 5,750,000 shares of our 6.00% Series A Mandatory Convertible Preferred Stock (Mandatory convertible preferred stock). The Mandatory convertible preferred stock has a $1,000.00 per share liquidation preference and $1.00 per share par value. As a result of the transaction, we received cash proceeds of $5,651, net of underwriting fees and other issuance costs.Dividends are cumulative at an annual rate of 6.00% on the liquidation preference of $1,000.00 per share of Mandatory convertible preferred stock and may be paid in cash, shares of our common stock or a combination of cash and shares of our common stock. Dividends that are declared will be payable on January 15, April 15, July 15 and October 15 to holders of record on the January 1, April 1, July 1, and October 1 immediately preceding the relevant dividend payment date. Dividends paid on Mandatory convertible preferred stock were $244 and $86 for the nine and three months ended September 30, 2025. In August 2025, dividends of $87 were declared to holders of record as of October 1, 2025, representing $15.00 per share, and were paid in cash on October 15, 2025.The following table illustrates the conversion rate per share of Mandatory convertible preferred stock, subject to certain anti-dilution adjustments, based on the applicable market value of the common stock:Applicable Market Value of Common StockConversion Rate per Share of Mandatory Convertible Preferred StockGreater than $171.58545.8280 shares of common stockEqual to or less than $171.5854 but greater than or equal to $142.9797Between 5.8280 and 6.9940 shares of common stock, determined by dividing $1,000 by the applicable market valueLess than $142.9797 6.9940 shares of common stockUnless earlier converted, each share of Mandatory convertible preferred stock will automatically convert on October 15, 2027, into between 5.8280 shares and 6.9940 shares of our common stock, depending on the applicable