Company: BA
Filing Date: 2025-07-29
Form Type: 10-Q
Source: 0000012927-25-000062
Chunk: 4

Company: BOEING CO
Filing Date: 2025-07-29
Form: 10-Q
Item: Item 2
Chunk 4
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024Earnings/(loss) from operations$285 ($1,176)($176)($1,090)Other income, net648 525 325 248 Interest and debt expense(1,418)(1,242)(710)(673)Loss before income taxes(485)(1,893)(561)(1,515)Income tax (expense)/benefit(158)99 (51)76 Net loss(643)(1,794)(612)(1,439)Less: net earnings/(loss) attributable to noncontrolling interest5 (12)(1)Net loss attributable to Boeing shareholders($648)($1,782)($611)($1,439)

Other income, net for the six and three months ended June 30, 2025, increased by $123 million and $77 million compared with the same periods in 2024, primarily due to an increase in interest income on short-term investments and dividend income, partially offset by lower non-operating pension income. For information on changes related to non-operating pension and postretirement expenses, see Note 13 to our Condensed Consolidated Financial Statements.

Interest and debt expense for the six and three months ended June 30, 2025, increased by $176 million and $37 million compared with the same periods in the prior year primarily as a result of higher average debt balances.

For a discussion related to Income Taxes, see Note 5 to our Condensed Consolidated Financial Statements.

Total Costs and Expenses (“Cost of Sales”)

Cost of sales, for both products and services, consists primarily of raw materials, parts, sub-assemblies, labor, overhead and subcontracting costs. Our BCA segment predominantly uses program accounting to account for cost of sales. Under program accounting, cost of sales for each commercial aircraft program equals the product of (i) revenue recognized in connection with customer deliveries and (ii) the estimated cost of sales percentage applicable to the total remaining program. For long-term contracts, the amount reported as cost of sales is recognized as incurred. Substantially all contracts at our 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. Cost of sales for commercial spare parts is recorded at average cost.

The following table summarizes cost of sales:

(Dollars in millions)Six months ended June 30Three months ended June 3020252024Change20252024ChangeCost of sales$