Company: BA
Filing Date: 2025-03-07
Form Type: DEF 14A
Source: 0001193125-25-049921
Chunk: 121

Company: BOEING CO
Filing Date: 2025-03-07
Form: DEF 14A
Chunk 121
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AP financial measures. Free cash flowis GAAP operating cash flow reduced by capital expenditures for property, plant and equipment. Management believes free cash flow provides investors with an important perspective on the cash available for shareholders, debt repayment, and acquisitions after making the capital investments required to support ongoing business operations and long-term value creation. Free cash flow does not represent the residual cash flow available for discretionary expenditures as it excludes certain mandatory expenditures such as repayment of maturing debt. Management uses free cash flow as a measure to assess both business performance and overall liquidity.

| (dollars in millions)                         
 Years ended December 31,                      |     | 2024 |          |   |     | 2023 |         |   |
|:----------------------------------------------|:----|:-----|:---------|:--|:----|:-----|--------:|:--|
| Operating cash flow (GAAP)                    |     |      | ($12,080 | ) |     |      |  $5,960 |   |
| Less additions to property, plant & equipment |     |      | ($2,230  | ) |     |      | ($1,527 | ) |
| Free cash flow (non-GAAP)                     |     |      | ($14,310 | ) |     |      |  $4,433 |   |

Core operating earnings/(loss)is defined as GAAP earnings/(loss) from operations excluding the FAS/CAS service cost adjustment. The FAS/CAS service cost adjustment represents the difference between the Financial Accounting Standards (FAS) pension and post-retirement service costs calculated under GAAP and costs allocated to the business segments. Pension costs allocated to BDS and BGS businesses supporting government customers are computed in accordance with U.S. Government Cost Accounting Standards (CAS), which employ different actuarial assumptions and accounting conventions than GAAP. CAS costs are allocable to government contracts. Other postretirement benefit costs are allocated to all business segments based on CAS, which is generally based on benefits paid. Management uses core operating earnings/(loss) for purposes of evaluating and forecasting underlying business performance. Management believes this core measure provides investors additional insights into operational performance as it excludes non-servicepension and post-retirement costs, which primarily represent costs driven by market factors and costs not allocable to government contracts.

| (dollars in millions)                          
 Years ended December 31,                       |     | 2024 |          |   |     | 2023 |         |   |
|: