Company: BA
Filing Date: 2025-10-29
Form Type: 10-Q
Source: 0001628280-25-047023
Chunk: 92

Company: BOEING CO
Filing Date: 2025-10-29
Form: 10-Q
Item: Item 1
Chunk 92
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 (5)Total$3 ($32)$15 ($48)Level 3 Investments and Other assets were primarily valued using an income approach based on the discounted cash flows associated with the underlying assets. Level 2 Property, plant and equipment were valued based on a third-party valuation using a combination of income and market approaches and adjusted for as-is condition. These approaches are considered estimates of net operating income, capitalization rates, and/or comparable property sales. Level 3 operating lease equipment were valued by calculating a median collateral value from a consistent group of third-party aircraft value publications. The values provided by the third-party aircraft publications are derived from their knowledge of market trades and other market factors. Management reviews the publications quarterly to assess the continued appropriateness and consistency with market trends. Under certain circumstances, we adjust values based on the attributes and condition of the specific aircraft or equipment, usually when the features or use of the aircraft vary significantly from the more generic aircraft attributes covered by third-party publications, or on the expected net sales price for the aircraft.Fair Value DisclosuresThe fair values and related carrying values of financial instruments that are not required to be remeasured at fair value on the Condensed Consolidated Statements of Financial Position were as follows:September 30, 2025CarryingAmountTotal FairValueLevel 1Level 2Level 3AssetsNotes receivable, net$1,114 $1,117 $1,109 $8 LiabilitiesDebt, excluding finance lease obligations (53,177)(53,286)(53,286)December 31, 2024CarryingAmountTotal FairValueLevel 1Level 2Level 3AssetsNotes receivable, net$940 $953 $941 $12 LiabilitiesDebt, excluding finance lease obligations (53,625)(51,089)(51,089)The fair value of Notes receivable classified as Level 2 is estimated with discounted cash flow analysis using interest rates currently offered on loans with similar terms to borrowers of similar credit quality. The fair value of Notes receivable classified as Level 3 is based on our best estimate using available counterparty financial data. The fair value of our debt that is traded in the secondary market is classified as Level 2 and is based on current market yields. For our debt that is not traded in the secondary market, 

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the fair value is classified as Level 2 and is based on our indicative borrowing cost derived from dealer quotes or discounted cash flows