Company: BA
Filing Date: 2025-10-29
Form Type: 10-Q
Source: 0001628280-25-047023
Chunk: 80

Company: BOEING CO
Filing Date: 2025-10-29
Form: 10-Q
Item: Item 1
Chunk 80
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 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 September 30, 2025 and December 31, 2024, the high end of the estimated range of reasonably possible remediation costs exceeded our recorded liabilities by $1,175 and $1,002.Product WarrantiesThe following table summarizes changes in product warranty liabilities recorded during the nine months ended September 30, 2025 and 2024.20252024Beginning balance – January 1$2,133 $2,448 Additions for current year deliveries136 67 Reductions for payments made(254)(297)Changes in estimates384 (27)Ending balance – September 30$2,399 $2,191 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, may be exercised only during the period specified in the agreement, and require advance notice by the customer.Trade-in commitment agreements at September 30, 2025, have expiration dates from 2025 through 2033. At September 30, 2025, and December 31, 2024, total contractual trade-in commitments were $1,332 and $1,393. As of September 30, 2025 and December 31, 2024, we estimated it was probable we would be obligated to perform on certain of these commitments with net amounts payable to customers totaling $67 and $275 and the fair value of the related trade-in aircraft was $63 and $270.

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Financing CommitmentsFinancing commitments related to aircraft on order, including options and those proposed in