Company: BA
Filing Date: 2025-04-23
Form Type: 10-Q
Source: 0000012927-25-000031
Chunk: 33

Company: BOEING CO
Filing Date: 2025-04-23
Form: 10-Q
Item: Item 1
Chunk 33
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curring a net loss in those periods. 

Note 4 – Income Taxes

Our effective tax rates were 140.8% and 6.1% for the three months ended March 31, 2025 and 2024. The effective tax rate for the three months ended March 31, 2025, primarily reflects an increase in the domestic income tax valuation allowance treated as a discrete expense. As of December 31, 2024, we had recorded valuation allowances of $7,837 primarily for certain domestic deferred tax assets, and certain domestic net operating losses, tax credits and interest carryforwards. To measure the valuation allowance, the Company estimated in what year each of its deferred tax assets and liabilities would reverse using systematic and logical methods to estimate the reversal patterns. The valuation allowance results from not having sufficient income from deferred tax liability reversals in the appropriate future periods to support the realization of deferred tax assets.Federal income tax audits have been settled for all years prior to 2021. We expect the next cycle to cover the 2021-2023 tax years; however, the Internal Revenue Service has not confirmed a start date. We are also subject to examination in major state and international jurisdictions for the 2010-2023 tax years. We believe appropriate provisions for all outstanding tax issues have been made for all jurisdictions and all open years.

Note 5 – Allowances for Losses on Financial Assets

The changes in allowances for expected credit losses for the three months ended March 31, 2025 and 2024, consisted of the following:Accounts receivable Unbilled receivablesOther current assetsFinancing receivablesOther assetsTotalBalance at January 1, 2024($89)($19)($50)($51)($122)($331)Changes in estimates(16)(1)(1)15 (10)(13)Write-offs2 9 11 Recoveries1 1 Balance at March 31, 2024($102)($20)($42)($36)($132)($332)Balance at January 1, 2025($92)($38)($47)($7)($199)($383)Changes in estimates1 (3)1 3 (38)(36)Write-offs3 3 Recoveries1 1 Balance at March 31, 2025($87)($41)($46)($4)($237)($415)

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