Company: BA
Filing Date: 2025-07-29
Form Type: 10-Q
Source: 0000012927-25-000062
Chunk: 42

Company: BOEING CO
Filing Date: 2025-07-29
Form: 10-Q
Item: Item 1
Chunk 42
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 and $3,696.

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Note 9 – Financing Receivables and Operating Lease Equipment

Financing receivables and operating lease equipment, net consisted of the following:June 302025December 312024Financing receivables:Investment in sales-type leases$9 $203 Notes80 85 Total financing receivables89 288 Less allowance for losses on receivables4 7 Financing receivables, net85 281 Operating lease equipment, at cost, less accumulated depreciation of $53 and $46249 240 Total$334 $521 Our financing arrangements range in terms from one to seven years, and include $5 of Investment in sales-type leases, net of allowances, that will be repaid in one year or less. Financing arrangements may include options to extend or terminate. Certain leases include provisions to allow the lessee to purchase the underlying aircraft at a specified price. At June 30, 2025 and December 31, 2024, $4 and $7 were determined to be uncollectible financing receivables and placed on non-accrual status. The allowance for losses on financing receivables decreased primarily due to cash collections during the six months ended June 30, 2025.The components of investment in sales-type leases consisted of the following:June 302025December 312024Gross lease payments receivable$26 $229 Unearned income(17)(26)Net lease payments receivable$9 $203 There were no unguaranteed residual assets at June 30, 2025, and December 31, 2024.Financing interest income recorded for the six months ended June 30, 2025 and 2024, was $3 and $4.Our financing receivable balances at June 30, 2025 by internal credit rating category and year of origination consisted of the following:Rating categories2021 and PriorBBB$5 B80 CCC4 Total carrying value of financing receivables$89 At June 30, 2025, our allowance for losses related to receivables with ratings of CCC, B and BBB. We applied default rates that averaged 99.9%, 0.0% and 0.1%, respectively, to the exposure associated with those receivables.

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The majority of our financing receivables and operating lease equipment portfolio is concentrated in the following aircraft models:June