Company: BA
Filing Date: 2025-07-29
Form Type: 10-Q
Source: 0000012927-25-000062
Chunk: 71

Company: BOEING CO
Filing Date: 2025-07-29
Form: 10-Q
Item: Item 1
Chunk 71
---
 in 2024.

Eliminations and other unallocated items expense for the six and three months ended June 30, 2025 increased by $325 million and $271 million compared with the same periods in 2024. Eliminations and other unallocated items expense for the six and three months ended June 30, 2025 and 2024, includes earnings charges of $445 million and $244 million related to agreements with the U.S. Department of Justice. For additional discussion, see Note 18 to our Condensed Consolidated Financial Statements.

40

Other Earnings Items

(Dollars in millions)Six months ended June 30Three months ended June 302025202420252024Earnings/(loss) from operations$285 ($1,176)($176)($1,090)Other income, net648 525 325 248 Interest and debt expense(1,418)(1,242)(710)(673)Loss before income taxes(485)(1,893)(561)(1,515)Income tax (expense)/benefit(158)99 (51)76 Net loss(643)(1,794)(612)(1,439)Less: net earnings/(loss) attributable to noncontrolling interest5 (12)(1)Net loss attributable to Boeing shareholders($648)($1,782)($611)($1,439)

Other income, net for the six and three months ended June 30, 2025, increased by $123 million and $77 million compared with the same periods in 2024, primarily due to an increase in interest income on short-term investments and dividend income, partially offset by lower non-operating pension income. For information on changes related to non-operating pension and postretirement expenses, see Note 13 to our Condensed Consolidated Financial Statements.

Interest and debt expense for the six and three months ended June 30, 2025, increased by $176 million and $37 million compared with the same periods in the prior year primarily as a result of higher average debt balances.

For a discussion related to Income Taxes, see Note 5 to our Condensed Consolidated Financial Statements.

Total Costs and Expenses (“Cost of Sales”)

Cost of sales, for both products and services, consists primarily of raw materials, parts, sub-assemblies, labor, overhead and subcontracting costs. Our BCA segment predominantly uses program accounting to account for cost of sales. Under program accounting, cost of sales for each commercial