The company is experiencing strong demand from airline customers globally.

The company intends to continue to compete with other aircraft manufacturers by providing customers with airplanes and services that deliver superior design, safety, quality, efficiency and value to customers around the world.

BDS's strategy is to leverage core businesses to capture key next-generation programs while expanding its presence in adjacent and international markets.

The company and its suppliers are experiencing supply chain disruptions as a result of production quality issues, global supply chain constraints, and labor instability. These factors have reduced overall productivity and adversely impacted the financial position, results of operations and cash flows.

On January 10, 2024, the FAA notified the company that it has initiated an investigation into its quality control system, followed by actions to increase oversight.

The company is following the lead of the FAA as it works through the certification process of the 777X, 737-7 and 737-10 models.

Market conditions have a significant impact on demand for commercial aircraft and related services. Significant deterioration in the global economic environment or the financial stability of major customers could result in fewer new orders or cause customers to postpone or cancel orders.

Fixed-price contracts subject the company to the risk of reduced margins or incurring losses if the company is unable to achieve estimated costs and revenues.

The company faces various cyber security threats, and a cyber-related attack or security breach could result in loss of intellectual property, unauthorized access to sensitive data, disruption of business operations, and reputational harm.

The company faces aggressive international competitors who are intent on increasing their market share, such as Airbus and entrants from China.

BDS faces strong competition primarily from Lockheed Martin Corporation, Northrop Grumman Corporation, Raytheon Technologies Corporation, General Dynamics Corporation and SpaceX.

The commercial and defense services markets are extremely challenging and are made up of many of the same strong U.S. and non-U.S. competitors facing BCA and BDS.

The company must minimize disruption caused by production changes, achieve operational stability and implement productivity improvements in order to meet customer demand and maintain profitability.

Operational issues, including delays or defects in supplier components, failure to meet internal performance plans, or delays or failures to achieve required regulatory approval, could result in additional out-of-sequence work and increased production costs, as well as delayed deliveries to customers.

The company and its suppliers are experiencing supply chain disruptions and constraints, labor instability and inflationary pressures, which have reduced overall productivity.

The increase was primarily due to higher research and development expenditures on the 777X program as well as other BCA and enterprise investments in product development.

The company owns numerous patents and has licenses for the use of patents owned by others, which relate to its products and their manufacture. In addition to owning a large portfolio of intellectual property, the company also licenses intellectual property to and from third parties.

The company invests in rewarding performance and has established a multi-level recognition program for the purpose of acknowledging the achievements of excellent individual or team performance.

As of December 31, 2023, the company's debt totaled $52.3 billion, of which approximately $17.7 billion of principal payments on outstanding debt will become due over the next three years.

The company has substantial pension and other postretirement benefit obligations that have a material impact on earnings, shareholders' equity and cash flows from operations, and could have significant adverse impacts in future periods.

The company is subject to U.S. government inquiries and investigations, including periodic audits of costs that are determined to be reimbursable under U.S. government contracts.

The company is committed to diverse representation across all levels of its workforce to reflect the vibrant and thriving diversity of the communities in which it lives and work.

The company supports Business Resource Groups open to all employees with more than 15,000 participants across 176 chapters globally that focus on gender, race and ethnicity, generations, gender identity, sexual orientation, disability or veteran status.

The company is subject to various federal, state, local and non-U.S. laws and regulations relating to environmental protection, including the discharge, treatment, storage, disposal and remediation of hazardous substances and wastes.

In 2023, global air traffic largely recovered to 2019 levels with domestic travel continuing to be the most robust and the single-aisle market following closely.

The company continually monitors the global trade environment in response to geopolitical economic developments, as well as changes in tariffs, trade agreements or sanctions that may impact the Company.

The U.S.-China trade relationship remains stalled as economic and national security concerns continue to be a challenge. China is a significant market for commercial aircraft.