Boeing entered into an agreement to acquire Spirit AeroSystems in an all-stock transaction, including the assumption of Spirit's net debt at closing. Completion is subject to regulatory approvals and other conditions.

As part of a plan to improve safety and quality, Boeing slowed 737 production rates and delayed planned production rate increases to reduce traveled work in the factory and at suppliers.

Boeing is taking additional actions to improve safety and quality, including investing in workforce training, simplifying plans and processes, eliminating defects, and enhancing safety culture.

The FAA investigated the 737 quality control system, including Spirit, and increased oversight of production and safety management systems following the Alaska Airlines 737-9 accident. This has significantly impacted Boeing's financial position, results of operations, and cash flows.

Boeing and its suppliers are experiencing supply chain disruptions, constraints, labor instability, and inflationary pressures, reducing overall productivity and adversely impacting financial results.

Boeing expects the U.S. DoD to continue emphasizing affordability, innovation, cybersecurity, and delivery of technical data and software in its procurement processes, requiring adjustments from Boeing and its suppliers.

Market conditions significantly impact demand for commercial aircraft and related services. Factors such as airline profitability, geopolitics, technological advances, fuel prices, and reputational factors influence demand.

Boeing has experienced and may continue to experience production quality issues, including in its supply chain, which can adversely affect product quality, production schedules, and program/contract profitability.

A work stoppage by the International Association of Machinists and Aerospace Workers District 751 (IAM 751) significantly reduced aircraft deliveries in the second half of 2024. The new contract with IAM 751 and pay enhancements for certain non-union employees is adversely impacting our financial position, results of operations and cash flows. Future work stoppages by our or our suppliers' employees could also adversely impact our business.

The commercial jet aircraft market and the airline industry remain extremely competitive. Boeing faces aggressive international competitors who are intent on increasing their market share, such as Airbus and entrants from China.

Non-U.S. sales are subject to risks including changes in regulatory requirements, global trade environment, disputes with authorities, tariffs, and political and economic volatility.

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

Boeing continues to seek opportunities to reduce the costs of building its aircraft, including working with suppliers to reduce supplier costs, identifying and implementing productivity improvements, and optimizing how it manages inventory.

Boeing and its suppliers are experiencing supply chain disruptions and constraints, labor instability, and inflationary pressures, which have reduced overall productivity and adversely impacted financial results.

Production rate changes at any of Boeing's commercial aircraft assembly facilities, if delayed or creating significant disruption to the production system, may result in inability to meet delivery schedules and/or financial performance issues.

Research and development expense increased by $435 million in 2024 compared with 2023 primarily due to the 777X program at BCA and higher enterprise investments in product development.

Boeing's cybersecurity strategy prioritizes detection, analysis and response to threats, effective management of security risks, and resiliency against incidents.

Compromised or unauthorized access of Boeing's, its customers' and/or its suppliers' systems or data could negatively impact its business.

Cash provided by financing activities was $25.2 billion during 2024, compared with cash used of $5.5 billion during 2023, and $1.3 billion in 2022. Cash provided by financing activities during 2024 was primarily driven by the issuance of common stock and Mandatory convertible preferred stock in the fourth quarter of 2024, which resulted in cash proceeds of $18.2 billion and $5.7 billion, net of issuance costs, as well as the issuance of $10.0 billion of fixed-rate senior notes in the second quarter of 2024.

Capital expenditures totaled $2.2 billion in 2024, compared with $1.5 billion in 2023 and $1.2 billion in 2022. The company expects capital expenditures to grow in 2025 compared with 2024.

In 2020, Boeing announced the suspension of its dividend to common shareholders until further notice, and did not pay any dividends to common shareholders in 2024, 2023 and 2022.

Boeing establishes and publicly announces goals and commitments to improve environmental performance within its products and/or operations.

Boeing may be adversely affected by global climate change or by legal, regulatory or market responses to such change.

Our Board of Directors has overall responsibility for risk oversight, with its committees assisting the Board in performing this function based on their respective areas of expertise.

In 2024, global air traffic continued to expand beyond 2019 levels with domestic travel continuing to be the most robust and the single-aisle market following closely.

The overall outlook continues to stabilize as we face uncertainties in the environment in the near- to medium-term as airlines are facing persistently high and volatile costs.

Impacts from future potential deterioration in geopolitical or trade relations between the U.S. and one or more other countries could have a material adverse impact on our financial position, results of operations and/or cash flows.