BOEING CO

The Boeing Company is a major aerospace firm that was originally incorporated in Washington in 1916 and reincorporated in Delaware in 1934. Its principal executive offices are located in Arlington, Virginia. The company operates in three reportable segments: Commercial Airplanes (BCA), Defense, Space & Security (BDS), and Global Services (BGS). Boeing's Commercial Airplanes segment develops, produces, and markets commercial jet aircraft for the commercial airline industry worldwide. The segment offers a family of commercial jet aircraft, including the 737, 767, 777, and 787 models. The Defense, Space & Security segment engages in the research, development, production, and modification of military aircraft and weapons systems for strike, surveillance, and mobility, as well as strategic defense and intelligence systems, satellite systems, and space exploration. The Global Services segment provides services to commercial and defense customers worldwide, including training, fleet services and logistics, maintenance and engineering, modifications and upgrades, spare parts, and digital services. Boeing's website is www.boeing.com, and its common stock is traded on the New York Stock Exchange under the ticker symbol BA. The company's business strategy includes improving products and processes, cost reduction efforts, and competing by providing customers with airplanes and services that deliver superior design, safety, quality, efficiency, and value. The company is heavily regulated in most of its markets and faces competition from both domestic and international competitors. Its non-U.S. sales are subject to various governmental regulations and procurement policies and practices, as well as varying currency, political, and economic risks. The company is also dependent on the availability of essential materials, parts, and subassemblies from suppliers and subcontractors. Boeing's commercial aircraft business is complex and involves extensive coordination and integration with U.S. and non-U.S. suppliers, highly-skilled labor, and stringent and evolving regulatory requirements and performance and reliability standards. The company has experienced production quality issues and has announced plans to adjust production rates on several of its commercial aircraft programs. It continues to seek opportunities to reduce the costs of building its aircraft and optimize inventory management. Boeing's revenues are heavily dependent on the U.S. government, primarily from defense-related programs with the United States Department of Defense (U.S. DoD). Levels of U.S. defense spending are difficult to predict and may be impacted by numerous factors, including the evolving nature of the national security threat environment, U.S. national security strategy, U.S. foreign policy, the domestic political environment, macroeconomic conditions, and the ability of the U.S. government to enact relevant legislation such as authorization and appropriations bills. The timeliness of annual appropriations for U.S. government departments and agencies remains a recurrent risk, and a lapse in appropriations for government departments or agencies could impact Boeing's operations. Boeing's ability to deliver products and services that satisfy customer requirements is heavily dependent on the performance and financial stability of its subcontractors and suppliers, as well as the availability of highly skilled labor, raw materials, and other components. The company relies on other companies, including U.S. and non-U.S. subcontractors and suppliers, to provide and produce raw materials, integrated components, and sub-assemblies, and to perform some of the services that Boeing provides to its customers. Some of Boeing's and its suppliers' workforces are represented by labor unions, which may lead to work stoppages. Approximately 57,000 employees, which constitute 33% of Boeing's total workforce, were union represented as of December 31, 2023.