46800000000
5619000000
726432299
57712000000
1249000000
5.00
1200000000
29089996
1012261159
5061000000
-13120000000
8553000000
6664000000
3561000000
6588000000
654000000
11821000000
12534000000
30120000000
4599000000
416000000
1099000000
3858000000
21000000
3688000000
2727000000
57712000000
31272000000
8700000000
1188000000
154000000
1333000000
335000000
7336000000
8808000000
23668000000
171000000
180000000
285882820
17741000000
17200000000
11717000000
1182000000
334000000
474000000
463000000
5969000000
5061000000
-13120000000
3561000000
23668000000
-17741000000
-1249000000
154000000
7042000000
9078000000
5061000000
-4596000000
4757000000
21376000000
-14842000000
-2752000000
74000000
53779000000
1203000000
5.00
1200000000
28460769
1012261159
5061000000
-13525000000
8383000000
5871000000
3456000000
5602000000
41000000
11564000000
12280000000
25964000000
3268000000
560000000
1046000000
4114000000
16000000
3647000000
2685000000
53779000000
30773000000
6952000000
1328000000
152000000
1406000000
337000000
7322000000
8762000000
22675000000
11000000
-1294000000
285661944
17758000000
15612000000
12737000000
1154000000
-1142000000
400000000
425000000
5857000000
5061000000
-13525000000
3456000000
22675000000
-17758000000
-1203000000
152000000
1.18
1.16
0.40
11637000000
13942000000
2248000000
1000000
-1000000
57000000
2000000
835000000
3020000000
851000000
1299000000
1.18
1.16
0.00
0.00
65000000
448000000
50000000
852000000
1247000000
102000000
1005000000
16962000000
14298000000
2664000000
732800000
1.42
1.41
0.42
11580000000
13807000000
2184000000
1000000
0
43000000
-3000000
925000000
3347000000
997000000
1496000000
1.42
1.41
0.00
0.00
70000000
499000000
80000000
998000000
1529000000
47000000
960000000
17154000000
14296000000
2858000000
707400000
-1423000000
2.83
2.79
0.80
4000000
81000000
0
22425000000
26547000000
4003000000
643000000
10000000
6000000
-4000000
29000000
45000000
45000000
119000000
2000000
1610000000
6405000000
2057000000
3152000000
2.82
2.78
0.01
0.01
123000000
1095000000
1022000000
129000000
-275000000
649000000
-406000000
103000000
-149000000
-281000000
96000000
-2733000000
-401000000
1682000000
2063000000
3046000000
78000000
202000000
2064000000
606000000
94000000
148000000
5606000000
807000000
16000000
6238000000
41000000
1874000000
32952000000
27986000000
4966000000
98000000
740000000
-1166000000
278000000
80000000
0
5000000
154000000
10-Q
false
N.A.
2009-06-30
BOEING CO
0000012927
BA
--12-31
Yes
No
Yes
Large Accelerated Filer
610000000
1331000000
<div>
<p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2"><b>Note 12 – Fair Value Measurements</b></font></p>
<p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2">The following tables present our assets and liabilities
that are measured at fair value on a recurring basis and are
categorized using the fair value hierarchy. The fair value
hierarchy has three levels based on the reliability of the inputs
used to determine fair value. Level 1 refers to fair values
determined based on quoted prices in active markets for identical
assets. Level 2 refers to fair values estimated using significant
other observable inputs, and Level 3 includes fair values estimated
using significant non-observable inputs.</font></p>
<p style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px">
 </p>
<table cellspacing="0" cellpadding="0" width="100%" align="center"
border="0"><!-- 5 First_Row * DO NOT REMOVE OR EDIT -->
<tbody>
<tr>
<td width="46%"></td>
<td valign="bottom" width="10%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="10%"></td>
<td></td>
<td></td>
<td valign="bottom" width="10%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="10%"></td>
<td></td>
<td></td>
</tr>
<tr>
<td valign="bottom"> <font size="1"> </font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom" colspan="2"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"right" colspan="9"><font face="ARIAL" size="2"><b>Fair Value
Measurements at June 30, 2009</b></font></td>
</tr>
<tr>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
 <font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1">  </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"right" colspan="2"><font face="ARIAL" size=
"2"><b>Total</b></font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"right" colspan="2"><font face="ARIAL" size=
"2"><b>            Level 1</b></font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1">  </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"right" colspan="2"><font face="ARIAL" size=
"2"><b>            Level 2</b></font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"right" colspan="2"><font face="ARIAL" size=
"2"><b>            Level 3</b></font></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top"><font face="ARIAL" size=
"2"><b>Assets</b></font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Money market funds</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b>$</b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>3,163</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b>$</b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>3,163</b></font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Available-for-sale investments:</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Debt:</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Residential mortgage-backed securities</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>184</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b>$</b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>184</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Other debt obligations</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>83</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>79</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b>$</b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>4</b></font></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Equity</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>10</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>10</b></font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Derivatives</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>157</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>139</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>18</b></font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td style="BORDER-TOP: #000000 1px solid" valign="top" colspan=
"15"> </td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2"><b>Total assets</b></font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b>$</b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>3,597</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b>$</b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>3,173</b></font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b>$</b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>402</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b>$</b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>22</b></font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td style="BORDER-TOP: #000000 3px double" valign="top" colspan=
"15"> </td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2"><b>Liabilities</b></font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Derivatives</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b>$</b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>(110</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>) </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b>$</b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>(110</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>) </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td style="BORDER-TOP: #000000 1px solid" valign="top" colspan=
"15"> </td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2"><b>Total liabilities</b></font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b>$</b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>(110</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>) </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b>$</b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>(110</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>) </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td style="BORDER-TOP: #000000 3px double" valign="top" colspan=
"15"> </td>
</tr>
<tr>
<td height="21"></td>
<td colspan="4" height="21"></td>
<td colspan="10" height="21"></td>
</tr>
<tr>
<td valign="bottom"> <font size="1"> </font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom" colspan="2"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"right" colspan="9"><font face="ARIAL" size="2">Fair Value
Measurements at December 31, 2008</font></td>
</tr>
<tr>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
 <font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1">  </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"right" colspan="2"><font face="ARIAL" size="2">Total</font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"right" colspan="2"><font face="ARIAL" size=
"2">              Level 1</font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1">  </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"right" colspan="2"><font face="ARIAL" size=
"2">             Level 2</font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"right" colspan="2"><font face="ARIAL" size=
"2">             Level 3</font></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top"><font face="ARIAL" size=
"2"><b>Assets</b></font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Money market funds</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2">$</font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">2,128</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2">$</font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">2,128</font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Available-for-sale debt investments:</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Residential mortgage-backed securities</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">196</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2">$</font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">196</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Other debt obligations</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">156</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">151</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2">$</font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">5</font></td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Derivatives</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">62</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">52</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">10</font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td style="BORDER-TOP: #000000 1px solid" valign="top" colspan=
"15"> </td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2"><b>Total assets</b></font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2">$</font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">2,542</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2">$</font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">2,128</font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2">$</font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">399</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2">$</font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">15</font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td style="BORDER-TOP: #000000 3px double" valign="top" colspan=
"15"> </td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2"><b>Liabilities</b></font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Derivatives</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2">$</font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">(181</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2">$</font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">(181</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td style="BORDER-TOP: #000000 1px solid" valign="top" colspan=
"15"> </td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2"><b>Total liabilities</b></font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2">$</font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">(181</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2">$</font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">(181</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td style="BORDER-TOP: #000000 3px double" valign="top" colspan=
"15"> </td>
</tr>
<!-- 6 Last_Row * DO NOT REMOVE OR EDIT --></tbody>
</table>
<p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2">Money market funds and equity securities are valued using
a market approach based on the quoted market prices of identical
instruments. Residential mortgage-backed securities are valued
using an</font> <!--##PBEnd##--><font face="ARIAL" size="2">income
approach based on prepayment speeds, yields, discount margin and
collateral performance. The other debt securities are primarily
valued using a market approach based on benchmark yields, reported
trades and broker/dealer quotes.</font></p>
<p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2">Derivatives include foreign currency, commodity, interest
rate contracts and warrants. Our foreign currency forward contracts
are valued using an income approach based on the present value of
the forward rate less the contract rate multiplied by the notional
amount. Commodity derivatives are valued using an income approach
based on the present value of the commodity index prices less the
contract rate multiplied by the notional amount. The fair value of
our interest rate swaps is derived from a discounted cash flow
analysis based on the terms of the contract and the interest rate
curve. The fair value of warrants is based on a third-party options
model and principal inputs of stock price, volatility and time to
expiry.</font></p>
<p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2">Assets that are measured at fair value on a nonrecurring
basis were not material during the six and three months ended
June 30, 2009 and 2008.</font></p>
<p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2"><b>Fair Value Disclosures</b></font></p>
<p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2">The following table presents our assets and liabilities
that are not measured at fair value on a recurring basis. The
carrying values and estimated fair values consisted of the
following:</font></p>
<p style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px">
 </p>
<table cellspacing="0" cellpadding="0" width="100%" align="center"
border="0"><!-- 5 First_Row * DO NOT REMOVE OR EDIT -->
<tbody>
<tr>
<td width="64%"></td>
<td valign="bottom" width="5%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="5%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="5%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="5%"></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
 <font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1">  </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"middle" colspan="6">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align="center">
<font face="ARIAL" size="2"><b>June 30</b></font></p>
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 1px" align="center">
<font face="ARIAL" size="2"><b>2009</b></font></p>
</td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"middle" colspan="6">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align="center">
<font face="ARIAL" size="2">December 31</font></p>
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 1px" align="center">
<font face="ARIAL" size="2">2008</font></p>
</td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
</tr>
<tr>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
 <font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1">  </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"right" colspan="2"><font face="ARIAL" size="2"><b>Carrying<br />
Amount</b></font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"right" colspan="2"><font face="ARIAL" size="2"><b>Fair<br />
Value</b></font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"right" colspan="2"><font face="ARIAL" size="2">Carrying<br />
Amount</font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"right" colspan="2"><font face="ARIAL" size="2">Fair<br />
Value</font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2"><b>Assets</b></font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Accounts receivable, net</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b>$</b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>6,588</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b>$</b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>6,278</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2">$</font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">5,602</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2">$</font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">5,443</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Notes receivable</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>1,365</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>1,376</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">950</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">954</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2"><b>Liabilities</b></font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Debt, excluding capital lease obligations</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>(9,049</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>) </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>(9,826</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>) </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">(7,441</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">(7,923</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">) </font></td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Accounts payable</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>(6,664</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>) </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>(6,540</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>) </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">(5,871</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">(5,871</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">) </font></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Residual value and credit guarantees</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>(204</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>) </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>(135</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>) </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">(208</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">(52</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">) </font></td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Contingent repurchase commitments</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>(7</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>) </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>(52</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>) </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">(7</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">(38</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">) </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td style="BORDER-TOP: #000000 3px double" valign="top" colspan=
"16"> </td>
<td> </td>
</tr>
<!-- 6 Last_Row * DO NOT REMOVE OR EDIT --></tbody>
</table>
<p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2">The fair values of the Accounts receivable and Accounts
payable are based on current market rates for loans of the same
risk and maturities. The fair values of our variable rate notes
receivable that reprice frequently approximate their carrying
values. The fair values of fixed rate notes receivable are
estimated using discounted cash flow analysis using interest rates
currently offered on loans with similar terms to borrowers of
similar credit quality. The fair value of our debt is based on
current market yields for our debt traded in the secondary market.
The fair values of the residual value guarantees and contingent
repurchase commitments are determined using a Black Futures Options
formula and includes such assumptions as the expected value of the
aircraft on the settlement date, volatility of aircraft prices,
time until settlement and the risk free discount rate. The fair
value of the credit guarantees is estimated based on the expected
cash flows of those commitments, given the creditor’s
probability of default, and discounted using the risk free rate.
The estimated fair value of our Other accrued liabilities balance
at June 30, 2009 and December 31, 2008 approximates its
carrying value. With regard to financial instruments with
off-balance sheet risk, it is not practicable to estimate the fair
value of future financing commitments because the amount and timing
of funding those commitments are uncertain.</font></p>
</div>
2.28
2.27
<div>
<p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2"><b>Note 6 – Liabilities, Commitments and
Contingencies</b></font></p>
<p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2"><b>Environmental Matters</b></font></p>
<p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2">For the six months ended June 30, 2009 and 2008, the
aggregate amounts of liabilities recorded relative to environmental
matters were as follows:</font></p>
<p style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px">
 </p>
<table cellspacing="0" cellpadding="0" width="100%" align="center"
border="0"><!-- 5 First_Row * DO NOT REMOVE OR EDIT -->
<tbody>
<tr>
<td width="84%"></td>
<td valign="bottom" width="5%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="5%"></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
 <font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1">  </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"
colspan="6">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align="right">
<font face="ARIAL" size="2"><b>Environmental</b></font></p>
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 1px" align="center">
<font face="ARIAL" size="2"><b>Liabilities</b></font></p>
</td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
</tr>
<tr>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
 <font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1">  </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"right" colspan="2"><font face="ARIAL" size=
"2"><b>    2009</b></font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"right" colspan="2"><font face="ARIAL" size=
"2">    2008</font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Beginning balance – January 1</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b>$</b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>731</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2">$</font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">679</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Reductions for payments made</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>(36</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>) </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">(38</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">) </font></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Changes in estimates</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>47</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">46</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td style="BORDER-TOP: #000000 1px solid" valign="top" colspan="8">
 </td>
<td> </td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Ending balance – June 30</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b>$</b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>742</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2">$</font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">687</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td style="BORDER-TOP: #000000 3px double" valign="top" colspan=
"8"> </td>
<td> </td>
</tr>
<!-- 6 Last_Row * DO NOT REMOVE OR EDIT --></tbody>
</table>
<p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2">The liabilities recorded represent our best estimate of
costs expected to be incurred to remediate, operate and maintain
sites over periods of up to 30 years. It is reasonably possible
that we may incur additional charges because of regulatory
complexities, higher than expected costs and the risk of
unidentified contamination. As part of our estimating process, we
develop a range of reasonably possible alternate scenarios which
include highest cost estimates to remediate identified
contamination at all sites based on our experience and existing
laws and regulations. At June 30, 2009 and December 31,
2008 our reasonably possible highest cost estimate for all
remediation sites exceeded our recorded liabilities by
$1,206.</font></p>
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font size=
"1"> </font></p>
<!--##PBStart##-->
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2"><b>Product Warranties</b></font></p>
<p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2">The following table summarizes product warranty activity
recorded during the six months ended June 30, 2009 and
2008.</font></p>
<p style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px">
 </p>
<table cellspacing="0" cellpadding="0" width="100%" align="center"
border="0"><!-- 5 First_Row * DO NOT REMOVE OR EDIT -->
<tbody>
<tr>
<td width="81%"></td>
<td valign="bottom" width="6%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="6%"></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
 <font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1">  </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"
colspan="6">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align="right">
<font face="ARIAL" size="2"><b>Product Warranty</b></font></p>
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 1px" align="center">
<font face="ARIAL" size="2"><b>Liabilities</b></font></p>
</td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
</tr>
<tr>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
 <font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1">  </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"right" colspan="2"><font face="ARIAL" size=
"2"><b>    2009</b></font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"right" colspan="2"><font face="ARIAL" size=
"2">    2008</font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Beginning balance – January 1</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b>$</b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>959</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2">$</font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">962</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Additions for current year deliveries</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>89</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">96</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Reductions for payments made</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>(122</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>) </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">(111</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">) </font></td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Changes in estimates</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>98</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">(37</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">) </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td style="BORDER-TOP: #000000 1px solid" valign="top" colspan="8">
 </td>
<td> </td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Ending balance – June 30</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b>$</b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>1,024</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2">$</font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">910</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td style="BORDER-TOP: #000000 3px double" valign="top" colspan=
"8"> </td>
<td> </td>
</tr>
<!-- 6 Last_Row * DO NOT REMOVE OR EDIT --></tbody>
</table>
<p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2"><b>Discontinued Operations</b></font></p>
<p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2">As part of the 2004 purchase and sale agreement with
General Electric Capital Corporation related to the sale of Boeing
Capital Corporation’s (BCC) Commercial Financial Services
business, BCC is involved in a loss sharing arrangement for losses
on transferred portfolio assets, such as asset sales, provisions
for loss or asset impairment charges offset by gains from asset
sales. As of June 30, 2009 and December 31, 2008, our
maximum exposure to loss associated with the loss sharing
arrangement was $222 and $232. As of June 30, 2009 and
December 31, 2008, the accrued liability under the loss
sharing arrangement was $48 and $39.</font></p>
<p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2"><b>Commercial Aircraft Commitments</b></font></p>
<p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2">In conjunction with signing a definitive agreement for the
sale of new aircraft (Sale Aircraft), we have entered into
specified-price trade-in commitments with certain customers that
give them the right to trade in used aircraft upon the purchase of
Sale Aircraft. The total contractual trade-in value was $545 and
$1,045 as of June 30, 2009 and December 31, 2008. We
anticipate that a significant portion of these commitments will not
be exercised by customers.</font></p>
<p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2">The probability that trade-in commitments will be
exercised is determined by using both quantitative information from
valuation sources and qualitative information from other sources.
The probability of exercise is continually assessed, taking into
consideration the current economic environment. Trade-in
commitments, which can be terminated by mutual consent with the
customer, may be exercised only during the period specified in the
agreement, and require advance notice by the customer. There were
no probable contractual trade-in commitments as of June 30,
2009. Trade-in commitment agreements have expiration dates from
2010 through 2023.</font></p>
<p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2"><b>Sea Launch</b></font></p>
<p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2">On June 22, 2009, the Sea Launch venture, in which
Boeing Commercial Satellite Company (BCSC), a subsidiary of The
Boeing Company, is a 40% partner with RSC Energia of Russia (25%),
Aker ASA of Norway (20%), PO Yuzhmash (10%) and SDO Yuzhnoye
(5%) of the Ukraine, filed a voluntary petition for relief
under Chapter 11 of Title 11 of the United States Code in the
United States Bankruptcy Court for the District of Delaware (the
Chapter 11 Filing). The Chapter 11 Filing constituted an event of
default or otherwise accelerated approximately $448 of outstanding
indebtedness of Sea Launch for which we and an affiliate of one
other Sea Launch partner had previously issued guarantees. On
July 1, 2009, we paid $448 under this guarantee. Among other
options, we have a right to reimbursement from Sea Launch as well
as rights to reimbursement from the other Sea Launch partners, who
are each obligated to reimburse us so that we contribute no more
than our proportional ownership percentage (40%) in Sea Launch
of the aggregate guarantee payment obligations. We intend to pursue
vigorously all of our rights and remedies against Sea Launch and
the other Sea Launch partners.</font></p>
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font size=
"1"> </font></p>
<!--##PBStart##-->
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2">As a result of the Sea Launch bankruptcy $523 of principal
and interest associated with a loan by BCSC also become repayable
by Sea Launch. Certain other Sea Launch partners have guaranteed
this loan, and we believe we can recover the proportionate amounts
due from such partners of $209. We intend to pursue vigorously all
of our rights and remedies to recover amounts associated with this
loan.</font></p>
<p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2">The amounts due from Sea Launch, related reserves and
estimated future cash recoveries are as follows:</font></p>
<p style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px">
 </p>
<table cellspacing="0" cellpadding="0" width="100%" align="center"
border="0"><!-- 5 First_Row * DO NOT REMOVE OR EDIT -->
<tbody>
<tr>
<td width="65%"></td>
<td valign="bottom" width="8%"></td>
<td></td>
<td></td>
<td valign="bottom" width="8%"></td>
<td></td>
<td></td>
<td valign="bottom" width="8%"></td>
<td></td>
<td></td>
</tr>
<tr>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font face="ARIAL" size="2"><i>(Dollars in
millions)</i></font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1">  </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"right" colspan="2">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align="right">
<font face="ARIAL" size="2"><b>Estimated</b></font></p>
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align="right">
<font face="ARIAL" size="2"><b>Maximum</b></font></p>
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 1px" align="right">
<font face="ARIAL" size="2"><b>Exposure</b></font></p>
</td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1">  </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"right" colspan="2">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align="right">
<font face="ARIAL" size="2"><b>Established</b></font></p>
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 1px" align="right">
<font face="ARIAL" size="2"><b>Reserves</b></font></p>
</td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1">  </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"right" colspan="2">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align="right">
<font face="ARIAL" size="2"><b>Estimated</b></font></p>
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align="right">
<font face="ARIAL" size="2"><b>Proceeds</b></font></p>
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align="right">
<font face="ARIAL" size="2"><b>from</b></font></p>
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 1px" align="right">
<font face="ARIAL" size="2"><b>Recourse</b></font></p>
</td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Receivables from Sea Launch and partners related to credit
guarantee payments</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2">$</font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">448</font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2">$</font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">179</font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2">$</font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">269</font></td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Partner loans (principal and interest)</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">523</font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">314</font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">209</font></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Trade receivable from Sea Launch</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">421</font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">421</font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Subcontract termination</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">9</font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">9</font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Other receivables and inventory</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">60</font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">60</font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td style="BORDER-TOP: #000000 1px solid" valign="top" colspan=
"10"> </td>
</tr>
<tr>
<td valign="top"></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b>$</b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>1,461</b></font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b>$</b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>983</b></font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b>$</b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>478</b></font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td style="BORDER-TOP: #000000 3px double" valign="top" colspan=
"10"> </td>
</tr>
<!-- 6 Last_Row * DO NOT REMOVE OR EDIT --></tbody>
</table>
<p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2">We recorded a pre-tax charge to earnings of $35 in the
second quarter of 2009, resulting from Sea Launch’s Chapter
11 Filing. In the event we are unable to secure reimbursement from
Sea Launch or certain Sea Launch partners of $269 related to our
payment under the credit guarantees and $209 related to the
previously made loans to Sea Launch, we could incur additional
pre-tax charges of up to $478.</font></p>
<p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2"><b>C-17</b></font></p>
<p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2">As of June 30, 2009, we delivered 189 of the 205 C-17
aircraft currently under contract with the United States Air Force
(USAF), with final deliveries scheduled for 2010. The 205 C-17
aircraft total includes the Fiscal Year 2008 order for 15 aircraft
that the USAF placed on contract in February 2009. Our backlog at
June 30, 2009 also includes international orders for 4 C-17
aircraft. Through June 30, 2009, we have directed key
suppliers to begin work on a total of 23 aircraft beyond the
aircraft currently in backlog. The long-lead items are required to
support 8 aircraft funded in the Fiscal Year 2009 supplemental
defense spending bill, signed by the President of the United States
in June 2009, anticipated international orders and possible future
funding for USAF orders in Fiscal Year 2010. Inventory expenditures
and potential termination liabilities to suppliers totaled
approximately $265 at June 30, 2009. Should additional orders
not materialize, it is reasonably possible that we will decide in
2009 to complete production of the C-17. We are still evaluating
the full financial impact of a potential production shut-down,
including any recovery that would be available from the U.S.
government. Such recovery from the U.S. government would not
include the costs incurred by us resulting from our direction to
suppliers to begin working on aircraft beyond the 205 currently
under contract with the USAF.</font></p>
<p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2"><b>787 Program</b></font></p>
<p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2">On June 23, 2009, we announced that first flight of
the 787 was being postponed due to a need to reinforce an area
within the side of the body section of the aircraft where the wing
joins the fuselage. Prior to the announcement first flight was
targeted for second quarter of 2009 with first delivery targeted
for the first quarter of 2010. We have now analyzed the problem and
have identified a</font> <!--##PBStart##--><font face="ARIAL" size=
"2">technical solution from among a number of options. We are
currently evaluating alternative ways to implement that solution.
Development of the aircraft modification and testing plan will
follow selection of our implementation solution. Revised target
dates for first flight and first delivery will be established
following the final determination of the required modification and
testing plan. Until we settle on such a plan, we are not in a
position to determine schedule impacts. Once we finalize the
impacts to schedule we will determine the resulting financial
impacts of the schedule modifications. We expect these
determinations to be made in the third quarter of 2009. It will not
be possible until the above described plans are finalized to
determine the extent or effect that these delays will have on our
financial statements.</font></p>
<p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2"><b>Customer Financing Exposure</b></font></p>
<p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2">Aircraft financing is collateralized by security in the
related asset. The value of the collateral is closely tied to
commercial airline performance and may be subject to reduced
valuation with market decline. Our financing portfolio has a
concentration of various model aircraft. Aircraft financing
carrying values related to major aircraft concentrations were as
follows:</font></p>
<p style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px">
 </p>
<table cellspacing="0" cellpadding="0" width="100%" align="center"
border="0"><!-- 5 First_Row * DO NOT REMOVE OR EDIT -->
<tbody>
<tr>
<td width="76%"></td>
<td valign="bottom" width="7%"></td>
<td></td>
<td></td>
<td valign="bottom" width="7%"></td>
<td></td>
<td></td>
</tr>
<tr>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
 <font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1">  </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"right" colspan="2">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align="right">
<font face="ARIAL" size="2"><b>June 30</b></font></p>
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 1px" align="right">
<font face="ARIAL" size="2"><b>2009</b></font></p>
</td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1">  </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"right" colspan="2">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align="right">
<font face="ARIAL" size="2">December 31</font></p>
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 1px" align="right">
<font face="ARIAL" size="2">2008</font></p>
</td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">717 Aircraft ($682 and $694 accounted for as operating
leases)*</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b>$</b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>2,325</b></font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2">$</font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">2,365</font></td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">757 Aircraft ($750 and $780 accounted for as operating
leases)*</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>954</b></font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">991</font></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">767 Aircraft ($175 and $181 accounted for as operating
leases)</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>511</b></font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">540</font></td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">MD-11 Aircraft ($444 and $536 accounted for as operating
leases)*</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>444</b></font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">536</font></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">737 Aircraft ($428 and $453 accounted for as operating
leases)</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>533</b></font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">464</font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td style="BORDER-TOP: #000000 3px double" valign="top" colspan=
"7"> </td>
</tr>
<!-- 6 Last_Row * DO NOT REMOVE OR EDIT --></tbody>
</table>
<p style="MARGIN-TOP: 0px; FONT-SIZE: 2px; MARGIN-BOTTOM: 0px">
 </p>
<table style="BORDER-COLLAPSE: collapse" cellspacing="0"
cellpadding="0" width="100%" border="0">
<tbody>
<tr>
<td valign="top" align="left" width="2%"><font face="ARIAL" size=
"2">*</font></td>
<td valign="top" align="left"><font face="ARIAL" size=
"2">Out-of-production aircraft</font></td>
</tr>
</tbody>
</table>
<p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2"><b>Future Lease Commitments</b></font></p>
<p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2">As of June 30, 2009 and December 31, 2008,
future lease commitments on aircraft and other commitments not
recorded on the Condensed Consolidated Statements of Financial
Position totaled $165 and $197. These lease commitments extend
through 2020, and our intent is to recover these lease commitments
through sublease arrangements. As of June 30, 2009 and
December 31, 2008, Other accrued liabilities included $15 and
$32 attributable to adverse commitments under these lease
arrangements.</font></p>
<p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2"><b>Financing Commitments</b></font></p>
<p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2">Financing commitments totaled $9,542 and $10,145 as of
June 30, 2009 and December 31, 2008. We anticipate that a
significant portion of these commitments will not be exercised by
the customers as we continue to work with third party financiers to
provide alternative financing to customers. However, there can be
no assurances given the current capital market disruptions that we
will not be required to fund greater amounts than historically
required.</font></p>
<p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2">In connection with the formation of ULA, we and Lockheed
Martin Corporation (Lockheed) each agreed to extend a line of
credit to ULA of up to $200 to support its working capital
requirements during the 5 year period following December 1,
2006. ULA did not request any funds under the line of credit as of
June 30, 2009. We and Lockheed have also each committed to
provide ULA with up to $122 of additional capital contributions in
the event ULA does not have sufficient funds to make a required
payment to us under an inventory supply agreement. See Note
4.</font></p>
<p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2">We have entered into standby letters of credit agreements
and surety bonds with financial institutions primarily relating to
the guarantee of future performance on certain contracts.
Contingent liabilities on outstanding letters of credit agreements
and surety bonds aggregated approximately $7,105 and $5,763 as of
June 30, 2009 and December 31, 2008.</font></p>
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font size=
"1"> </font></p>
<!--##PBStart##-->
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2"><b>Satellites</b></font></p>
<p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2">Certain launch and satellite sales contracts include
provisions that specify that we bear risk of loss associated with
the launch phase through acceptance in orbit by the customer. We
have historically purchased insurance to cover these exposures when
allowed under the terms of the contract and when economically
advisable. The current insurance market reflects high premium rates
and also suffers from a lack of capacity to handle all insurance
requirements. We make decisions on the procurement of insurance
based on our analysis of risk. We did not procure full insurance
for a launch that occurred during the second quarter of 2009 and
there is a contractual launch scheduled for 2010 for which full
insurance coverage may not be available or, if available, could be
prohibitively expensive. We will continue to review this risk. We
estimate that the potential uninsured amount for each launch could
be approximately $360.</font></p>
</div>
0.84
0.84
2015000000
<div>
<p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2"><b>Note 8 – Debt</b></font></p>
<p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2">On March 9, 2009, we filed a public shelf
registration with the U.S. Securities and Exchange Commission for
the issuance of an indeterminate amount of debt securities and
common stock. On March 13, 2009, we issued notes totaling
$1,850, which included $700 bearing an interest rate of 5%</font>
<!--##PBStart##--><font face="ARIAL" size="2">due March 15,
2014, $650 bearing an interest rate of 6% due March 15, 2019
and $500 bearing an interest rate of 6.875% due March 15,
2039. The net proceeds after deducting the discount, underwriting
fees and issuance costs were $1,817. We may redeem each series of
notes at any time prior to maturity, in whole or in part, upon at
least 30 days notice, at a redemption price equal to the principal
amount of the notes to be redeemed plus a make-whole premium,
together with accrued interest on such notes to the redemption
date. The notes are unsecured senior obligations and rank equally
in right of payment with all our existing and future unsecured and
unsubordinated indebtedness.</font></p>
</div>
4000000
99000000
50000000
23159000000
27552000000
4303000000
666000000
<div>
<p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2"><b>Note 11 – Derivative Financial
Instruments</b></font></p>
<p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2"><b>Cash Flow Hedges</b></font></p>
<p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2">Our cash flow hedges include certain interest rate swaps,
cross currency swaps, foreign currency forward contracts, foreign
currency option contracts and commodity purchase contracts.
Interest rate swap contracts under which we agree to pay fixed
rates of interest are designated as cash flow hedges of
variable-rate debt obligations. We use foreign currency forward and
option contracts to manage currency risk associated with certain
forecasted transactions, specifically sales and purchase
commitments made in foreign currencies. Our foreign currency
forward contracts hedge forecasted transactions principally
occurring within five years in the future, with certain contracts
hedging transactions up to 2021. We use commodity derivatives, such
as fixed-price purchase commitments, to hedge against potentially
unfavorable price changes for items used in production. These
include commitments to purchase electricity at fixed prices through
2015.</font></p>
<p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2"><b>Fair Value Hedges</b></font></p>
<p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2">Interest rate swaps under which we agree to pay variable
rates of interest are designated as fair value hedges of fixed-rate
debt. Gains/(losses) of hedged items designated and qualifying in
fair value hedges recognized in earnings for the six and three
months ended June 30, 2009 were not material.</font></p>
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font size=
"1"> </font></p>
<!--##PBStart##-->
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2"><b>Notional Amounts and Fair Values</b></font></p>
<p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2">The fair values of derivative instruments are recorded in
the Consolidated Statements of Financial Position. The notional
amounts and fair values were as follows:</font></p>
<p style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px">
 </p>
<table cellspacing="0" cellpadding="0" width="100%" align="center"
border="0"><!-- 5 First_Row * DO NOT REMOVE OR EDIT -->
<tbody>
<tr>
<td width="31%"></td>
<td valign="bottom" width="7%"></td>
<td></td>
<td></td>
<td valign="bottom" width="7%"></td>
<td></td>
<td></td>
<td valign="bottom" width="7%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="7%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="7%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="7%"></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
 <font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1">  </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"middle" colspan="5"><font face="ARIAL" size="2"><b>Notional
amounts<font face="ARIAL" size="1"><sup style=
"VERTICAL-ALIGN: baseline; BOTTOM: 0.8ex; POSITION: relative">1</sup></font></b></font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1">  </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"middle" colspan="6"><font face="ARIAL" size="2"><b>Other
assets</b></font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"middle" colspan="6"><font face="ARIAL" size="2"><b>Other
accrued<br />
liabilities</b></font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
</tr>
<tr>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
 <font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1">  </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"right" colspan="2"><font face="ARIAL" size=
"2"><b>June 30<br />
2009</b></font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1">  </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"right" colspan="2"><font face="ARIAL" size=
"2">December 31<br />
2008</font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1">  </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"right" colspan="2"><font face="ARIAL" size=
"2"><b>June 30<br />
2009</b></font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"right" colspan="2"><font face="ARIAL" size=
"2">December 31<br />
2008</font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"right" colspan="2"><font face="ARIAL" size=
"2"><b>June 30<br />
2009</b></font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"right" colspan="2"><font face="ARIAL" size=
"2">December 31<br />
2008</font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top" nowrap="nowrap">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Derivatives designated as hedging instruments</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr>
<td valign="top" nowrap="nowrap">
<p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Foreign exchange contracts</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b>$</b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>2,580</b></font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2">$</font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">1,992</font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b>$</b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>186</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2">$</font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">26</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b>$</b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>(43</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>) </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2">$</font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">(39</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">) </font></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top" nowrap="nowrap">
<p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Interest rate contracts</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>817</b></font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">817</font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>40</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">48</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>(1</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>) </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">(3</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">) </font></td>
</tr>
<tr>
<td valign="top" nowrap="nowrap">
<p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Commodity contracts</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>141</b></font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">147</font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>(101</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>) </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">(75</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">) </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td style="BORDER-TOP: #000000 1px solid" valign="top" colspan=
"22"> </td>
<td> </td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top"></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>3,538</b></font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">2,956</font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>226</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">74</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>(145</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>) </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">(117</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">) </font></td>
</tr>
<tr>
<td valign="top" nowrap="nowrap">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Derivatives not receiving hedge accounting
treatment</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top" nowrap="nowrap">
<p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Foreign exchange contracts</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>647</b></font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">646</font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>34</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">42</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>(86</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>) </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">(128</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">) </font></td>
</tr>
<tr>
<td valign="top" nowrap="nowrap">
<p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Warrants</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>21</b></font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">21</font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>18</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">10</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td style="BORDER-TOP: #000000 1px solid" valign="top" colspan=
"22"> </td>
<td> </td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top" nowrap="nowrap">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Total derivatives</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>4,206</b></font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">3,623</font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>278</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">126</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>(231</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>) </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">(245</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">) </font></td>
</tr>
<tr>
<td valign="top" nowrap="nowrap">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Netting arrangements</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>(121</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>) </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">(64</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>121</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">64</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td style="BORDER-TOP: #000000 1px solid" valign="top" colspan=
"22"> </td>
<td> </td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top" nowrap="nowrap">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Net recorded balance</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b>$</b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>157</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2">$</font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">62</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b>$</b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>(110</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>) </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2">$</font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">(181</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">) </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td style="BORDER-TOP: #000000 3px double" valign="top" colspan=
"22"> </td>
<td> </td>
</tr>
<!-- 6 Last_Row * DO NOT REMOVE OR EDIT --></tbody>
</table>
<p style="MARGIN-TOP: 0px; FONT-SIZE: 6px; MARGIN-BOTTOM: 0px">
 </p>
<table style="BORDER-COLLAPSE: collapse" cellspacing="0"
cellpadding="0" width="100%" border="0">
<tbody>
<tr>
<td valign="top" align="left" width="2%"><font face="ARIAL" size=
"1"><sup style=
"VERTICAL-ALIGN: baseline; BOTTOM: 0.8ex; POSITION: relative">1</sup></font></td>
<td valign="top" align="left">
<p align="left"><font face="ARIAL" size="2">Notional amounts
represent the gross contract/notional amount of the derivatives
outstanding.</font></p>
</td>
</tr>
</tbody>
</table>
<p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2">Gains/(losses) associated with our cash flow and
undesignated hedging transactions and its effect on Accumulated
other comprehensive loss or earnings during the six and three
months ended June 30, 2009 were as follows:</font></p>
<p style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px">
 </p>
<table cellspacing="0" cellpadding="0" width="100%" align="center"
border="0"><!-- 5 First_Row * DO NOT REMOVE OR EDIT -->
<tbody>
<tr>
<td width="37%"></td>
<td valign="bottom" width="8%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="8%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="8%"></td>
<td width="35%"></td>
</tr>
<tr>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
 <font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1">  </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"right" colspan="2"><font face="ARIAL" size=
"2"><b>Six months<br />
ended</b></font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"right" colspan="2"><font face="ARIAL" size=
"2"><b>Three months<br />
ended</b></font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"right">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align="right">
<font face="ARIAL" size="2">Location gains/(losses)</font></p>
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 1px" align="right">
<font face="ARIAL" size="2">are recognized</font></p>
</td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Effective portion recognized in other comprehensive
income, net of taxes–</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 4em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Foreign exchange contracts</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="top"><font face="ARIAL" size="2"><b>$</b></font></td>
<td valign="top" align="right"><font face="ARIAL" size=
"2"><b>77</b></font></td>
<td valign="top" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="top"><font face="ARIAL" size="2"><b>$</b></font></td>
<td valign="top" align="right"><font face="ARIAL" size=
"2"><b>96</b></font></td>
<td valign="top" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="middle"><font face="ARIAL" size=
"2">Accumulated other comprehensive loss</font></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 4em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Commodity contracts</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="top"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="top" align="right"><font face="ARIAL" size=
"2"><b>(25</b></font></td>
<td valign="top" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>) </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="top"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="top" align="right"><font face="ARIAL" size=
"2"><b>3</b></font></td>
<td valign="top" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="middle"><font face="ARIAL" size=
"2">Accumulated other comprehensive loss</font></td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Ineffective portion recognized in
earnings–</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 4em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Foreign exchange contracts</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>33</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>31</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="middle"><font face="ARIAL" size=
"2">Other income, net</font></td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Undesignated hedges recognized in
earnings–</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 4em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Foreign exchange contracts</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>(16</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>) </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>(8</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>) </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="middle"><font face="ARIAL" size=
"2">Other income, net</font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td style="BORDER-TOP: #000000 1px solid" valign="top" colspan=
"11"> </td>
</tr>
<!-- 6 Last_Row * DO NOT REMOVE OR EDIT --></tbody>
</table>
<p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2">Based on our portfolio of cash flow hedges, expected
reclassifications of gains/(losses) during the next 12 months are
not material.</font></p>
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font size=
"1"> </font></p>
<!--##PBStart##-->
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2">We have derivative instruments with credit-risk-related
contingent features. For foreign exchange contracts with original
maturities of at least five years, our derivative counterparties
could require settlement if we default on our 5-year credit
facility, expiring November 2012. For commodity contracts, our
counterparties could require collateral posted in an amount
determined by our credit ratings. The fair value of foreign
exchange and commodity contracts that have credit-risk-related
contingent features that are in a liability position at
June 30, 2009 is $101. At June 30, 2009, there were no
aggregate derivative positions requiring the posting of
collateral.</font></p>
</div>
<div>
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2"><b>Note 10 – Share-Based Compensation and Other
Compensation Arrangements</b></font></p>
<p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2"><b>Stock Options</b></font></p>
<p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2">On February 23, 2009, we granted to our executives
7,423,242 options with an exercise price equal to the fair market
value of our stock on the date of grant. The stock options vest
over a period of 3 years, with 34% vesting after the first year,
33% vesting after the second year and the remaining 33% vesting
after the third year. The options expire 10 years after the date of
grant. The fair value of stock options granted was estimated using
the Black-Scholes option-pricing model with the following
assumptions:</font></p>
<p style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px">
 </p>
<table cellspacing="0" cellpadding="0" width="100%" align="center"
border="0"><!-- 5 First_Row * DO NOT REMOVE OR EDIT -->
<tbody>
<tr>
<td width="23%"></td>
<td valign="bottom" width="12%"></td>
<td></td>
<td valign="bottom" width="12%"></td>
<td></td>
<td></td>
<td valign="bottom" width="12%"></td>
<td></td>
<td></td>
<td valign="bottom" width="12%"></td>
<td></td>
<td></td>
<td valign="bottom" width="12%"></td>
<td></td>
<td></td>
</tr>
<tr>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"
nowrap="nowrap" align="middle"><font face="ARIAL" size=
"2">Grant Date</font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1">  </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"right"><font face="ARIAL" size="2">Expected Life</font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1">  </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"right">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align="right">
<font face="ARIAL" size="2">Expected</font></p>
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 1px" align="right">
<font face="ARIAL" size="2">Volatility</font></p>
</td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"right">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align="right">
<font face="ARIAL" size="2">Expected</font></p>
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align="right">
<font face="ARIAL" size="2">Dividend</font></p>
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 1px" align="right">
<font face="ARIAL" size="2">Yield</font></p>
</td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"right">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align="right">
<font face="ARIAL" size="2">Risk Free</font></p>
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 1px" align="right">
<font face="ARIAL" size="2">Interest Rate</font></p>
</td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"right" colspan="2">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align="right">
<font face="ARIAL" size="2">Weighted-</font></p>
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align="right">
<font face="ARIAL" size="2">Average<br />
Grant</font></p>
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align="right">
<font face="ARIAL" size="2">Date Fair</font></p>
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 1px" align="right">
<font face="ARIAL" size="2">Value</font></p>
</td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">2/23/2009</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">6 years</font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">39.0</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">% </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">2.4</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">% </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">2.03</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">% </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2">$</font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">11.12</font></td>
</tr>
<!-- 6 Last_Row * DO NOT REMOVE OR EDIT --></tbody>
</table>
<p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2">We determined the expected life of the 2009 stock
option grant to be 6 years, calculated using the
“simplified” method in accordance with the Securities
and Exchange Commission Staff Accounting Bulletin 107, <i>Valuation
of Share-Based Payment Arrangements for Public
Companies</i>.</font></p>
<p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2"><b>Restricted Stock Units</b></font></p>
<p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2">On February 23, 2009, we granted to our executives
2,144,501 restricted stock units (RSUs) with a fair value of $35.57
per share. The RSUs will vest and settle in common stock (on a
one-for-one basis) on the third anniversary of the grant
date.</font></p>
<p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2"><b>Performance Awards</b></font></p>
<p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2">On February 23, 2009, we also granted to our
executives Performance Awards with the payout based on the
achievement of financial goals for the three-year period ending
December  31, 2011. The minimum payout is $0 and the maximum
payout is $305.</font></p>
</div>
-7000000
-4000000
3000000
23000000
5000000
5000000
90000000
-6000000
1716000000
6104000000
1612000000
2428000000
2.29
2.28
-0.01
-0.01
102000000
<div>
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2"><b>Note 3 – Income Taxes</b></font></p>
<p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2">The effective tax rates were 33.6% and 33.4% for the six
and three months ended June 30, 2009 and 34.7% and 34.5% for
the same periods in the prior year. The decrease in the effective
tax rates was primarily due to Research and Development tax credit
benefits that exist in 2009, but did not exist as of the second
quarter of 2008, partially offset by state income tax
charges.</font></p>
<p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2">The years 2004-2006 are currently being examined by the
Internal Revenue Service (IRS), and we have filed appeals with the
IRS for 1998-2003. We are also subject to examination in major
state and international jurisdictions for the 2001-2008 tax years,
for which no individually material unrecognized tax benefits exist.
We believe appropriate provisions for all outstanding issues have
been made for all jurisdictions and all open years.</font></p>
<p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2">It is reasonably possible that within the next 12 months
we will resolve some of the matters presently under consideration
for 1998-2006 with the IRS which may increase or decrease
unrecognized tax benefits for these open tax years. Settlement
of those unrecognized tax benefits that affect the effective tax
rate could increase earnings in an amount ranging from $0 to $500
based on current estimates. Audit outcomes and the timing of
audit settlements are subject to significant
uncertainty.</font></p>
</div>
816000000
804000000
1215000000
-921000000
1593000000
262000000
-95000000
-20000000
586000000
137000000
<div>
<p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2"><b>Note 4 – Inventories</b></font></p>
<p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2">Inventories consisted of the following:</font></p>
<p style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px">
 </p>
<table cellspacing="0" cellpadding="0" width="100%" align="center"
border="0"><!-- 5 First_Row * DO NOT REMOVE OR EDIT -->
<tbody>
<tr>
<td width="76%"></td>
<td valign="bottom" width="6%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="6%"></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
 <font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1">  </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"right" colspan="2"><font face="ARIAL" size=
"2"><b>June 30<br />
2009</b></font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"right" colspan="2"><font face="ARIAL" size=
"2">December 31<br />
2008</font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Long-term contracts in progress</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b>$</b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>14,965</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2">$</font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">14,051</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Commercial aircraft programs</font><font face="ARIAL"
size="1"><sup style=
"VERTICAL-ALIGN: baseline; BOTTOM: 0.8ex; POSITION: relative">1</sup></font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>19,203</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">19,309</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Commercial spare parts, used aircraft, general stock
materials and other</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>4,688</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">4,340</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td style="BORDER-TOP: #000000 1px solid" valign="top" colspan="8">
 </td>
<td> </td>
</tr>
<tr>
<td valign="top"></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>38,856</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">37,700</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Less advances and progress billings</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>(21,656</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>) </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">(22,088</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">) </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td style="BORDER-TOP: #000000 1px solid" valign="top" colspan="8">
 </td>
<td> </td>
</tr>
<tr>
<td valign="top"></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b>$</b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>17,200</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2">$</font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">15,612</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td style="BORDER-TOP: #000000 3px double" valign="top" colspan=
"8"> </td>
<td> </td>
</tr>
<!-- 6 Last_Row * DO NOT REMOVE OR EDIT --></tbody>
</table>
<p style="MARGIN-TOP: 0px; FONT-SIZE: 6px; MARGIN-BOTTOM: 0px">
 </p>
<table style="BORDER-COLLAPSE: collapse" cellspacing="0"
cellpadding="0" width="100%" border="0">
<tbody>
<tr>
<td valign="top" align="left" width="3%"><font face="ARIAL" size=
"1"><sup style=
"VERTICAL-ALIGN: baseline; BOTTOM: 0.8ex; POSITION: relative">1</sup></font></td>
<td valign="top" width="1%"><font size="1"> </font></td>
<td valign="top" align="left">
<p align="left"><font face="ARIAL" size="2">Includes deferred
production costs related to the 777 program of $843 and $1,223 and
unamortized tooling related to the 777 program of $220 and $255 as
of June 30, 2009 and December 31, 2008. Also includes
work in process (including deferred production costs), supplier
advances, and tooling and other non-recurring costs related to the
787 program of $4,381, $2,614 and $866 as of June 30, 2009 and
$3,021, $2,548 and $755 as of December 31, 2008.</font></p>
</td>
</tr>
</tbody>
</table>
<p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2">Delta launch program inventories that will be sold at cost
to United Launch Alliance (ULA) under an inventory supply agreement
that terminates on March 31, 2021 are included in long-term
contracts in progress inventories. At June 30, 2009 and
December 31, 2008, the inventory balance was $1,822, of which,
$1,114 relates to yet unsold launches. ULA is continuing to assess
the future of the Delta II program. In the event ULA is unable to
sell additional Delta II inventory, earnings could be reduced by up
to $90. See Note 7.</font></p>
<p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2">Inventories included $235 subject to claims or other
uncertainties relating to the A-12 program as of June 30, 2009
and December 31, 2008. See Note 13.</font></p>
</div>
<div>
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2"><b>Note 5 – Investments</b></font></p>
<p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2">Our investments, which are recorded in Short-term
investments or Investments, consisted of the following:</font></p>
<p style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px">
 </p>
<table cellspacing="0" cellpadding="0" width="100%" align="center"
border="0"><!-- 5 First_Row * DO NOT REMOVE OR EDIT -->
<tbody>
<tr>
<td width="76%"></td>
<td valign="bottom" width="7%"></td>
<td></td>
<td></td>
<td valign="bottom" width="7%"></td>
<td></td>
<td></td>
</tr>
<tr>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
 <font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1">  </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"right" colspan="2"><font face="ARIAL" size=
"2"><b>June 30<br />
2009</b></font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1">  </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"right" colspan="2"><font face="ARIAL" size=
"2">December 31<br />
2008</font></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Time deposits</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b>$</b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>150</b></font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Available-for-sale investments</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>277</b></font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2">$</font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">352</font></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Equity method investments</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>906</b></font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">942</font></td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Other investments</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>26</b></font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">45</font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td style="BORDER-TOP: #000000 1px solid" valign="top" colspan="7">
 </td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Total investments</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b>$</b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>1,359</b></font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2">$</font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">1,339</font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td style="BORDER-TOP: #000000 3px double" valign="top" colspan=
"7"> </td>
</tr>
<!-- 6 Last_Row * DO NOT REMOVE OR EDIT --></tbody>
</table>
<p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2"><b>Available-For-Sale Investments</b></font></p>
<p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2">Our investments in available-for-sale debt and equity
securities consisted of the following:</font></p>
<p style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px">
 </p>
<table cellspacing="0" cellpadding="0" width="100%" align="center"
border="0"><!-- 5 First_Row * DO NOT REMOVE OR EDIT -->
<tbody>
<tr>
<td width="35%"></td>
<td valign="bottom" width="5%"></td>
<td></td>
<td></td>
<td valign="bottom" width="5%"></td>
<td></td>
<td valign="bottom" width="5%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="5%"></td>
<td></td>
<td></td>
<td valign="bottom" width="5%"></td>
<td></td>
<td></td>
<td valign="bottom" width="5%"></td>
<td></td>
<td valign="bottom" width="5%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="5%"></td>
<td></td>
<td></td>
</tr>
<tr>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
 <font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"middle" colspan="11"><font face="ARIAL" size="2"><b>June 30,
2009</b></font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"middle" colspan="11"><font face="ARIAL" size="2">December 31,
2008</font></td>
</tr>
<tr>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
 <font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"right" colspan="2"><font face="ARIAL" size="2"><b>Cost or<br />
Amortized<br />
Cost</b></font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"right"><font face="ARIAL" size="2"><b>Gross<br />
Unrealized<br />
Gain</b></font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"right" colspan="2"><font face="ARIAL" size="2"><b>Gross<br />
Unrealized<br />
Loss</b></font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"right" colspan="2"><font face="ARIAL" size="2"><b>Fair<br />
Value</b></font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"right" colspan="2"><font face="ARIAL" size="2">Cost or<br />
Amortized<br />
Cost</font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"right"><font face="ARIAL" size="2">Gross<br />
Unrealized<br />
Gain</font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"right" colspan="2"><font face="ARIAL" size="2">Gross<br />
Unrealized<br />
Loss</font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"right" colspan="2"><font face="ARIAL" size="2">Fair<br />
Value</font></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Debt:</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Residential mortgage-backed securities</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b>$</b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>237</b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b>$</b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>(53</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>) </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b>$</b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>184</b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2">$</font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">285</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2">$</font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">(89</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2">$</font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">196</font></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Other debt obligations</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>90</b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>(7</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>) </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>83</b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">172</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">(16</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">156</font></td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Equity</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>21</b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>(11</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>) </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>10</b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td style="BORDER-TOP: #000000 1px solid" valign="top" colspan=
"25"> </td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Total</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b>$</b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>348</b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b>$</b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>(71</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>) </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b>$</b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>277</b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2">$</font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">457</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2">$</font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">(105</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2">$</font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">352</font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td style="BORDER-TOP: #000000 3px double" valign="top" colspan=
"25"> </td>
</tr>
<!-- 6 Last_Row * DO NOT REMOVE OR EDIT --></tbody>
</table>
<p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2">Debt securities that have been in a continuous unrealized
loss position for 12 months or longer are as follows:</font></p>
<p style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px">
 </p>
<table cellspacing="0" cellpadding="0" width="100%" align="center"
border="0"><!-- 5 First_Row * DO NOT REMOVE OR EDIT -->
<tbody>
<tr>
<td width="63%"></td>
<td valign="bottom" width="7%"></td>
<td></td>
<td></td>
<td valign="bottom" width="7%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="7%"></td>
<td></td>
<td></td>
<td valign="bottom" width="7%"></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
 <font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1">  </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"middle" colspan="5">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align="center">
<font face="ARIAL" size="2"><b>June 30,</b></font></p>
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 1px" align="center">
<font face="ARIAL" size="2"><b>2009</b></font></p>
</td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"middle" colspan="5"><font face="ARIAL" size=
"2">December 31,<br />
2008</font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
</tr>
<tr>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
 <font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1">  </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"right" colspan="2"><font face="ARIAL" size="2"><b>Fair<br />
Value</b></font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1">  </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"right" colspan="2"><font face="ARIAL" size="2"><b>Unrealized<br />
Losses</b></font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"right" colspan="2"><font face="ARIAL" size="2">Fair<br />
Value</font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1">  </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"right" colspan="2"><font face="ARIAL" size="2">Unrealized<br />
Losses</font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Residential mortgage-backed securities</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b>$</b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>146</b></font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b>$</b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>(48</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>) </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2">$</font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">28</font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2">$</font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">(14</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">) </font></td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Other debt obligations</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>29</b></font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>(7</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>) </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">21</font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">(6</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">) </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td style="BORDER-TOP: #000000 1px solid" valign="top" colspan=
"14"> </td>
<td> </td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Total</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b>$</b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>175</b></font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b>$</b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>(55</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>) </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2">$</font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">49</font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2">$</font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">(20</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">) </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td style="BORDER-TOP: #000000 3px double" valign="top" colspan=
"14"> </td>
<td> </td>
</tr>
<!-- 6 Last_Row * DO NOT REMOVE OR EDIT --></tbody>
</table>
<p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2">We believe that the unrealized losses, other than those
included in the table below, are not other-than-temporary. The
unrealized losses are driven by market illiquidity that has caused
price deterioration. We used analytic tools to assess the
fundamentals of these securities to identify their individual
sources of risk and potential for other-than-temporary impairment.
Our assessment includes review of current market liquidity,
interest rate risk, extension risk, credit rating downgrades and
credit default swap spreads, as well as analysis of performance of
the underlying collateral. We do not have a foreseeable need to
liquidate the portfolio and anticipate recovering the full cost of
the securities either as market conditions improve, or as the
securities mature.</font></p>
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font size=
"1"> </font></p>
<!--##PBStart##-->
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2">Other-than-temporary impairment losses recognized in Net
earnings, related to available-for-sale investments, were as
follows for the three months ended June 30, 2009:</font></p>
<p style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px">
 </p>
<table cellspacing="0" cellpadding="0" width="100%" align="center"
border="0"><!-- 5 First_Row * DO NOT REMOVE OR EDIT -->
<tbody>
<tr>
<td width="94%"></td>
<td valign="bottom" width="4%"></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr bgcolor="#CCEEFF">
<td style="BORDER-TOP: #000000 1px solid" valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Total gross unrealized losses on other-than-temporarily
impaired securities</font></p>
</td>
<td style="BORDER-TOP: #000000 1px solid" valign="bottom">
<font size="1">  </font></td>
<td style="BORDER-TOP: #000000 1px solid" valign="bottom">
<font face="ARIAL" size="2"><b>$</b></font></td>
<td style="BORDER-TOP: #000000 1px solid" valign="bottom" align=
"right"><font face="ARIAL" size="2"><b>(51</b></font></td>
<td style="BORDER-TOP: #000000 1px solid" valign="bottom" nowrap=
"nowrap"><font face="ARIAL" size="2"><b>) </b></font></td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Portion of losses recognized in other comprehensive loss
(before taxes)</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>40</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td style="BORDER-TOP: #000000 1px solid" valign="top" colspan="4">
 </td>
<td> </td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Net other-than-temporary-impairment losses recognized in
Net earnings</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b>$</b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>(11</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>) </b></font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td style="BORDER-TOP: #000000 3px double" valign="top" colspan=
"4"> </td>
<td> </td>
</tr>
<!-- 6 Last_Row * DO NOT REMOVE OR EDIT --></tbody>
</table>
<p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2">The net other-than-temporary impairment losses recognized
in earnings relate to credit loss, which is the difference between
the present value of the cash flows expected to be collected and
the amortized cost basis. The credit loss, which relates to certain
residential mortgage-backed securities and certain other debt
obligations, was determined through an income approach using
prepayment speeds, default rates and default severity percentages
as significant inputs. The amount of credit losses recognized in
retained earnings at March 31, 2009 was not
material.</font></p>
<p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2">Gross realized gains and losses on available-for-sale
investment securities was not material for the six and three months
ended June 30, 2009 and 2008.</font></p>
<p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2">The contractual maturities of available-for-sale debt
securities at June 30, 2009, were as follows:</font></p>
<p style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px">
 </p>
<table cellspacing="0" cellpadding="0" width="100%" align="center"
border="0"><!-- 5 First_Row * DO NOT REMOVE OR EDIT -->
<tbody>
<tr>
<td width="88%"></td>
<td valign="bottom" width="3%"></td>
<td></td>
<td></td>
<td valign="bottom" width="3%"></td>
<td></td>
<td></td>
</tr>
<tr>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
 <font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1">  </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"right" colspan="2"><font face="ARIAL" size="2">Cost</font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1">  </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"right" colspan="2"><font face="ARIAL" size="2">Fair<br />
Value</font></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Due in 1 year or less</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2">$</font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">21</font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2">$</font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">21</font></td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Due from 1 to 5 years</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">57</font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">52</font></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Due from 5 to 10 years</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">2</font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">1</font></td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Due after 10 years</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">247</font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">193</font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td style="BORDER-TOP: #000000 1px solid" valign="top" colspan="7">
 </td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Total</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2">$</font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">327</font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2">$</font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">267</font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td style="BORDER-TOP: #000000 3px double" valign="top" colspan=
"7"> </td>
</tr>
<!-- 6 Last_Row * DO NOT REMOVE OR EDIT --></tbody>
</table>
</div>
960000000
-846000000
1194000000
1608000000
2554000000
<div>
<p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2"><b>Note 1 – Basis of Presentation</b></font></p>
<p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2">The condensed consolidated interim financial statements
included in this report have been prepared by management of The
Boeing Company (herein referred to as “Boeing”, the
“Company”, “we”, “us”, or
“our”). In the opinion of management, all adjustments
(consisting of normal recurring accruals) necessary for a fair
presentation are reflected in the interim financial statements. We
have evaluated subsequent events through July 22, 2009, which
is the date that these financial statements were issued. The
results of operations for the period ended June 30, 2009, are
not necessarily indicative of the operating results for the full
year. The interim financial statements should be read in
conjunction with the audited consolidated financial statements,
including the notes thereto included in our 2008 Annual Report on
Form 10-K. Certain amounts have been reclassified to conform to the
current period’s presentation. Effective January 1,
2009, we adopted Statement of Financial Accounting Standards (SFAS)
No. 160, <i>Noncontrolling Interests in Consolidated Financial
Statements – an amendment of ARB No. 51</i> (SFAS
No. 160). SFAS No. 160, which was retrospectively
applied, requires the noncontrolling interest to be separately
presented as a component of shareholders’ equity on the
Condensed Consolidated Statements of Financial Position and
Shareholders’ Equity.</font></p>
</div>
78000000
232000000
-152000000
82000000
79000000
-45000000
12000000
-8000000
11000000
50000000
610000000
47000000
0
372000000
736000000
<div>
<p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2"><b>Note 9 – Postretirement Plans</b></font></p>
<p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2">The components of net periodic benefit cost are as
follows:</font></p>
<p style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px">
 </p>
<table cellspacing="0" cellpadding="0" width="100%" align="center"
border="0"><!-- 5 First_Row * DO NOT REMOVE OR EDIT -->
<tbody>
<tr>
<td width="60%"></td>
<td valign="bottom" width="7%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="7%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="7%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="7%"></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
 <font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1">  </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"middle" colspan="6"><font face="ARIAL" size=
"2"><b>Six months ended<br />
June 30</b></font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"middle" colspan="6"><font face="ARIAL" size=
"2"><b>Three months ended<br />
June 30</b></font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
</tr>
<tr>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font face="ARIAL" size="2"><b>Pension Plans</b></font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1">  </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"right" colspan="2"><font face="ARIAL" size=
"2"><b>        2009</b></font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"right" colspan="2"><font face="ARIAL" size=
"2">        2008</font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"right" colspan="2"><font face="ARIAL" size=
"2"><b>        2009</b></font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"right" colspan="2"><font face="ARIAL" size=
"2">        2008</font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Components of net periodic benefit cost</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Service cost</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b>$</b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>545</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2">$</font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">475</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b>$</b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>272</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2">$</font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">237</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Interest cost</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>1,482</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">1,408</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>741</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">704</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Expected return on plan assets</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>(1,868</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>) </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">(1,901</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>(934</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>) </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">(950</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">) </font></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Amortization of prior service costs</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>121</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">104</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>60</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">52</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Recognized net actuarial loss</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>324</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">196</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>162</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">98</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Settlement/curtailment loss</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>2</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td style="BORDER-TOP: #000000 1px solid" valign="top" colspan=
"16"> </td>
<td> </td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Net periodic benefit cost</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b>$</b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>606</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2">$</font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">282</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b>$</b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>301</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2">$</font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">141</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td style="BORDER-TOP: #000000 3px double" valign="top" colspan=
"16"> </td>
<td> </td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Net periodic benefit cost included in Earnings from
operations</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b>$</b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>426</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2">$</font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">407</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b>$</b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>207</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2">$</font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">216</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td style="BORDER-TOP: #000000 3px double" valign="top" colspan=
"16"> </td>
<td> </td>
</tr>
<!-- 6 Last_Row * DO NOT REMOVE OR EDIT --></tbody>
</table>
<p style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px">
 </p>
<table cellspacing="0" cellpadding="0" width="100%" align="center"
border="0"><!-- 5 First_Row * DO NOT REMOVE OR EDIT -->
<tbody>
<tr>
<td width="60%"></td>
<td valign="bottom" width="7%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="7%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="7%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="7%"></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
 <font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1">  </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"middle" colspan="6"><font face="ARIAL" size=
"2"><b>Six months ended<br />
June 30</b></font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"middle" colspan="6"><font face="ARIAL" size=
"2"><b>Three months ended<br />
June 30</b></font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
</tr>
<tr>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font face="ARIAL" size="2"><b>Other Postretirement Benefit
Plans</b></font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1">  </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"right" colspan="2"><font face="ARIAL" size=
"2"><b>        2009</b></font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"right" colspan="2"><font face="ARIAL" size=
"2">        2008</font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"right" colspan="2"><font face="ARIAL" size=
"2"><b>        2009</b></font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"right" colspan="2"><font face="ARIAL" size=
"2">        2008</font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Components of net periodic benefit cost</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Service cost</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b>$</b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>66</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2">$</font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">63</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b>$</b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>33</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2">$</font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">31</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Interest cost</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>233</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">229</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>117</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">115</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Expected return on plan assets</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>(3</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>) </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">(4</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>(2</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>) </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">(2</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">) </font></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Amortization of prior service costs</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>(45</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>) </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">(47</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>(22</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>) </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">(24</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">) </font></td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Recognized net actuarial loss</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>47</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">43</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>23</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">22</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td style="BORDER-TOP: #000000 1px solid" valign="top" colspan=
"16"> </td>
<td> </td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Net periodic benefit cost</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b>$</b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>298</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2">$</font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">284</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b>$</b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>149</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2">$</font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">142</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td style="BORDER-TOP: #000000 3px double" valign="top" colspan=
"16"> </td>
<td> </td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Net periodic benefit cost included in Earnings from
operations</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b>$</b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>302</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2">$</font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">286</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b>$</b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>145</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2">$</font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">149</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td style="BORDER-TOP: #000000 3px double" valign="top" colspan=
"16"> </td>
<td> </td>
</tr>
<!-- 6 Last_Row * DO NOT REMOVE OR EDIT --></tbody>
</table>
<p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2">A portion of net periodic benefit cost is allocated to
production as product costs and may remain in inventory at the end
of the reporting period.</font></p>
<p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2">During the six months ended June 30, 2009 and 2008,
we made discretionary pension contributions of $0 and $517. During
the six months ended June 30, 2009 and 2008, we made
contributions to our other postretirement benefit plans of $8 and
$8.</font></p>
</div>
23000000
286000000
7000000
1930000000
33656000000
28131000000
5525000000
<div>
<p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2"><b>Note 7 – Arrangements with Off-Balance Sheet
Risk</b></font></p>
<p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2">We enter into arrangements with off-balance sheet risk in
the normal course of business, primarily in the form of
guarantees.</font></p>
<p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2"><b>Third-Party Guarantees</b></font></p>
<p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2">The following tables provide quantitative data regarding
our third-party guarantees. The maximum potential payments
represent a “worst-case scenario,” and do not
necessarily reflect our expected results. Estimated proceeds from
collateral and recourse represent the anticipated values of assets
we could liquidate or receive from other parties to offset our
payments under guarantees.</font></p>
<p style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px">
 </p>
<table cellspacing="0" cellpadding="0" width="100%" align="center"
border="0"><!-- 5 First_Row * DO NOT REMOVE OR EDIT -->
<tbody>
<tr>
<td width="65%"></td>
<td valign="bottom" width="8%"></td>
<td></td>
<td></td>
<td valign="bottom" width="8%"></td>
<td></td>
<td></td>
<td valign="bottom" width="8%"></td>
<td></td>
<td></td>
</tr>
<tr>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font face="ARIAL" size="2"><b>As of June 30,
2009</b></font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1">  </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"right" colspan="2">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align="right">
<font face="ARIAL" size="2"><b>Maximum</b></font></p>
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align="right">
<font face="ARIAL" size="2"><b>Potential</b></font></p>
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 1px" align="right">
<font face="ARIAL" size="2"><b>Payments</b></font></p>
</td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1">  </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"right" colspan="2">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align="right">
<font face="ARIAL" size="2"><b>Estimated</b></font></p>
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align="right">
<font face="ARIAL" size="2"><b>Proceeds</b></font></p>
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align="right">
<font face="ARIAL" size="2"><b>from</b></font></p>
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align="right">
<font face="ARIAL" size="2"><b>Collateral/</b></font></p>
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 1px" align="right">
<font face="ARIAL" size="2"><b>Recourse</b></font></p>
</td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1">  </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"right" colspan="2">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align="right">
<font face="ARIAL" size="2"><b>Carrying</b></font></p>
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align="right">
<font face="ARIAL" size="2"><b>Amount of</b></font></p>
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 1px" align="right">
<font face="ARIAL" size="2"><b>Liabilities*</b></font></p>
</td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2"><b>Contingent repurchase commitments</b></font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b>$</b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>3,986</b></font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b>$</b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>3,971</b></font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b>$</b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>7</b></font></td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2"><b>Indemnifications to ULA**</b></font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>809</b></font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>7</b></font></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2"><b>Other credit guarantees</b></font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>150</b></font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>139</b></font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>8</b></font></td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2"><b>Residual value guarantees</b></font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>51</b></font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>44</b></font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>10</b></font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td style="BORDER-TOP: #000000 3px double" valign="top" colspan=
"10"> </td>
</tr>
<tr>
<td height="16"></td>
<td colspan="3" height="16"></td>
<td colspan="3" height="16"></td>
<td colspan="3" height="16"></td>
</tr>
<tr>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font face="ARIAL" size="2">As of December 31,
2008</font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1">  </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"right" colspan="2">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align="right">
<font face="ARIAL" size="2">Maximum</font></p>
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align="right">
<font face="ARIAL" size="2">Potential</font></p>
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 1px" align="right">
<font face="ARIAL" size="2">Payments</font></p>
</td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1">  </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"right" colspan="2">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align="right">
<font face="ARIAL" size="2">Estimated</font></p>
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align="right">
<font face="ARIAL" size="2">Proceeds</font></p>
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align="right">
<font face="ARIAL" size="2">from</font></p>
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align="right">
<font face="ARIAL" size="2">Collateral/</font></p>
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 1px" align="right">
<font face="ARIAL" size="2">Recourse</font></p>
</td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1">  </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"right" colspan="2">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align="right">
<font face="ARIAL" size="2">Carrying</font></p>
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align="right">
<font face="ARIAL" size="2">Amount of</font></p>
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 1px" align="right">
<font face="ARIAL" size="2">Liabilities*</font></p>
</td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Contingent repurchase commitments</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2">$</font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">4,024</font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2">$</font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">4,014</font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2">$</font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">7</font></td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Indemnifications to ULA**</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">1,184</font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">7</font></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Credit guarantees related to the Sea Launch
venture</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">451</font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">271</font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">180</font></td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Other credit guarantees</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">158</font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">145</font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">11</font></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Residual value guarantees</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">51</font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">47</font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">10</font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td style="BORDER-TOP: #000000 3px double" valign="top" colspan=
"10"> </td>
</tr>
<!-- 6 Last_Row * DO NOT REMOVE OR EDIT --></tbody>
</table>
<p style="MARGIN-TOP: 0px; FONT-SIZE: 6px; MARGIN-BOTTOM: 0px">
 </p>
<table style="BORDER-COLLAPSE: collapse" cellspacing="0"
cellpadding="0" width="100%" border="0">
<tbody>
<tr>
<td valign="top" align="left" width="3%"><font face="ARIAL" size=
"2">*</font></td>
<td valign="top" width="1%"><font size="1"> </font></td>
<td valign="top" align="left"><font face="ARIAL" size="2">Amounts
included in Other accrued liabilities</font></td>
</tr>
</tbody>
</table>
<p style="MARGIN-TOP: 0px; FONT-SIZE: 2px; MARGIN-BOTTOM: 0px">
 </p>
<table style="BORDER-COLLAPSE: collapse" cellspacing="0"
cellpadding="0" width="100%" border="0">
<tbody>
<tr>
<td valign="top" align="left" width="3%"><font face="ARIAL" size=
"2">**</font></td>
<td valign="top" width="1%"><font size="1"> </font></td>
<td valign="top" align="left"><font face="ARIAL" size="2">Amount
includes contributed Delta launch program inventory of $438 and
$813, plus $348 related to the pricing of certain contracts and $23
related to miscellaneous Delta vendor contracts at June 30,
2009 and December 31, 2008.</font></td>
</tr>
</tbody>
</table>
<p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2"><b>Contingent Repurchase Commitments</b> We have entered
into contingent repurchase commitments with certain customers in
conjunction with signing a definitive agreement for the sale of new
aircraft (Sale Aircraft). Under these commitments, we agreed to
repurchase the Sale Aircraft at a specified</font> <font face=
"ARIAL" size="2">price, generally 10 years after delivery of the
Sale Aircraft. Our repurchase of the Sale Aircraft is contingent
upon a future, mutually acceptable agreement for the sale of
additional new aircraft, and the subsequent exercise by the
customer of its right to sell the Sale Aircraft to us. The
repurchase price specified in contingent repurchase commitments is
generally lower than the expected fair value at the specified
repurchase date. Estimated Proceeds from Collateral/Recourse in the
table above represent the lower of the contracted repurchase price
or the expected fair value of each aircraft at the specified
repurchase date.</font></p>
<p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2"><b>Indemnifications to ULA</b> We agreed to indemnify ULA
against potential losses that ULA may incur in the event ULA is
unable to obtain certain additional contract pricing from the USAF
for four satellite missions. We believe ULA is entitled to
additional contract pricing. In December 2008, ULA submitted a
claim to the USAF to re-price the contract value for two of the
four satellite missions covered by the indemnification. In March
2009, the USAF issued a denial of that claim and in June 2009, ULA
filed an appeal. If ULA is unsuccessful obtaining additional
pricing, we may be responsible for a portion of the shortfall and
may record up to $386 in pre-tax losses associated with the four
missions.</font></p>
<p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2">We agreed to indemnify ULA against losses in the event
that costs associated with $1,360 of Delta launch program
inventories included in contributed assets and $1,860 of Delta
program inventories subject to an inventory supply agreement are
not recoverable and allowable from existing and future orders. The
term of the inventory indemnification extends to December 31,
2020. Since inception, ULA has sold $922 of inventories that were
contributed by us.</font></p>
<p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2"><b>Other Credit Guarantees</b> We have issued credit
guarantees, principally to facilitate the sale and/or financing of
commercial aircraft. Under these arrangements, we are obligated to
make payments to a guaranteed party in the event that lease or loan
payments are not made by the original lessee or debtor or certain
specified services are not performed. A substantial portion of
these guarantees has been extended on behalf of original lessees or
debtors with less than investment-grade credit. Our commercial
aircraft credit-related guarantees are collateralized by the
underlying commercial aircraft and certain other assets. Current
outstanding credit guarantees expire within the next 11
years.</font></p>
<p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2"><b>Residual Value Guarantees</b> We have issued various
residual value guarantees principally to facilitate the sale and
financing of certain commercial aircraft. Under these guarantees,
we are obligated to make payments to the guaranteed party if the
related aircraft or equipment fair values fall below a specified
amount at a future time. These obligations are collateralized
principally by commercial aircraft and expire within the next 9
years.</font></p>
<p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2"><b>Other Indemnifications</b></font></p>
<p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2">In conjunction with our sales of the Electron Dynamic
Devices, Inc. and Rocketdyne Propulsion and Power businesses and
the sale of our Commercial Airplanes facilities in Wichita, Kansas
and Tulsa and McAlester, Oklahoma in 2005, we provided
indemnifications to the buyers relating to pre-closing
environmental contamination and certain other items. The terms of
the indemnifications are indefinite. As it is impossible to assess
whether there will be damages in the future or the amounts thereof
(if any), we cannot estimate the maximum potential amount of future
payments under these guarantees. Therefore, no liability has been
recorded.</font></p>
</div>
<div>
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align="center">
<font face="ARIAL" size="2"><b>The Boeing Company and
Subsidiaries</b></font></p>
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align="center">
<font face="ARIAL" size="2"><b>Notes to Condensed Consolidated
Financial Statements</b></font></p>
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align="center">
<font face="ARIAL" size="2"><b>Summary of Business Segment
Data</b></font></p>
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align="center">
<font face="ARIAL" size="2">(Unaudited)</font></p>
<p style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px">
 </p>
<table cellspacing="0" cellpadding="0" width="100%" align="center"
border="0"><!-- 5 First_Row * DO NOT REMOVE OR EDIT -->
<tbody>
<tr>
<td width="60%"></td>
<td valign="bottom" width="4%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="4%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="4%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="4%"></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font face="ARIAL" size="2"><i>(Dollars in
millions)</i></font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1">  </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"middle" colspan="6"><font face="ARIAL" size=
"2"><b>Six months ended<br />
June 30</b></font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"middle" colspan="6"><font face="ARIAL" size=
"2"><b>Three months ended<br />
June 30</b></font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
</tr>
<tr>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
 <font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1">  </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"right" colspan="2"><font face="ARIAL" size=
"2"><b>        2009</b></font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"right" colspan="2"><font face="ARIAL" size=
"2">        2008</font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"right" colspan="2"><font face="ARIAL" size=
"2"><b>        2009</b></font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"right" colspan="2"><font face="ARIAL" size=
"2">        2008</font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Revenues:</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Commercial Airplanes</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b>$</b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>16,985</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2">$</font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">16,728</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b>$</b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>8,431</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2">$</font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">8,567</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Integrated Defense Systems:</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Boeing Military Aircraft</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>6,373</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">6,467</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>3,363</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">3,265</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Network and Space Systems</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>5,781</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">5,498</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>3,103</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">2,804</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Global Services and Support</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>4,216</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">3,544</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>2,184</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">1,865</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td style="BORDER-TOP: #000000 1px solid" valign="top" colspan=
"16"> </td>
<td> </td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Total Integrated Defense Systems</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>16,370</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">15,509</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>8,650</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">7,934</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Boeing Capital Corporation</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>330</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">364</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>167</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">179</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Other</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>74</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">227</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>35</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">152</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Unallocated items and eliminations</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>(103</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>) </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">124</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>(129</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>) </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">130</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td style="BORDER-TOP: #000000 1px solid" valign="top" colspan=
"16"> </td>
<td> </td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2"><b>Total revenues</b></font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b>$</b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>33,656</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2">$</font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">32,952</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b>$</b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>17,154</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2">$</font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">16,962</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td style="BORDER-TOP: #000000 3px double" valign="top" colspan=
"16"> </td>
<td> </td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Earnings from operations:</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Commercial Airplanes</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b>$</b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>1,234</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2">$</font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">1,760</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b>$</b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>817</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2">$</font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">777</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Integrated Defense Systems:</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Boeing Military Aircraft</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>674</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">541</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>392</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">157</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Network and Space Systems</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>446</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">504</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>239</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">237</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Global Services and Support</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>465</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">452</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>245</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">243</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td style="BORDER-TOP: #000000 1px solid" valign="top" colspan=
"16"> </td>
<td> </td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Total Integrated Defense Systems</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>1,585</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">1,497</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>876</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">637</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Boeing Capital Corporation</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>73</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">106</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>36</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">45</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Other</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>(69</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>) </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">(185</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>(46</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>) </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">(135</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">) </font></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Unallocated items and eliminations</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>(269</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>) </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">(132</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>(154</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>) </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">(77</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">) </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td style="BORDER-TOP: #000000 1px solid" valign="top" colspan=
"16"> </td>
<td> </td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2"><b>Earnings from operations</b></font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>2,554</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">3,046</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>1,529</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">1,247</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Other income, net</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>11</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">202</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>47</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">102</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Interest and debt expense</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>(137</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>) </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">(96</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>(80</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>) </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">(50</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">) </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td style="BORDER-TOP: #000000 1px solid" valign="top" colspan=
"16"> </td>
<td> </td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2"><b>Earnings before income taxes</b></font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>2,428</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">3,152</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>1,496</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">1,299</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Income tax expense</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>(816</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>) </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">(1,095</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>(499</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>) </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">(448</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">) </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td style="BORDER-TOP: #000000 1px solid" valign="top" colspan=
"16"> </td>
<td> </td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2"><b>Net earnings from continuing operations</b></font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>1,612</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">2,057</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>997</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">851</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Net (loss)/gain on disposal of discontinued operations,
net of taxes of $3, ($4), $0 and ($1)</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>(4</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>) </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">6</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>1</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">1</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td style="BORDER-TOP: #000000 1px solid" valign="top" colspan=
"16"> </td>
<td> </td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2"><b>Net earnings</b></font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b>$</b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>1,608</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2">$</font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">2,063</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b>$</b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>998</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2">$</font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">852</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td style="BORDER-TOP: #000000 3px double" valign="top" colspan=
"16"> </td>
<td> </td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Research and development expense, net:</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Commercial Airplanes</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b>$</b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>1,370</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2">$</font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">1,403</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b>$</b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>659</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2">$</font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">770</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Integrated Defense Systems:</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Boeing Military Aircraft</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>287</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">240</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>157</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">115</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Network and Space Systems</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>185</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">154</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>99</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">78</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Global Services and Support</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>84</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">75</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>50</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">41</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td style="BORDER-TOP: #000000 1px solid" valign="top" colspan=
"16"> </td>
<td> </td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Total Integrated Defense Systems</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>556</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">469</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>306</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">234</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Other</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>4</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">2</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>(5</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>) </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">1</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td style="BORDER-TOP: #000000 1px solid" valign="top" colspan=
"16"> </td>
<td> </td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Total research and development expense, net</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b>$</b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>1,930</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2">$</font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">1,874</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b>$</b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>960</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2">$</font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">1,005</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td style="BORDER-TOP: #000000 3px double" valign="top" colspan=
"16"> </td>
<td> </td>
</tr>
<!-- 6 Last_Row * DO NOT REMOVE OR EDIT --></tbody>
</table>
<p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2">This information is an integral part of the Notes to
Condensed Consolidated Financial Statements. See Note 14 for
further segment results.</font></p>
</div>
<div>
<p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2"><b>Note 15 – Subsequent Events</b></font></p>
<p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2">On July 7, 2009, we announced an agreement to
purchase the business, assets and operations of Vought Aircraft
Industries, Inc.’s (Vought) 787 business conducted at North
Charleston, SC. In connection with the acquisition, we will provide
cash consideration currently expected to approximate $580 (subject
to post closing adjustments) and release Vought from its obligation
to repay amounts of $422 previously advanced by us. Vought’s
787 business produces aft fuselage, including the fabrication,
assembly and systems installation, for the 787 program. This
acquisition will be reported in our Commercial Airplanes’
segment and we expect that the transaction will close in the third
quarter following the satisfaction of customary closing conditions.
Management expects to complete the purchase price allocation for
this acquisition by the end of 2009.</font></p>
</div>
<div>
<p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2"><b>Note 14 – Business Segment Data</b></font></p>
<p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2">Effective January 1, 2009, certain programs were
realigned between IDS segments. Business segment data for all
periods presented have been adjusted to reflect the
realignment.</font></p>
<p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2">Our primary profitability measurements to review a
segment’s operating results are earnings from operations and
operating margins. See page 5 for a Summary of Business Segment
Data, which is an integral part of this note.</font></p>
<p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2">Intersegment revenues, eliminated in Unallocated items and
eliminations, are shown in the following table.</font></p>
<p style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px">
 </p>
<table cellspacing="0" cellpadding="0" width="100%" align="center"
border="0"><!-- 5 First_Row * DO NOT REMOVE OR EDIT -->
<tbody>
<tr>
<td width="57%"></td>
<td valign="bottom" width="8%"></td>
<td></td>
<td></td>
<td valign="bottom" width="8%"></td>
<td></td>
<td></td>
<td valign="bottom" width="8%"></td>
<td></td>
<td></td>
<td valign="bottom" width="8%"></td>
<td></td>
<td></td>
</tr>
<tr>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
 <font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1">  </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"middle" colspan="5">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align="center">
<font face="ARIAL" size=
"2"><b>Six months ended</b></font></p>
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 1px" align="center">
<font face="ARIAL" size="2"><b>June 30</b></font></p>
</td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1">  </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"middle" colspan="5">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align="center">
<font face="ARIAL" size=
"2"><b>Three months ended</b></font></p>
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 1px" align="center">
<font face="ARIAL" size="2"><b>June 30</b></font></p>
</td>
</tr>
<tr>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
 <font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1">  </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"right" colspan="2"><font face="ARIAL" size=
"2"><b>        2009</b></font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1">  </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"right" colspan="2"><font face="ARIAL" size=
"2">        2008</font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1">  </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"right" colspan="2"><font face="ARIAL" size=
"2"><b>        2009</b></font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1">  </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"right" colspan="2"><font face="ARIAL" size=
"2">        2008</font></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Commercial Airplanes</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b>$</b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>402</b></font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2">$</font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">333</font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b>$</b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>211</b></font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2">$</font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">66</font></td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Boeing Capital Corporation</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>44</b></font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">41</font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>21</b></font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">20</font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td style="BORDER-TOP: #000000 1px solid" valign="top" colspan=
"13"> </td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Total</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b>$</b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>446</b></font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2">$</font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">374</font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b>$</b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>232</b></font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2">$</font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">86</font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td style="BORDER-TOP: #000000 3px double" valign="top" colspan=
"13"> </td>
</tr>
<!-- 6 Last_Row * DO NOT REMOVE OR EDIT --></tbody>
</table>
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font size=
"1"> </font></p>
<!--##PBStart##-->
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2">Unallocated items and eliminations includes costs not
attributable to business segments. Unallocated items and
eliminations also includes the impact of cost measurement
differences between Generally Accepted Accounting Principles and
federal cost accounting standards as well as intercompany profit
eliminations. The most significant items not allocated to segments
are shown in the following table.</font></p>
<p style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px">
 </p>
<table cellspacing="0" cellpadding="0" width="100%" align="center"
border="0"><!-- 5 First_Row * DO NOT REMOVE OR EDIT -->
<tbody>
<tr>
<td width="57%"></td>
<td valign="bottom" width="8%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="8%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="8%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="8%"></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
 <font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1">  </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"middle" colspan="6"><font face="ARIAL" size=
"2"><b>Six months ended<br />
June 30</b></font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"middle" colspan="6"><font face="ARIAL" size=
"2"><b>Three months ended<br />
June 30</b></font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
</tr>
<tr>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font face="ARIAL" size="2"><b>Unallocated items and
eliminations</b></font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1">  </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"right" colspan="2"><font face="ARIAL" size=
"2"><b>        2009</b></font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"right" colspan="2"><font face="ARIAL" size=
"2">        2008</font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"right" colspan="2"><font face="ARIAL" size=
"2"><b>        2009</b></font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"right" colspan="2"><font face="ARIAL" size=
"2">        2008</font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1"> </font></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Share-based plans</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b>$</b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>(116</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>) </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2">$</font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">(45</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b>$</b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>(59</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>) </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2">$</font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">(15</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">) </font></td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Deferred compensation</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>(46</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>) </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">81</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>(69</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>) </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">20</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Pension</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>45</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">(143</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>22</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>  </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">(76</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">) </font></td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Postretirement</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>(44</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>) </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">(40</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>(21</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>) </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">(20</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">) </font></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Capitalized interest</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>(27</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>) </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">(27</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>(12</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>) </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">(14</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">) </font></td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Other</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>(81</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>) </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">42</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>(15</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>) </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">28</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">  </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td style="BORDER-TOP: #000000 1px solid" valign="top" colspan=
"16"> </td>
<td> </td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Total</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b>$</b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>(269</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>) </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2">$</font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">(132</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b>$</b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>(154</b></font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2"><b>) </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font face="ARIAL" size="2">$</font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">(77</font></td>
<td valign="bottom" nowrap="nowrap"><font face="ARIAL" size=
"2">) </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td style="BORDER-TOP: #000000 3px double" valign="top" colspan=
"16"> </td>
<td> </td>
</tr>
<!-- 6 Last_Row * DO NOT REMOVE OR EDIT --></tbody>
</table>
<p style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px">
 </p>
<table cellspacing="0" cellpadding="0" width="100%" align="center"
border="0"><!-- 5 First_Row * DO NOT REMOVE OR EDIT -->
<tbody>
<tr>
<td width="74%"></td>
<td valign="bottom" width="7%"></td>
<td></td>
<td></td>
<td valign="bottom" width="7%"></td>
<td></td>
<td></td>
</tr>
<tr>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font face="ARIAL" size="2"><b>Assets</b></font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1">  </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"right" colspan="2">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align="right">
<font face="ARIAL" size="2"><b>June 30</b></font></p>
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 1px" align="right">
<font face="ARIAL" size="2"><b>2009</b></font></p>
</td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1">  </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"right" colspan="2">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align="right">
<font face="ARIAL" size="2">December 31</font></p>
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 1px" align="right">
<font face="ARIAL" size="2">2008</font></p>
</td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Commercial Airplanes</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b>$</b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>20,497</b></font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2">$</font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">18,893</font></td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Integrated Defense Systems:</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Boeing Military Aircraft</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>5,995</b></font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">5,746</font></td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Network and Space Systems</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>7,587</b></font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">7,177</font></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Global Services and Support</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>3,891</b></font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">3,559</font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td style="BORDER-TOP: #000000 1px solid" valign="top" colspan="7">
 </td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Total Integrated Defense Systems</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>17,473</b></font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">16,482</font></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Boeing Capital Corporation</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>6,319</b></font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">6,073</font></td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Other</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>1,454</b></font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">1,207</font></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Unallocated items and eliminations</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>11,969</b></font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">11,124</font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td style="BORDER-TOP: #000000 1px solid" valign="top" colspan="7">
 </td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2"><b>Total assets</b></font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b>$</b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>57,712</b></font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2">$</font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">53,779</font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td style="BORDER-TOP: #000000 3px double" valign="top" colspan=
"7"> </td>
</tr>
<tr>
<td height="5"></td>
<td colspan="3" height="5"></td>
<td colspan="3" height="5"></td>
</tr>
<tr>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font face="ARIAL" size="2"><b>Liabilities</b></font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1">  </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"
colspan="2"> <font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1">  </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"
colspan="2"> <font size="1"> </font></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Commercial Airplanes</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b>$</b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>16,556</b></font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2">$</font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">17,141</font></td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Integrated Defense Systems:</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Boeing Military Aircraft</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>3,616</b></font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">3,675</font></td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Network and Space Systems</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>1,512</b></font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">1,239</font></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Global Services and Support</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>1,546</b></font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">1,352</font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td style="BORDER-TOP: #000000 1px solid" valign="top" colspan="7">
 </td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Total Integrated Defense Systems</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>6,674</b></font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">6,266</font></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Boeing Capital Corporation</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>3,859</b></font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">4,115</font></td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Other</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>828</b></font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">845</font></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Unallocated items and eliminations</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b> </b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>29,461</b></font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2"> </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">26,554</font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td style="BORDER-TOP: #000000 1px solid" valign="top" colspan="7">
 </td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2"><b>Total liabilities</b></font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size=
"2"><b>$</b></font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>57,378</b></font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"><font face="ARIAL" size="2">$</font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">54,921</font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td style="BORDER-TOP: #000000 3px double" valign="top" colspan=
"7"> </td>
</tr>
<!-- 6 Last_Row * DO NOT REMOVE OR EDIT --></tbody>
</table>
</div>
121000000
50000000
707800000
-1030000000
-262000000
12000000
8000000
1000000
1610000000
<div>
<p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2"><b>Note 2 – Earnings Per Share</b></font></p>
<p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2">The weighted average number of shares outstanding used to
compute earnings per share are as follows:</font></p>
<p style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px">
 </p>
<table cellspacing="0" cellpadding="0" width="100%" align="center"
border="0"><!-- 5 First_Row * DO NOT REMOVE OR EDIT -->
<tbody>
<tr>
<td width="60%"></td>
<td valign="bottom" width="5%"></td>
<td></td>
<td valign="bottom" width="5%"></td>
<td></td>
<td valign="bottom" width="5%"></td>
<td></td>
<td valign="bottom" width="5%"></td>
<td></td>
</tr>
<tr>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font face="ARIAL" size="2"><i>(Shares in millions)</i></font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1">  </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"middle" colspan="3"><font face="ARIAL" size=
"2"><b>Six months ended<br />
June 30</b></font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1">  </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"middle" colspan="3"><font face="ARIAL" size=
"2"><b>Three months ended<br />
June 30</b></font></td>
</tr>
<tr>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
 <font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1">  </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"right"><font face="ARIAL" size=
"2"><b>        2009</b></font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1">  </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"right"><font face="ARIAL" size=
"2">        2008</font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1">  </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"right"><font face="ARIAL" size=
"2"><b>        2009</b></font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1">  </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"right"><font face="ARIAL" size=
"2">        2008</font></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Weighted average shares outstanding</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>701.7</b></font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">723.7</font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>701.3</b></font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">717.4</font></td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Participating securities</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>3.5</b></font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">8.4</font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>3.8</b></font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">8.3</font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td style="BORDER-TOP: #000000 1px solid" valign="top" colspan="9">
 </td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Basic weighted average shares outstanding</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>705.2</b></font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">732.1</font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>705.1</b></font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">725.7</font></td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Dilutive potential common shares</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>2.6</b></font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">7.9</font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>2.3</b></font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">7.1</font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td style="BORDER-TOP: #000000 1px solid" valign="top" colspan="9">
 </td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Diluted weighted average shares outstanding</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>707.8</b></font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">740.0</font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>707.4</b></font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">732.8</font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td style="BORDER-TOP: #000000 3px double" valign="top" colspan=
"9"> </td>
</tr>
<!-- 6 Last_Row * DO NOT REMOVE OR EDIT --></tbody>
</table>
<p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2">Basic earnings per share is calculated by the sum of
(1) net earnings less declared dividends and dividend
equivalents related to share-based compensation divided by the
basic weighted average shares outstanding and (2) declared
dividends and dividend equivalents related to share-based
compensation divided by the weighted average shares
outstanding.</font></p>
<p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2">The weighted average number of shares outstanding,
included in the table below, is excluded from the computation of
diluted earnings per share because the average market price did not
exceed the exercise/threshold price. However, these shares may be
dilutive potential common shares in the future.</font></p>
<p style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px">
 </p>
<table cellspacing="0" cellpadding="0" width="100%" align="center"
border="0"><!-- 5 First_Row * DO NOT REMOVE OR EDIT -->
<tbody>
<tr>
<td width="60%"></td>
<td valign="bottom" width="6%"></td>
<td></td>
<td valign="bottom" width="6%"></td>
<td></td>
<td valign="bottom" width="6%"></td>
<td></td>
<td valign="bottom" width="6%"></td>
<td></td>
</tr>
<tr>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font face="ARIAL" size="2"><i>(Shares in millions)</i></font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1">  </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"middle" colspan="3"><font face="ARIAL" size=
"2"><b>Six months ended<br />
June 30</b></font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1">  </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"middle" colspan="3"><font face="ARIAL" size=
"2"><b>Three months ended<br />
June 30</b></font></td>
</tr>
<tr>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
 <font size="1"> </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1">  </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"right"><font face="ARIAL" size=
"2"><b>        2009</b></font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1">  </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"right"><font face="ARIAL" size=
"2">        2008</font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1">  </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"right"><font face="ARIAL" size=
"2"><b>        2009</b></font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">
<font size="1">  </font></td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align=
"right"><font face="ARIAL" size=
"2">        2008</font></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Stock options</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>17.7</b></font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">9.5</font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>24.8</b></font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">11.2</font></td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">ShareValue Trust</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>13.0</b></font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">12.6</font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>13.0</b></font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">12.6</font></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Performance Awards</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>4.8</b></font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">5.3</font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>4.8</b></font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">5.3</font></td>
</tr>
<tr>
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Performance Shares</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>0.8</b></font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">0.7</font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>0.8</b></font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2">0.7</font></td>
</tr>
<tr bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face="ARIAL"
size="2">Stock units</font></p>
</td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>0.3</b></font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom" align="right"><font face="ARIAL" size=
"2"><b>0.3</b></font></td>
<td valign="bottom"><font size="1">  </font></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td style="BORDER-TOP: #000000 3px double" valign="top" colspan=
"9"> </td>
</tr>
<!-- 6 Last_Row * DO NOT REMOVE OR EDIT --></tbody>
</table>
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font size=
"1"> </font></p>
</div>
<div>
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2"><b>Note 13 – Legal Proceedings</b></font></p>
<p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2">Various legal proceedings, claims and investigations
related to products, contracts and other matters are pending
against us. Potentially material contingencies are discussed
below.</font></p>
<p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2">We are subject to various U.S. government investigations,
from which civil, criminal or administrative proceedings could
result or have resulted. Such proceedings involve, or could involve
claims by the government for fines, penalties, compensatory and
treble damages, restitution and/or forfeitures. Under government
regulations, a company, or one or more of its operating divisions
or subdivisions, can also be suspended or debarred from government
contracts, or lose its export privileges, based on the results of
investigations. We believe, based upon current information, that
the outcome of any such government disputes and investigations will
not have a material adverse effect on our financial position,
except as set forth below.</font></p>
<p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2"><b>A-12 Litigation</b></font></p>
<p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2">In 1991, the U.S. Navy notified McDonnell Douglas
Corporation (now one of our subsidiaries) and General Dynamics
Corporation (together, the Team) that it was terminating for
default the Team’s contract for development and initial
production of the A-12 aircraft. The Team filed a legal action to
contest the Navy’s default termination, to assert its rights
to convert the termination to one for “the convenience of the
government,” and to obtain payment for work done and costs
incurred on the A-12 contract but not paid to date. As of
June 30, 2009, inventories included approximately $585 of
recorded costs on the A-12 contract, against which we have
established a loss provision of $350. The amount of the provision,
which was established in 1990, was based on McDonnell Douglas
Corporation’s belief, supported by an opinion of outside
counsel, that the termination for default would be converted to a
termination for convenience, and that the best estimate of possible
loss on termination for convenience was $350.</font></p>
<p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2">On August 31, 2001, the U.S. Court of Federal Claims
issued a decision after trial upholding the government’s
default termination of the A-12 contract. In 2003, the Court of
Appeals for the Federal Circuit, finding that the trial court had
applied the wrong legal standard, vacated the trial court’s
2001 decision and ordered the case sent back to that court for
further proceedings. On May 3, 2007, the U.S. Court of Federal
Claims issued a decision upholding the government’s default
termination of the A-12 contract. We filed a Notice of Appeal on
May 4, 2007 with the Court of Appeals for the Federal Circuit.
On June 2, 2009, the Court of Appeals rendered an opinion
affirming the trial court’s 2007 decision sustaining the
government’s default termination. We believe that the ruling
of the Court of Appeals upholding the default termination is
erroneous and in conflict with the governing law. We have obtained
an extension of time until August 14, 2009 in which to file a
Petition for Rehearing and for Rehearing En Banc in the Court of
Appeals for the Federal Circuit, and we expect to file such a
petition in the Court of Appeals for the Federal Circuit by that
date. The timing for a ruling on the Petition is
uncertain.</font></p>
<p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2">We believe that the termination for default is contrary to
law and fact and that the loss provision established by McDonnell
Douglas Corporation in 1990, which was supported by an opinion from
outside counsel, continues to provide adequately for the reasonably
possible reduction in value of A-12 net contracts in process as of
June 30, 2009. Final resolution of the A-12 litigation will
depend on the outcome of further proceedings or possible
negotiations with the U.S. government. If, after all judicial
proceedings have ended, the courts determine, contrary to our
belief, that a termination for default was appropriate, we would
incur an additional loss of approximately $275, consisting
principally of remaining inventory costs and adjustments, and, if
the courts further hold that a money judgment should be entered
against the Team, we would be required to pay the U.S. government
one-half of the unliquidated progress payments of $1,350 plus
statutory interest from February 1991 (currently totaling
approximately $1,450). In that event, our loss would total
approximately $1,673 in pre-tax charges.</font>
<!--##PBStart##--><font face="ARIAL" size="2">Should, however, the
March 31, 1998 judgment of the U.S. Court of Federal Claims in
favor of the Team be reinstated, we would be entitled to receive
payment of approximately $1,131, including interest from
June 26, 1991.</font></p>
<p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2"><b>Employment and Benefits Litigation</b></font></p>
<p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2">On March 2, 2006, we were served with a complaint
filed in the U.S. District Court for the District of Kansas,
alleging that hiring decisions made by Spirit AeroSystems, Inc.
(Spirit) near the time of our sale of the Wichita facility were
tainted by age discrimination, violated Employee Retirement Income
Security Act (ERISA), violated our collective bargaining
agreements, and constituted retaliation. The case is brought as a
class action on behalf of individuals not hired by Spirit. While we
believe that Spirit has an obligation to indemnify Boeing for
claims relating to the 2005 sales transaction, Spirit has refused
to indemnify Boeing for all claims arising from employment activity
prior to January 1, 2005. On June 4, 2008, claims by
individuals who filed consents to join the Age Discrimination
Employment Act collective action and were terminated by Boeing
prior to January 1, 2005 were dismissed by stipulated order.
On June 15, 2009, plaintiffs filed a motion seeking class
certification for certain former Boeing employees at the Wichita,
Tulsa and McAlester facilities over the age of 40 who were laid off
between January 1, 2005 and July 1, 2005, and were not
hired by Spirit on June 17, 2005.</font></p>
<p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2">A second alleged class action involving our sale of the
Wichita facility to Spirit was filed on February 21, 2007, in
the U.S. District Court for the District of Kansas. The case is
also brought under ERISA, and, in general, claims that we have not
properly provided benefits to certain categories of former
employees affected by the sale<i>.</i> On May 22, 2008,
plaintiffs filed a third amended complaint and on June 3,
2008, filed a motion to certify a class. On July 14, 2008, the
court granted class certification for the purpose of adjudicating
liability for the class of employees who went to work for Spirit,
and deferred class certification motions for the class of employees
who did not go to work for Spirit.</font></p>
<p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2">On September 13, 2006, two UAW Local 1069 retirees
filed a class action lawsuit in the U.S. District Court for
the Middle District of Tennessee alleging that recently
announced changes to medical plans for retirees of UAW Local 1069
constituted a breach of collective bargaining agreements under
§301 of the Labor-Management Relations Act and
§502(a)(1)(B) of ERISA. On September 15, 2006, we
filed a lawsuit in the U.S. District Court for the Northern
District of Illinois against the International UAW and two retiree
medical plan participants seeking a declaratory judgment confirming
that we have the legal right to make changes to these medical
benefits. On June 4, 2007, the Middle District of Tennessee
ordered that its case be transferred to the Northern District of
Illinois. The two cases were consolidated on September 24,
2007. The UAW filed a Motion to file a Second Amended Complaint on
October 26, 2007 in which it sought to drop the
retirees’ claim for vested lifetime benefits based on
successive collective bargaining agreements and instead allege that
the current collective bargaining agreement is the sole alleged
source of rights to retiree medical benefits. We opposed the
motion. On January 17, 2008, the court granted the motion to
amend the complaint. Both parties filed Motions for Class
Certification on November 16, 2007 and filed briefs on class
certification on February 28, 2008. The parties filed
cross-motions for summary judgment on May 27, 2008. On
September 30, 2008, the court certified a class of retirees
for all claims. The summary judgment motions are currently pending
before the court. It is not possible at this time to determine
whether an adverse outcome would have a material adverse effect on
our financial position.</font></p>
<p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2">On October 13, 2006, we were named as a defendant in
a lawsuit filed in the U.S. District Court for the Southern
District of Illinois. Plaintiffs, seeking to represent a class of
similarly situated participants and beneficiaries in the Boeing
Company Voluntary Investment Plan (the VIP Plan), alleged that fees
and expenses incurred by the VIP Plan were and are unreasonable and
excessive, not incurred solely for the benefit of the VIP Plan and
its participants, and were undisclosed to participants. The
plaintiffs further alleged that defendants breached their fiduciary
duties in violation of §502(a)(2) of ERISA, and sought
injunctive and equitable relief pursuant to §502(a)(3) of
ERISA. Plaintiffs filed a motion to certify</font> <font face=
"ARIAL" size="2">the class, which we opposed. On December 14,
2007, the court granted plaintiffs leave to file an amended
complaint, which complaint added our Employee Benefits Investment
Committee as a defendant and included new allegations regarding
alleged breach of fiduciary duty. The stay of proceedings entered
by the court on September 10, 2007, pending resolution by the
U.S. Court of Appeals for the Seventh Circuit of <i>Lively v.
Dynegy, Inc.</i>, was lifted on April 3, 2008, after
notification that the <i>Lively</i> case had settled. On
April 16, 2008, plaintiffs sought leave to file a second
amended complaint, which we opposed, which would add investment
performance allegations. On August 22, 2008, the court granted
plaintiffs leave to file their second amended complaint. Plaintiffs
filed the second amended complaint on August 25, 2008. On
September 29, 2008, the court granted plaintiffs’ motion
to certify the class of current, past and future participants or
beneficiaries in the VIP Plan. On September 9, 2008, we filed
a motion for summary judgment to dismiss claims arising prior to
September 27, 2000 based on the ERISA statute of limitations.
The plaintiffs opposed this motion and the motion is currently
pending before the court. On October 14, 2008, we filed a
petition for leave to appeal the class certification order to the
Seventh Circuit Court of Appeals. The plaintiffs opposed this
motion and it is currently pending before the court of appeals. On
January 15, 2009, Boeing filed a motion seeking dismissal of
all claims as a matter of law. The summary judgment motions are
currently pending before the court. It is not possible at this time
to determine whether an adverse outcome would have a material
adverse effect on our financial position.</font></p>
<p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2"><b>BSSI/ICO Litigation</b></font></p>
<p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2">On August 16, 2004, our wholly owned subsidiary,
Boeing Satellite Systems International, Inc. (BSSI) filed a
complaint for declaratory relief against ICO Global Communications
(Operations), Ltd. (ICO) in Los Angeles County Superior Court
seeking a declaration that ICO’s prior termination of two
contracts for convenience extinguished all claims between the
parties. On September 16, 2004, ICO filed a
cross<i>-</i>complaint alleging breach of contract, economic
duress, fraud, unfair competition, and other claims. ICO added The
Boeing Company as a defendant in October 2005 to some of these
claims and also sued it for interference with contract and
misappropriation of trade secrets. On January 13, 2006, BSSI
filed a cross-complaint against ICO, ICO Global Communications
(Holdings) Limited (ICO Holdings), ICO’s parent, and Eagle
River Investments, LLC, parent of both ICO and ICO Holdings,
alleging fraud and other claims. The trial commenced on
June 19, 2008, with ICO seeking to recover approximately
$2,000 in damages, including all monies paid to BSSI and Boeing
Launch Services, plus punitive damages and other unspecified
damages and relief.</font></p>
<p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2">On October 21, 2008, the jury returned a verdict
awarding ICO compensatory damages of $371 plus interest, based upon
findings of contract breach, fraud and interference with contract.
On October 31, 2008 the jury awarded ICO punitive damages of
$236. On January 2, 2009, the court entered judgment for ICO
in the amount of $631 which included $24 in prejudgment
interest.</font></p>
<p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2">On February 26, 2009 the trial court granted in part
and denied in part post-trial motions we filed seeking to set aside
the verdict. As a result, on March 3, 2009, the court entered
an amended judgment for ICO in the amount of $604, which included
$371 in compensatory damages, $207 in punitive damages and $26 in
prejudgment interest. Post-judgment interest will accrue on the
judgment at the rate of 10% per year (simple interest) from
January 2, 2009. We filed a notice of appeal and ICO filed a
notice of cross-appeal in March 2009. We believe that we have
substantial arguments on appeal, which we intend to pursue
vigorously.</font></p>
<p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2"><b>BSSI/Telesat Canada</b></font></p>
<p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2">On November 9, 2006, Telesat Canada (Telesat) and a
group of its insurers served BSSI with an arbitration demand
alleging breach of contract, gross negligence and willful
misconduct in connection with the constructive total loss of Anik
F1, a model 702 satellite manufactured by BSSI. Telesat and its
insurers initially sought over $385 in damages and $10 in lost
profits, but recently revised their demand</font> <font face=
"ARIAL" size="2">to $263. BSSI has asserted a counterclaim against
Telesat for $6 in unpaid performance incentive payments and also a
$180 contingent counterclaim on the theory that any ultimate award
to reimburse the insurers for their payments to Telesat could only
result from Telesat’s breach of its contractual obligation to
obtain a full waiver of subrogation rights barring recourse against
BSSI. We believe that the claims asserted by Telesat and its
insurers lack merit, but we have notified our insurance carriers of
the demand. The arbitration hearing in this matter has been
scheduled for November 2010.</font></p>
<p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2">On April 26, 2007, a group of our insurers filed a
declaratory judgment action in the Circuit Court of Cook County
asserting certain defenses to coverage and requesting a declaration
of their obligation under our insurance and reinsurance policies
relating to the Telesat Anik F1 arbitration. On June 12, 2008,
the court granted the insurers’ motion for summary judgment,
concluding that our insurance policy excluded the kinds of losses
alleged by Telesat. On January 16, 2009, the court granted
Boeing’s motion for reconsideration, ruling in favor of
Boeing to require the insurers to provide insurance coverage to
defend the claim.</font></p>
<p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2"><b>BSSI/SES New Skies</b></font></p>
<p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2">On January 30, 2007, the SES New Skies (New Skies)
NSS-8 satellite, a Boeing 702 model spacecraft, was declared a loss
when the Sea Launch Zenit-3SL vehicle carrying the satellite
experienced an anomaly during the launch that destroyed the rocket
and the payload. In the event of such a launch failure, New Skies
had an option under the NSS-8 contract to order a replacement
satellite. New Skies did not exercise the option. Instead, New
Skies purported to cancel the contract on April 27, 2007,
maintaining that discussions between the parties regarding the
never-exercised option amounted to a repudiation by BSSI. We
vigorously disputed that characterization.</font></p>
<p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><font face="ARIAL"
size="2">On May 22, 2008 and January 29, 2009, we
received a formal dispute notice from New Skies alleging that BSSI
breached the NSS-8 contract by failing to timely deliver a
satellite in orbit and repudiating the replacement satellite
option. On May 11, 2009, SES New Skies filed a Request for
Arbitration with the International Chamber of Commerce in London.
The dispute notice and Request included neither a quantification of
potential damages nor a sum certain demand. We believe that SES New
Skies’ claims lack merit and intend to vigorously defend
against them.</font></p>
</div>
7000000
5000000
124000000
-17000000
1843000000
218000000
232000000
-152000000
82000000
79000000
-45000000
12000000
-8000000
46000000
-3000000
1000000
63000000
124000000
610000000
0.84
1608000000
5000000
50000000
11000000
-56000000
-46000000
2000000
1187000000
1.62
-6351000000
-86000000
-8565000000
-4883000000
-180000000
-2000000
-4000000
-159000000
93000000
-121000000
61000000
2937000000
-88000000
44000000
99000000
50000000
2670000000
29000000
80000000
235000000
92000000
-8565000000
-4883000000
-180000000
-2000000
-4000000
-159000000
93000000
-121000000
61000000
50000000
-1540000000
-9000000
99000000
94000000
243000000
1187000000
1.62
-178000000
50000000
2672000000
-8000000
2937000000
53000000
97000000
-65000000
1452000000
-97000000
-2000000
80000000
0000012927
ba:NoncontrollingInterestMember
2008-01-01
2008-12-31
0000012927
ba:SharesHeldInTrustMember
2008-01-01
2008-12-31
0000012927
us-gaap:TreasuryStockMember
2008-01-01
2008-12-31
0000012927
us-gaap:RetainedEarningsMember
2008-01-01
2008-12-31
0000012927
us-gaap:AdditionalPaidInCapitalMember
2008-01-01
2008-12-31
0000012927
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2008-01-01
2008-12-31
0000012927
2008-01-01
2008-12-31
0000012927
ba:NoncontrollingInterestMember
2009-01-01
2009-06-30
0000012927
ba:SharesHeldInTrustMember
2009-01-01
2009-06-30
0000012927
us-gaap:TreasuryStockMember
2009-01-01
2009-06-30
0000012927
us-gaap:RetainedEarningsMember
2009-01-01
2009-06-30
0000012927
us-gaap:AdditionalPaidInCapitalMember
2009-01-01
2009-06-30
0000012927
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2009-01-01
2009-06-30
0000012927
2009-01-01
2009-06-30
0000012927
2008-01-01
2008-06-30
0000012927
2009-04-01
2009-06-30
0000012927
2008-04-01
2008-06-30
0000012927
ba:NoncontrollingInterestMember
2008-12-31
0000012927
ba:SharesHeldInTrustMember
2008-12-31
0000012927
us-gaap:TreasuryStockMember
2008-12-31
0000012927
us-gaap:RetainedEarningsMember
2008-12-31
0000012927
us-gaap:AdditionalPaidInCapitalMember
2008-12-31
0000012927
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2008-12-31
0000012927
us-gaap:CommonStockMember
2008-12-31
0000012927
2008-12-31
0000012927
ba:NoncontrollingInterestMember
2007-12-31
0000012927
ba:SharesHeldInTrustMember
2007-12-31
0000012927
us-gaap:TreasuryStockMember
2007-12-31
0000012927
us-gaap:RetainedEarningsMember
2007-12-31
0000012927
us-gaap:AdditionalPaidInCapitalMember
2007-12-31
0000012927
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2007-12-31
0000012927
us-gaap:CommonStockMember
2007-12-31
0000012927
2007-12-31
0000012927
ba:NoncontrollingInterestMember
2009-06-30
0000012927
ba:SharesHeldInTrustMember
2009-06-30
0000012927
us-gaap:TreasuryStockMember
2009-06-30
0000012927
us-gaap:RetainedEarningsMember
2009-06-30
0000012927
us-gaap:AdditionalPaidInCapitalMember
2009-06-30
0000012927
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2009-06-30
0000012927
us-gaap:CommonStockMember
2009-06-30
0000012927
2009-06-30
0000012927
2008-06-30
iso4217:USD
shares
iso4217:USD
shares