Boeing is the world's largest aerospace company and leading manufacturer of commercial jetliners and military aircraft. It designs, manufactures, services commercial jets and military aircraft, as well as spacecraft, rockets, satellites and provides defense, security and information systems. Boeing employs over 160,000 employees across the US and 70 countries and is committed to diversity, ethics and corporate social responsibility.

1. Company Overview
Boeing:
Boeing is the world's leading aerospace company and the largest manufacturer of commercial
jetliners and military aircraft combined. Additionally, Boeing designs and manufactures
rotorcraft, electronic and defense systems, missiles, satellites, launch vehicles and advanced
information and communication systems. As a major service provider to NASA, Boeing
operates the Space Shuttle and International Space Station. The company also provides
numerous military and commercial airline support services. Boeing has customers in more
than 90 countries around the world and is one of the largest U.S. exporters in terms of sales.
Boeing has a long tradition of
aerospace leadership and innovation.
We continue to expand our product
line and services to meet emerging
customer needs. Our broad range of
capabilities includes creating new,
more efficient members of our
commercial airplane family;
integrating military platforms,
defense systems and the war fighter
through network-centric operations;
creating advanced technology
solutions that reach across business
units; e-enabling airplanes and
providing connectivity on moving
platforms; and arranging financing
solutions for our customers.
Headquartered in Chicago, Boeing employs more than 160,000 people across the United
States and in 70 countries. This represents one of the most diverse, talented and innovative
workforces anywhere. More than 83,800 of our people hold college degrees--including nearly
29,000 advanced degrees--in virtually every business and technical field from approximately
2,800 colleges and universities worldwide. Our enterprise also leverages the talents of
hundreds of thousands more skilled people working for Boeing suppliers worldwide.
The purpose of the Ethics and Business Conduct program is to:
• Communicate the Boeing Values and standards of
ethical business conduct to employees
• Inform employees of company policies and
procedures regarding ethical business conduct
• Establish companywide processes to assist
employees in obtaining guidance and resolving
questions regarding compliance with the company's
standards of conduct and the Boeing Values
• Establish companywide criteria for ethics education
and awareness programs

2. History:
This site describes the legacy of The Boeing Company. It tracks the development of the
companies that merged to become a single enterprise as the twentieth century ended.
Workers at these companies built passenger planes, helicopters, warbirds and missiles,
satellites and spacecraft. They sent astronauts to the moon and brought cultures together in
harmony aboard the International Space Station. Their inventions blazed the trail for today's
new technologies.
“Choose your takeoff point from the links on this page and join us as we push the envelope of
time and space. The Boeing Airplane Co.... First Flight”
They are trustees of a veritable revolution that is taking place once more in the economic,
social, and political fabric with the advent of this new speed medium. -- William Boeing
Conrad Westervelt was posted east before the plane was finished. William Boeing continued
the project and, in 1916, completed two B & Ws. When it was time for the B & W's first
flight, the pilot was late. Boeing grew impatient and took the controls himself. As the pilot
rushed to the hangar, he saw Boeing taxi to the end of the lake, turn, gun the engine and lift
off for a quarter-mile hop. Although the loss of Westervelt was a setback, it did not affect
Boeing's commitment to his fledgling company. On July 15, 1916, Boeing incorporated his
airplane manufacturing business as Pacific Aero Products Co.; a year later, he changed the
name to the Boeing Airplane Co.Boeing retained Tsu Wong, one of the few aeronautical
engineers in the country, to design new planes for the completely unknown West Coast
enterprise and paid for a wind tunnel at the University of Washington, so the school could
offer courses in aeronautics. He also hired Claire Egtvedt and Phil Johnson, UW engineering
school seniors, each of whom would later become president of the company. In 1917, the 28-
person payroll also included pilots, carpenters, boat builders and seamstresses. The lowest
wage was 14 cents an hour, while the company's top pilots made $200 to $300 a month.
When the B & W did not sell, Boeing used his own financial resources to guarantee a loan to
cover all wages -- a total of about $700 a week.
Diversity
Diversity and inclusion are part of Boeing's values at the highest level. Having diverse
employees, business partners and community relationships is vital to creating advanced
aerospace products and services for our diverse customers around the world.
The company's commitment to diversity means providing a work environment for all
employees that is welcoming, respectful and engaging, with opportunities for personal and
professional development. This in turn increases productivity, quality, creativity and
innovation.
Boeing has a formal, companywide diversity strategy, mission and goals, which guide a
variety of internal programs and events. Our business excellence reaches new heights every
day ... powered by Boeing people. Diversity Team

3. The Diversity professionals and specialists at Boeing cover Affirmative Action, Cultural
Diversity and Inclusion, and Equal Employment Opportunity. The team works to strengthen
an environment that values and leverages multiple perspectives, experiences and capabilities
by driving the integration of diversity, equity and fairness into all practices and processes.
This inclusive and engaging environment, in turn, helps employees achieve their full
potential.
Joyce E. Tucker is the vice president of
Global Diversity & Employee Rights for The
Boeing Company. In that role, she is
responsible for overseeing implementation of
innovative initiatives and compliance across
the company's Affirmative Action, Cultural
Diversity and Inclusion, and Equal
Employment Opportunity (EEO) programs.
Tucker is a nationally recognized expert in
EEO and affirmative action in both the public
and private sectors. Former President George
H. W. Bush appointed Tucker as
Commissioner of the U.S. Equal Employment
Opportunity Commission (EEOC), where she served from 1990 to 1996. Prior to leading the
EEOC, she was Illinois' first Department of Human Rights director and served for ten years
in the Illinois Governor's cabinet.
In 2001, Tucker was appointed by President George W. Bush to serve on the White House
Initiative Advisory Board for Historically Black Colleges and Universities.
Programs and Events: Internal programs and events are designed to work together to
support diversity and inclusion throughout the year. Key diversity programs and events
include: training, heritage month commemorations, diversity
summits and mentoring programs.
Training: Training is offered on a wide range of topics
including: awareness of cultural, gender and international
sensitivities, avoiding stereotypes and micro-inequities,
understanding generational differences, and how to
positively impact culture change.
Heritage Month Commemorations -- Heritage month
commemorations are held companywide to recognize and
promote awareness about different cultures and experiences,
to encourage employee involvement, and to develop a
diverse and inclusive work environment.
Diversity Summits -- During the year, Boeing holds
diversity summits that are designed to underscore Boeing's commitment to diversity and
provide Boeing attendees with cutting-edge, skill-based training in diversity and EEO
compliance.

4. Mentoring Programs -- Boeing has a companywide Mentoring Program at two levels:
Enterprise Executive Mentoring (for executives and middle managers) and Enterprise
Mentoring (for managers, team leaders and others), that include multicultural discussion
tools.
Boeing provides a variety of other mentoring programs that are:
• program-based,
• job/profession-based, and
• site-based,
As well as mentoring programs sponsored by Affinity Groups.
Recruiting -- Boeing has an active recruitment program to identify and attract diverse talent
through college recruiting, as well as targeted diversity and professional recruiting. Activities
include: hosting Boeing-sponsored job fairs, participating in events and conferences where
potential candidates are located, on-campus recruiting at Historically Black Colleges and
Universities and Minority Serving Institutions, and placing recruitment advertising in diverse
media.

5. Selling Technique:
Boeing is the world's leading aerospace company and the largest combined manufacturer of
commercial jetliners and military aircraft. With additional capabilities in rotorcraft, electronic
and defense systems, missiles, rocket engines, satellites, launch vehicles and advanced
information and communication systems, the company's reach extends to customers in 145
countries.
1. Boeing Commercial Airplanes
Boeing has been the premier manufacturer of commercial jetliners for more than 40 years.
With the merger of Boeing and McDonnell Douglas in 1997, Boeing's leadership in
commercial jets, joined with the lineage of Douglas airplanes, gives the combined company a
70-year heritage of leadership in commercial aviation. Today, the main commercial products
are the 737, 747, 767 and 777 families of airplanes and the Boeing Business Jet. New product
development efforts are focused on the Boeing 787 Dreamliner, and the 747-8. The company
has nearly 12,000 commercial jetliners in service worldwide, which is roughly 75 percent of
the world fleet. Through Boeing Commercial Aviation Services, the company provides
unsurpassed, around-the-clock technical support to help operators maintain their airplanes in
peak operating condition. Commercial Aviation Services offers a full range of world-class
engineering, modification, logistics and information services to its global customer base,
which includes the world's passenger and cargo airlines, as well as maintenance, repair and
overhaul facilities. Boeing also trains maintenance and flight crews in the 100-seat-and-above
airliner market through Alteon, the world's largest and most comprehensive provider of
airline training.
Boeing Commercial Airplanes is the world's premier commercial jetliner manufacturer --
• because of its complete focus on airplane operators and the passengers they serve.
The Boeing family of products and services --
• deliver superior design, efficiency and support to airline customers and allow
passengers to fly where they want to go, when they want to go.
Commercial Airplanes is headquartered in Renton, Wash., under the leadership of President
and Chief Executive Officer Scott Carson.
Customers who choose Boeing get more than great airplanes. They get a partner they can rely
on to help them succeed. Boeing Commercial Aviation Services deploys the broadest array of
support resources to keep customers' airplanes where they should be -- in the air, earning
revenue.
• Global Customer Support: Boeing has developed a worldwide infrastructure to
support airline schedules, resolve technical difficulties, provide quick access to
technical information and deliver vital products and services when and where they're
needed.
• Material Management and Spares: Boeing operates the aviation industry's most
comprehensive spare-parts sales and distribution network, maintaining inventory for
about 500,000 different types of parts to support the worldwide fleet.

6. • Maintenance and
Engineering Services:
Commercial Aviation
Services develops,
manages and delivers the
vast amount of technical
information needed for
fleet maintenance and
engineering support.
• Fleet Enhancements
and Modifications:
Commercial Aviation
Services can help airlines
modify aircraft
configurations, enhance
fleet performance and
improve cabin amenities.
• Flight Operations Support: Commercial Aviation Services provides full support for
airline flight operations, including innovative information-management solutions and
a global training network. Offerings include flight training & technical data
publications such as flight manuals, dispatch deviation guides, master minimum
equipment lists, and other related documents, many of which are available through
MyBoeingFleet. We also provide flight operations engineering support, along with
simulator data support.
2. Boeing Integrated Defense Systems
Boeing Integrated Defense Systems (IDS) provides end-to-end services for large-scale
systems that enhance air-, land-, sea- and space-based platforms for global military,
government and commercial customers. In addition to designing, producing, modifying and
supporting fighters, bombers, transports, rotorcraft, aerial refuelers, missiles, munitions and
spacecraft for military, civil and commercial use, IDS is developing enhanced capabilities
through network-centric operations, communications and intelligence, surveillance and
reconnaissance technologies. IDS also supports the U.S. government as a system integrator
on several programs of national significance -- NASA's space shuttle and International Space
Station programs, the Missile Defense Agency's Ground-Based Midcourse Defense program,
the Army's Future Combat Systems program and SBInet, a critical component of the Secure
Border Initiative managed by the Department of Homeland Security.
It combines weapons and aircraft capabilities, intelligence and surveillance systems,
communications architectures and extensive large-scale integration expertise. IDS has three
capabilities-driven businesses -- Precision Engagement and Mobility Systems, Network and
Space Systems, and Support Systems -- and an advanced technology development
organization, Advanced Systems.
The Boeing Integrated Defense Systems strategy is to understand the enduring needs of
customers and provide value-added solutions to meet their requirements. The strategy

7. includes understanding the art of using current and emerging technologies to improve the
capabilities of existing products and delivering new solutions.
3. Boeing Capital
Boeing Capital Corporation is a
global provider of innovative
financing solutions. Its primary
mission is to support the other
Boeing business units by
arranging, structuring and/or
providing financing to assist in
the sale and delivery of Boeing
products and services. A wholly
owned subsidiary of The Boeing
Company, Boeing Capital provides comprehensive customer financing support, primarily
utilizing third-party financing, while aggressively managing risk and delivering strong
financial performance.
4. Phantom Works
Phantom Works is the advanced research and development unit at Boeing and the catalyst of
innovation for the Boeing enterprise. At Phantom Works - the R&D unit of The Boeing
Company - engineers are defining the future of aerospace. These engineers are developing the
advanced technologies, processes and systems that will turn future possibilities into reality.
5. Shared Services Group
The Boeing Company Shared Services Group,
or SSG, provides the company's business units
and Corporate Offices with innovative and
effective common services that support the
competitive design and manufacture of
aerospace and defense products.
The group provides a broad range of services
worldwide, including facilities services,
employee benefits and services, recruitment,
wellness programs, enterprise help desk,
security, fire protection, site operations,
disaster preparedness, construction,
reclamation, conservation programs, virtual workplace, creative services, transportation,

8. business continuity and the purchase of all non-production goods and services. It also offers
comprehensive travel services to Boeing employees and corporate customers through the
Boeing Travel Management Company. In addition, Shared Services Group manages the sale
and acquisition of all leased and owned property through the Boeing Realty. By integrating
services, Shared Services Group delivers greater value, creates "lean" processes and
operations, leverages buying power and simplifies access to services for all of Boeing.
Engineering, Operations & Technology
Boeing Engineering, Operations & Technology supports Boeing's business units and growth
strategy by providing the right people, technologies, processes and performance at the right
time and in the right place across the company worldwide. This strategy is delivered in
various ways by the primary organizational groups -- Phantom Works, Intellectual Property
Management, and Information Technology, and its leadership role in the Engineering,
Operations, Quality, and Information Technology process councils. Through all its activities,
Engineering, Operations & Technology helps ensure the future success of Boeing by winning
strategic new programs, providing innovative technology and process solutions, transforming
Boeing into a global network-centric enterprise, enhancing and protecting the company's
intellectual capital, and fostering a culture of innovation.
Corporate Governance
The Boeing Company's business is conducted by its
employees, managers and corporate officers led by the
chief executive officer, with oversight from the Board
of Directors. The Board's Governance, Organization and
Nominating Committee periodically reviews the
Company's corporate governance principles and current
practices.
The Board and the corporate officers recognize that the
long-term interests of the company are advanced when they are responsive to the concerns of
communities, customers, employees, public officials, shareholders and suppliers.
Additionally, the Board has adopted a Code of Ethical Business Conduct to focus the Board
and each Director on areas of ethical risk, provide guidance to help them continue to
effectively recognize and deal with ethical issues, enhance existing mechanisms to continue
the reporting of unethical conduct, and help to continue to foster and sustain a culture of
honesty and accountability.
Corporate Sponsorship
The emphasis of the Boeing corporate sponsorship program is on building long-term
partnerships by supporting a select number of events and activities that resonate with the
Boeing business and brand strategies.

9. Evaluation Process
Organizations are welcome to submit unsolicited sponsorship proposals to Boeing. Boeing
also proactively seeks partnerships with appropriate potential strategic partners.
For detailed information on submitting sponsorship proposals to Boeing, please refer to
Application Process and Timing.
All sponsorship proposals, whether solicited or unsolicited, go through the following process:
• Proposals are received by Boeing Corporate Communications.
• Boeing Corporate Communications performs a preliminary review based on the
Sponsorship Evaluation Criteria.
• If Boeing Corporate Communications staff considers the proposal to be a potential fit,
they will share the proposal with a team of managers from across the organization that
have responsibility for developing sponsorship programs.
• This team reviews the proposed activity's geographic location, scope, and subject
matter and does an in-depth review according to the Sponsorship Evaluation Criteria
to determine the fit between the proposal and Boeing's brand and sponsorship
strategy.
Following this process helps ensure that proposals receive careful consideration and timely
responses.
Evaluation Criteria
Sponsorship proposals are evaluated against six general criteria. These criteria have been
developed to ensure that Boeing establishes sponsorship relationships that will mutually
benefit Boeing and the receiving organization.
Proposals are evaluated for:
• Tangible benefits associated with the partnership.
• Opportunity to create long-term value.
• Ability to reach targeted audiences and build relationships.
• Positive exposure for the Boeing brand.
• Potential to be leveraged with additional resource investment.
• Potential for long-term, sustainable partnership or relationship.
For detailed information on applying for corporate sponsorship of events and activities that
meet these criteria, please see Application Process and Timing.
Eligible Activities
View Current Sponsorships to see examples of activities that meet the evaluation criteria.
Ineligible Activities
We regret that we are unable to support the following types of activities because they do not
meet the criteria we've set for our corporate sponsorship program.

10. • Local sports organizations, such as Little League.
• Charitable fundraisers.
• Requests that benefit an individual person or family.
• Auto racing or daredevil sports.
• Local events in areas without Boeing facilities.
• Religious activities, in whole or in part, for the purpose of furthering religious
doctrine.
• Travel expenses.
• Door prizes or raffles.
• School-affiliated orchestras, bands, choirs, drama groups, yearbooks, class parties, or
class or team projects.
• General operating expenses.
• Political candidates or organizations.
• Boeing affinity groups.
In most cases, the following activities do not meet our corporate sponsorship criteria:
• Film or documentary productions.
• Memorials or endowments.
• Agency- or school-sponsored walkathons, athletic events, or athletic group
sponsorships.
• U.S. hospitals or medical research.
Current Sponsorships
The following are examples of sponsorships currently supported by Boeing within the United
States and abroad:
Bill Boeing Theatre, Royal Aeronautical Society
• Sponsored refurbishment of the lecture hall for the Royal Aeronautical Society in
London.
Chicago Air & Water Show
• Annual summer event drawing more than 2 million people to Chicago's lakefront for a
two-day air show.
Chicago Bears
• Five-year sponsorship agreement that includes presenting sponsorship of Veterans
Day game at Soldier Field in Chicago and sponsorship of National Anthem at all
home games.

11. Everett AquaSox Minor League Baseball Team
• Sponsoring Kids Appreciation Night in Everett, Washington, the home of Boeing's
large airplane manufacturing facilities. First 1,000 kids receive a specially designed t-
shirt and CD from Boeing that focus on the "Science of Flight"
The John F. Kennedy Center for the Performing Arts
• Presenting sponsor of the Kennedy Center's Annual Gala Weekend in April, 2004 -
2008
• Presenting sponsor of the Kennedy Center's Annual Honors Week in December, 2004
- 2008
Museum of Flight
• Partnership in the development of Boeing Pavilion to provide an in-depth look at the
company's rich history and exciting future.
National Flight Interpretive Center
• Partnership with the Snohomish County (Washington) Public Facility District, Paine
Field and the Museum of Flight to develop a new aviation interpretive center
featuring the Boeing Tour Center.
SEAFAIR Festival
• Annual summer event in Seattle, which Boeing has sponsored since its inception in
1951 (July 8 - August 8).
• More than 1.5 million spectators and television viewers for the Hydroplane Race/Air
Show and Torchlight parade.
• In-kind support to Blue Angels for Air Show and sponsorship of Torchlight Parade
and Community Events leading up to Race weekend and the Air Show.
Seattle Art Museum
• A presenting sponsor of Spain in the Age of Exploration 1492 - 1819 exhibit co-
organized by the SAM and the Patrimonio National (October 16, 2004 - January 2,
2005).
• Partner with the museum on teacher and student events, including a possible exchange
program with our Boeing Technical Center in Madrid.
Seattle Mariners
• Sign featuring Boeing signature on right field wall (behind superstar Ichiro Suzuki).
• Community outreach program, including annual joint grant to Puget Sound Little
League organization.

12. USO-Metro (United Services Organization)
• Sponsorship of annual awards dinner and golf classic for support of service men and
women in the D.C. Metro area
Application Process
Organizations are welcome to submit letters of inquiry to Boeing online by clicking here.
Please note that because of the volume of requests that we receive we can no longer accept
sponsorship requests by telephone, fax, mail, email or delivery. In order to be considered
for a sponsorship, applicants must first submit a letter of inquiry and then be invited to submit
more detailed information.
Before submitting any inquiry, be sure to review our sponsorship evaluation criteria.
Timing
Proposals are reviewed on a regular basis. The requesting organization should hear from
Boeing within two to six weeks of receipt of the inquiry. If there is a need for additional
information, Boeing will contact the organization directly.
Applicants must allow 6 months to 1 year between application and the sponsored event to
provide time for negotiating agreements and to enable Boeing to appropriately plan our
participation.
The Boeing Company Code of Basic Working Conditions and Human Rights
This Code of Basic Working Conditions and Human Rights represents the commitment of
The Boeing Company to fundamental standards that make Boeing a good place to work.
People are Boeing's most vital asset. The individual and collective contributions of Boeing
people at all levels are essential to the success of the Company. In recognition of this, Boeing
has developed policies and practices designed to assure that our employees enjoy the
protections afforded by the concepts set forth in this Code.
Boeing is committed to the protection and advancement of human rights in its worldwide
operations, and the concepts in this Code are generally derived from Boeing policies and
practices already in place, but which have not previously been summarized in a single
document. While parts of this Code reflect our review of working standards and human rights
concepts advanced by other groups, such as the International Labor Organization, the
Universal Declaration of Human Rights, and the Global Sullivan Principles, this Code
represents Boeing's statement of its own standards on these subjects, rather than those of a
third party.
Boeing's worldwide operations take place in an increasingly diverse universe, so
circumstances can arise where legal, regulatory or other requirements may necessitate
applying or interpreting this Code in ways that assure compliance with applicable local law.

13. In any event, however, we believe that the concepts in this Code represent important
fundamental values that should underlie all aspects of the employment relationship.
NON DISCRIMINATION AND HARASSMENT
It is the policy of The Boeing Company to attract and retain the best qualified people
available without regard to race, color, religion, national origin, gender, sexual orientation,
gender identity, age, physical or mental disability, or veteran status. Our nondiscrimination
policy applies to applicants as well as employees and covers all terms and conditions of
employment, including recruiting, hiring, transfers, promotions, terminations, compensation
and benefits. Discrimination or harassment based on any of the above factors is prohibited, as
is retaliation against a person who has made a complaint or given information regarding
possible violations of this policy.
FREEDOM OF ASSOCIATION
They recognize and respect employee rights to join or not join any lawful organization of
their own choosing. They are committed to complying with laws pertaining to freedom of
association, privacy and collective bargaining.
ENVIRONMENT, HEALTH AND SAFETY
They are committed to providing employees with a safe and healthful workplace, protecting
the environment wherever we conduct business and striving for excellence in safety, health
and environment stewardship.
WORK ENVIRONMENT AND COMPENSATION
They are committed to promoting a work environment that fosters communication,
productivity, creativity, teamwork, and employee engagement. As a global company, we seek
to provide employees with compensation and benefits that are fair and equitable for the type
of work and geographic location (local market) where the work is being performed, and
competitive with other world-class companies.
HOURS OF WORK AND WORK SCHEDULING
Each Boeing organization establishes work shifts and schedules as appropriate to meet
business needs and to comply with applicable laws and/or collective bargaining agreements.

14. EXPECTATIONS FOR OUR SUPPLIERS
They are committed to the highest standards of ethical and business conduct as it relates to
the procurement of goods and services. Their relationships with their third party providers,
including their consultants and contract labor, are defined by contracts, which are based on
lawful, ethical, fair, and efficient practices.
FORCED LABOR AND CHILD LABOR
Boeing believes that the employment relationship should be voluntary, and the terms of
employment must comply with applicable laws and regulations. They are therefore opposed
to forced labor and child labor and are committed to complying with applicable laws
prohibiting such exploitation.
Target Market Coverage
A company of their size and scope doesn't succeed by resting on their laurels. At Boeing
they're constantly re-examining their strengths and processes to build a company as strong
and vital as its heritage.
Their future success is based on a three-pronged strategy:
• Run healthy core businesses
• Leverage our strengths into new products and services
• Open new frontiers
In order to put this strategy into action, they considered where they are today, and where they
would like to be tomorrow.
Boeing's core competencies are:
• Detailed customer knowledge and focus:
They will seek to understand, anticipate and be responsive to our customers' needs.
• Large-scale systems integration:
They will continuously develop, advance, and protect the technical excellence that allows us
to integrate effectively the systems we design and produce.
• Lean enterprise:
Their entire enterprise will be a lean operation, characterized by the efficient use of assets,
high inventory turns, excellent supplier management, short cycle times, high quality and low
transaction costs.

15. Values
At Boeing, They have committed to a set of core values that not only define who They are,
but serve as guideposts to help them become the company they 'd like to be. They truly live
these values every day. Here they are:
Leadership
They will be a world-class leader in every aspect of our business -- in developing our team
leadership skills at every level; in their management performance; in the way they design,
build and support our products; and in their financial results.
Integrity
They will always take the high road by practicing the highest ethical standards and by
honoring our commitments. They will take personal responsibility for their actions and treat
everyone fairly and with trust and respect.
Quality
They will strive for continuous quality improvement in all that we do, so that They will rank
among the world 's premier industrial firms in customer, employee and community
satisfaction.
Customer satisfaction
Satisfied customers are essential to their success. They will achieve total customer
satisfaction by understanding what the customer wants and delivering it flawlessly.
People working together
They recognize that our strength and our competitive advantage is - and always will be
-people. They will continually learn, and share ideas and knowledge. They will encourage
cooperative efforts at every level and across all activities in our company.
A diverse and involved team
They value the skills, strengths and perspectives of our diverse team. They will foster a
participatory workplace that enables people to get involved in making decisions about their
work that advance their common business objectives.
Good corporate citizenship
We will provide a safe workplace and protect the environment. We will promote the health
and well-being of Boeing people and their families. They will work with their communities
by volunteering and financially supporting education and other worthy causes.

16. Enhancing shareholder value
Their business must produce a profit, and we must generate superior returns on the assets
entrusted to us by their shareholders. They will ensure our success by satisfying their
customers and increasing shareholder value.
Boeing is a company of great people in one of the most exciting industries in the world. Our
heritage mirrors the very heritage of aviation itself. We are positioned to be the best in the
world. Together, working according to the principles we believe in, we will be the best in the
world.
Sales Growth:
New programs and full production lines at Commercial Airplanes are the biggest drivers of
our growth, and international sales—always vital to BCA—provide strong growth potential at
IDS. Sharpening our culture of learning and sharing is as key to our growth as it is to our
productivity— especially in those markets where an integrated Boeing brings strengths that
others will find difficult to match. Military derivatives of commercial airplanes, for example,
have become a big and increasingly important market for Boeing. We expect this business
to grow at a double-digit annual rate over the next several years. It used to be that commercial
airplane airframes were torn apart and retrofitted in order to meet the heavy-duty structural
requirements of military specifications. Today, 737 airframes destined for the U.S. Navy as
reconnaissance and surveillance aircraft are being built alongside 737s for the world’s
airlines. Modifications to the aircraft are now being done in-line as opposed to after-the-fact.
This is a prime example of the unique advantage, synergy and cost savings our big business
units bring to our customers. One of our fastest-growing and most profitable business areas is
our commercial and military support services. Our growth here will be based on sticking to
our strategy of expanding our core business and then moving to logical adjacencies across
bridges of common cost structure, technology and customers.
Growth:
Shared Services Group allows business units to focus on profitable growth by providing the
infrastructure services required to run their global operations. The group provides a broad
range of services worldwide, including facilities services, employee benefits and services,
staffing, recruitment, wellness programs, enterprise help desk, security, fire protection, site
operations, disaster preparedness, construction, reclamation, conservation programs, virtual
workplace, creative services, transportation, business continuity and the purchase of all non-
production goods and services. It also offers comprehensive travel services to Boeing
employees and corporate customers through the Boeing Travel Management Company. In
addition, Shared Services Group manages the sale and acquisition of all leased and owned
property through the Boeing Realty. By integrating services, Shared Services Group delivers
greater value, creates "lean" processes and operations, leverages buying power and simplifies
access to services for all of Boeing.

17. Research & Development:
Phantom Works is the advanced research and development unit and catalyst of innovation for
the Boeing enterprise. It is where dreams about the future of flight and space travel are turned
into reality.
As an element of the Boeing Technology organization, Phantom Works' mission is to provide
advanced systems solutions (like advanced homeland security and air traffic management)
and breakthrough technologies (like advanced avionics and composite materials) that
significantly improve the performance, quality and affordability of aerospace products and
services.
Headquartered in St. Louis, Mo., Phantom Works' approximately 2,600 employees are spread
across the enterprise, working virtually together while directly supporting Boeing's
commercial, defense, and communications business units. Its more than 375 systems and
technology projects -- many of which are proprietary -- include those for its external
customers (NASA, DOD, FAA, etc.) as well.
To efficiently address a broad spectrum of needs, Phantom Works is divided into advanced
systems teams and advanced technology teams. The former tend to focus on addressing
specific new business markets. The advanced technology teams, on the other hand, focus on
providing engineering, information and manufacturing technologies commonly needed by all
the Boeing business units.
In both cases, the innovative solutions Phantom Works provides are designed to meet near-
and medium-term needs of the business units, as well as longer term competitive needs of the
company.
For meeting near- and medium -term needs, Phantom Works has technology "thrusts"
focused on the following: advanced platform systems; materials, structures, and
manufacturing technology; lean and efficient design processes and tools; support and
services; and network centric operations. Technologies from these thrusts are transitioned
into both current and advanced military and commercial programs to help reduce cycle time
and cost while improving quality and performance.
To enable the development of system solutions that meet medium and longer term needs,
Phantom Works has also identified and is working on a set of critical technologies it
appropriately classifies as "enabling" technologies. While most of these are of a proprietary
nature, they generally fall into such categories as intelligent systems, multifunctional
structures, advanced materials and processes, and more.
For the more distant future, Phantom Works also develops "new frontiers" concepts using a
disciplined process that identifies product lines or services not listed in the long-rang plans of
the business units but having potential for significant growth. Such futuristic concepts include
a personal transportation system involving auto-piloted flying "cars" in an advanced air
traffic controlled environment.

18. To achieve all these ambitious goals, Phantom Works collaborates not only with its internal
and external customers, but also with universities, research agencies and other high
SWOT Analysis:
Strengths:
•Better Quality Service
•End-user sales control and direction.
•Spare manufacturing capacity.
•Direct delivery capability.
•Can serve from existing sites.
•Management is committed and confident
Weaknesses:
•Unawareness of people in comparison with other airlines
•Weak promotional effort.
• Less Availability of tickets and services.
Opportunities:
• Profit margins will be good.
• End-users respond to new ideas.
• Could extend to overseas.
• New specialist applications.
• Support core business economies.
Threats:
• Other Airplane manufacturers like: Airbus and others are giving such an available
and low price services.
• Vulnerable to reactive attack by major competitors.
• Existing core business distribution risk.
• Possible downbeat publicity.
• Increasing oil prices are one of the main threats for all the airplane manufacturers.

19. Financial Strategy:
Boeing Capital (Creating value through discriminating financing solutions):
Boeing Capital Corporation is a global provider of innovative financing solutions. Its primary
mission is to support the other Boeing business units by arranging, structuring and/or
providing financing to assist in the sale and delivery of Boeing products and services. A
wholly owned subsidiary of The Boeing Company, Boeing Capital provides comprehensive
customer financing support, primarily utilizing third-party financing, while aggressively
managing risk and delivering strong financial performance.
With more than three decades of experience in structured financing, leasing, and complex
restructuring and trading, Boeing Capital's team of seasoned professionals provides tailored
financing solutions for commercial and military aircraft, satellites and launch vehicles. The
company's US$6.5 billion portfolio is comprised of approximately 350 commercial airplanes,
which include a broad range of newer, more efficient Boeing products.
Organization: Under the leadership of President Walt Skowronski, Boeing Capital has
approximately 170 employees, located primarily at its headquarters in Renton, Wash.
Additional U.S. offices are located in Los Angeles, California, and St. Louis, Missouri, along
with international offices in Brussels, Hong Kong and Moscow.
Boeing Capital offers the advantages of the strength and global reach of The Boeing
Company, along with a team that has unrivaled understanding of the commercial aviation
industry, expertise in creating tailored financing solutions and strong relationships with the
financial community.

20. The business unit is divided into two operating groups: Aircraft Financial Services and Space
& Defense Financial Services.
Aircraft Financial Services: Assists commercial aircraft customers by arranging and
structuring asset-based financing, managing technical assets, and providing a broad range of
efficient financing solutions for Boeing Commercial Airplanes products and services.
Expertise and product offerings include backstop commitments, operating leases, financing
leases, sale/leasebacks, freighter conversion financing, long- and short-term financing, and
senior and subordinated secured loans.
Led by Scott Scherer, vice president and general manager, Aircraft Financial Services works
closely with Boeing Commercial Airplanes customers to develop aircraft financing solutions.
Working with commercial financial institutions, the group is proactively engaged with the
U.S. Export-Import Bank and other export credit agencies to ensure availability of adequate
and reasonably priced financing for developing customers and regions. Aircraft Financial
Services is playing an integral role, along with the Aviation Working Group, in improving the
global aircraft financing infrastructure and ratifying the Cape Town Treaty, which will
improve the legal framework for international asset-
based aircraft financing. The group also is actively
engaged to enhance and expand the capital markets
by managing a comprehensive investor outreach
program that is capturing the financial community's
requirements and ensuring that they understand the
Boeing product strategy and the significant value
discriminators that differentiate Boeing from its
competition.
Space & Defense Financial Services: While The
Boeing Company has long been in the business of
helping its space and defense customers arrange financing, Boeing Capital's space and
defense group was formed in 2000 to provide additional focus and expertise in arranging and
structuring financing solutions for government and commercial customers around the world.
Vice President Bob Gordon and his group work closely with Boeing's Integrated Defense
Systems business unit to help arrange funding for satellites, military transports, tankers and
rotorcraft. Specialized projects and programs include military-related products, international
defense financing, private-public partnerships, project financing, launch vehicles, satellites
and related space systems.
Aircraft Financial Services
The Boeing Company has incorporated financial services as a key element of its strategy.
Boeing Capital Corporation supports this strategy by creating new dimensions in financial
solutions for its commercial aircraft customers. Boeing Capital's Aircraft Financial Services
group assists customers in structuring efficient financing solutions for Boeing Commercial
Airplanes products and services. This includes financial alternatives and advice in support of
bundled solutions for all Boeing products and services, including spare parts, modification
and freighter conversions.

21. As an asset-based financier, the Aircraft Financial Services group, led by Scott Scherer, vice
president and general manager, specializes in arranging creative finance and lease structures,
managing technical assets, and offering a broad range of financing options and solutions
including:
• Operating leases
• Finance leases
• Leveraged leasing
• Sale/leasebacks
• Freighter conversion finance
• Long- and short-term financing
• Secured loans -- senior and subordinated
Headquartered in Renton, Wash., the Aircraft Financial Services portfolio approximates
US$6.5 billion and is comprised primarily of more than 350 commercial airplanes. The
group's experience and expertise in structuring commercial aircraft financing is coupled with
detailed customer knowledge to address current financing requirements and to shape the
future of aircraft finance. Their broad range of financial
products is partnered with third-party aircraft capital to
expand capital markets and increase the value and stability
of aircraft investments.
This is done by ensuring that Boeing's product strategy,
engineering, support and production discipline are
responsive to aircraft investors. Through a comprehensive
investor outreach program, Boeing Capital is capturing the
financial community's requirements and ensuring that they
understand the Boeing product strategy and the significant
value discriminators that differentiate Boeing from its
competition.
Working with commercial financial institutions,
the group is proactively engaged with the U.S.
Export-Import Bank and other export credit
agencies to ensure availability of adequate and
reasonably priced financing for developing
customers and regions. Aircraft Financial
Services is playing an integral role, along with
the Aviation Working Group, in improving the
global aircraft financing infrastructure and
ratifying the Cape Town Treaty, which will
improve the legal framework for international
asset-based aircraft financing.
What sets Boeing Capital apart from other finance companies is the tremendous benefits it
can provide customers with an ability to leverage resources across all divisions of The Boeing

22. Company. Additionally, as part of the world's largest aerospace company, Aircraft Financial
Services possesses significant aircraft knowledge, and technical, pricing, credit, legal and tax
expertise. With nearly 40 years of financing, leasing and complex structure experience,
Boeing Capital understands the requirements of its customer best.
For more information about the financial services and options available at Aircraft Financial
Services.
Cash and cash equivalents
Cash and cash equivalents consist of highly liquid instruments ,such as certificates of deposit,
time deposits, and other money market instruments, which have original maturities of less
than three months. We aggregate our cash balances by bank, and reclassify any negative
balances to a liability account presented as a component of accounts payable.
Inventories
Inventoried costs on commercial aircraft programs and long term contracts include direct
engineering, production and tooling costs, and applicable overhead, which includes fringe
benefits, production related indirect and plant management salaries and plant services, not in
excess of estimated net realizable value. In accordance with industry practice, inventoried
costs include amounts relating to programs and contracts wit long production cycles, a
portion of which is not expected to be realized within one year. Because of the higher unit
production costs experienced at the beginning of a new airplane program (known as the
“learning curve effect”), the actual costs incurred for production of the early units in the
program will exceed the amount reported as cost of sales for those units. The excess or actual
costs over the amount reported as cost of sales is presented as “deferred production costs,”
which are included in inventory along with unamortized tooling costs. Used aircraft
purchased by the Commercial Airplanes segment, commercial spare parts, and general stock
materials are stated at cost not in excess of net realizable value.
Property, plant and equipment
Property, plant and equipment are recorded at cost, including applicable construction-period
interest, less accumulated depreciation and are depreciated principally over the following
estimated useful lives: new buildings and land improvements, from 10 to 40 years; and new
machinery and equipment, from 3 to 20 years. The principal methods of depreciation are as
follows: buildings and land improvements, 150% declining balance; and machinery and
equipment, sum-of-the-years’ digits. We periodically evaluate the appropriateness of
remaining depreciable lives assigned to long-lived assets subject to a management plan for
disposition. Aircraft financing operating lease equipment is recorded at cost and depreciated
over the term of the lease or projected economic life of the equipment, primarily on a
straight-line basis, to an estimated residual or salvage value. We review long-lived assets,
which includes property, plant and equipment and operating lease equipment, for
impairments in accordance with SFAS No. 144. Long-lived assets held for sale are stated at
the lower of cost or fair value less cost to sell. Long-lived assets held for use are subject to an
impairment assessment whenever events or changes in circumstances indicate that the
carrying amount may not be recoverable. If the carrying value is no longer recoverable based
upon the undiscounted future cash flows of the asset, the amount of the impairment is the
difference between the carrying amount and the fair value of the asset.

23. Investments
We classify investments as either operating or non-operating. Operating investments are
strategic in nature, which means they are integral components of our operations. Non-
operating investments are those we hold for non-strategic purposes. Earnings from operating
investments, including our share of income or loss from certain equity method investments,
income from cost method investments, and any gain/loss on the disposition of investments,
are recorded in ‘Income/(loss) from operating investments, net’. Earnings from non-operating
investments, including marketable debt and equity securities, are recorded in ‘Other income,
net’ on the Consolidated
Creating the Future of Flight at Boeing
Boeing Commercial Airplanes (BCA) Product Development team is the source for the ideas
and products that have changed commercial aviation history. But history is only a starting
place for this diverse, creative team who spend more time thinking about tomorrow than
dwelling on the past.
The latest concept to leap from the BCA Product Development drawing boards into
international headlines is the Boeing 787, an all-new airplane concept focused on bringing
more economical solutions to airlines, a better flight experience to passengers and improved
environmental performance to the world.
And the drawing boards -- which are really high-end computer stations these days -- are still
full, and the Product Development team is busy working on other ideas such as:
• New products for the future.
• Derivatives of existing airplanes that will enhance the value of those products.
• Features for our current products that continuously improve value and safety.
• Services that will help Boeing provide unique solutions.
• Tools and technologies that will allow Boeing to remain the world's aviation leader.
Much of what this team works on is considered "sensitive" for competitive reasons. But as
products or projects reach greater stages of maturity, they are shared outside of the company.
Customers, regulators, airports, and suppliers often serve as part of the Product Development
team, helping Boeing to understand the long-term needs of the market and the capabilities
and technologies that will help the company meet those needs.
The Product Development team also works cooperatively with other parts of The Boeing
Company team -- most notably Phantom Works -- to be sure that Boeing is always ready to
respond to the emerging needs of airlines and passengers around the world.

24. Recommendation:
Though Airbus is, and has been, a very strong competitor. Over the last two years, a lot of
people thought they were in trouble. At the most senior levels, clearly they were distracted.
But at the lower levels they
continued to understand what
they needed to do to compete
effectively with them. The
Power 8 Program they put in
place is an example
of how they continued to drive
Lean ideas back into their
production systems. They are
going to come out of this
current challenge very strong.
However, Boeing can’t relax
for a minute if they are going to
maintain the lead that they built
over the last several years.
They must do better tomorrow
than they are doing today.
Conclusion:

25. During the last 100 years, humans went from walking on Earth to walking on the moon. They
went from riding horses to flying jet airplanes. With each decade, aviation technology
crossed another frontier, and, with each crossing, the world changed.
During the 20th century, five companies charted the course of aerospace history in the United
States. They were the Boeing Airplane Co., Douglas Aircraft Co., McDonnell Aircraft Corp.,
North American Aviation and Hughes Aircraft. By the dawning of the new millennium, they
had joined forces to share a legacy of victory and discovery, cooperation and competition,
high adventure and hard struggle.
The companies began their journey across the frontiers of aerospace at different times and
under different circumstances. Their paths merged and their contributions are the common
heritage of The Boeing Company today. They have worked very hard to redevelop
relationships with their customers globally, and they have made tremendous progress.
There’s no question that a single disappointment, like they’ve had on the 787, can damage
those relationships. The best course of action is to do everything they can to assure that it’s a
one-time slip that won’t affect the other programs. Each week they spend a great deal of time
in their staff meeting making sure
all program managers understand
that they must continue to perform
flawlessly, meeting commitments
that they have made to customers
and keeping the promises they
have made to employees. It is the
only way they know to rebuild
trust.