Boeing takes charge

News

Boeing announced today that it will recognise charges related to delays on an international airborne surveillance program and a previously disclosed tentative legal settlement with the US government.

Boeing expects to record a charge of between $300 million and $500 million pre-tax due to delays related to its Airborne Early Warning & Control (AEW&C) program for Australia and Turkey. Additionally, the company expects to recognise a $615 million charge to reflect a tentative settlement with the US Justice Department related to the hiring of a former Air Force official and handling of a competitor's proprietary information.

The expected charge for AEW&C program delays will be finalised after ongoing reviews and will be recorded in the Precision Engagement & Mobility Systems segment of Boeing's Integrated Defense Systems business. The actual amount of the charge will be determined over the course of the next few weeks as the recovery plan is better understood and will be disclosed when Boeing issues its second quarter financial results.

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