The Boeing Company and Subsidiaries

Consolidated Statements of Cash Flows

(Unaudited)

Three months ended March 31

(Dollars in millions)

2015

2014

Cash flows -- operating activities:

Net earnings

$1,336

$965

Adjustments to reconcile net earnings to net cash provided by operating activities:

Non-cash items -

Share-based plans expense

50

52

Depreciation and amortization

459

448

Investment/asset impairment charges, net

17

29

Customer financing valuation benefit

(2)

(23)

Gain on disposal of discontinued operations

(1)

Gain on dispositions, net

(1)

Other charges and credits, net

76

47

Excess tax benefits from share-based payment arrangements

(112)

(68)

Changes in assets and liabilities --

Accounts receivable

(389)

(792)

Inventories, net of advances and progress billings

(1,822)

(2,049)

Accounts payable

848

1,350

Accrued liabilities

(900)

(1,385)

Advances and billings in excess of related costs

(422)

1,085

Income taxes receivable, payable and deferred

443

455

Other long-term liabilities

(82)

(124)

Pension and other postretirement plans

608

733

Customer financing, net

31

408

Other

(50)

(18)

Net cash provided by operating activities

88

1,112

Cash flows -- investing activities:

Property, plant and equipment additions

(574)

(497)

Property, plant and equipment reductions

15

Contributions to investments

(807)

(2,737)

Proceeds from investments

1,159

3,625

Other

8

Net cash (used)/provided by investing activities

(214)

406

Cash flows -- financing activities:

New borrowings

761

51

Debt repayments

(813)

(757)

Stock options exercised

231

109

Excess tax benefits from share-based payment arrangements

112

68

Employee taxes on certain share-based payment arrangements

(87)

(84)

Common shares repurchased

(2,500)

(2,500)

Dividends paid

(639)

(540)

Other

(15)

Net cash used by financing activities

(2,935)

(3,668)

Effect of exchange rate changes on cash and cash equivalents

(17)

4

Net decrease in cash and cash equivalents

(3,078)

(2,146)

Cash and cash equivalents at beginning of year

11,733

9,088

Cash and cash equivalents at end of period

$8,655

$6,942