The Boeing Company and Subsidiaries

Consolidated Statements of Cash Flows

(Unaudited)

Twelve months ended

December 31

(Dollars in millions)

2009

2008

Cash flows - operating activities:

   Net earnings

$ 1,312 

$ 2,672 

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

     Non-cash items –

          Share-based plans expense

238 

209 

          Depreciation

1,459 

1,325 

          Amortization of other acquired intangibles

207 

166 

          Amortization of debt discount/premium and issuance costs

12 

11 

          Investment/asset impairment charges, net

151 

50 

          Customer financing valuation provision

45 

84 

          Loss/(gain) on disposal of discontinued operations

36 

(28)

          Loss/(gain) on dispositions, net

24 

(4)

          Other charges and credits, net

214 

116 

          Excess tax benefits from share-based payment arrangements

(5)

(100)

      Changes in assets and liabilities –

          Accounts receivable

(391)

564 

          Inventories, net of advances and progress billings

(1,525)

(6,168)

          Accounts payable

1,141 

318 

          Other accrued liabilities

1,327 

554 

          Advances and billings in excess of related costs

(680)

(1,120)

          Income taxes receivable, payable and deferred

607 

744 

          Other long-term liabilities

(12)

(211)

          Pension and other postretirement plans

1,140 

14 

          Customer financing, net

104 

432 

          Other

199 

(29)

               Net cash provided by operating activities

5,603 

(401)

Cash flows - investing activities:

   Property, plant and equipment additions

(1,186)

(1,674)

   Property, plant and equipment reductions

27 

34 

   Acquisitions, net of cash acquired

(639)

(964)

   Contributions to investments

(2,629)

(6,673)

   Proceeds from investments

1,041 

11,343 

   Payments on Sea Launch guarantees

(448)

   Reimbursements of Sea Launch guarantee payments

40 

   Purchase of distribution rights

(178)

               Net cash (used)/provided by investing activities

(3,794)

1,888 

Cash flows - financing activities:

   New borrowings

5,961 

13 

   Debt repayments

(551)

(738)

   Payments to non-controlling interests

(40)

   Repayments of distribution rights financing

(357)

   Stock options exercised, other

10 

44 

   Excess tax benefits from share-based payment arrangements

5 

100 

   Employee taxes on certain share-based payment arrangements

(21)

(135)

   Common shares repurchased

(50)

(2,937)

   Dividends paid

(1,220)

(1,192)

               Net cash provided/(used) by financing activities

4,094 

(5,202)

Effect of exchange rate changes on cash and cash equivalents

44 

(59)

Net increase/(decrease) in cash and cash equivalents

5,947 

(3,774)

Cash and cash equivalents at beginning of year

3,268 

7,042 

Cash and cash equivalents at end of period

$ 9,215 

$ 3,268