Boeing Co. said on Thursday it will take up to $1.1 billion in charges to cover the costs of two delayed surveillance aircraft contracts and the previously announced settlement of U.S. government investigations into its defense unit.
The planemaker, which is also the Pentagon's No. 2 defense supplier, said it would take $300 million to $500 million of pretax charges for delays to the Airborne Early Warning & Control program for Australia and Turkey.
In addition it said it would take a $615 million charge for the tentative agreement struck with the U.S. government in May, which settled two high-profile criminal investigations into Boeing's hiring of a former top Air Force weapons buyer, and its appropriation of thousands of Lockheed Martin Corp. rocket program documents.
Boeing said the exact amount of the charge for the airborne surveillance programs will be disclosed when Boeing issues its second-quarter financial results on July 26.