Boeing Co.'s (A+/Stable/A-1) recent announcement that it plans to recognize a reduction in goodwill and record a related after–tax charge of $1.4 billion to $1.9 billion (pretax $2.1 billion to $2.6 billion) has no impact on Standard&Poor's rating and outlook on the company. The charge is noncash and stems primarily from the late 2000 $3.75 billion acquisition of space satellite manufacturing and other operations from Hughes Electronics Corp. The charge will not affect Boeing's guidance for this year, with shareholders' equity remaining substantial at around $9 billion. The charge, to be taken in the first quarter of 2002, is in compliance with a new accounting rule for acquisitions. Ratings on Boeing are supported by its position as one
