Boeing 2009 Annual Report Download - page 111

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Accumulated Other Comprehensive Loss
The components of Accumulated other comprehensive loss at December 31, were as follows:
2009 2008
Pension and postretirement adjustments $(12,154) $(13,421)
Unrealized (losses)/gains on derivative instruments, net of reclassification
adjustments 67 (101)
Unrealized (losses)/gains on certain investments, net of reclassification
adjustments (6) (67)
Foreign currency translation adjustments 216 64
Accumulated other comprehensive loss $(11,877) $(13,525)
Note 17 – Derivative Financial Instruments
Cash Flow Hedges
Our cash flow hedges include certain interest rate swaps, foreign currency forward contracts, foreign
currency option contracts and commodity purchase contracts. Interest rate swap contracts under which
we agree to pay fixed rates of interest are designated as cash flow hedges of variable-rate debt
obligations. We use foreign currency forward contracts and options to manage currency risk associated
with certain forecasted transactions, specifically forecasted sales and purchases made in foreign
currencies. Our foreign currency derivative contracts hedge forecasted transactions principally
occurring within five years in the future, with certain contracts hedging transactions up to 2021. We use
commodity derivatives, such as fixed-price purchase commitments, to hedge against potentially
unfavorable price changes for items used in production. These include commitments to purchase
electricity at fixed prices through 2015.
Fair Value Hedges
Interest rate swaps under which we agree to pay variable rates of interest are designated as fair value
hedges of fixed-rate debt. The net change in fair value of the derivatives and the hedged items is
reported in Boeing Capital Corporation interest expense. Ineffectiveness related to the interest rate
swaps was insignificant for the years ended December 31, 2009 and 2008.
Derivative Instruments Not Receiving Hedge Accounting Treatment
We also hold certain derivative instruments, primarily foreign currency forward contracts, for risk
management purposes but without electing any form of hedge accounting.
99