Boeing 2009 Annual Report Download - page 112

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Notional Amounts and Fair Values
The fair values of derivative instruments are recorded in the Consolidated Statements of Financial
Position. The notional amounts and fair values as of December 31, were as follows:
Notional
amounts1Other assets
Other
accrued liabilities
2009 2008 2009 2008 2009 2008
Derivatives designated as hedging
instruments
Foreign exchange contracts $2,353 $1,992 $ 233 $26 $ (22) $ (39)
Interest rate contracts 1,475 817 32 48 (18) (3)
Commodity contracts 189 147 (88) (75)
4,017 2,956 265 74 (128) (117)
Derivatives not receiving hedge accounting
treatment
Foreign exchange contracts 693 646 32 42 (99) (128)
Warrants 21 10
Total derivatives 4,710 3,623 297 126 (227) (245)
Netting arrangements (119) (64) 119 64
Net recorded balance $ 178 $62 $(108) $(181)
1Notional amounts represent the gross contract/notional amount of the derivatives outstanding.
The effects of our cash flow hedges on Accumulated other comprehensive loss during the year ended
December 31, 2009 were as follows:
2009
Location gains/(losses)
are recognized
Effective portion recognized in other comprehensive income, net of
taxes–
Foreign exchange contracts $180 Accumulated other
comprehensive loss
Commodity contracts (24) Accumulated other
comprehensive loss
For the year ended December 31, 2009, we reclassified a net loss of $16 (pre-tax) from Accumulated
other comprehensive loss to earnings. Based on our portfolio of cash flow hedges, we expect to
reclassify gains of $36 (pre-tax) during the next 12 months.
We have derivative instruments with credit-risk-related contingent features. For foreign exchange
contracts with original maturities of at least five years, our derivative counterparties could require
settlement if we default on our 5-year credit facility, expiring November 2012. For commodity contracts,
our counterparties could require collateral posted in an amount determined by our credit ratings. The
fair value of foreign exchange and commodity contracts that have credit-risk-related contingent
features that are in a liability position at December 31, 2009 is $88. At December 31, 2009, there were
no aggregate derivative positions requiring the posting of collateral.
100